Davies hands over the running of the business to Stuart Togwell, currently Kier\u2019s group managing director of Construction, at the end of new month.<\/p>\n
He departs leaving his successor with a record order book at \u00a311bn, with 91% of next year\u2019s revenue already secured and about 70% of FY27 work locked in, giving the business its strongest visibility of future cashflows in years.<\/p>\n
Kier\u2019s balance sheet is now also in far better shape, ending the year with \u00a3204m net cash compared to \u00a3167m last time.<\/p>\n
Average month-end net debt has been cut to \u00a349m, a dramatic turnaround from the \u00a3422m burden Davies inherited when he took charge in 2019.<\/p>\n
Infrastructure remained Kier\u2019s biggest earner, accounting for just over half of group revenue at \u00a32.14bn, up 7% on last year. Work on HS2 and growth in the water and nuclear markets offset delays in new road and rail programmes.<\/p>\n
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Pre-tax contribution slipped slightly after a one-off \u00a36m claim boosted last year\u2019s numbers, with reported operating profit steady at \u00a389.5m. Margins in the division eased to 5.2%.<\/p>\n
Kier’s construction arm held revenue flat at \u00a31.91bn, with profit lifted by 8% to \u00a375m as margins improved to 3.9%.<\/p>\n
Construction benefitted from a better mix of projects, handing over the new HMP Millsike prison and starting work on the flagship HMP Glasgow scheme. Kier Places also secured a new five-year facilities management deal with Wiltshire Council worth \u00a33.4m a year.<\/p>\n
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Kier\u2019s property business nearly doubled profit to \u00a312m despite sales falling back to \u00a338m after a large disposal boosted the previous year.\u00a0 Capital employed rose to \u00a3198m, as Kier pushed towards its target return on capital employed of 15% by 2028.<\/p>\n
Andrew Davies, Chief Executive, said: “<\/span>Building on our outperformance in FY25, the group has started the current financial year well and for FY26 is trading slightly ahead of the board’s expectations. <\/span><\/p>\n “Kier remains well positioned to continue to deliver infrastructure that matters and benefit from the UK Government’s 10-year Infrastructure Strategy spending commitments.\u00a0<\/span><\/p>\n “On a personal note, it has been a privilege to lead Kier over the last six years and to see the group transformed into a strong and sustainable business with enhanced resilience and a reinforced financial position. <\/span><\/p>\n That transformation has only been possible due to the capability, professionalism and hard work of Kier’s teams and the support of our customers and partners.”<\/span><\/p>\n
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