Kier shares up over four per cent as it is included on an NHS construction shortlist

 
Oliver Gill
Follow Oliver
CHINA-ECONOMY-GROWTH
The new work represents half of Kier's British building revenues (Source: Getty)

Construction group Kier this morning announced it had scooped up to £5bn of potential new work, sending shares up five per cent in morning trading.

The biggest potential deal was the revelation the group had won a place on the Department of Health's Procure22 framework - a contract which could be worth £4bn alone.

The two other key revenue sources were a place as one of five contractors worth up to £750m at Gatwick Airport and £500m agreement to construct a range of facilities at Cambridge University.

Read more: HS2 shortlists firms for £520m phase two packages

Procure22 is the third version of the NHS's procurement framework that establishes six principle supply chain partners. It comes into force in October and will last for four years. The framework establishes the partners as the go-to construction companies for NHS social care and capital schemes in the UK.

Kier said it had delivered health projects worth over £170m in the last 12 months.

“These awards demonstrate the breadth of our offering and the strength of our relationships with clients across a wide range of sectors, including healthcare, aviation and education," said chief executive Haydn Mursell.

The Gatwick work relates to the provision of smaller projects, each up to a value of £10m as well as building projects up to £1.5m.

Read more: Kier Group boss says Brexit uncertainty has not hurt business

"Such awards account for approximately half of our UK regional building revenues,” said Mursell in summary of the three work wins.

Shares in the construction group rose over four per cent in morning trading.

Related articles