Leading construction, services and property firm Kier Group PLC has managed to maintain construction margins over 2%, exemplifying very good half-year results for the period up to December 2014.
A spokesperson for the group stated: “a strict approach to bidding and robust excavation” had allowed it to remain above the 2% line, achieving 2.1% margins in the contracting division over the six month period, a decrease from the previous year when margin stood at approximately 2.3%.
Kier has done well in comparison to other rival contractors, many of whom have reported their margins falling below 2% in the same time period, a pressure caused by cost rises and the low contract margins that have been offered in the downturn.
Despite a low margin the Kier Group have managed to achieve a significant revenue growth of 18% within the construction division, rising up to £874m from £742m in 2013. Furthermore the group as a whole has secured an 11% revenue increase, however pre-tax profits experienced a 2% fall in comparison to performance in 2013.
Furthermore the firm have confirmed that takeover talks are still ongoing with consultant Mouchel following preliminary talks in December, the firm said: “the group confirms that it is still in discussions regarding a potential acquisition of Mouchel. There can be no certainty that an acquisition of Mouchel will be completed. A further announcement will be made if and when appropriate.”
Kier chief executive Haydn Mursell (pictured) said: “With improving economic conditions, and, notwithstanding pressures in the supply chain, our robust execution skills and delivery and disciplined approach to bidding and risk management continue to deliver good results.
“Significant positions on key frameworks, a disciplined approach to new work and an improving economy, position as well for the remainder of 2015 and over the medium term. A further increase in the interim dividend reflects our confidence in the future. We remain on course to meet the Board’s expectations for the full year.”
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