Kier To Exit Caribbean Business. Cites ‘Portfolio Simplification’

Construction firm Kier will take a £73m hit in its full-year results after taking the decision to close its Hong Kong and Caribbean businesses, it revealed late June 2017.

The firm is set to close its Caribbean business following the agreement of a final account with an unnamed client on what Kier called “a challenging project”, which is expected to complete “within the next three months”.

In total, the closure of the Caribbean business will have cost Kier £79m, including £23m last year and £56m this year.

Kier said that the moves to close the businesses fit into a wider programme of “portfolio simplification” that it has undertaken since the middle of 2015. This has resulted in it concentrating more on its regional building, infrastructure and housing projects.

Source: Telegraph

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    • observer

      “Portfolio simplification” or inability to compete with CHEC and other construction outfits from China? Truth is Kier and other shareholders/managers are operating off the increasingly old business formula for return on equity, that is profit rate. CHEC and similar look long-term and are prepared to wait patiently for returns over longer periods. I suspect also that Chinese companies, having learned from the Europeans and North Americans, have bettered building technologies and project management resulting in greater efficiency and competitiveness. Kier better beware. For the Chinese are also active in Europe and will displace them there too if they do not accept change.