Construction boost

Kier to resume dividend after surge in profits

Kier workers
Kier will resume payouts to shareholders

Construction company Kier Group has posted a sharp increase in profit and said that it will resume its dividend payout next year.

For the year ended 30 June, pretax profit came in at £51.9 million compared with £15.9m last time. Revenue rose to £3.405 billion from £3.26bn.

The company said it intends to restart dividend payments in the first half of 2024 given its strong operational and financial performance over the last year, the year-end net cash position and confidence over short-term prospects.

“Over time, we will progress to deliver a dividend, covered 3 times by earnings and in a payment ratio of one-third interim dividend and two thirds final dividend,” it said.

Kier added that new fiscal year has started well and that it is performing in line with expectations.

Chief executive Andrew Davies said. “The group has achieved considerable operational and financial progress over the last two years.

“This is reflected in the significantly improved financial performance of the Group over the last year.

“The group significantly improved its year-end net cash position and has confidence in sustaining this momentum going forward. 

“The new financial year has started well, and we are trading in line with our expectations. The Group is well positioned to continue benefiting from UK Government infrastructure spending commitments and we are confident in sustaining the strong cash generation evidenced this year.

“This, combined with our focus on operational delivery, gives the Group a clear line-of-sight to significantly de-lever.  As a result, the Group intends to resume dividend payments during FY24, with the first dividend to be declared alongside our interim results.”

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