Kier swings to FY profit as turnaround complete
Construction group Kier said on Thursday that it swung back to a full-year profit after completing its turnaround strategy.
In the year to 30 June, adjusted pre-tax profit rose to £65.4m from £16.9m while reported pre-tax profit came in at £5.6m compared to a loss of £225.3m the year before.
Revenue fell to £3.3bn from £3.5bn, however. The company put this down in part to exiting non-core low margin and loss-making contracts and the successful completion of its motorway upgrade projects.
Chief executive Andrew 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 revolving credit 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."
Kier said current trading is in line with its expectations, and despite inflationary pressures and the impact of increased national insurance contributions, the outlook for the current year is unchanged.