(Sharecast News) - Construction and infrastructure services company Kier was in the green on Thursday as it posted a rise in first-half operating profit as cost-cutting lent a hand in "challenging" market conditions.
In the six months to 31 December 2019, operating profit before exceptional items ticked up to ?46.7m from ?41.9m, while statutory pre-tax losses narrowed to ?41.2m from ?45.3m as it delivered ?23m in cost savings.
However, revenue declined 9% over the year to ?1.9bn, namely due to "challenging" market conditions affecting both the infrastructure services and construction businesses, where revenues fell 10% and 7%, respectively.
Net debt increased to ?242.5m from ?180.5m, in line with expectations.
Chief executive Andrew Davies said: "I am pleased to report that many of the actions we outlined at the beginning of the year have been executed successfully. In particular, the decisive cost actions we have taken are now benefiting the group and have more than compensated for the challenging market conditions we experienced in the period."
Kier said that its cost reduction programme is expected to deliver benefits of at least ?65m by 30 June 2021.
At 0940 GMT, the shares were up 12% at 113.44p.
Kier (KIE)11 Apr 2024 15:09