The figuresThe under-fire construction group made a £35.5m loss in the six months to the end of December, after a profit before tax of £34.3m in the same period in 2017.
Why it’s interestingThe struggling outsourcer saw shares fall 9.2 per cent to 439.4p this morning as investors reacted to the lacklustre results. Yesterday the company revealed its new chief executive will be Andrew Davies as it fights to find its feet amid mounting debts. Davies was appointed boss of failed contractor Carillion before it collapsed in January last year, never getting the chance to take the reigns.
Former Kier boss Haydn Mursell was ousted by investor action spearheaded by 15 per cent shareholder Neil Woodford in January. Looking to hit a net cash position by the end of June, Kier today revealed it delivered £4m in cost savings across the second half of 2018, though the cost-cutting programme cost £14m to implement. However, Kier expects to net £20m in savings over the coming financial year. It also brushed off the loss, pointing to underlying profit of £51.8m. Kier therefore maintained its underlying expectations for the current financial year, saying it will benefit in the second half.