Big acquisition dents property company’s profits
PROPERTY, residential, construction and services company Kier Group is reporting soaring year-on-year revenue to £2.1bn – up 32% – in the six months to December 31, but a major acquisition has dented profits.
Interim results for the period show the company, which employs more than 1,000 people in offices in Manchester, Liverpool, Oldham and Wigan, had a pre-tax profit of £18m, (December 2014: £27.8m), the dip caused by non-underlying costs of £15.5m relating to the integration of the Mouchel business.
The listed company’s net debt position is better than expected at £174m (June 30 2015: net debt £141m), after £26m investment in the future growth of the group and reflecting a good working capital performance with strong operating cash conversion, it said.
Kier also announced underlying earnings per share of 37.1p (December 2014: 42.4p), down 12% following the issue of new shares for the acquisition of Mouchel.
Its interim dividend increased by 12% to 21.5p (December 2014: 19.2p).
Some 75% of the Group’s turnover was from infrastructure services, regional building and housing; aligned to growth markets with high visibility of forward pipelines.
Its construction and services order book amounts to £9bn with potential extensions of a further £3.1bn and property division pipeline was more than £1bn.
Chief executive Haydn Mursell said: “I am pleased to announce a good set of interim results which show the continued strength and breadth of the group’s capabilities and our presence in growing market sectors.
“The group remains on course to deliver expectations for the full-year. In the UK, our core markets are improving which provides a platform for growth, particularly for our property, residential and regional building businesses, and over the medium-term for our infrastructure businesses.
“Mouchel has been substantially integrated and is performing well. Our presence in infrastructure services, regional building and housing aligns to growth markets with high visibility of forward pipelines and now accounts for 75% of the group’s turnover.”
