The contractor said the housing maintenance market “continues to be influenced by the budgetary pressures experienced by housing associations and local authorities”.
Contractor Kier has blamed budgetary pressures among housing associations and local councils for a dip in revenues at its developments and housing arm.
The operation, which covers property development, residential housebuilding, housing maintenance and environmental services, reported turnover for the six months to the end of December last year of £419m, down 19%.
Kier, which has named former Wates boss Andrew Davies as its new chief executive following the departure of Haydn Mursell last year, said the division’s operating profit had fallen 31% to £18m.
The contractor said the housing maintenance market “continues to be influenced by the budgetary pressures experienced by housing associations and local authorities”.
Its housing maintenance arm had seen a year-on-year fall in revenue, it said, following the conclusion of one contract and the imminent in-sourcing of another, although it declined to give further details.
Looking ahead, Kier – which reported an overall first-half pre-tax loss of £36m on revenues of £2bn – said the focus for its housing maintenance operation would be “streamlining the business [while] operational efficiencies would continue”.
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