Kier’s order book swelled after it secured spots on “significant” frameworks heading into the second half of 2022.
Seven spots on the £30bn ProCure23 framework, which will mainly deliver work for the NHS over four and a half years, helped Kier bolster its order book to £8.5bn at the end of March, compared with £8bn at the end of December 2021.
In a trading update released today, Kier said: “The order book continues to be underpinned by significant long-term framework agreements.”
This month, Kier secured a place on a £240m framework for the north of England, weeks after it won two spots on a £640m framework covering Yorkshire.
Kier also highlighted a £350m job it secured this month to regenerate the centre of Leatherhead, spanning 10.2 acres, and an early works contract it secured on a £75m project to revamp Alderney Water Treatment Works in Bournemouth.
Looking ahead, the contractor said it remains “confident” of reaching its medium-term target of an annual revenue of between £4bn and £4.5bn, with an operating margin of about 3.5 per cent.
In its most recent annual accounts, to 30 June 2021, Kier’s revenue came in at £3.33bn, although it was affected by the coronavirus pandemic. The previous year, it reported revenue of £3.48bn.
In April 2021, Kier chief executive Andrew Davies told Construction News that the “quality of the earnings and the cashflow that is coming through” would tempt investors to the firm, adding that Kier had good visibility of its cashflow as much of its work came through frameworks and long-term public-sector contracts.