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15/11/2012

Kier Operations 'Under Review' In Falling Industry

A Scottish construction company has put its operations under review due to falling UK orders.

Kier Group announced in a statement: "We are experiencing a good level of bidding activity across the group, however today's trading environment remains difficult with little sign of improvement in the UK construction market.

"In light of this we are conducting a further review of our construction operations to ensure we remain as efficient as possible."
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The board added Kier had maintained its position in an ever-declining market and has secured over £400m of new work since 1 July 2012.

The group says the main growth areas in the industry are UK infrastructure and overseas work, where bidding levels have increased.

It also said the order book of secured and probable work stands at £2.1bn; 98% of forecast construction revenue for the year to 30 June 2013 and 53% of forecast construction revenue for the year to 30 June 2014.

"The energy sector is expected to bring work eventually but ongoing delays to the energy market reforms continue to block projects coming through," Kier said.

Balfour Beatty has also restructured, while local office closures by Morgan Sindall indicate continuing economic uncertainty and delay in recovery.

(IT)

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