Good contribution from Scotland
Kier reports strong first half performance
Kier has reported a strong order book
Kier Group chief executive Haydn Mursell said the company had a good first half performance with particularly strong contributions from its property and services divisions.
“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,” he said.
“We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”
Kier Construction Scotland has maintained turnover stability at approximately £150m per annum and has a growth target of £200m by 2020.
Brian McQuade, managing director of Kier Construction Scotland, said: “Kier Construction Scotland has a robust pipeline of activity, thanks to a number of important framework and tender wins.”
· Revenue of £2,154m, up 8%; underlying operating profit of £60m, up 5%
· Forecast revenue in Construction and Services 100% secured for year to 30 June 2018; more than 65% secured for year to 30 June 2019
· Order book of approximately £9.5bn reflecting strong pipeline conversion in regional building and highways
· Net debt of £239m and expected to be less than 1x EBITDA at 30 June 2018
· Basic earnings per share of 41.0p (December 2016: 39.7p), up 3%
· Pension deficit reduced to £19m
· Interim dividend of 23.0p, up 2%
· On course to deliver double-digit profit growth in 2018 and on track with Vision 2020 goals