The construction and services group recovers from losses and achieves a 3.9% operating margin
Kier Group, one of the UK’s leading construction and services companies, has announced its financial results for the year ended 30 June 2023. The group has reported a significant increase in profits and a reduction in debt, as well as an improved operating margin of 3.9%.
The group’s revenue was £3.3 billion, down 4% from the previous year, reflecting the impact of the Covid-19 pandemic and the disposal of non-core businesses. However, the group’s underlying operating profit was £130 million, up from a loss of £41 million in 2022. The group’s net debt was £241 million, down from £440 million in 2022.
The group’s construction division delivered a revenue of £1.7 billion, up 1% from the previous year, and an operating profit of £66 million, up from £32 million in 2022. The division’s operating margin was 3.8%, up from 1.9% in 2022. The division’s order book was £4 billion, up from £3.6 billion in 2022.
The group’s services division delivered a revenue of £1.6 billion, down 8% from the previous year, and an operating profit of £64 million, up from £9 million in 2022. The division’s operating margin was 4%, up from 0.5% in 2022. The division’s order book was £5.7 billion, down from £6.2 billion in 2022.
The group’s chief executive, Andrew Davies, said he was pleased with the results and the progress made in the group’s transformation plan. He said the group has improved its operational performance, strengthened its balance sheet, and enhanced its governance and risk management. He said the group is well-positioned to benefit from the opportunities in its markets and to deliver sustainable growth and value for its stakeholders.