Kier: Construction giant’s order book nears £11bn on back of contract wins
Construction giant Kier Group said its order book has reached nearly £11bn after a string of contract wins over the last 12 months.
The firm’s full-year order book came in at £10.8bn, representing a seven per cent year-on-year increase and guaranteeing 85 per cent of the coming year’s revenue already.
The year-end net cash position also rose to around £165m, more than double that of 2023. “Our core businesses are well-placed to benefit from investment in UK infrastructure, particularly in water, affordable homes and public housing maintenance,” Kier said in a statement to markets.
Despite the growth, profit and revenue is still expected to be in line with market expectations.
Commenting on the results, chief executive Andrew Davies, said: “The group has had a strong year with volume and profit growth, increased orders and material deleveraging. We have enhanced our resilience and strengthened our financial position in line with the objectives set out in our medium-term value creation plan. Our order book remains strong and provides us with multi-year revenue visibility.
He added: “The group is well positioned to continue benefiting from UK Government and regulated sector infrastructure spending commitments and these strong structural drivers will allow us to further generate shareholder returns.”
Kier Group’s share price has performed exceptionally this year to date and is up over 50 per cent, despite wider challenges in the UK construction market.
It comes after a string of major public sector contract wins, including a £200m project to design a houseblock at HMP Channings Wood near Denbury. It was also awarded three education projects worth around £110m, and two healthcare projects worth £40m.
The bumper growth has rewarded investors in the London-listed firm, which resumed dividend payments in the year.
In the medium-term, Kier is eyeing is eyeing up targets of £4bn – £4.5bn in revenue, alongside an adjusted operating profit margin of around 3.5 per cent.