Kier stays on track with new contract wins
Kier says its performance so far this year is in line with expectations, with its construction business being boosted by an improved market in both the Caribbean and the Middle East.
At the same time, the company has been chosen to deliver a £12m a year metering and developer services contract for Anglian Water.
It has also been chosen as preferred bidder along with Barhale and Morrison Utility Services for a possible five year £70m operational solutions contract with the same company.
In an interim management statement covering the period since the start of this year, the company says its £2.6bn secured or probable order book covers all forecast revenue to the end of June this year and 80% of forecast revenue for the following year – a stronger position than last year.
Margins remain at around 2%, and while UK work has included the start of the £450m Mersey Gateway project, its overseas pipeline includes a health project and several hotel projects in the Caribbean, where it claims the tourism market is picking up, and three projects worth £48m £26m, and £33m in the Middle East, where it is expecting an increase in work in the run up to the Dubai Expo in 2020.
On the contracts with Anglian Water, the £12m a year AMP6 Integrated Marketing and Developer Services (IMDS) contract has been won with Clancy Docwra, and will see both companies covering the whole Anglian Water region, rather than two separate regions as covered in the existing contract.
The contract, which is expected to be formally awarded in the summer, runs for a potential 15 years, but with a five-yearly review.
The £70m contract, which could be extended for a further ten years, is expected to start in April next year. It covers construction of new services, demolition of existing ones, and maintenance and refurbishment.
Kier group finance director Haydn Mursell said: “These contract awards demonstrate how our acquisition of May Gurney last year has enhanced Kier’s capabilities and strengthened our offering to clients.”