Kier Group posts revenue fall in line with forecast

Construction firm Kier Group reported a seven per cent fall in half-year revenues in line with expectations as the UK building sector grappled difficult market conditions.

Construction firm Kier Group reported a seven per cent fall in half-year revenues in line with expectations as the UK building sector grappled difficult market conditions.

Total revenue for the six months ended December 31st 2012 came to £976m, compared to £1.0bn for the same period a year earlier.

Underlying pre-tax profits fell to £27.0m, a 20% drop from £34m in 2011.

The results reflected a slump in demand for UK building during the economic crisis and an exceptional charge of £4.4m (2011:nil) for the restructuring of the business.

"As we are exposed to today's difficult environment, particularly in UK building, we are taking steps to restructure the business to reflect the scale of future opportunities," Chief Executive Officer Paul Sheffield said.

"This restructuring will continue through the second half of the financial year."

However, the order book for construction only fell slightly from £2.2bn in 2011 to £2.1bn while services remained at £2.1bn following about £800 worth of awards during the period.

Construction and services order books are expected to meet revenue targets for the next half.

"We are encouraged by the opportunities arising in our infrastructure and overseas Construction operations," Sheffield added.

"In addition our services businesses continue to diversify providing a strong platform for growth."

A dividend of 21.5p per share, was unchanged from the previous year.

Shares fell 2.30% to 1,315.00p at 09:19 Thursday.

RD

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?
Bitcoin

“Joke” cryptocurrency dogecoin goes to the moon. What’s going on?

Dogecoin – a cryptocurrency created as a joke – has risen by more than 9,000% this year alone. Saloni Sardana looks at how something that began as an …
19 Apr 2021
The FTSE 100 has clawed back above 7,000 – how much higher can it go?
UK stockmarkets

The FTSE 100 has clawed back above 7,000 – how much higher can it go?

The FTSE 100 index has risen to over 7,000 for the first time in over a year – it now sits just above where it was in 1999. But its era of neglect cou…
19 Apr 2021
The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021