Kier is close to finalising a deal to sell its housing maintenance division in a deal that could net the company £30M as contractor seeks to cut borrowings.
The sale is part of a plan announced in the company’s annual report to reduce net debt, which stood at an average of £375M in 2018, up £55M from 2017.
In November the firm agreed to sell its stake in Australian road maintenance business KHSA to Australian infrastructure specialists Downer Group for £24M.
The move to sell the housing maintenance division comes just a week after Kier chief executive Haydn Mursell resigned.
Mursell’s departure came after intense pressure from shareholders. Some were reported to have pushed for Mursell to be ousted from Kier after short selling of the company’s shares over recent months indicated a decline in investor confidence in the company.
Mursell is to be replaced with an external hire, and the position is being held in the interim by Kier company chairman Philip Cox.
Kier released a trading update earlier this month expressing confidence that it would meet expectations for the financial year ending 30 June 2019 and achieve a positive net cash position by that time.
Kier declined to comment reports of the housing maintenance sale.
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