London-listed builder exits ‘challenging’ housing sector after property market slowdown
A top listed construction firm has pulled out of the UK’s “challenging” housing sector after a slump in demand for new homes across the country. The FTSE 250 firm told shareholders on Tuesday that it is pulling all capital out of the residential property sector in a bid to “de-risk” its portfolio. The group’s pre-tax [...]
A prominent UK construction company has exited the struggling housing market after a decline in demand for new homes. The FTSE 250 firm announced on Tuesday that it will divest all capital from its residential property division to "de-risk" its portfolio. The group's pre-tax profit from its property arm fell by a quarter to £9.1m in the year ending June due to "challenging market conditions" and "macro-economic turbulence."
The firm intends to focus on government infrastructure partnerships and expects significant revenue growth from water, energy, defense, and healthcare projects in the coming years. Kier Group, which derives 90% of its contract revenues from the public sector and regulated firms, is "well aligned" with Labour's spending commitments to invest in UK infrastructure.
The UK's listed housebuilders have faced a turbulent year as the Iran conflict has driven up supply costs and higher mortgage rates caused by the conflict have stunted demand for new homes.
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