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Kier Group PLC on Thursday reported ‘a strong set of results’ for its latest half year, and said second-half trading is progressing well. The Manchester, England-based construction company said pretax profit increased 6.3% in the six months to December 31, to £27.0 million from £25.4 million. Kier said revenue increased 22% to £1.86 billion from £1.53 billion, driven by strong growth in its Construction and Infrastructure Services divisions. Infrastructure Services revenue rose by 16% to £944 million, while Construction revenue surged up 29% to £915 million. Moreover, Property revenue more than doubled to £22.1 million. Kier also declared an interim dividend of 1.67 pence per share. This was its first dividend since financial 2019, having committed to recommencing payouts at the end of its previous financial year. ‘The past two and a half years have seen the group achieve significant operational and financial progress, and I am delighted that today marks a return to paying dividends,’ said Chief Executive Andrew Davies. Looking ahead, Kier said it has secured 97% of its expected revenue for the financial year ending on June 30. It said the order book ‘remains strong’ at £10.7 billion as of December 31, up from £10.1 billion six months prior. ‘The second half of the financial year has started well, and we are trading in-line with expectations,’ commented Davies. ‘The group is well positioned to continue benefiting from UK Government infrastructure spending commitments, and we are confident in sustaining the strong cash generation achieved over the last 18 months, allowing us to continue to significantly deleverage the group.’ Kier Group shares were up 4.3% at 141.80 pence each in London around noon on Wednesday. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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