Contractor Kier said that it expects a “difficult” UK construction market over the next year despite seeing a 9% rise in its pre-tax profits, according its 2011 results to the end of December released today.
The firm increased its margins with pre-tax profits rising from £31.1M to £34M despite total revenue dropping from £1.097bn to £1.046bn.
Kier chairman Paul White said the difficult conditions in the UK market are placing greater pressure on the firm’s margins. White added that any financial effect from potential reduction of public sector outsourcing will not be felt until 2014.
Major project wins this year include over £800M worth of contracts for Crossrail, as part of the Bam/Ferrovial/Kier joint venture, a £210M project win at Farringdon, and a £50M energy from waste project in Plymouth. Kier also recently won a £100M preliminary earthworks contract at the proposed new nuclear power station at Hinkley Point.
Kier’s sector results
Construction revenue £720M (2010: £728M); Profit £17.8M (£19.8M)
Services revenue £218M (2010: £243M); Profit £9.8M (£10.9M)
Property revenue £108M (2010: £126M); Profit £10M (£3.4M)