Kier gets back on track with strong operational performance and ‘materially improved’ results
ITS (UK) Executive Member Kier Highways’ contract win in London to deliver Transport for London’s new £200 million Maintenance and Management contract has contributed towards Kier Group’s ‘strong operational performance and materially improved results.’
The group’s results to end of year June 30th, had a revenue of £3.3bn, which was a slight reduction on last year’s £3.3bn due to existing non-core low margin and loss-making contracts, successful completion of our motorway upgrade projects and COVID-19 pandemic, partially offset by growth in its core businesses.
Its adjusted operating profit of £100m (FY20: £41m): reported profit £44m (FY20: loss £(196)m). The group’s margin improvement to 3% and improved quality of earnings
Kier also had a free cash flow of £93m (FY20: £(8)m): strong performance as profits translating to cash. Includes reduction of £46m in supply-chain financing. The group’s order book was described as ‘high quality’ with £7.7 billion, which covers 83% of FY22 expected revenue.
Andrew Davies, Chief Executive, said: “The Group delivered a strong operational performance and materially improved results in FY21. We have completed the strategic actions set out in 2019 to simplify and focus the Group, improve cash generation and strengthen our balance sheet.
“The successful capital raise, the recent sale of Kier Living, and the extension of the Group’s RCF facility provides Kier with the financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.
“Current trading is in line with our expectations, and despite inflationary pressures and the impact of increased national insurance contributions, our outlook for the current year remains unchanged.
“We are now focused on delivering our medium term value creation plan by leveraging our attractive market positions, delivering our high-quality order book and fostering our long-term customer relationships and sector expertise.”
(Picture – Kier)