Construction firm Kier Group has been forced to restate its debt position after unearthing an accounting error related to property assets.
Following a review of its accounts, the company said it has identified £40.2 million of debt linked to developments that were held for re-sales, which was not included in its previously reported debt.
The company has now revised its net debt position as at December 31 2018 to £180.5 million from around £130 million previously.
The average month-end debt position for the six months ended December 31 was also increased to about £430 million from £370 million.
Shares crashed over 13% in morning trade to 431p.
Kier said it remains focused on reducing its debt and expects that it will be in a cash position by June 30.
Meanwhile, the company said it expects to book a £25 million charge in its interim results linked to the Broadmoor Hospital redevelopment after reaching an agreement with the client over additional costs over the project’s delay.
Kier also said it is on track to meet expectations for the full year, with results weighted towards the second half, despite “current political and economic uncertainty in the UK, and the implications for third-party investment”.
Interim results are expected to be published on March 20.