Mark Whitehead 06 June 2019

Councils exposed following Kier profit warning

Local authorities are heavily exposed to struggling construction giant Kier which faced a huge fall in its share price this week, according to the latest figures.

Market analysts Tussell say the firm is named on 80 local authority contracts signed since 2015, with a total lifetime value of nearly £600m.

The biggest is a £210m contract with Shropshire started last April to repair the county's highways, estimated to be worth £21m a year.

Wiltshire County Council has contracts with the company worth £63.9m, while the third biggest customer is Durham County Council with £50m of business.

Kier announced on Monday that its underlying full-year profits would be far below earlier forecasts, leading to its shares plummeting by 41% to their lowest level since 1999.

The FTSE 250 company, which employs 20,000 people, builds and maintains infrastructure and buildings for the public and private sector such as roads, rail, schools, hospitals, student housing, prisons, offices and homes.

Large infrastructure projects include HS2 and London’s delayed Crossrail.

In December Kier launched a £264m emergency fundraising in a bid to avoid the same fate as Carillion, the construction and services company that collapsed in January 2018 forcing many local authorities to find alternative suppliers.

Tussell's founder Gus Tugendhat said: ‘Kier’s financial woes have been apparent for many months now.

'Kier differs to other struggling suppliers in that its contract portfolio is much more heavily weighted towards the wider public sector, particularly local government and higher education bodies.

'Whatever happens with Kier, it is essential that central government is sharing the lessons it has learned in managing risk in its supply chain with colleagues across the wider public sector.’

SIGN UP
For your free daily news bulletin
Highways jobs

Adoption Panel Member

Durham County Council
Being reviewed
Do you have experience, either professionally or personally or both, of children being cared for away from their birth family?   Are you passionate ab Seaham
Recuriter: Durham County Council

Housing Officer

Durham County Council
Grade 7 £30,024 - £33,699
We currently have three opportunities for Housing Officers to join the team within Homeless Prevention. One vacancy is Temporary until 31st May 2027 a Seaham
Recuriter: Durham County Council

Attendance and Safeguarding Officer

Durham County Council
£28,142 - £31,022 pro rata (term time only plus two weeks)
Attendance and Safeguarding Officer Grade 6- £28,142 - £31,022 pro rata (term time only plus two weeks) Temporary- Full Time- Term Time Required from Durham
Recuriter: Durham County Council

Senior Pracitioner - Family Centre, Colchester

Essex County Council
Up to £0.0000 per annum
Senior Pracitioner - Mulberry Tree Family Centre, ColchesterPermanent, Part Time (29.6 hours per week) £48,205 to £57,988 per annum (FTE)£38,564 to £4 England, Essex, Colchester
Recuriter: Essex County Council

Social Worker, Young People with Disabilities

Essex County Council
Up to £0.0000 per annum
Social Worker, Young People with Disabilities, North EssexPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council
Linkedin Banner