Kier Group unveils full year results in line with expectations with revenue of £4.2bn up 26% and like-for-like revenue up 8%
Underlying profit from operations rose by 44% to £150m, including a full year's contribution from Mouchel, an increased share of post-tax results of joint ventures in the property division and margin recovery supported by cost efficiencies.
Underlying earnings per share rose by 11% to 106.7p and the proposed full year dividend of 64.5p per share is up 17%.
The group says it is performing well in growing market sectors with solid long-term fundamentals
- Order book of £8.7bn providing long-term visibility
- 50% of Group profit from operations arising from Services division
- Confident of achieving its strategic goal of double-digit profit growth on average each year to 2020
Chief executive Haydn Mursell said: "I am pleased to report a good set of results reflecting the evolution of the Group during the year following the completion of the integration of Mouchel.
"This year, we have successfully focused on our commercial and capital disciplines and are pleased to report a significant improvement in our net debt, further strengthening our balance sheet and the delivery of a key Vision 2020 target: net debt: EBITDA of less than 1x, a year ahead of our expectations.
"The Group continues to perform well in growing market sectors including infrastructure, housing and regional building, providing a breadth of capabilities to our clients. For the first time, 50% of Group profit now comes from our Services division where essential day-to-day services are provided to clients and we have long-term visibility of our future pipeline of work.
"We remain focused on growing the business through improving operational efficiencies and investing in new technology to support our operations. We believe that our range of complementary businesses underpins the resilience of our operating model and the strength of our order book.
"Having completed the integration of Mouchel, we are well progressed with the simplification of our portfolio of businesses and are focused on capitalising on the growth opportunities available to the Group. We remain confident of achieving our goal of double-digit profit growth on average each year to 2020."