Kier reports healthy levels of new work
By Helen Wright17 May 2012
UK-based contractor Kier said it was performing well under current market conditions, and had secured over £400 million (€500 million) of new work in its construction division during the first quarter.
In an upbeat trading statement, the company said its construction division had remained resilient, maintaining an operating margin above 2% and securing an order book that already meets its entire construction revenue forecast for 2012, as well as 80% of forecast construction revenue for 2013.
Wins include both public and private construction contracts, and key projects include the Camden Civic Centre in the King's Cross development in London, and a contract to build a Sainsbury Welcome Centre at UCL, Howland Street, also in London. The contracts have a combined value of £130 million (€162 million).
Kier said it had also secured a place in the UK Ministry of Justice Northern Regional Framework and its National Framework for projects over £10 million (€12.5 million). Both frameworks are six-year projects that start in April and are valued between £50 million (€62.4 million) and £100 million (€125 million).
Meanwhile, the contractor said its property division had also seen a solid first quarter, and was increasingly providing good quality work to our other divisions.
For instance, a Kier consortium has recently been chosen to design, build, finance and maintain nine fire stations on behalf of the London Fire Brigade - the property division will finance the £64 million (€80 million) project, while the construction division will build it, and services will maintain the stations for 25 years.
Kier said the property division's development pipeline stood at £750 million (€937 million).