Kier 2015 final results

DividendMax Ltd.

Kier 2015 final results

Financial highlights

Revenue of £3.4bn, up 14%, reflecting strong organic growth in all divisions;

Divisional performance:

o Property - underlying operating profit up 42% delivering ROCE in excess of 15%;

o Residential - 2,130 new units delivered this year, a 35% increase on 2014;

o Construction - revenue growth of 15%, resilient margin of 2.2% and 95% secured for 2016; and

o Services - revenue growth of 13%, stable margin of 4.7% and 90% secured for 2016.

Non-underlying charges of £31.6m on continuing operations (2014: £42.2m) relate to restructuring, transaction and integration costs in preparation for and following the acquisition of Mouchel, the closure of the Kier Group pension scheme, the sale of Fleet & Passenger Services ('F&PS') and in simplifying the portfolio, £22.9m on discontinued operations relating to the disposal of the UK mining business;
Mouchel synergies for 2016 on track to deliver £4m;

Net debt position of £141m ahead of expectations (June 2014: £123m), reflects some improvement in working capital, continued investment in future growth and the Mouchel rights issue;

Underlying earnings per share of 96.0p (2014: 87.5p) up 10%; and

Proposed full year dividend increased by 20% to £47.3m (2014: £39.4m).

The proposed final dividend of 36.0 pence (2014: 39.6 pence) bringing the total dividend for the year to 55.2 pence (2014: 57.6 pence) had not been approved at the balance sheet date and so has not been included as a liability in these financial statements. The dividend totalling circa £34.1m will be paid on 27 November 2015 to shareholders on the register at the close of business on 25 September 2015. A scrip dividend alternative will be offered.

Companies mentioned