Positive underlying performance
Strong pipeline of activity at Kier
Kier: strong pipeline of activity
Construction company Kier Group has reported a strong performance from Kier Construction Scotland which has continued to expand its order book.
Brian McQuade, managing director of Kier Construction Scotland, said the company has secured a “strong and steady” pipeline of activity.
This includes work with NHS Greater Glasgow and Clyde at Stobhill Hospital and the design and build requirements for the new £25m Queen Margaret Academy in Ayr.
It is also working on heritage projects, restoring some of the country’s most important landmarks and has just completed the new roof for the fire-damaged Glasgow School of Art.
Haydn Mursell, chief executive, said: “Our underlying performance for the year was good. Having simplified our portfolio, the Group is more focused and able to pursue its growth ambitions in our three core markets; building, infrastructure and housing, which now represent 90% of the group’s revenue and profit.
“We continue to invest in the business to improve our operational efficiency, providing a robust platform on which to take advantage of the strong long-term fundamentals in these core markets.
“Our Construction and Services order books of £9.5bn, together with our c.£2bn property development and residential pipelines, provide good long-term visibility of our future work. This visibility, coupled with our healthy balance sheet, provides us with confidence of achieving our Vision 2020 strategic targets.”
·Revenue of £4.27bn, up 5%
·Underlying profit from operations of £146m, up 3% after £7m interest and tax cost from joint ventures
·Net debt of £110m, at the lower end of market forecasts and maintaining <1x ratio to EBITDA
·Strong underlying operating cash conversion of 113%
·Underlying earnings per share of 106.8p, up 7%
·Proposed full-year dividend per share increased by 5% to 67.5p (2016: 64.5p)