Kier Group sells non-core assets in cost-saving mission

 
Sebastian McCarthy
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Kier Group focus on construction, property and environmental services (Source: Getty)

Leading construction and property company Kier Group said this morning it plans to sell its non-core assets as part of a wider cost-savings programme.

The firm, which also announced profits and earnings performed in-line with expectations, will be hoping the plan, which was launched last month, will improve productivity, operating margins and cash generation.

The company also secured three-year extensions on its Highways England Areas 3 and 9 contracts, with a total value of roughly £250m per year, with contracts to provide emergency repairs and maintenance services, repairs on some of the UK's highways.

Read more: Kier shares slip despite "reassuring" lack of surprises

While underlying profit and earnings forecast were in-line with expectations, winter weather reduced volumes, with average month-end net debt of climbing to around £375m.

Read more: Construction group Kier announces joint venture with Homes England

The construction and services order books increased to more than £10bn, providing a 90 per cent secured revenue position in these businesses for 2019, Kier added.

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