Kier more than doubled revenue in its property division to £22.1m in the year ended 31 December 2023.
A “controlled expansion” of the property business has enabled the group to deliver a 105% increase in revenue from £10.8m in 2022.
However, difficult market conditions and limited transactional activity meant the operating profit actually dipped by 2% to 4.6%, with the firm’s operating margin more than halving from 42.7% to 20.8%.
However, Kier said it is starting to see a return of investment opportunities.
It said: “The property market is showing tentative signs of recovery and the group is currently seeing many attractive investment opportunities.
“As of 31 December 2023, the capital employed in the property segment was £163m – excluding third party debt and fair value gains. Due to the group’s increased operating cash flows, the benefit of building out projects such as 19 Cornwall Street in Birmingham, and market conditions, we have reviewed the capital employed in our property segment and increased the range to between £160m and £225m.”
Kier had previously expected to invest £140m to £170m in its property segment.
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