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

Delivering profits : should you buy Royal Mail shares?
Share tips

Delivering profits : should you buy Royal Mail shares?

The volume of parcels delivered by Royal Mail soared during the pandemic, and so did its profits. But it has been coming under pressure lately. So, as…
19 May 2022
Avoid easyJet shares – there are better airlines to invest in
Share tips

Avoid easyJet shares – there are better airlines to invest in

EasyJet used to be one of Europe’s most impressive airlines. But now it is facing challenges on all fronts and losing out to the competition. Rupert …
19 May 2022
Tech stock crash – dotcom bust 2.0 is upon us
Tech stocks

Tech stock crash – dotcom bust 2.0 is upon us

It’s carnage in the tech sector as the market crashes. But that spells opportunity for canny investors, says Matthew Lynn
19 May 2022
Three things you should learn from Bill Ackman's brilliant Netflix trade
Investment strategy

Three things you should learn from Bill Ackman's brilliant Netflix trade

Hedge fund guru Bill Ackman has lost $400m selling Netflix shares. John Stepek explains why this was a brilliant trade, and outlines three things that…
19 May 2022

Most Popular

Get set for another debt binge as real interest rates fall
UK Economy

Get set for another debt binge as real interest rates fall

Despite the fuss about rising interest rates, they’re falling in real terms. That will blow up a wild bubble, says Matthew Lynn.
15 May 2022
Is the oil market heading for a supply glut?
Oil

Is the oil market heading for a supply glut?

Many people assume that the high oil price is here to stay – and could well go higher. But we’ve been here before, says Max King. History suggests tha…
16 May 2022
Value is starting to emerge in the markets
Investment strategy

Value is starting to emerge in the markets

If you are looking for long-term value in the markets, some is beginning to emerge, says Merryn Somerset Webb. Indeed, you may soon be able to buy tra…
16 May 2022