SOLID RESULTS IN LINE WITH EXPECTATIONS
- Underlying pre-tax profits* up 2% to £70.0m (2011: £68.9m)
- Underlying EPS* up 6% to 156.8p (2011: 148.4p), including a 6% reduction in the effective tax rate
- Full-year dividend up 3% to 66p (2011: 64p), reflecting the Board's confidence in the business
- Robust cash performance, with net cash at £129m (2011: £165m) after investment of approximately £50m during the year and average month-end net cash of £95m (2011: £129m)
- Construction margins of 2.5% (2011: 2.7%) and Services margins resilient at 4.5% (2011: 4.5%)
- 95% of the Construction division's targeted revenue and 91% of the Services division's targeted revenue for 2013 is secure and probable, with order books of £4.3bn (2011: £4.3bn)
- Significant contribution from Property, with a pipeline now in excess of £1bn
* Underlying pre-tax profits and EPS are stated before amortisation of intangible assets relating to contract rights of £3.4m (2011: £3.4m) and before exceptional items comprising costs associated with the disposal of the majority of our Plant business and the investment in Biogen (UK) Limited (total £3.6m).
Commenting on the results, Paul Sheffield, Chief Executive said:
"Kier is responding well in the current market and has achieved another solid set of results for the year. Our underlying pre-tax profit, earnings per share and full-year dividend are all ahead of last year, with strong order books for Construction and Services and cash at healthy levels after considerable investment during the year. This has been achieved in tough markets and over the last few years we have focused on strategies that are now helping to protect us from the worst of those external pressures.
"Trading conditions will remain demanding in our core markets for some time. However, the business has proven to be resilient and we will maintain a focus on the market sectors which we believe have the greatest growth potential, continuing to invest and redeploy our resources to progress our strategy.
"Our strong balance sheet, focused approach to cost control and track record of delivery across all our sectors gives us the confidence to invest in the long-term growth of the business and to continue to provide high quality, innovative solutions to our customers."
