Contractor Kier posted a 2% increase in its pretax profits for the first six months of 2012 despite a 5% fall in turnover, according to preliminary results published today.
Pretax profits rose 2% from £68M in the first six months of 2011 to £70M for the same period this year boosted by profits from property sales. Profit in its property business increased from £15.3M in the first six months of 2011 to £22M in for the same period this year. Kier group turnover for the firm fell 5% for the first six months of this year, from £2.18bn in 2011 to £2.07bn for this year.
Turnover at Kier’s contracting arm fell 4% from £1.45bn for the first six months in 2011 to £1.38bn for the same period this year. The contracting division’s operating profit also decreased from £39.3M to £35.2M in the same period, with margins falling slightly for the first six months of this year, from 2.7% in 2011 to 2.5% for this year.
Kier chief executive Paul Sheffield said the firm was “responding well in the current market”. The trading statement added the firm faces “continued difficult trading conditions in the UK”.
“There is a significant shift in spending patterns from public sector social infrastructure projects to private sector and areas of regulated spends, and we remain focused on the careful selection of quality work through frameworks and similar arrangements,” said the statement.