Infrastructure and construction arms record a profit, but firm lost money on developments and housing
Kier has reported a pre-tax loss of 拢35.5m for the six months ended 31 December despite a 2% hike in turnover.
The period saw the firm launch an 拢264m rights issue 鈥� which received little support from investors 鈥� and was the last overseen by Haydn Mursell, who Kier鈥檚 board ousted in favour of Andrew Davies.
The firm brought in revenue of 拢2.2bn from the three strands of its business: 拢419m from developments and housing, 拢830m from building and 拢884m from infrastructure services.
Its infrastructure and building arms made a pre-tax profit of 拢21m and 拢9m respectively, but the firm鈥檚 results were pulled down by an 拢18m loss in its development arm, as well as a 拢47m loss through non-underlying items.
These include part of a 拢26m sum Kier will pay over the next six years on a loss-making waste collection contract it is pulling out of; a 拢25m hit on Broadmoor hospital job; a net loss in disposing of its Australian highways business; and the ongoing costs of integrating McNicholas, an acquisition it made in July 2017.
The Future Proofing Kier scheme, aimed at simplifying the group and improving cash flow generation, also made a net loss of 拢10m.
The firm said its underlying pre-tax profit was 拢39m 鈥� with an operating margin of 2.4%, down 0.4% from the same period last year.
Kier did finish December with significantly less net debt than a year earlier, due to the rights issue, but the figure of 拢180.5m is 拢50m more than thought before an 鈥渁ccounting error鈥� was discovered last week.
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