British construction company Kier is set to cut 1,200 jobs and suspend its dividend for at least two years. The firm, which holds contracts with council rubbish collection and the UK's high speed rail project, is also selling its house building and property businesses, and says it will focus on areas including regional building and highways. It aims to reduce its debt and save £55m a year by 2021. Fund manager Neil Woodford, who recently stopped withdrawals from his biggest fund, is a major investor in the company.
Shares in the troubled construction and services company tumbled to a new low of 109p on Monday afternoon, down 17%, after crashing 35% on Friday, as its mounting problems prompted comparisons with stricken competitors.
Carillion ceased to exist last year after falling into insolvency, while Interserve’s lenders seized control of the company this year after it was unable to pay its debts.
