Profits rebound at Kier as margin rises to 3.9%

Aaron Morby 2 years ago
Share

A strong performance at Kier’s infrastructure and construction division saw profits rebound despite ongoing inflationary pressures in the market.

Kier chief Andrew Davies says the new financial year has started well, with trading in line with expectations
Kier chief Andrew Davies says the new financial year has started well, with trading in line with expectations

Pre-tax profit in the year to 30 June soared to £52m, up from £16m previously, after revenue grew 7.5% to £3.4bn.

The improved performance, which saw group margin increase to 3.9%, prompted Kier to announce it would be resuming dividend payments to shareholders in the year ahead.

Andrew Davies, chief executive, said: “The group has achieved considerable operational and financial progress over the last two years. This is reflected in the significantly improved financial performance of the group over the last year.

“Our order book remains strong at £10.1bn and provides us with good, multi-year revenue visibility.

“The contracts within our order book reflect the bidding discipline and risk management now embedded in the business.”

Around 85% of target revenue for the year ahead has now been secured providing the group with confidence of further progress against the backdrop of wider market uncertainty, said Davies.

Kier has mitigated cost inflation pressures with around 60% of its order book under target cost or cost reimbursable contracts.

Across the business profit from operations nearly doubled to £82m. Construction profits strongly improved driven by increased volumes and the impact of the prior year’s restructuring.

The infrastructure division benefited from a continued ramp-up of Kier’s HS2 works.

Davies said the realignment of infrastructure services in July into two distinct business units – Transportation; and Natural Resources, Nuclear & Networks – would provide a stronger platform to pursue strategic market opportunities.

Kier trading by division
Op. profit change Revenue change Margin
Infrastructure £57m 19% £1.71bn 2.7% 4.7%
Construction £46m 113% £1.65bn 15% 4.2%
Property £14m -17% £38m -74% 34%

Despite better cash generation last year, average month-end net debt rose to £232m from £216m in 2022.

Davies said the anticipated increase in average month-end net debt was due to the repayment of the Kier early payment system and lower activity in the construction business until the fourth quarter of the year.

 

 

 

Latest news

Balfour Beatty terminates Danny Sullivan labour deals

Around 500 workers on HS2 will be moved to alternative agencies or be taken on direct
2 days ago

Trio face prosecution after Hinkley site death

Main contractors and client to face charges over death of site supervisor
2 days ago

Buyers see recovery in house building sector

But civil and commercial work still in the doldrums
3 days ago

Apprentice saws-off thumb on hotel refurb site

Court hears how digit was reattached and teenager continued training with another firm
2 days ago

Laing O’Rourke tops June contracts league

£919m animal super lab dominates new orders
3 days ago

TSL turnover smashes £500m as profit almost trebles

Data centre and logistics contractor rises high on surging demand
3 days ago

Gleeson Homes chief exec leaves business after restructure

Management revamp after "challenging" year
3 days ago

Green light for 1,600-home Oldham town centre overhaul

Plans for over 1,600 homes across six regeneration sites approved
3 days ago

DSM wins Norwich city centre clearance job

Anglia Square shopping centre clearance for £300m scheme
3 days ago

13-year-old becomes UK’s youngest qualified digger driver

Grandson of Gallagher Group chairman sets industry record
3 days ago

Cubby reborn in £12m Svella-backed takeover

£50m revenue target set as 14 firms combine under new Cubby Group banner
4 days ago

North East NHS trusts plot £3bn health estate overhaul

Market engagement begins for major construction push across four trusts
4 days ago

HG goes green on cranes in £1.2m switch to battery power

Diesel-free crane drive cuts fuel bills by 94%
4 days ago

Developer fined £165,000 for fire safety failings

Firm ignored fire safety orders on apartment job in Preston
4 days ago

Bidding to start for £1.8bn North West framework

Contractors invited to bid for latest Procure Partnerships deal
4 days ago

Hill hits record £90m profit as homes pipeline swells

Build-to-rent push and £4.8bn contracting book to fuel next growth phase
4 days ago

Rayner unveils £39bn plan to build 300,000 social homes

Council building revival and rent reform feature in social and affordable homes plan
5 days ago

Keltbray bounces back with £3.2m profit

Tighter controls and smarter project selection fuel strong turnaround
5 days ago

VINCI JV wins 500-home twin town centre revamps

Chester Northgate phase 2 and Northwich Weaver Square schemes move to delivery stage
5 days ago

80 energy projects unlocked as Ofgem backs grid expansion

£24bn energy networks deal gets green light from regulator
6 days ago

How to see your stories on the Enquirer

Join our Suppliers and Buyers directory to get your news published
5 days ago

Henley lands Midland Mill revamp on Leeds tower scheme

Restoration of 18th-century mill kicks off on South Bank regeneration project
5 days ago

New boss at Eric Wright Civil Engineering

Gavin Hulme takes top job as Diane Bourne moves to group role
5 days ago

Pinewood submits £1bn data centre plan

Studio giant adds green and learning spaces to tech hub blueprint
6 days ago

Record results after TClarke goes private

Britain's biggest M&E contractor flourishes after de-listing
6 days ago

Dalkia lands £200m nuclear maintenance deal

1,000 nuclear FM staff to join M&E contractor
6 days ago

Construction comeback to outpace wider economy

Arcadis forecast fueled by spending review optimism
7 days ago

First steel goes up on giant car battery site

Severfield gets to work on McAlpine Somerset site
6 days ago

Permasteelisa wins cladding deal on Bovis city tower

Facade specialist lands package at 60 Gracechurch Street
6 days ago

Fox buys recycled asphalt specialist Fisher

Acquisition adds major recycled asphalt capacity in north west
6 days ago