Construction and support services group Kier today reported its 11th year of growth in turnover and profits and said its order books were at a record level.
The company, which is based in Sandy, Bedfordshire, said profits before tax rose 18.9% to £33.3m on sales of £1.4bn.
Kier specialises in construction contracts ranging from major civil engineering to private house building and commercial property development.
It was created following a management buyout at building materials group Hanson in 1992 and floated on the stock market in 1996.
Chairman Colin Busby said Kier’s construction markets had been underpinned by public sector spending while building maintenance work for local authorities boosted revenues for its support services operation.
He said: “At £1.75bn our order books in construction and services are now at record levels. The markets in all of our sectors remain sound.”
Reporting figures for the year to 30 June, Kier said its regional contractor business, which operates from 31 UK offices, saw sales rise 8.6% to £787.6m.
Further growth is expected this year with the order book for the unit at £430m.
The major projects division Kier National saw sales drop to £344.9m, compared with £412.6m in 2002, following a restructuring programme.
A further fall is anticipated in 2004 as Kier merges its UK civil engineering, rail and mining operations with those of its international business operating in the Caribbean, Middle East and Hong Kong.
Kier said its support services unit achieved turnover of £115.4m in the year, up from £80.9m in 2002.
In April it landed a 10-year contract worth an estimated £640m to maintain council houses, schools and libraries for Sheffield council.
The homes and property division saw operating profits rise by 45.9% to £32.4m on turnover up 26.8% at £201.3m.
The housebuilding unit is expected to continue to flourish thanks to low interest rates, under-supply and high demand in the UK.
Kier said its pension deficit under the FRS17 accounting rules had increased by more than 40% compared with last year to £79.7m.
Shareholders will get a final dividend of 11.2p a share, making a total of 16.4p for the year.
References: EGi News 17/09/03
