Kier Group appoints FD as sales soar

18th Sep 2014 07:11

British construction and property developer Kier Group has apppointed a new finance director as it posted final results slightly ahead of expectations thanks to strong organic growth at its construction arm.The group, which lifted revenue 51% to £3bn in the year to 30 June, said Beverley Dew, a finance director of the regional construction business in the UK at Balfour Beatty since June 2013, will join at a date that is still to be decided.Solid performances in the construction and service divisions saw Kier post underlying operating profit rose 59% to £88m, while the underlying profit before tax rose 54% to £73.1m."While the economic climate continues to be positive, operating margins are under pressure due to inflationary cost increases in the supply chain. Cash generation will continue to be constrained in the short-term,” said group chief executive Haydn Mursell."The continuing improvements in our operating performance and our strong order book mean that we are on course to meet the board's expectations for the current financial year."Kier said its improved revenue in the construction division, which rose 22% to £1.6bn, was attributable to a growth in the market and to an expanding portfolio of contracts, particularly within the infrastructure and international business.Divisional operating profit rose 11%, while operating margins fell two basis points to 2.1%, while revenue and operating profit in the property arm rose to £284m and £21m, a 19% and 2% increase, respectively.The services division was significantly strengthened by acquiring May Guerney and was the pick of the crop of the group's three arms, posting a 153% increase in revenue to £1.1bn and a 176% increase in operating profit to £53.3m.The company said its construction and services order books contained secured and probable deals worth £6.2bn.Shares in Kier were up 2.4% to 1,714p at 08:30 on Thursday.