Interim profits jump at Kier

Revenues in the six months to 31 December were largely flat at £1.54bn, after growth in construction and infrastructure services was offset by a weaker performance in the property business. Cost inflation was also seen across materials, wages and other costs.

Adjusted operating profits came in at £57.2m, however, a 6% increase year-on-year, after the operating margin rose 20 basis points to 3.7%, ahead of Kier’s 3.5% medium-term target. On a statutory basis, pre-tax profits doubled to £25.4m.

The order book also strengthened. As at 31 December, it was ahead 26% year-on-year at £10.1bn, with 96% of expected full-year revenues now secured.

Andrew Davies, chief executive, said: "The strong performance of the group over the last six months reflects our enhanced resilience and strengthened financial position."

Looking to the rest of the year, Davies added: "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."

As at 0915 GMT, shares in Kier were ahead 1% at 74.83p.