UK contracting firm Kier has warned stakeholders of a £40 million (€45.18 million) profit shortfall, adding that increased costs and a ‘tough trading environment’ had affected the business’ bottom line.
Kier said it was suffering from volume pressures within its highways, utilities and housing maintenance arms.
Despite double digit growth in its order book, the company also said its buildings business would generate lower revenue than forecast in 2018.
Kier employs around 20,000 people and was recently awarded contracts on high-speed rail project HS2 in the UK and London’s Crossrail project. Now the company warns that its underlying full-year profits will be substantially below earlier forecasts, at about £129m, as opposed to £169m.
As a result of this news, Kier’s price per share fell 42.4% from £2.78 to £1.60.
Kier has seen a trend of financial shortfall recently, as the firm also reported a loss before tax of £35.5 million (€40.87 million) for the six months ending 31 December, 2018.