黑洞社区

Kier has slipped to a 拢15.4m pre-tax loss after making 拢140m of writedowns, but its chief executive Haydn Mursell says the underlying business is 鈥渟trong鈥� and 鈥渟itting very well鈥� to dodge the fallout from the Brexit vote.

A string of major writedowns - including 拢49.9m of restructuring costs from integrating Mouchel, a 拢35.6m hit on two waste contracts, 拢23.1m from closing its Caribbean business and 拢4.5m from compensating blacklisted workers - dragged the firm to a pre-tax loss, compared to a 拢39.5m pre-tax profit the previous year.

But once these one-off costs were stripped out, underlying pre-tax profit increased 45% to 拢125m, up from 拢86m. Kier鈥檚 revenue also broke the 拢4bn mark - leaping 26% to 拢4.21bn, up from 拢3.35bn.

Speaking to 黑洞社区, Mursell (pictured) said the underlying Kier business was performing as expected and had seen 鈥渕inimal鈥� impact from the Brexit vote, in part because of its focus on regional property and building work and long-term deals.

He said: 鈥淔ortunately we鈥檝e been minimally affected. Our services division delivers everyday essential works like road repairs - those budgets exist and are ring-fenced. Construction is buoyant and we have positions on long-term frameworks.

鈥淚n residential, private sales are the same as pre-Brexit and as a year ago. In property, London has borne the brunt, but we have little exposure to property there. All in all we鈥檙e sitting very well.鈥�

Mursell welcomed the government鈥檚 green light for Hinkley Point C - which he said would 鈥渁ct as a catalyst for more nuclear plants for the UK鈥� - but urged for more infrastructure and housing spending in chancellor Philip Hammond鈥檚 first autumn statement in November.

He said: 鈥淭here is a one-off opportunity to invest in infrastructure in the autumn statement. We need clarity on HS2 and airport capacity.

鈥淚鈥檓 looking for commitment and the intent to invest in infrastructure, as well as the detail on how they will invest.

鈥淚f you like the second chapter should be all about housing, particularly how to stimulate affordable housing. We need a similar boost there to what we鈥檝e seen in the private sale sector with Help to Buy.鈥�

Mursell said the integration of Mouchel was advanced and that a review of whether or not to sell its management consulting arm Mouchel Consulting was 鈥渨ell progressed鈥�.

Mursell said Kier had cemented its position as the 鈥渓eading regional building business in the UK鈥� over the year. The firm will open in Swansea next month.

Kier鈥檚 underlying operating margin grew to 3.6%, up from 3.1%.

Underlying pre-tax profit was up across three of its core divisions - residential, construction and services - while property reported a dip in profit.

The firm said it was 鈥渃onfident鈥� of achieving its goal of double-digit profit growth on average each year to 2020.

Kier posted an order book of 拢8.7bn.

The group increased its dividend to 64.5p, up from 55.2p.