Revenues rise with Kier Group ‘performing well’
Construction and property giant Kier Group has continued to increase half-year revenues past the £2bn mark with the company “performing well”.
For the six months to 31 December 2017, Kier reported income of £2.17bn compared to £2.01bn during the previous 12 months.
Pre-tax profits held steady, dipping slightly from £35.7m to £33.7m. However, at an underlying level it increased from £47.1m to £48.8m.
Chief executive Haydn Mursell said it had been a “good first half” with particularly strong contributions from the property and services divisions.
“The group is performing well,” he said. “Our £9.5bn construction and services order book, combined with our £3.5bn pipeline in the property and residential divisions, provides good visibility of work over the medium term.
“The group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years.
“We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”
Since the period-end, Kier has increased its share in a trio of arrangements it was working on with Carillion. On the Smart Motorways project, it increased its stake from 50 per cent to 100 per cent, and on two separate HS2 contracts, it upped its holding from 33 per cent share to 50 per cent share.
“The above contracts are all performing well, operationally and financially,” it said. “Management is in the process of evaluating the impact of these changes on future profits of the group.”