Kier Group announced its results for the six-month period ended 31 December 2015.
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Revenue of £2.1bn increased 32%; like-for-like revenue increased 9%; and underlying operating profit of £57.1m increased 27%.
Reported profit before tax was £18.0m (December 2014: £27.8m), which includes non-underlying costs of £15.5m relating to the integration of Mouchel, as forecast.
Net debt position was better than expected at £174m (30 June 2015: net debt £141m), after £26m investment in the future growth of the Group and reflecting a good working capital performance with strong operating cash conversion.
Underlying earnings per share were 37.1p (December 2014: 42.4p), down 12% following the
issue of new shares for the acquisition of Mouchel; an
Interim dividend was increased by 12% to 21.5p (December 2014: 19.2p), reflecting the board's confidence.
Commenting on the results, Haydn Mursell, chief executive, said: "I am pleased to announce a good set of interim results which show the continued strength and breadth of the Group's capabilities and our presence in growing market sectors. The Group remains on course to deliver expectations for the full-year.
"In the UK, our core markets are improving which provides a platform for growth, particularly for our property, residential and regional building businesses, and over the medium-term for our infrastructure businesses. Mouchel has been substantially integrated and is performing well.
"Our presence in infrastructure services, regional building and housing aligns to growth markets with high visibility of forward pipelines and now accounts for 75% of the Group's turnover.
"We are encouraged by the robust pipelines in Property and Residential and the order books totalling £9bn in Construction and Services. We remain focused on ensuring that the Group is fit for growth by continuing to focus on our operational efficiency and continuing to manage risk closely.
"This discipline, combined with the resilience and flexibility provided by the portfolio of businesses in the Group, will continue to underpin our performance. We look forward to the future with confidence." ■