3rd Jun 2019 08:14
LONDON (Alliance News) - Shares in Kier Group PLC plunged on Monday after the company said adjusted operating profit for financial 2019 will be lower than previously expected due to mounting volume pressures on three of its divisions continued.
Shares in the construction business were trading 22% lower early Monday morning at 216.33 pence each.
The FTSE 250 construction company said it has continued to experience volume pressures within its Highways, Utilities and Housing Maintenance businesses.
In addition, despite double-digit order book growth, the Buildings business unit's revenue growth for 2019 will be lower than previously forecast, the company said.
This will impact the Kier's financial results for the year ending June 30, with revenue expected "broadly in line" with financial 2018 and underlying operating profit around GBP25 million lower than previously guided.
A year ago, Kier's revenue amounted to GBP4.5 billion while adjusted profit from operations was GBP160 million.
Furthermore, Kier said it is likely to report a net debt position as at June 30 that "would have an adverse impact on 2019 average month-end net debt position".
Kier added that the costs of its restructuring programme, Future Proofing Kier, is now expected to be GBP15 million higher than originally estimated.
Kier will publish its annual results on September 19.
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