Kier construction revenues increase
By Helen Wright16 September 2011
UK contractor Kier reported a +2% increase in construction revenues to £1.4 billion (€1.6 billion) for the year ended 30 June, amid a growing contribution from private sector contracts.
Construction operating profit increased to £39 million (€45 million) from £36 million (€41 million) last year, and the company's order book rose by £66 million (€75 million) year-on-year to £1.4 billion (€1.6 billion), with £859 million (€982 million) of probable awards yet to be included.
Kier said 56% of its contracts were for public sector projects, compared to 74% in 2010 - a decline that reflected "a significant shift in spending patterns from public sector social infrastructure projects to private sector and areas of regulated spend".
"The transition from public sector to private sector is a trend that will continue and we expect to see the proportion of public sector work drop to less than 50% over the next year," the company said, adding that competition for the declining public sector workload was increasing.
Power market growth
The contractor said the power, waste and nuclear markets and commercial building projects were key focuses and the power market alone was likely to provide it with over £13 billion (€15 billion) of opportunities over the next decade.
Kier chief executive Paul Sheffield said, "Our diverse skills and integrated business model have provided greater resilience during these challenging economic conditions. We are encouraged by the prospects we see in markets such as power and waste, in mixed-use regeneration and in the growth we see in public sector outsourcing."