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Tuesday, 12 November

A Welcome In The Valleys As Kier Results Buck The Trend

Kier worker and van

Kier's key facilities management contract awards, worth £65 million, have underpinned the group's half-year results - unlike some more notable of its construction based competitors.

Highlights are a significant contract which has been mobilised for British Red Cross, along with Welsh Water and Careers Wales contract wins.

 

Group financial highlights

Order book of approximately £9.5bn reflecting strong pipeline conversion in regional building and highways;

Revenue of £2,154m, up 8%; underlying operating profit of £60m, up 5%;

On course to deliver double-digit profit growth in 2018 and on track with Vision 2020 goals.

Kier’s British Red Cross gig sees the company providing total FM for all 620 shops, offices, storage facilities and other buildings across the UK. A new five-year £17m contract with Capital City Academy Trust started in August and Kier is, again, providing a total FM solution, including mechanical and electrical maintenance, cleaning and waste management services, grounds maintenance and security across the academy.

Following the award of the Powys contract last year, Wales remains an important strategic location and additional awards in the area include a three-year total FM contract with Welsh Water valued at £5m and a three-year contract with Careers Wales. There is increasing use of frameworks for the provision of FM services and Kier has secured places on a number of them, including the four-year £430m Crown Commercial Services estates professional services and ESFA framework.

Commenting on the results, Haydn Mursell, chief executive, said: “The Group is performing well. Our £9.5bn Construction and Services order book, combined with our £3.5bn pipeline in the Property and Residential divisions, provides good visibility of work over the medium term.

“The Group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years. We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”

Picture: A Welcome In The Valleys As Kier Results Bucks The Trend

 

    

Article written by Brian Shillibeer

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