Construction group posts leap in half-year pre-tax profit
Kier has posted a jump in half-year pre-tax profit despite suffering a 拢33m hit on the closure of its Caribbean arm.
The construction group posted pre-tax profit of 拢34.9m for the second half of 2016, up from 拢4.3m the previous year. Revenue was unchanged at 拢2bn and the firm鈥檚 order book stood at 拢9bn.
Kier blamed the 拢33m writedown in the Caribbean to one 鈥渃hallenging project鈥� which it said 鈥渨e continue to progress鈥�. It expects to fully quit the region 鈥渨ithin the next six months鈥�.
However, the firm鈥檚 bottom line was boosted by 拢39m profit on the sale of Mouchel Consulting to WSP in October.
Kier鈥檚 underlying half-year pre-tax profit - which strips out one-off costs - was up 12% to 拢46.3m, up from 拢41.5m, with the firm hailing a strong contribution from its construction division.
Kier鈥檚 construction division posted a 19% rise in underlying operating profit to 拢20.8m, up from 拢17.5m, while margins edged up to 2% from 1.9%. Revenue also increased, up 8% to just over 拢1bn, up from 拢945m.
Kier also announced a new housing joint venture and the hire of a new chairman.
The JV is with east of England housing association Cross Keys, with Kier set to transfer land and projects to the new vehicle for cash to reinvest. Kier is transferring an initial 拢97m worth of assets for a 拢64m return.
Kier also announced it has hired energy boss Philip Cox as its new chairman, who will replace the retiring Phil White.
Cox is chairman of Drax Group and a former chief executive of Global Power Generation. He will replace White at Kier鈥檚 AGM this November.
Commenting on the interim results, Haydn Mursell (pictured), chief executive at Kier, said: 鈥淭oday鈥檚 results reflect the ongoing financial and operational discipline employed across the group and the strength of our flexible, integrated business model.
鈥淭he group鈥檚 breadth provides some resilience against economic uncertainty and we continue to shape Kier to focus on our core competencies.鈥�
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