Kier Group increases debt position after accounting error

Construction firm Kier Group has restated its debt position after an accounting error related to its property assets.

Following a review of its accounts, the company said it has identified £40.2 million of debt related to developments that were held for re-sales which was not included in its reported debt in error.

The company has revised its net debt position as at December 31 2018 to £180.5 million from around £130 million previously.

The average month-end debt position for the six months ended December 31 was also increased to about £430 million from £370 million.

Kier said it remains focused on reducing its debt and to expects that it will be in a cash position by June 30.

Meanwhile, the company said it expects to book a £25 million charge in its interim results related to the Broadmoor Hospital redevelopment after reaching an agreement with the client over additional costs related to the project’s delay.

Kier also said it is on track to meet expectations for the full year, with results weighted towards the second-half, despite “current political and economic uncertainty in the UK, and the implications for third-party investment”.

Interim results are expected to be published on March 20.