Kier reinstates dividend as H1 profits grow

7th Mar 2024 08:46

(Sharecast News) - Construction, services and property group Kier said on Thursday that it was reinstating its dividend as it posted a rise in first-half profits.

In the six months to the end of December 2023, adjusted pre-tax profit increased 7% to £49m on revenue of £1.9bn, up from £1.5bn in the same period a year earlier. Kier said revenue was driven by infrastructure services and construction, with both performed well during the half.

The order booked rose 7% to £10.7bn, reflecting "a large number" of contract wins across infrastructure services and construction, and Kier said it had already secured 97% of expected revenue for FY24.

The company announced the resumption of dividend payments, with an interim dividend of 1.67p a share declared.

Average month-end net debt for the period was £136.5m, down from £242.7m.

Chief executive Andrew Davies said: "The past two and a half years have seen the group achieve significant operational and financial progress and I am delighted that today marks a return to paying dividends. The first half has seen the group deliver strong volume and profit growth, increased orders and material deleveraging. This is testament to the hard work and commitment of our people who have enhanced our resilience and strengthened our financial position in line with the objectives set out in our medium-term value creation plan.

"Our order book remains strong at £10.7bn and provides us with good, multi-year revenue visibility. The contracts within our order book reflect the bidding discipline and risk management now embedded in the business. I am also particularly pleased to report that the group significantly improved upon its year-end net cash position with significantly lower average month-end net debt and has confidence in sustaining this momentum going forward."

At 1030 GMT the shares were up 4.9% at 142.60p.