Kier improves productivity despite covid restrictions

Kier is expected to deliver half-year results “slightly above” its expectations for the six months ended 31 December 2020, after it improved site productivity despite covid-19 restrictions.

The company said its results for the period would be “materially
better” than the same period last year.

Kier, which is still attempting to sell its Kier Living
housing arm, now expects to deliver £105m of cost savings by the end of its
2021 financial year.

However, its average month-end net debt for the six months
to 31 December remained at a level similar to the average month-end net debt
for the 2020 financial year.

Meanwhile, it has reduced supplier payment days from an
average of 38 to 34, with all Kier companies now reinstated to the Prompt
Payment Code.

In a trading update, Kier said it was “confident” for the
group’s outlook with an order book that was “slightly above” year-end levels.