Kier Group revenues more than double
By Neill Barston22 September 2014
The Kier Group has released its half-year results that have revealed its revenues have more than doubled last year’s performance.
Its six-month figures show an increase of 51% to £3 billion (€3.8 billion) and a 54% rise in underlying profits to £73.1 million (€92.9 million) year-on-year.
Its construction division saw a 2.1% rise in margins and it also benefitted from a 15% return on capital from property development activity.
Among the strongest areas of performance was its services division, which delivered 4.8% improved margins.
According to the company, it has range of mixed tenure housing and property development pipeline of projects valued at £1.5 billion (€1.9 billion).
The firm has also achieved contracts within the Education Funding Agency regional framework for UK school building and upgrades estimated at up to £5 billion (€6.3 billion) over four years.
It has also secured joint venture contracts in Abu Dhabi for a £105 million (€133.5 million) hotel and spa, in addition to creating a new data centre there worth £87 million (€110.6 million).
Kier Group chief executive, Haydn Mursell, said, “I am pleased to report a good set of results that show significant progress on last year and demonstrate the strength of the operational performance of the business and the benefits of the May Gurney acquisition.”
“Despite inflationary price and labour cost pressures in the market, our margins remained solid, particularly in our services business. Following the integration of May Gurney, which transformed the scale and diversity of the group, the breadth of our capabilities has resulted in new as well as larger contract awards.”