(Alliance News) - Kier Group PLC on Thursday said half-year profit was up in line with revenue, while it intends to focus on reducing its debt levels and to generate cash in the future.
The Manchester, England-based construction firm said pretax profit doubled to GBP25.4 million in the six months that ended December 31 from GBP12.7 million a year earlier.
Revenue rose 3.4% to GBP1.53 billion from GBP1.48 billion.
"The strong performance of the group over the last six months reflects our enhanced resilience and strengthened financial position," said Chief Executive Officer Andrew Davies.
"Our order book has increased significantly against the prior year, reflecting a large number of contract wins across our divisions and this provides us with good, multi-year revenue visibility. These awards reflect the bidding discipline and risk management now embedded in the business."
Kier said its focus on cash generation and reducing net debt has required a suspension in its dividend payments. As a result, no interim or final dividend was declared, unchanged from six months and a year earlier.
Operating free cash flow on December 31 was negative GBP69.8 million, narrowing from negative GBP83.5 million a year earlier, while net debt was GBP130.6 million, narrowing from GBP131.3 million.
"Looking ahead, we expect to generate positive operating cashflow for the full year and deliver a net cash position at the year-end. Current trading remains in line with the board's expectations despite political and economic uncertainties," Davies continued.
"The group is well positioned to continue benefiting from UK Government infrastructure spending commitments and focused on the delivery of a sustainable net cash position and a sustainable dividend, in line with our medium-term value creation plan."
Shares in Kier were down 2.6% to 72.29 pence each in London on Thursday afternoon.
By Greg Rosenvinge, Alliance News reporter
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Kier (KIE)