Acquisition of May Gurney has helped Kier Group grow revenues by 47% and nearly double its first-half profits.
Kier, whose financial year ends in June, has reported interim pre-tax profits for the six months to 31 December 2013 of £36.8m, which is 90% up on the £19.4m made in the same period the year before. Revenue reached £1,432m, up from £976m the year before.
As expected, an exceptional charge of £22.0m was incurred relating to the transaction costs and integration of May Gurney, which was acquired in July 2013.
Chief executive Paul Sheffield said that May Gurney was bedding in well, with no hidden surprises. "We are pleased with the performance of the May Gurney business which is operating in line with our expectations,” he said.
“The acquisition has consolidated the group's position in support services, providing a range of complementary services to clients in the highways, transport and utilities sectors. The integration remains on course, with good customer retention, new extended contracts and revenue synergies. We are on track to deliver the anticipated £5m cost savings in this financial year. The Construction and Property divisions continue to strengthen."
As previously reported, Paul Sheffield is stepping down as chief executive on 30 June, and is being succeeded by Haydn Mursell, the finance director.