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Gloucestershire Business News

Kier showing 'resilience' as revenues dip but profits rise

Infrastructure services, construction and property group Kier has seen revenues dip but profits rise in the past year.

The company has a regional base in Gloucester and is involved in some major projects across Gloucestershire.

Kier Group's results for the year ended 30 June 2022 show total revenue down 4 per cent to £3,144m (2021: £3,261m). But thanks to several years of restructuring, pre-tax profit rose nearly threefold to £15.9m (2021: £5.6m).

Kier says it has a "high quality order book", increased 27 per cent to £9.8bn (FY21:£7.7bn) providing certainty against the wider market backdrop.

Chief executive Andrew Davies said: "Over the last two years Kier has undergone a transformation, rationalisation and recapitalisation and the Group is delivering against its medium-term value creation plan.

"The performance over the last 12 months reflects our significantly enhanced resilience and strengthened financial position.

"The Group is well positioned to continue benefiting from UK Government infrastructure spending commitments.

"The new financial year has started well and we are trading in line with our expectations, despite continued inflationary pressure and see no change in the current market outlook. We remain focused on the delivery of a sustainable net cash position and sustainable dividend policy, in-line with our medium-term value creation plan."

Contract highlights in the past year included Kier being awarded £560m maintenance work and services contracts for North Northamptonshire and West Northamptonshire Councils for seven years.

The company was also appointed to the £1.6bn Pagabo Civils and Infrastructure Framework for four years; Kier BAM Joint Venture appointed by Babcock International on a refurbishment project at Devonport's 10 dock facility in Plymouth. The project is expected to run for 10 years

Kier was also awarded a place on Northern Ireland Water's £1.2bn Major Projects Partnership Framework in joint venture with BAM for four years (with an option for a further four-year extension).

On the construction front, Kier was awarded a £500m contract to deliver new houseblock buildings across six prisons with Wates; awarded a £400m contract for HMP Full Sutton, a new prison in East Yorkshire; awarded a £32.5m refurbishment contract for Manchester Aquatics Centre; selected by Baring and LBS Properties to design and construct a £69m mixed-use sustainable building in London

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