Kier fightback continues with £200 million Transport for London contract
A swell of orders at the back end of 2020 and the start of the New Year has stirred hopes of a return to former glories for East of England construction and infrastructure group Kier.
It will be a long haul back but a trading update for the six months to end-December sent shares higher on Tuesday and the new order intake is extremely healthy.
Kier performed well in the first half and expects to deliver half-year results slightly above the board’s expectations. There was an improvement in site productivity through the period despite COVID-19 restrictions.
The group anticipates that a reduction in adjusting items in the period will generate a statutory result materially better than the corresponding period last year.
Kier continues to win new business in its markets on terms and at rates which reflect the bidding discipline and risk management introduced under the group’s Performance Excellence programme.
As at December 31, Kier had been awarded places on long-term frameworks worth up to £11 billion across a number of sectors including, health, education and justice. Also, several existing frameworks were extended by 12 months.
And in the first few weeks of 2021 Kier has also been awarded an eight-year maintenance contract worth around £200 million with Transport for London.