Kier on course for double digit profit growth
Cambridge property and construction group Kier hoisted interim revenues eight per cent to £2.154 billion in the six months to December 31 and is sitting on a huge order book.
Kier, which employs over 150 people from its offices at Cambridge Business Park, is on site with over £100 million of projects in Cambridge alone – including a £30m scheme to create a new student services centre and examination hall and a £46m office and laboratory development at Cambridge Biomedical Campus.
Kier’s underlying operating profit of £60m was up five per cent; the order book of approximately £9.5bn reflects strong pipeline conversion in regional building and highways arenas.
Net debt is £239m and is expected to be less than 1x EBITDA at June 30, 2018. The interim dividend of 23p showed an increase of two per cent. Kier said it was on course to deliver double-digit profit growth in 2018 and on track with its Vision 2020 goals.
Chief executive Haydn Mursell (pictured) said: “The group is performing well. Our £9.5bn Construction and Services order book, combined with our £3.5bn pipeline in the Property and Residential divisions, provides good visibility of work over the medium term.
“The group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years.
“We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”