Wet weather affects Kier profits

Operating profit at Kier slipped slightly in the half-year to 31 December 1994. Thanks to reduced interest receivable, it was down 5% from œ1.9 million to œ1.8 million on a turnover up 20% from œ238 million to œ286.5 million. Pre-tax profits were down 17%, from œ3.3 million to œ2.7 million.

Chairman Colin Busby said that the majority of Kier's construction companies 'have produced excellent individual performances' with facilities management and homes and property contributing well. But the M&E division was singled out as 'disappointing.' Wet weather was blamed for bringing down the overall performance of all contracting divisions.

The rising construction cost base had impacted across the board, said Busby, particularly with regional companies, though he noted that tender levels are up on last year. Further protection is afforded by the relatively short order book. Estimating throughput has increased.

Busby believes recovery will emerge in 'due course' and maintains that 'we will keep our teams strongly placed to draw maximum benefit from it.'