17th Mar 2016 07:44
LONDON (Alliance News) - Property, residential, construction and services company Kier Group PLC on Thursday said pretax profit declined in the first half of its financial year, as the cost of the integration of its Mouchel acquisition offset a rise in revenue.
The group said pretax profit for the six months to the end of December was GBP18.0 million, a 35% fall from the GBP27.8 million reported last year, as non-underlying costs came in at GBP26.2 million from GBP9.2 million in 2014. This included a cost of GBP15.5 million for the integration of UK-based infrastructure and business services company Mouchel, which Kier acquired in April. Kier said the cost was "as forecast", adding the integration was "substantially complete".
Stripping out these costs, underlying pretax profit was up 19% to GBP44.2 million from GBP37.0 million.
Revenue for the six months rose by 30% to GBP2.00 billion from GBP1.60 billion in 2014, driven by a 48% rise in services revenue and an 80% increase in residential revenue, with revenue in its largest division, construction, up by 15%.
Kier said there were "robust pipelines in property and residential" and noted its order books total GBP9.00 billion in construction and services.
It said it is on course to deliver its expectations for the full year.
Kier hiked its interim dividend by 12% to 21.5 pence per share from 19.2 pence, which it said reflected its confidence in continued growth.
"I am pleased to announce a good set of interim results which show the continued strength and breadth of the group's capabilities and our presence in growing market sectors. We 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," Chief Executive Haydn Mursell said.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Kier