Kier bags brace of projects worth £42m

Aaron Morby 8 years ago
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Kier has started the year with an office job in Crawley and an NHS accommodation block for junior doctors and nurses in Grimsby.

The £27.5m office contract for developer Bridgecore is to design & build a 130,000 sq ft office scheme in the Manor Royal Business District.

The building has been pre-let to cancer treatment specialist Elekta, which invented the world’s first commercially-produced linear accelerator (linac), delivering high-energy x-rays to treat cancerous tumours.

Kier secured the £14m Grimsby accommodation block in North East Lincolnshire under its P21+ framework.

The 220-bed development at the Diana, Princess of Wales Hospital, brings Kier’s tally of P21+ schemes to more than 65 since 2010.

This includes a £30m programme of works for York Teaching Hospitals NHS Foundation Trust, which incorporates developments at York Hospital, Scarborough General Hospital, Bridlington Hospital and Malton Hospital.

In addition, Kier is working in partnership with both the Rotherham NHS FT and Mid Yorkshire NHS FT under P21+ on the reconfiguration of Dewsbury District Hospital.

In a half-year trading update this morning, the group revealed its combined construction and services order book, as at 31 December 2015, has been maintained at £9bn, excluding potential further renewals and extensions valued at over £3bn.

The reorganised residential division is on track to generate revenue more than 30% ahead of last year and deliver 2,200 completions by the year-end at 30 June.

Its private housing business remains on course to deliver 850 completions from Kier’s own land bank and has a current forward order book that represents over 80% of the units forecast for the year.

An improved working capital performance across the group has brought net debt down to £175m, ahead of board expectations.

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