Scottish projects aid Kier Group’s 14 per cent revenue jump
Projects in Scotland have assisted Kier to strong full-year results for the year to 30 June 2015, the group said today.
The property, residential, construction and services group, which is the parent company of Kier Construction in Scotland, has reported a 14 per cent revenue increase to £3.4 billion, reflecting strong organic growth in all divisions.
Across the group underlying pre-tax profit jumped 17 per cent to £85.9m from £73.7m in 2014.
The construction business saw a 15 per cent growth in revenue while the group’s property division enjoyed an underlying operating profit increase of 42 per cent.
The residential arm delivered 2,130 new units this year, a 35 per cent increase on 2014, while services saw a revenue growth of 13 per cent.
The firm said it was well placed for further growth with construction orders up a third to £3.3bn in the year ending June 2015, and better than expected costs savings integrating consultant Mouchel, acquired last June.
The figures reflect strong growth across Scotland and the north-east of England with Kier Construction in Scotland now employing 186 people from its head office in Glasgow. Headcount is expected to grow further this year to 200, following new project wins.
The strong results reflect Kier Group’s success across diverse sectors including healthcare, education, commercial, retail and defence, allied with a commitment to using local knowledge and contacts, helping to stimulate the local economy. Within Scotland, Kier Group has a turnover in excess of £230m per annum, illustrating the level of its operations north of the border.
Brian McQuade, managing director of Kier Construction’s Scotland and north-east England business, said: “Our financial results show that we have delivered on margin, turnover and diversification into sectors as planned, with new ventures into the maintenance and management markets proving particularly exciting.
“We have a positive track record of collaboration, strong technical ability and a culture of innovation north of the border, and I look forward to continuing this good work.”
In addition to being one of five principal supply chain partners on the NHS’ £600m Health Facilities Scotland framework, Kier Construction is an equity stakeholder in hub South West Scotland, which will deliver £600m of infrastructure investment in south-west Scotland over the next decade.
The company is also delivering over £15m of minor works projects as part of the £1.5bn Scape National Minor Works Framework, which it has just been reappointed to.
Most recently, Kier Construction completed a £10m property redevelopment in the heart of Glasgow’s west end at Clifton House and Stewart House, illustrating Kier’s commitment to Glasgow and the west coast of Scotland, following the completion of a similar project in Dumbarton Road in Glasgow’s Partick district earlier this year.
Elsewhere, significant projects have included completing the latest phase of Robert Gordon University’s £120m Garthdee campus project, the construction of a £14m new community centre and primary school campus at Caol, Fort William, and the development of the £7.9m Cumbernauld Community Enterprise Centre.
Commenting on the results, Kier Group plc chief executive, Haydn Mursell, said: “I am pleased to announce we have delivered solid growth and increased profitability. Economic confidence is returning to our core markets and, furthermore, the acquisition of Mouchel represents a major step in accelerating the group’s five-year strategy.
“All our divisions have performed well. In property, the market remains strong and we have ample support from funders and other investors. Following its expansion, our residential division is well-placed to help address the national shortage of affordable housing. In construction, the regional building business has an established position on public and private sector frameworks and our infrastructure business is benefiting from continued greater investment by the UK government in infrastructure in the medium term and internationally, the Middle East pipeline is strengthening.
“Our services division will benefit from the £700m AMP6 contracts secured during the year and the Mouchel acquisition has made Kier the sector leader in the UK highways management and maintenance sector. We are committed to offering a full, integrated approach to our clients by maximising the breadth and combination of capabilities available in the group, assisting them to address the budget challenges they face.
“We continue to simplify the portfolio and restructure our businesses and invest in our future growth. We continue to improve the quality of our earnings to reflect the changing demands of our markets. With a £9.3bn order book, a strong balance sheet and continued progress on our Vision 2020 goals this year, we look forward to the future with confidence.”