Major Norfolk employer posts shock profit warning
PUBLISHED: 10:32 03 June 2019 | UPDATED: 10:32 03 June 2019
One of Norfolk's biggest employers has posted a shock profit warning, sending shares plummeting.
Bosses at Kier have revealed that profits are expected to be £25 million lower than expected.
The embattled construction group has two hubs in Norfolk, one in Norwich at Mile Cross Lane and one in Aylsham.
You may also want to watch:
MORE: First look at renovated historic pub which plans to add bedrooms
The company said the highways, utilities, housing maintenance and buildings divisions will be particularly affected and revenues will be flat at around £2.5bn.
Shares in the business plunged more than 40% in trading this morning to 163.2p - a new all-time low for the firm.
New chief executive Andrew Davies, who is carrying out a review into the business, also revealed that the costs for its "future-proofing" project will more than double - costing £29m compared with £14m originally earmarked.
Bosses at Kier, which is a major contractor for the HS2 railway project, said the extra costs are due to an "acceleration of the programme" under the new chief.
Mr Davies joined Kier in March and set to work drawing up plans for a major turnaround, after attempts by previous management to raise £250m from shareholders to cut debt and strengthen the balance sheet failed.