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27 February 2015 | Updated 01 January 1970

Some might suggest the only thing happening in the world of construction this week was Kier Group plc, announcing its results for the six month period ended 31 December 2014. We've got a few more snippets.

Kier did reveal that its underlying operating profit of £44m was in line with prior years; it has been recommended as preferred bidder for £400m ten-year Strategic Property Partnership with Staffordshire County Council and the Police and Crime Commissioner for Staffordshire and has a place on two four-year regional local authority residential frameworks worth over £1bn providing housing stock to the south west of England and Wales.

Frameworks are valued up to £14bn secured or shortlisted with over £500m awards in the period and the company has an international order book almost doubled following the award of £150m of new work in Middle East.

Kier has been awarded a £200m four-year extension of the highways services contract with Northamptonshire Major wins in water include Anglian Water, Bournemouth, Bristol, Canal River Trust and Thames Water totalling more than £700m.

Commenting on the results, Haydn Mursell, chief executive said: “I am pleased to announce a good set of results. The Property development pipeline sits at more than £1bn. Now that May Gurney is fully integrated, we have a broad range of services across the Group and Kier is well positioned to work strategically with clients on how they can achieve their aims in light of financial challenges they face."

Meanwhile, Kier has stated that there can be no certainty that an acquisition of Mouchel will be completed and that a further announcement will be made if and when appropriate. Any deal would follow on from Kier’s £221m acquisition of May Gurney in July 2013.

Carillion won't bid for Balfour Beatty

ThisWeekinFM has it on good authority that Carillion will not go after Balfour Beatty again - or at least for the time-being. Carillion was not allowed to make another offer (under stock market rules) until this week – six months after Balfour turned down all three approaches up until the Autumn.

Persimmon purrs while Land Securities and Barratt home in on labour issues

OK - we know it's house building but Persimmon has seen revenues hit £2.6bn. The group also reported a 44% increase in underlying profit before tax to £475m. Barratt the house builder predicts that building cost inflation will ease back this year to 3-4%. The firm said it believed cost pressures had reduced in the last few months as labour supply increased, although bricklayers remained in short supply. Land Securities we are told has plans to insist its contractors pay the London Living Wage on its London sites. The move comes as construction union Ucatt planned a demonstration outside the developer’s head office in the capital. Union officials claimed that workers on some Land Securities sites were paid just £7 an hour – well below the London Living Wage of £9.15 an hour.

Starts

Medway Council is looking for contractors and consultants to work on £386m of planned schemes across Kent. A free event, hosted by Constructionline, is being held at St Georges Centre in Chatham, on Wednesday 18 March.

Putting the Boot in

Henry Boot Developments has started work on Thorne Park in Doncaster with units available from 3,550sq.ft up to 45,000sq.ft. The units are being offered for sale or to let.

Harrogate

Plans for a major office development to the north of Harrogate, involving the demolition of all existing buildings on site and the construction of a new £9m base for the town's council, have been recommended for approval.

Article written by Robin Snow | Published 27 February 2015

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