Kier trading ahead of expectations for 2021

A combination of strong orders and a programme of cost savings mean that Kier is expected to deliver an adjusted operating profit margin of 3% this year, the company has revealed.

Kier said in a trading update ahead of its full-year results on 16 September that it expected full-year results to be “moderately ahead” of the board’s expectations, reflecting “strong operational performance”.

It also credited numerous cost savings realised in response to the reduced volumes caused by covid-19 during the financial year for its performance.

Kier said its order book was underpinned by “significant long-term framework agreements” including new awards in the second half of the year, albeit at lower levels than seen last year due to procurement delays resulting from the pandemic.

Earlier this year, Kier completed a capital raise of £350m which it said would help it to pursue its medium-term target of £4bn-£4.5bn in revenue and an adjusted operating profit margin of 3.5%.

Chief executive Andrew Davies said: “The group’s proven track record of delivery and focus on selected markets, coupled with its strong order book and strengthened balance sheet, gives the board confidence in our strategy and the continued success of the group.”

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