Kier profit up almost three-fold

Kier has outstripped many of its major contracting rivals by achieving a three-fold increase in pre-tax profit in full-year results to the end of June.

Pre-tax profit was up to £39.5m, up from £15.4m, while revenue rose 13% to £3.3bn, up from £2.9bn.

Kier’s construction division also increased profit, with underlying operating profit up 25% to £37.7m, up from £30.2m, representing an underlying operating margin of 2.2%, up from 2%.

Kier said its construction division was boosted by “significant UK regional building contribution”, while the firm’s residential division delivered a 35% increase in units.

The acquisition of consultant Mouchel earlier this year boosted Kier’s order book to £9.3bn, up from £6.2bn.

The overall Kier group’s underlying pre-tax profit - which strips out exceptional costs - increased 17% to £85.9mm, up from £73.7m.

Haydn Mursell, Kier chief executive, said: “We continue to simplify the portfolio and restructure our businesses and invest in our future growth. We continue to improve the quality of our earnings to reflect the changing demands of our markets.

“With a £9.3bn order book, a strong balance sheet and continued progress on our Vision 2020 goals this year, we look forward to the future with confidence.”