Strong revenue and profit growth puts Kier on firm footing. Strong revenue growth at both Kier’s construction and infrastructure divisions drove growth in profits and halved average month-end debt in the year to June 2024.
Andrew Davies says core business is well-placed to benefit from UK Government and regulated industry spending commitments
The strong performance at the contractor saw revenue including joint ventures recover to £4bn again, up 17% from the prior year. This uplift as margin remained stable at 3.8% powered pre-tax profit forward nearly a third to £68m.
Kier’s order book continued to grow and increased 7% year over the year to £10.8bn. Around 60% of Kier’s order book is now under target cost or cost reimbursable contracts.
A strong seasonal inflow of cash mainly from construction saw year-end cash more than double to £167m. Average net debt halved to £116m from £232m in the prior year.
Andrew Davies, Chief Executive, said the years of streamlining and cost-cutting were now behind the business.
He said: “The past three years have seen the group achieve significant operational and financial progress.
“The contracts within our order book reflect the bidding discipline and risk management now embedded in the business.”
Both infrastructure services and construction delivered strong growth with property now expected to benefit from a stronger flow of investment going forward.
