15th Mar 2018 09:15
LONDON (Alliance News) - Kier Group PLC on Thursday reported a 6% drop in first-half pretax profit, but a 4% rise on an adjusted basis, and said it remains on course to deliver double-digit profit growth in 2018.
The property, residential, construction and services group recorded pretax profit of GBP33.7 million for the six months to the end of 2017, down from GBP35.7 million in the comparative year ago period, on revenue of GBP2.01 billion and GBP1.99 billion, respectively.
The dip in pretax profit was blamed on higher administrative and finance costs, while the rise in revenue was due to the McNicholas business, which was acquired in July 2017, and organic growth of 2%.
First half profit, before tax and exceptional items, grew to GBP48.8 million from GBP47.1 million.
"The group is performing well. Our GBP9.5 billion construction and services order book, combined with our GBP3.5 billion pipeline in the property and residential divisions, provides good visibility of work over the medium term," said Chief Executive Haydn Mursell.
"We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets," he added.
Kier lifted its interim dividend payment by 2% to 23.0 pence per share from 22.5 pence paid a year ago.
Shares in the company were trading 5.6% lower at 1,018.00 pence early Thursday.
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