Member Article

North East projects contribute to strong results for Kier Group

National property and construction company Kier Group plc, which has offices across the region in Hebburn and Killingworth, has revealed a strong set of full-year results.

Disclosing financials for the year ending 30 June 2016, the firm reported a 26% revenue rise up to £4.2bn, whilst its underlying profit from operations increased by 44% up to £150m.

The business, which employs over 480 people across the region, is responsible for a number of projects in the North East, including the £11m Motel One hotel in the centre of Newcastle which opened last year and the £100m revival of the former Swan Hunter shipyard in Wallsend.

Kier is also currently redeveloping the former Liquid and Envy nightclub into a 326-room student accommodation block and is working with Alumno Developments on the £20m Sheraton Park student scheme in Durham.

Kier North Tyneside, a joint venture between Kier and North Tyneside Council, delivers improvements and repairs to the council’s 14,000 housing stock, as well as providing a design & build and maintenance service to schools and local authority buildings, and delivering new affordable homes.

Recently the linkup completed the 500th affordable home to be built in North Tyneside on the £4.2m Wallsend development, marking a key milestone in the council’s work to create 3,000 affordable homes in the next 10 years.

With an order book of £8.7bn, the firm says it is confident of achieving a strategic goal of double-digit profit growth on average each year to 2020.

Haydn Mursell, Chief Executive, said: “I am pleased to report a good set of results reflecting the evolution of the Group during the year.

“The group continues to perform well in growing market sectors including infrastructure, housing and regional building, providing a breadth of capabilities to our clients.

“For the first time, 50% of group profit now comes from our Services division where essential day-to-day services are provided to clients and we have long-term visibility of our future pipeline of work.

Looking to the future, he added: “We remain focused on growing the business through improving operational efficiencies and investing in new technology to support our operations. We remain confident of achieving our goal of double-digit profit growth on average each year to 2020.”

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