Construction firm Kier Group has returned to the black after several years of heavy losses.
The company, which has worked on a number of large public sector contracts in the north and north-east, announced pre-tax profits of £5.6million for the year to the end of June.
The Manchester-based group had posted losses of £225m in 2020 and £229m the previous year.
Its turnover fell slightly to £3.3billion, from £3.5bn in 2019/20, with the figure reflecting the impact of the Covid pandemic, the company’s completion of several motorway upgrade projects and its withdrawal from “non-core and loss-making contracts.”
The company said it had completed a drive, launched two years ago,to simplify its structure.
Kier built the new secondary school at Alness, in Easter, Ross, which opened its doors to pupils last autumn.
Among other projects in the north and north-east, it has also carried out multi-million pound contracts at Raigmore Hospital, in Inverness, and Royal Cornhill Hospital, in Aberdeen.
Last year the company, along with three other contractors, was involved in the conversion of part of the Scottish Events Campus, in Glasgow, into the temporary 300-bed Loiusa Jordan Hospital.
‘Strong operational performance’ hailed
Kier’s chief executive, Andrew Davies, said the group had delivered a “strong operational performance and materially improved results” in 2020/21.
He added: “We have completed the strategic actions set out in 2019 to simplify and focus the group, improve cash generation and strengthen our balance sheet.
“The successful capital raise, the recent sale of Kier Living, and the extension of the group’s RCF facility provides Kier with the financial and operational flexibility to continue to pursue its strategic objectives within its chosen markets and will allow it to further enhance and capitalise on its position as a strategic partner to its customers.”
He continued: “Current trading is in line with our expectations, and despite inflationary pressures and the impact of increased national insurance contributions, our outlook for the current year remains unchanged.
“We are now focused on delivering our medium term value creation plan by leveraging our attractive market positions, delivering our high-quality order book and fostering our long-term customer relationships and sector expertise.”