Chief executive leaves at end of next month after six years in charge
Andrew Davies is ending his reign as Kier executive with a record order book, a rise in profit and turnover and an increased dividend payment.
Davies steps down at the end of next month after more than six years in charge of the business which at one stage had an average month-end net debt approaching £600m.
Presiding over his last set of full year results this morning, Davies said that Kier’s order book was up £200m to £11bn, while pre-tax profit in the year to June was up 15% to £78m on revenue up 3% to £4.1bn. Operating profit was up 10% to £114m.
Kier paid its first dividend in five years last year when it handed shareholders 1.67p a share after its interim results and today the firm said that its full year dividend was being increased by 38% to 7.2p.
Average month end net debt was down to £49m from £116m last time, with analysts forecasting this to be wiped out over the next 12 months.
>> See also: ‘A man you can have a bit of faith in.’ How Andrew Davies turned around Kier
Davies said the £49m figure was “insignificant” given the firm is making dividend payments and announced a £20m share buyback at the start of the year.
“We’re deploying capital for the benefit of shareholders and we’re now investing. You have to remember the debt was at £582m in 2021.”
He said the firm’s core markets, such as health, defence and justice, were in good shape and added: “We feel very strongly supported [by government with its spending plans]. We are bidding and winning a lot of work.”
Davies stepped down from a non-executive role at defence contractor Chemring earlier this year and said he was “keeping an open mind” as to what he will do next.
He added: “I’m retiring from Kier. I feel I’ve done my bit and it’s the turn of the people below me.”
Kier has previously announced that Davies, who will be 62 next month, is being replaced by the firm’s group managing director of construction Stuart Togwell.
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