Half-year results show 43% fall in group profit but construction division bucks the trend with 21% rise
Kier Group has announced falls of 43% in pre-tax profit and 8% in revenue for the second half of last year, but the construction division achieved 21% growth in pre-tax profit and a 1.6% rise in revenue.
Group pre-tax profit for the six months to 31 December 2008 was 拢25.3m, down from 拢44.6m for the same period in 2007, while revenue fell 8%, down from 拢1,205.5m to 拢1,108.7m.
Revenue and profit growth in the construction and support services divisions was offset by falls in housing and developments income.
The construction division's 1.6% increase in revenue was driven by a surge in public sector work, and pre-tax profit leaped 21% from 拢23.9m the previous year to 拢28.9m. The division's operating profit increased by 36.7% to 拢19.0m.
In the six months to 31 December, Kier said that public sector work represented 67% of total awards, compared with 50% in 2007.
Education work was also noted as being particularly 鈥渂uoyant鈥�, accounting for 拢400m of the firm's total awards for the six-month period.
Health and custodial sectors were also active, with the ProCure21 health framework providing Kier with 拢324m of work to date, with 拢34m in the six months to 31 December.
The energy sector accounted for 17% of the group's awards in the period.
Kier said the outlook for its construction business remained positive, with secured orders and probable awards together accounting for around 80% of the firm's expected revenue for 2010.
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