Kier credit "significant improvements" for growth in orders
By Rob Freeman | 21st April 2021
Kier Group saw a growing order book as it saw what it labelled "significant improvements" in the second half of last year.
A trading update for the six months to December revealed profit before tax of £27.8million, compared with £30.7million for the same period the year before.
The construction firm, which has a regional base in Quedgeley, saw a dip in revenue from £1.8billion the year before to £1.6billion.
The company said an increased order book of £8billion at the end of the year covered 62 per cent of forecast revenues for the year to the end of June.
Chief executive Andrew Davies said: "I am pleased to report that the execution of the strategic imperatives outlined in June 2019 has resulted in significant improvements in both our financial results and free cash flow for the reshaped group."
He said the sale of housebuilding sector Kier Living, announced earlier this week for £110million, "achieved many of the milestones required to improve cash generation and reduce net debt".
Cost savings are predicted to save the company at least £115million by the end of the year.
"The second half of the year has started well seeing a continuation of the positive trends of the first half and we are confident of achieving further progress this year in line with our expectations," he said.
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