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.