Kier cuts debt
Kier expects to cut its monthly net debt by £20m by the first half of the 2019 financial year, as it continues to make measures to future proof its business.
In a trading update issued this morning, the firm acknowledged that its level of net debt is a “key focus” for industry stakeholders and announced that its average monthly net debt was set to fall to around £390m for the first half of its 2019 financial year, down from £410m for the second half of the 2018 financial year.
As part of measures to cut its debt pile, the business confirmed that it has sold its Australian road maintenance business KHSA to joint venture partner Downer Group for around £24m.
Meanwhile, Kier said it had made “good progress” with the Future Proofing Kier (FPK) programme since its launch, with respect to streamlining the business and improving cash generation.
The amount it has spent future proofing its business has so far exceeded the amount it has saved by about £10m, but the company said this was "as anticipated" and it was confident it would meet expectations for its 2019 financial year. It predicted that the position by the end of the 2019 financial year to be “earnings and cash flow neutral”.