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Builders and building materials

Kier Group takes £73mln hit for 'portfolio simplification'

Kier Group says its portfolio simplification programme is nearing conclusion and that its profits are in line with expectations in the current financial year. It also optimistic about the next financial year.

Property and construction firm Kier Group PLC’s (LON:KIE) will take a £73mln hit in this year’s results for the closure of its businesses in the Caribbean and Hong Kong.

The group said its core operations were supported by good organic growth and improved margin while its net debt position was expected to be at the lower end of market estimates, at around £150mln.

Kier said the one-offs were part of its "portfolio simplification programme” that will generate cash for the group to enable it to focus on the future growth of its core operations.

Looking to the next financial year, Kier said: "Our property and residential pipelines continue to improve and our robust construction and services order books total approximately £9bln, providing an 85% secured revenue position for next year."

In mid-morning trade, Kier Group shares were up 1.22% at 1,240p.

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