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Infrastructure services and construction group Kier (LON:KIE) upped its underlying profits before tax for the year ended 30th June by 9% to £137 million. Underlying revenues climbed by 5% to £4.5 billion as the construction and services order book hit a record £10.2 billion.
Management said that the strong order book made them confident of hitting their 2020 targets as well as suggesting that improved operating margins and cash generation.
Chief executive Haydn Mursell commented: “I am pleased to report a good set of results with all divisions performing well. We have launched the Future Proofing Kier programme which will streamline the business thereby enabling us to deliver a more efficient service to clients, respond to changes in our markets and capitalise on growth opportunities, whilst, importantly, also accelerating the reduction of the Group’s net debt position.
“Our strong market-leading positions, our record £10.2bn Construction and Services order books, and our £3.5bn property development and residential pipelines, will see the Group deliver on its Vision 2020 targets. In addition, the Future Proofing Kier programme positions the Group well for an improvement in operating margins and higher cash generation, culminating in a net cash position for FY21”.
Shares in Kier rose by 2.88% to 1,070p (as of 12:15 BST).