Kier has posted a strong set of preliminary results for the year ending 30 June 2016, with underlying profits up 45% despite an overall loss of £15M.
The loss was down to a hefty set of one-off costs relating to the acquisition of Mouchel and the winding down of its Caribbean operation. However, underlying revenue for the year was £4.2bn, up 26% year on year. Underlying profit before tax was up 45% to £125M and its operating margin was up from 3.1% to 3.6%.
An additional one-off cost was £4.5M to the Construction Workers Compensation Scheme, in relation to the case involving “blacklisting” workers.
“Having completed the integration of Mouchel, we are well progressed with the simplification of our portfolio of businesses and are focused on capitalising on the growth opportunities available to the group,” said chief executive Haydn Mursell.
The previously announced evaluation of strategic options for Mouchel Consulting, including its possible sale, is now underway. In addition, Kier said that there had been “no material impact” on operations following Brexit.
Key successes in the period include the award of a new £600M highways framework in the East of England, with Kier being one of six contractors appointed to the major works lot.
Formal tender processes are underway for Highways England areas 1 and 13 and a number of other areas where Kier is not currently contracted. The company said that there are now more opportunities available because Highways England has lifted the cap on the number of areas that can be awarded to one company from four to five.