Kier wins £34.5m Clydebank hospital deal as group results remain upbeat

Golden Jubilee 1Kier Construction Scotland is to deliver the £34.5 million Golden Jubilee National Hospital in Clydebank as its parent group prepares to unveil a new trading update in line with current expectations.

The contractor has been awarded the role of Principal Supply Chain Partner to develop a new elective care facility at the hospital, as part of Frameworks Scotland 2.

The building work, at this early stage valued at £34.5m over two phases, involves building a dedicated cataract surgery unit as well as an additional orthopaedic and elective surgical care facility.

The award follows a Scottish Government announcement for expansion of the Golden Jubilee and five new elective treatment centres to be built across the country to carry out procedures like hip, knees and cataracts, in order to reduce patient waiting times and enhance patient experience.

The Golden Jubilee is a national resource for NHS Scotland; home of regional and national heart and lung services, a centre of excellence in orthopaedics, a major diagnostic centre and one of the largest cataract providers in the UK.

Kier Construction Scotland is expected to start on site early next year and their programme of work will be complete by 2021. The announcement follows a number of recent healthcare contract wins for Kier Construction Scotland, including work with NHS Grampian at Aberdeen Royal Infirmary, NHS Highland at Raigmore Hospital in Inverness and NHS Greater Glasgow and Clyde at Royal Alexandra Hospital in Paisley and Inverclyde Royal Hospital.

Brian McQuade, managing director for Kier Construction Scotland, said: “This is another major win for Kier Construction Scotland and illustrates our strength in delivering healthcare projects throughout Scotland. These new facilities will provide improved healthcare services within the Golden Jubilee National Hospital and well as giving the local economy a boost as we will be creating local jobs and learning opportunities for local suppliers.”

June Rogers, director of operations at the Golden Jubilee Hospital, added: “It’s great to see the plans for these new facilities take a step forward and reach this exciting stage with our partners. Our expansion will provide a number of community benefits such as additional jobs, learning opportunities and environmental projects.

“Once we get approval to proceed, our new facilities will make a huge difference to thousands more patients in the future. It will allow us to deliver more effective healthcare services by continuing to deliver a world-class standard of safe and effective care that the patients of Scotland deserve.”

Tradesmen inspecting workKier Construction, part of Kier Group, is one of five principal supply chain partners on the Framework Scotland 2, a national procurement programme for healthcare new build and refurbishment projects. Kier is also one of five principal supply chain partners on the NHS’ £600m Health Facilities Scotland framework for Capital Development in Scotland.

Ahead of today’s Annual General Meeting, Kier Group has also announced that it remains on course to deliver double digit profit growth in the current year and achieve its Vision 2020 targets.

The Property division is “performing well”, delivering a return on capital (ROCE) in excess of 20% on an increasing capital base, and securing a development pipeline remaining in excess of £1.4 billion.

The mixed tenure and private housebuilding businesses continue to make good progress as private sales and pricing remain strong and demand for mixed tenure housing continues.

The performance of the Construction division is underpinned by the regional building business and is delivering margins in line with the Board’s expectations. The current order book represents more than 95% of the division’s targeted revenue for this financial year.

The Services division continues to deliver with consistent margins and has a current order book representing more than 95% of its targeted revenue for this financial year.

Following its acquisition, the McNicholas business is performing well and good progress is being made with its integration.

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