In the year to 30th June 2017 Kier Group reported a pre-tax profit of 拢25.8m on revenue up 5% to 拢4.27bn. The previous year it lost 拢15m before tax.
Operating profit for the year was up 3% to 拢146m (2016: 拢141m).
The latest results at Britain's third biggest construction contractor were impaired by one-off costs: the closure of the Caribbean and Hong Kong businesses resulted in non-underlying charges of 拢86m. But the sale of Mouchel Consulting in October 2016 generated a profit on sale of 拢40m.
Kier is now solidly focused on construction, with building, infrastructure and housing now representing 90% of its revenue and profit. The construction division continues to make a loss, widening to 拢10.1m this time from a 拢3.2m loss the previous year. However, it bagged a record 拢3bn of new contracts in the year. Revenue was up 6% to 拢2,019m (2016: 拢1,901m) with an underlying operating profit increase of 2% to 拢39.8m (2016: 拢38.9m). Underlying operating margins were maintained at around 2.0% (2016: 2.0%).
Chief executive Haydn Mursell said: "Our underlying performance for the year was good. Having simplified our portfolio, the group is more focused and able to pursue its growth ambitions in our three core markets; building, infrastructure and housing, which now represent 90% of the group's revenue and profit. We continue to invest in the business to improve our operational efficiency, providing a robust platform on which to take advantage of the strong long-term fundamentals in these core markets.
鈥淥ur Construction and Services order books of 拢9.5bn, together with our c.拢2bn property development and residential pipelines, provide good long-term visibility of our future work. This visibility, coupled with our healthy balance sheet, provides us with confidence of achieving our Vision 2020 strategic targets."
He added: 鈥淲e are progressing well with the roll-out of our 拢70m investment in a new Oracle ERP system with 70% of the group now operating on the new platform. This system provides high quality and timely information, together with improved back office systems and efficiencies.鈥�
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