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Interim Results

Kier reveals strong order book and pipeline

23 March 2017 07:21

Kier unveiled an order book of approximately £9bn reflecting strong pipeline conversion in regional building and highway services.

Management forecast revenue in Construction and Services 100% secured for year to June 2017; approximately 70% secured for year to June 2018.

Underlying operating profit was at £56.5m with 4% organic growth on 2015.

The company reported net debt of £179m ahead of expectations and expected to be maintained at 1x EBITDA for the full year.

HIGHLIGHTS:

- Portfolio simplification and profit on disposal of Mouchel Consulting of £39m

- Provision for winding down of the Caribbean operations and final account negotiations of £33m

- Basic earnings per share of 38.9p (December 2015: 34.9p), up 11%, in line with Vision 2020 goals

- Interim dividend of 22.5p up 5%; and on track with Vision 2020 goals

PROPERTY

- Strong pipeline of over £1bn; and on course for >15% ROCE for the full year.

RESIDENTIAL

- Cross Keys Homes joint venture, announced today, providing up to £64m of further capital for future investment and underpins the delivery of the Residential division Vision 2020 goal of 15% ROCE

- Revenue increased by 4% to £169m, on track to deliver 2,200 units by year end with a strong forward sales position

- On course for >10% ROCE for the full year.

CONSTRUCTION

- Underlying operating profit up 19% to £20.8m

- Operating margin of 2% (December 2015: 1.9%)

- Robust framework positions and opportunities for further growth in new sectors including aviation and industrials

SERVICES

- Operating margin of 4.8% (December 2015: 4.7%)

- Awarded more than £300m of highways maintenance contracts in the period

- Increased volume of revenue in highways in the second half

Story provided by StockMarketWire.com

Related Company: KIE

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