Kier Living suffers £89m loss

摘要

Kier's for-sale residential business lost £89m in its last financial year, new accounts have revealed. Kier Living reported a pre-tax loss of £89.4m for the year ending 30 June 2020.The bulk of the loss was caused by a £50m loan to another residential business, Kier Caledonia Homes, being written off because the company lacked the means to repay it. The company's performance in the year was further undermined by the £22.3m cost of exiting a number of fixed-price contracts to deliver residential units. It also impaired some of its land assets in Cornwall, Wales and the North of England at a cost of £5.5m. In September, Kier said the Living business had suffered a £12.8m adjusted post-tax loss, with the wider Kier group reporting a £273.3m post-tax loss for the year. As part of wider cost cutting and staff reduction in the Kier group, 52 people were let go from the Living business during the year and a further 111 staff were cut after June. Kier Living booked a £2.2m cost for making the redundancies.The company's headcount has fallen from 606 in June 2018 to around 440 now. Kier announced plans to cut about 1,200 jobs in 2019, with the number increasing with the onset of the pandemic.