Kier Group results for the six months to 31st December 2022 show revenue stable at £1,537m (2021: £1,536m) but pre-tax profit doubled to £25.4m (2021: £12.7m).
The half-year revenue was broadly evenly spread across the group’s two main divisions, infrastructure services (£815.6m) and construction (£709.0m). The profit growth came from the construction division, where adjusted operating margin improved from 3.9% to 4.6%., Infrastructure’s adjusted operating margin dipped slightly from 4.2% last time to 4.1%.
While revenue growth was flat, there are signs of growth to come. The order book at 31st December 2022 was £10.1bn, up 26% against the prior year.
Chief executive Andrew Davies said: “The strong performance of the group over the last six months reflects our enhanced resilience and strengthened financial position. Our order book has increased significantly against the prior year, reflecting a large number of contract wins across our divisions and this provides us with good, multi-year revenue visibility. These awards reflect the bidding discipline and risk management now embedded in the business.
Looking ahead, we expect to generate positive operating cashflow for the full year and deliver a net cash position at the year-end. Current trading remains in line with the board’s expectations despite political and economic uncertainties. The group is well positioned to continue benefiting from UK government infrastructure spending commitments and focused on the delivery of a sustainable net cash position and a sustainable dividend, in line with our medium-term value creation plan.”