Kier appoints new chairman after tough year
Kier has appointed a new chairman after a turbulent year to date that has seen the struggling outsourcer’s market cap fall more than 75 per cent.
Matthew Lester will step down from the board at Barclays to take up the role in January, replacing outgoing chairman Philip Cox.
Read more: A huge private equity tycoon is in to buy Kier Living
His appointment comes during an attempted turnaround in which Kier has announced 1,200 job cuts and the sale of non-core divisions, including property and environmental services.
He said: “I am delighted to be joining Kier as its chairman. I look forward to working with the board to deliver the group’s strategic priorities and in continuing to build the foundations for its future.”
Kier’s share price rose 3.2 per cent to 93.9p after the announcement.
Lester was the chief financial officer of Royal Mail and has held senior finance positions at Diageo.
Kier is one of the country’s biggest builders of roads, schools and railways, and carries out a significant amount of work for the government.
Cox decided to quit in September after Kier announced a £245m annual loss, capping a series of executive departures starting with ex-CEO Hayden Mursell in January after a failed share issue.
In his last annual report, outgoing chairman, Cox said: “This has been a challenging year for Kier. As a board, we take our responsibilities to all our stakeholders very seriously, and I want to express my personal regret that we have disappointed this year.”
Kier’s last full-year results reported losses of £245m and net debt of £167m. It has suspended its dividend for 2019 and 2020.
Private equity firm Terra Firma is reportedly looking to buy the company’s housebuilding arm, Kier Living, according to Sky News.
The business is estimated to be worth £150m, though Terra Firma is thought to be offering less.
Read more: Kier;’s COO has departed with immediate effect
Lone Star Funds, another private equity group, is also reportedly interested in acquiring the division.
Alongside Kier Living, Kier Property is also up for grabs. The two divisions could contribute around £200m to new chief executive Andrew Davies’ fundraising efforts.