One-off costs hit Kier profit in half-year results
Kier has posted a drop in half-year profit after incurring 拢26m in one-off costs, including the 拢15.5m expense of integrating acquired consultant Mouchel.
The construction giant posted pre-tax profit of 拢18m for the second half of 2015, down 35% from 拢27.8m the previous year.
Kier attributed the drop in profit to 拢26m of one-off costs, including 拢15.5m of transaction and integration costs related to the 拢235m acquisition of Mouchel last June, and an 拢11m writedown on contract rights.
When one-off costs were stripped out, Kier posted a 19% rise in underlying pre-tax profit to 拢44.2m, up from 拢37m.
Kier said the integration of Mouchel was 鈥渟ubstantially鈥� completed over the period and it expects to deliver 拢4m of cost savings in its full-year results later this year.
Kier is aiming to achieve cost savings of at least 拢10m in 2017 from the Mouchel integration. However, it warned there would be further one-off costs from reorganising its businesses to achieve this.
Revenue for the group increased 25% to 拢2bn, up from 拢1.6bn. The construction and services division鈥檚 order book stood at 拢9bn, with potential to add a further 拢3.1bn.
The group said 75% of its turnover now stems from infrastructure services, regional building and housing in the UK.
Haydn Mursell (pictured), chief executive of Kier Group, said the group remained on course to deliver its expected full-year financial results. He added that Kier鈥檚 core markets in the UK were improving.
Mursell added: 鈥淲e remain focused on ensuring that the group is fit for growth by continuing to focus on our operational efficiency and continuing to manage risk closely.
鈥淭his discipline, combined with the resilience and flexibility provided by the portfolio of businesses in the group, will continue to underpin our performance. We look forward to the future with confidence.鈥�
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