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Kier has reported a 32% fall in profit after taking a 拢17m hit after restructuring its construction division and off-loading some smaller businesses.

In its results for the year to 30 June 2013, Kier reported group revenue, including share of joint ventures, of 拢1.98bn, down slightly from 拢2bn last year.

The firm said the fall in revenue was primarily due to poor weather in the first quarter of this year, which caused delays to construction jobs, pushing revenue into the 2014 financial year.

It reported pre-tax profit, after 拢20.4m in exceptional items and finance costs, of 拢43m, down 32% on 拢63m last year.

The 拢20.4m in costs included 拢17m in exceptional items, with 拢12m relating to the 鈥渃omprehensive restructuring programme鈥� in the construction business.

It said this programme was now 鈥渟ubstantially complete鈥�, with 拢1.9m of the costs related to the closure of its scaffolding, joinery and temporary electrical business and the remaining 拢10.1m incurred through 鈥渙ffice closures and associated staff reductions鈥�.

The firm did not say how many offices across its extensive regional network had been closed, but said the restructuring had led to an 8% reduction in staff costs.

It said: 鈥淚n order to improve the efficiency of the group, we have undertaken a significant restructuring programme during the year, closing some non-core operations and adjusting the scale of our regional building operations to better suit anticipated demand.

鈥淭he restructuring programme will ensure we operate as efficiently as possible and maintain operating margins at approximately 2%.鈥�

It also incurred 拢3.2m in costs due to the disposal of its power crane business, including redundancy costs, and incurred 拢1.8m in costs due to the acquisition of May Gurney.

The group鈥檚 operating profit, before the deduction of the exceptional items, dipped slightly to 拢69.7m, down 6% on 拢74.4m last year.

The firm鈥檚 construction business posted revenue of 拢1.31bn, including share of joint ventures, down slightly on 拢1.38bn last year, with an operating profit, before exceptional items, of 拢30.4m, down 14% from 拢35.2m last year. This gave the business an operating margin of 2.3%.

The firm said revenue from building work within the construction business fell to around 拢1bn, with the reduction partially mitigated by an increase in infrastructure work.

Kier said the restructure had put it in a strong position to benefit from an upturn in the construction market.

Chief executive Paul Sheffield said: 鈥淎fter nearly five years of recessionary pressure, we are seeing positive signs of improvement in all our principal businesses, which gives rise to cautious optimism that the economy is recovering.鈥�

The firm said its acquisition of support services business May Gurney had now created a combined support services business with revenues in excess of 拢1bn.

It said that since the acquisition, the firm had not lost any contracts and its 鈥渃ombined set of capabilities has enabled us to bid on a range of new projects covering water, rail and highways with a total value in excess of 拢500m鈥�.