Kier Group returns to profit after restructure

Kier Group plc has hailed a ‘strong operational performance and materially improved results’ as it reported a pre-tax profit of £5.6m for the year ending 30 June, compared with a £225m loss in the previous year.

However, revenue was actually down from £3,476m to 3,329m.

Chief executive Andrew Davies said: ‘We have completed the strategic actions set out in 2019 to simplify and focus the Group, improve cash generation and strengthen our balance sheet.

‘The successful capital raise, the recent sale of Kier Living, and the extension of the Group's RCF facility provides Kier with the financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.’

Kier Highways Surface Treatments Business was appointed to a Bristol City Council Framework

The group reported a ‘high quality’ order book of £7.7bn, with new awards received in the second half of the period but at a lower level than last year ‘due to procurement delays from the pandemic’.

Mr Davies added: ‘Current trading is in line with our expectations, and despite inflationary pressures and the impact of increased national insurance contributions, our outlook for the current year remains unchanged.

‘We are now focused on delivering our medium-term value creation plan by leveraging our attractive market positions, delivering our high-quality order book and fostering our long-term customer relationships and sector expertise.’