Kier shares plunge on housebuilding unit sale reports
Shares in construction company Kier plunged more than 30 per cent today following reports that the outsourcer is preparing to sell its housebuilding unit.
Shares fell from 205p to 136.28p after it emerged that the embattled firm has been in talks with advisors over selling the business.
Read more: Kier shares rally after plummeting on profit warning
The division could be valued at between £100m and £150m, according to The Times, which first reported the story.
City PM has contacted Kier for comment.
The outsourcer, which is listed as one of the government’s top external suppliers of public services has been struggling with its finances.
Earlier this month Kier issued a fresh profit warning, saying its operating profit was expected to be £25m less than previously forcast.
It also said its “Future Proofing Kier” turnaround programme would come in £15m over its original budget.
Read more: Kier reports £25m profit warning
The company added that it was likely to report a net debt position as of 30 June, having previously forecast it would be in the black.
Kier’s net debt at the end of last year was £180.5m. The company will provide updated guidance for full-year 2020 with its full-year 2019 preliminary results announcement on 19 September.