Kier Group PLC (LON:KIE) has moved to reassure investors that it won’t be adversely affected by the collapse of fellow construction giant Carillion PLC (LON:CLLN).
Carillion filed for liquidation on Monday morning as it buckled under the weight of its £1.5mln debt pile following failed last-ditch talks with its lenders.
READ: Carillion collapse confirmed
The two companies work together on several joint ventures, including HS2 and the Highways England smart motorways programme.
Given that Carillion’s demise had been on the horizon for a little while now, Kier said it had put in place contingency plans for each of the shared projects, while it is also working closely with clients to ensure continuity of service.
READ: Kier Group reiterates expectation of “double digit” profit growth this year
“Following today's announcement and after a short period of transition for these contracts, we do not expect there to be an adverse financial impact on the group arising from these joint venture contracts,” Monday’s statement said.
Kier shares rose 0.9% to £10.92.