Kier Group nearly trebled its pre-tax profits in the last year, achieving what it called a ‘strong financial performance despite ongoing inflationary pressures’.
Announcing its results for the year ended 30 June 2022, Kier reported profit before tax of £15.9m, up 184% on £5.6m the previous year.
This increase came despite a 4% fall in statutory reported group revenue, from £3,261m to £3,144m.
The group also claimed a ‘high quality’ order book, up 27% to £9.8bn (from £7.7bn).
Chief executive Andrew Davies said Kier had undergone a transformation, rationalisation and recapitalisation over the last two years and is delivering against its medium-term value creation plan.
He added: ‘The performance over the last 12 months reflects our significantly enhanced resilience and strengthened financial position.
‘The Group is well positioned to continue benefiting from UK Government infrastructure spending commitments and we have a significantly increased order book of £9.8bn, which gives us certainty against the market backdrop.
‘The new financial year has started well and we are trading in line with our expectations, despite continued inflationary pressure and see no change in the current market outlook. We remain focused on the delivery of a sustainable net cash position and sustainable dividend policy, in line with our medium-term value creation plan.’
Kier said its Highways business experienced a period of strong wins, including new contracts and contract extensions in highway maintenance, alongside the design and build of three National Highways major projects.
It added that the marketplace is seeing a shift towards major projects, with demand at unprecedented levels. ‘Success in the Major Projects market requires relevant experience alongside a suite of skills and capabilities through the project life cycle, for which Kier is positioned strongly,’ the firm said.
As one of its highlights from the year, it cited seven-year highways maintenance work and services contracts valued at £560m for North Northamptonshire and West Northamptonshire councils, with an option for a further seven-year extension.
Other contracts won include the Birmingham Highways contract extension, National Highways' Schemes Delivery Framework, the A66 Northern-Trans-Pennine scheme,the M6 Lune Gorge Structures and the A417 Missing Link (pictured).
