Kier results in line with expectations

Uk contractor Kier has announced underlying pre-tax profits of £63.4 million (€75 million) for the financial year ended June 2013 in its preliminary results, posted today.

While it said pre-tax profits were in line with its expectations, the figure marked a drop from 2012’s £70 million (€83 million). Operating profit also saw a decline at £49.3 million (€58.6 million), down from £67.4 million (€80.2 million) in 2012.

The firm’s construction division posted total revenue of £1.3 billion (€1.5 billion) and operating profit of £30.4 million (€36 million) while its services division posted total revenue of £437 million (€520 million) and operating profit of £19.3 million (23 million). Order books for construction and services held a combined value of £4 billion (€4.7 billion).

Kier chief executive Paul Sheffield said: “The modest decline in revenue and profit reflects the tough trading conditions the industry has faced during the year, but I am delighted to see that the divisional trading results remain robust. Margins in construction and services were resilient and our property division again made a strong contribution.”

Kier acquired infrastructure services firm May Gurney in July, creating a support services business with revenues in excess of £1 billion (€1.2 billion).