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Facilities Management business contributes to Kier’s impressive results

17 September 2015

Kier Group plc, the property, residential, construction and services group, which employs over 23,000 people, announces its full-year results for the year ending 30 June 2015

Financial highlights
Revenue+ of £3.4bn, up 14%, reflecting strong organic growth in all divisions
Underlying profit before tax* for the year of £85.9m, up 17% (2014: £73.7m)
Divisional performance:
• Property – underlying operating profit up 42% delivering ROCE in excess of 15%;
• Residential – 2,130 new units delivered this year, a 35% increase on 2014;
• Construction – revenue growth of 15%, resilient margin of 2.2% and 95% secured for 2016;
• Services – revenue growth of 13%, stable margin of 4.7% and 90% secured for 2016.
Underlying earnings per share* of 96.0p (2014: 87.5p, as adjusted for the effect of the rights issue) An exceptional charge of £31.6m on continuing operations (2014: £42.2m) was incurred during the year predominantly relating to the closure of the Kier Group pension scheme, the sale of F&PS and the transaction and integration costs relating to the acquisition of Mouchel.

The FM business has contributed strongly to the growth of the Group and this is evidenced with a number of new awards in the year, including a five-year £22.5m contract with the Royal Opera House and the provision of a four-year £4.8m contract for engineering services to University College London, built by Kier Construction. In the year, the business also joined two national public sector frameworks: the hard FM framework for Crown Commercial Services and the soft FM services framework for national Procurement Services Wales.

To better define its offer in a competitive market, the FM business focuses on providing a broad FM and asset management proposition to clients. This breadth of delivery is in line with market trends and has resulted in contracts being signed with Staffordshire County Council and Police and Crime Commissioner for Staffordshire.

Steve Davies, Kier’s facilities management managing director said. “The market for FM services both in the public and private sector looks buoyant and with a number of significant client wins this year we are continuing to grow and make a strong contribution to the Group results.  We are well-placed to support clients in their preference for integrated self-delivered solutions and will continue to make further progress in this arena.”

Commenting on the group results, Kier Group plc chief executive, Haydn Mursell said: “I am pleased to announce that we have delivered solid growth and increased profitability. Economic confidence is returning to our core markets and, furthermore, the acquisition of Mouchel represents a major step in accelerating the Group’s five-year strategy.

“All of our divisions have performed well.  We continue to simplify the portfolio and restructure our businesses and invest in our future growth.  With a £9.3bn order book, a strong balance sheet and continued progress on our Vision 2020 goals this year, we look forward to the future with confidence.”

During this financial year Kier Group also joined the 5% Club to support momentum in the recruitment of apprentices and graduates.  By joining the club Kier is working towards the target of having 5% of its UK workforce comprising apprentices, graduates or sponsored students on structured programmes within the next five years.  So whether you are looking for your next career challenge, or looking at the next steps after leaving education, Kier are keen for you to get in touch.

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