Kier Group announces preliminary results

Figures looking good for Kier

Kier Group have announced the preliminary results for the year ending June 30th, reporting a pretax profit of £39.5M, up from £15.4M in the previous period, on revenues of £3.Bn and £2.91Bn respectively.

Reflecting a strong organic growth across all divisions, the results show:

• Property – underlying operating profit up 42%;
• Residential – 2,130 new units delivered this year, a 35% increase on 2014;
• Construction – revenue growth of 15%, resilient margin of 2.2% and 95% secured for 2016; and
• Services – revenue growth of 13%, stable margin2 of 4.7% and 90% secured for 2016.

Commenting on the results, Kier Group plc chief executive, Haydn Mursell said: “I am pleased to announce we have delivered solid growth and increased profitability. Economic confidence is returning to our core markets and, furthermore, the acquisition of Mouchel represents a major step in accelerating the Group’s five-year strategy.”

“All our divisions have performed well. In Property, the market remains strong and we have ample support from funders and other investors.  Following its expansion, our Residential division is well-placed to help address the national shortage of affordable housing. In Construction, the regional building business has an established position on public and private sector frameworks and our infrastructure business is benefiting from continued greater investment by the UK Government in infrastructure in the medium term and internationally, the Middle East pipeline is strengthening. Our Services division will benefit from the £700m AMP6 contracts secured during the year and the Mouchel acquisition has made Kier the sector leader in the UK highways management and maintenance sector. We are committed to offering a full, integrated approach to our clients by maximising the breadth and combination of capabilities available in the Group, assisting them to address the budget challenges they face.”

“We continue to simplify the portfolio and restructure our businesses and invest in our future growth. We continue to improve the quality of our earnings to reflect the changing demands of our markets. With a £9.3Bn order book, a strong balance sheet and continued progress on our Vision 2020 goals this year, we look forward to the future with confidence.”

 

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