Kier Group is to cut 1,200 jobs and non-core businesses as well as seeks to turnaround its fortunes.

Haydn Mursell was effectively ousted by shareholders.

His successor Andrew Davies told investors on Monday that he was taking a step-by-step job at the same time.

The review found an insufficient focus on cash generation.

Carillion fell into crisis in January 2018
Image:
Carillion's demise last year shook confidence in the company exposed to public sector contracts

It said Keir would now focus on its regional building, infrastructure, utilities and highways arms – saying their performance was underpinned by long-term contracts and would deliver sustainable revenues and margins.

Kier Living along with its property, facilities management and environmental services work to allow a renewed focus on cash generation.

It hoped that cutting 1,200 full-time jobs across its businesses would help deliver annual cost savings of £ 55m from 2021.

Kier, which employs nearly 20,000 workers, said it's expected to be 650 employees in the next financial year.

Kier said that he had cold feet – had knocked confidence in his position.

It said that while its banking facilities were able to absorb the volatility, net debt at the end of this month would have been higher than current market expectations.

The company expected average month-end net debt to come in at £ 420m- £ 450m.

It has been suspended for the current year and next.

Mr. Davies said: "These actions are focused on resetting the operational structure of Kier, simplifying the portfolio, and emphasizing cash generation in order to structurally reduce debt.

"By making these changes, we want to reinforce the foundations from which our core activities can flourish in the future, to the benefit of all our stakeholders."

More follows …