Kier hails record order book as H1 profits, revenue rise

(Sharecast News) - Infrastructure services firm Kier Group posted a rise in first-half profit and revenue on Tuesday and lifted its dividend as it hailed a record order book. In the six months to the end of December 2024, adjusted pre-tax profit ticked up 3% to £50.6m, with revenue up 5% to £1.98bn. Adjusted operating profit was 3% higher at £66.6m.

The order book rose 2% on the same period a year earlier to a record £11bn, with 98% of expected FY25 revenue secured.

Kier pointed to "solid growth" across the infrastructure services and construction segments.

The interim dividend was lifted 20% to 2p a share and average month-end net debt for the period fell to £37.6m from £136.5m the year before. Kier said strong operational cash flow allowed it to continue to reduce debt levels despite increasing investment in its property business, restarting payment of dividends and paying pension deficit obligations.

Chief executive Andrew Davies said: "The group has continued to make significant operational and financial progress. The first half saw Kier deliver increased revenue and profitable growth whilst maintaining strong margins. We continued to grow the order book which, at £11bn, provides us with good multi-year visibility. Our strong cash performance allowed us to significantly increase the interim dividend payment and commence an initial £20m share buyback programme in January 2025."

Davis said the second half of the financial year has started well and the company is trading in line with the board's expectations.

"The group is confident in sustaining the strong cash generation achieved over the last few years and is well positioned to continue benefiting from UK Government infrastructure spending commitments," he said. "Kier operates in markets which are vital to the UK. We remain committed to delivering our long-term sustainable growth plan which will benefit all stakeholders."