Kier Group remains “confident” as revenues on track to reach £4bn
Construction firm Kier Group expects to achieve revenues of up to £4.5bn for the latest financial year.
In a trading update, the Salford-headquartered group said trading for the year to the end of June 2021 continued to be “resilient” and the group expects full year results tto be moderately ahead of the board’s expectations.
It said this reflects “strong operational performance and the confidence” Kier had outlined in April.
These results also reflect the numerous cost savings by the group in respond to the reduction of volumes caused by COVID-19 during the financial year.
The group expects to deliver a full year 2021 adjusted operating profit margin of approximately 3%.
Revenues for the year are expected to be around £4bn to £4.5bn.
Its order book is underpinned by significant long-term framework agreements including new awards in the second half of the year albeit at lower levels than that seen last year due to procurement delays resulting from the pandemic.
Recent contract awards a £1bn prisons contract for the Ministry of Justice, a £75m capital works contract from Hammersmith and Fulham council, as well as a £190m maintenance and response contracts for highways in England.
During the year the group raised, together with the recent sale of Kier Living, £350m providing financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets.
CEO Andrew Davies said: “The Group’s proven track record of delivery and focus on selected markets, coupled with its strong order book and strengthened balance sheet, gives the Board confidence in our strategy and the continued success of the Group.”
