Kier Group profits rise despite turbulent markets
Construction, services and property group Kier posted a rise in underlying full-year pre-tax profit on Thursday thanks to a solid performance from all of its divisions.
Construction & Materials
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Kier Group
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In the year to 30 June, underlying pre-tax profit increased 9% to £137m on revenue of £4.5bn, up 5%. Meanwhile, the company's construction and services order book stood at a record £10.2bn.
Kier lifted its full-year dividend per share by 2% to 69p and said it was on track for 2x cover target in FY20.
The company said there was "significant" turbulence in its markets during the year following the liquidation of Carillion, after which it bought a greater share of the HS2 project and Highways England's Smart Motorways programme - a move that benefited its order book.
Chief executive Haydn Mursell said: "I am pleased to report a good set of results with all divisions performing well. We have launched the Future Proofing Kier programme which will streamline the business thereby enabling us to deliver a more efficient service to clients, respond to changes in our markets and capitalise on growth opportunities, whilst, importantly, also accelerating the reduction of the group's net debt position.
"Our strong market-leading positions, our record £10.2bn construction and services order books, and our £3.5bn property development and residential pipelines, will see the group deliver on its Vision 2020 targets. In addition, the Future Proofing Kier programme positions the group well for an improvement in operating margins and higher cash generation, culminating in a net cash position for FY21."