KIER Group has announced it remains on course to deliver “double-digit profit growth” this year after reporting financial results for the six-month period ended December 31 2017.
The results show a 1% rise in statutory turnover to £2,011 million and a 6% drop in statutory pre-tax profits to £33.7 million. Underlying revenue is up 8% to £2,154 million while underlying operating profit is up 5% to £60 million.
Kier Construction Scotland has maintained turnover stability at approximately £150 million per annum and is gearing up for the future growth target of £200 million by 2020.
Brian McQuade, managing director of Kier Construction Scotland said, “Kier Construction Scotland has a robust pipeline of activity, thanks to a number of important framework and tender wins. We have secured a place on fourteen national frameworks across Scotland and this includes our most recent appointment as Tier One contractor to hub West, where we will deliver a range of public sector capital works projects throughout west central Scotland. We are also a principal supply chain partner under Frameworks Scotland 2 to build a £34.5m elective care facility at Golden Jubilee National Hospital in Clydebank.
“We have added to our strong education portfolio with a number of contract wins, including our appointment by the University of Edinburgh to carry out the £7.7m transformation of Murchison House into a dynamic, multi-functional teaching and study hub, and our appointment to the University of Strathclyde’s £250m Framework for Major Building Construction to support the delivery of its ongoing Capital Investment Plan.
“Our unique expertise in the heritage sector continues to flourish as we have been appointed as the contractor to support Glasgow Life in their £66m refurbishment of one of Scotland’s national treasures – The Burrell Collection. This is an exciting addition to the work we are currently carrying out in this specialist area, including the restoration of the Mackintosh Building for Glasgow School of Art and the refurbishment of listed buildings at Edinburgh College of Art and Aberdeen Music Hall.”
Group chief executive Haydn Mursell, chief executive said, “The Group is performing well. Our £9.5 billion Construction and Services order book, combined with our £3.5 billion pipeline in the Property and Residential divisions, provides good visibility of work over the medium term.
“The Group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years. We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”