Kier announces another big loss as pandemic 'stalls progress'

Kier Group made a loss of £225m in the year to 30 June 2020 as the pandemic hit its revenues.

The firm described its results as reflecting ‘nine months of good strategic progress and three months impact of COVID-19'.

Its loss before tax was £225.3m, slightly down on a loss of £229.5m for the year ending June 2019.

The group’s revenue was £3,423m, which was also down on the previous year (£3,951m).

It said this 15% drop was ‘primarily due to the effects of COVID-19 on the last three months as well as the challenging market conditions through the year affecting both Construction and Infrastructure Services’.

Chief executive Andrew Davies said: ‘This financial year has been a difficult one for the Group. The progress made in the first nine months, despite challenging market conditions, reflected the successful execution of many elements of our strategic plan, as we began to experience the benefits of the decisive cost reduction actions taken.

‘The effects of COVID-19 adversely impacted the Group's performance in the final three months of the financial year, as the business adapted to working under revised site operating procedures.

‘I would like to thank all my dedicated Kier colleagues for their commitment and resilience over the course of the year, many of whom have played a significant role in providing essential public services during the pandemic.’

The firm’s Infrastructure Services segment, which comprises the Highways, Infrastructure and Utilities and Rail businesses, reported an operating profit of £9.4m.

It cited the Area 4 maintenance and response contract and local highway contract wins with Surrey, Northampton County Councils and Birmingham Highways Ltd as examples of work won, adding: ‘During the year, two of our Smart Motorway projects, the M20 and M23 were delivered and we remain on track to successfully deliver a third project on the M6.’

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