Kier Group on the road to higher revenues and profits as orders rise after Mouchel buy-up

 
Caitlin Morrison
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KIER Group’s share price dropped by 4.61 per cent yesterday after the group announced its results for the year.

However, the construction firm saw a 14 per cent rise in revenue for the year to 30 June, up to £3.4bn from £2.9bn last year.

The group’s pre-tax profit jumped by 17 per cent, from £73.7m to £85.9m, while operating profit increased by 19 per cent, climbing from £87.3m to £103.7m.

Kier’s proposed full-year dividend was up 20 per cent, at £47.3m. However, the dividend per share fell by four per cent, from 57.6p to 55.2p. It said this was due to the effects of a £312m rights issue the company carried out in June to help fund its acquisition of roading contractor Mouchel.

Boss Haydn Mursell added that the integration of the group was going well three months in.

The addition of Mouchel has seen Kier’s construction and services order book grow to £9.3bn, compared with £6.2bn last year.

“We are already seeing revenue synergies coming through,” he said.

Meanwhile, Mursell highlighted the company’s financial position as a reason to be cheerful.

“We are seeing cash pick up after a few tough years,” he said, adding: “We are well secured for the current financial year, and into the medium-term future.”