Kier, the construction firm behind a string of Scottish projects, has issued a profit alert, with bosses revealing that earnings are expected to be £25 million lower than expected.
In an update on trading, the group said the highways, utilities, housing maintenance and buildings divisions will be particularly affected and revenues will be flat at some £2.5 billion. Shares in Kier Group were down 29 per cent in early trading on Monday.
New chief executive Andrew Davies, who is conducting a review into the business, also revealed the costs to its “future proofing” project will more than double – costing £29m compared with £14m originally earmarked.
Davies joined the firm in March and drew up plans for a major overhaul, after attempts by previous management to raise £250m from shareholders to strengthen the balance sheet failed. The review is expected to be completed by the end of July.
Earlier this year, Kier Construction Scotland completed the multi-million-pound overhaul of two historic buildings for the University of Edinburgh.
The firm undertook the £14m refurbishment of the grade A-listed Edinburgh College of Art.
Together with performing essential upgrading of the building’s fabric and internal systems, it carried out a series of improvements, including bringing a previously unused courtyard on the west side of the main building into use.
The second transformation involved the £7.7m refurbishment of the grade B-listed Murchison House.
Located on the university’s King’s Buildings Campus, the former British Geological Survey building has undergone an extensive fit-out to transform it into a "dynamic, multi-functional" building.