Construction firm Kier crept back into profit today after two years of hefty losses after completing its reset of the company’s operations.
The London-listed firm made a £5.6m reported profit, swinging back into the black after a £225m loss last year.
It said that it would use the £351m it has gathered through the sale of Kier Living and a capital raise to build on the turnaround.
Revenue fell slightly, from £3.5bn to £3.3bn, but this was because the firm took the decision to cut out non-core low margin and loss-making contracts, Kier said.
It is now focused on its £7.7bn order book, which covers 83 per cent of the firm’s expected full-year revenue for 2022.
Over the medium term, Kier is looking to increase its revenue to £4-£4.5bn a year, with an adjusted operating profit margin of 3.5 per cent.
It kept its outlook for the full year unchanged.
Chief executive Andrew Davies said: “The group delivered a strong operational performance and materially improved results in FY21.
“We have completed the strategic actions set out in 2019 to simplify and focus the Group, improve cash generation and strengthen our balance sheet.
“The successful capital raise, the recent sale of Kier Living, and the extension of the Group’s RCF facility provides Kier with the financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.”