Kier boosts revenue and profits in solid year

Kier delivered a solid year increasing revenue and profits while slashing average month-end net debt by half, in its latest financial results.

Revenue for the year ended 30 June 2024 grew 16.6 per cent to £4 billion, up from £3.4 billion in the previous year.

The contractor generated a pre-tax profit of £68.1 million, up 31.2 per cent from £51.9 million.

Operating profit meanwhile was up 27 per cent to £103.1 million compared to £81.5 million in 2023.

Elsewhere, Kier’s year-end net cash position more than doubled from £64.1 million in 2023 £167.2 million, while the average month-end net debt was halved from £232 million last year to £116 million. 

Kier’s order book grew 7 per cent to £10.8 billion by year-end, with 60 per cent of its order book under target cost or cost reimbursable contracts. 

Construction accounted for £4.4 billion of the firm’s order book while Infrastructure services made up £6.4 billion.

In construction, Kier’s regional build and strategic projects average order size is moderate at around £20 million.

Kier chief executive Andrew Davies said: “The past three years have seen the Group achieve significant operational and financial progress. 

“The strong results for FY24 are testament to the hard work and commitment of our people who have enhanced our resilience and strengthened our financial position in-line with our medium-term value creation plan. 

“Our order book remains strong and growing at £10.8bn 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 pleased to report that the Group significantly reduced its average month-end net debt position as well as improved its year-end net cash position. I am confident we can sustain this momentum going forward.

“The Group has started the financial year well and is trading in-line with the Board’s expectations. 

“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 especially over the last two years allowing us to significantly deleverage, increase dividends to shareholders and deliver the evolved long-term sustainable growth plan which will benefit all stakeholders.”

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