Kier returns to profit after two-year turnaround

Grant Prior 1 year ago
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Kier is back in the black after posting years of heavy losses.

Latest results for the year to June 30 2021 show a pre-tax profit of £5.6m compared to a £225.3m loss last time as turnover dipped to £3,329m from £3,476m.

Chief executive Andrew Davies is now looking to build on the turnaround with a £7.7bn order book and a focus on the firm’s core businesses following a recent successful £241m capital raise and the £110m sale of Kier Living.

Davies has set medium term targets of taking turnover up to £4bn-£4.5bn generating an adjusted profit margin of £3.5%.

Restructuring costs during the year were £31.6m including £13.6m through further downsizing of the Regional Southern Build business.

Davies said: “The Group delivered a strong operational performance and materially improved results in FY21. We have completed the strategic actions set out in 2019 to simplify and focus the Group, improve cash generation and strengthen our balance sheet.

The successful capital raise, the recent sale of Kier Living, and the extension of the Group’s RCF facility provides Kier with the financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.

Current trading is in line with our expectations, and despite inflationary pressures and the impact of increased national insurance contributions, our outlook for the current year remains unchanged.

“We are now focused on delivering our medium term value creation plan by leveraging our attractive market positions, delivering our high-quality order book and fostering our long-term customer relationships and sector expertise.

 

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