Council repairs pay dividends for Kier

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Kier Group, which employs more than 600 people in Sheffield and maintains 42,000 council houses, has posted a 59 per cent leap in annual profit to £88 million.

Revenue also shot up 51 per cent to £3 billion, from £2bn at the property, residential, construction services group.

The business holds two contracts with Sheffield City Council, worth £118m, to provide a repairs and maintenance service to tenants and 2,200 leaseholders and also its corporate statutory servicing and repairs service.

The figures include a full year of results following Kier’s £221m acquisition of 6,000-employee support services firm May Gurney in July 2013.

Haydn Mursell, chief executive, said his strategy was to be a “top three player” in its chosen markets.

He said: “I am pleased to report a good set of results showing significant progress on last year and demonstrating the robust operational performance of the business and the benefits of the May Gurney acquisition.

“Despite inflationary price and labour challenges in the market, our margins remained robust.

“Following the integration of May Gurney, which transformed the scale and diversity of the group, the breadth of our capabilities has resulted in new, as well as larger contracts.

“Our capabilities extend from negotiating finance and planning permissions, constructing major buildings and infrastructure as well as providing facilities management and environmental services.

“This spread of capabilities puts us in a unique position to pursue growth.”

Kier, which has 16,000 employees nationwide, had a future pipeline of work order books totalling £6.2bn, up from £4bn last year, he added.