Kier Group has reported an improved full-year financial performance in its latest results.
For the year to 30 June 2023 Group revenue was up 7.5% on the previous year, cash generation had significantly improved, and Kier’s order book value had increased 3.1%.
Kier also recently agreed to acquire Buckingham Group’s rail division and HS2 contract for £9.6 million following the Buckinghamshire contractor’s recent collapse.
- Revenue: £3.3 billion (FY2022: £3.1 billion)
- Operating profit: £81.5 million (FY2022: £45.1 million)
- Pre-tax profit: £51.9 million (FY2022: £15.9 million)
- Net cash: £64.1 million (FY2022: £2.9 million)
- Order book: £10.1 billion (FY2022: £9.8 billion)
The Group reported free cashflow of £132.3 million, driven by an operating cash conversion of 129.7% following a strong Q4 performance.
Basic earnings per share were up 227.6% to 9.5 pence, compared to 2.9 pence in 2022.
Kier also intends to resume dividend payments in FY2024, starting with an interim dividend.
Average month-end net debt was £232 million.
“The new financial year has started well, and we are trading in line with our expectations,” said Andrew Davies, chief executive. “The Group is well positioned to continue benefiting from UK Government infrastructure spending commitments and we are confident in sustaining the strong cash generation evidenced this year.
“This, combined with our focus on operational delivery, gives the Group a clear line-of-sight to significantly de-lever. As a result, the Group intends to resume dividend payments during FY24, with the first dividend to be declared alongside our interim results.”
Davies continued: “The Group has achieved considerable operational and financial progress over the last two years. This is reflected in the significantly improved financial performance of the Group over the last year.
“Our order book remains strong at £10.1bn and provides us with good, multi-year revenue visibility. The contracts within our order book reflect the bidding discipline and risk management now embedded in the business.
“I am also particularly pleased to report the Group significantly improved its year-end net cash position and has confidence in sustaining this momentum going forward.”
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