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FM contracts aid Kier’s half-year results

Kier Group’s half-year results to 31 December 2017 have seen revenue increase by eight per cent to £2,154 million, and underlying operating profit rise by five per cent to £60 million.

The property, residential, construction and services group said the figures were supported by the contribution of Kier’s FM business, which secured wins totalling £65 million in the period.

Most recently, Kier’s FM arm has successfully delivered a significant mobilisation for the British Red Cross, and is providing total FM for all its 620 shops, offices, storage facilities and other buildings across the UK.

A new five-year contract, worth £17 million with Capital City Academy Trust started in August 2017, to which Kier is also providing a total FM solution, including mechanical and electrical maintenance, cleaning and waste management services, grounds maintenance and security across the academy.

Following the award of the Powys contract last year, Wales remains an important strategic location and additional awards in the area include a three-year total FM contract with Welsh Water valued at £5 million and a three-year contract with Careers Wales.

Kier has also secured places on a number of frameworks for the provision of FM services including the four-year £430 million Crown Commercial Services estates professional services and ESFA framework.

Commenting on the results, Haydn Mursell, Chief Executive, said: “The Group is performing well. Our £9.5 billion Construction and Services order book, combined with our £3.5 billion pipeline in the Property and Residential divisions, provides good visibility of work over the medium term.

“The Group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years. We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”

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