Kier waves goodbye to net debt millstone after 13 years

Kier has returned to an average net cash position for the first in 13 years, new chief executive Stuart Togwell announced in its interim results this morning.

The firm said average month-end cash for the six months to the end of Decemver was £17m, a return to the black from the £38m net debt it posted last time.

Togwell, who took over from Andrew Davies at the start of November last year, hailed the news as “monumental” and added: “It gives you options about what to do going forward and it means we can stop talking about net debt. We have had lots of conversations about net debt [over the years].”

Togwell was speaking as the firm said revenue during the period was up 2% to £2bn with pre-tax profit up 14% to £33m.

He added the firm has nine employees working out in Dubai, which has been attacked by Iran in recent days, finishing up work on one of its legacy schemes, the Expo Live initiative which was held in 2020.

Togwell said it had no current live jobs in the Middle East and added: “We just have to wait and see. We’ve been through this before with Ukraine. We are fortunate that we are UK-based and that 60% of our work is cost reimbursable.”

Kier is one of 10 firms to have made the New Hospital Programme framework and Togwell said the initiative was expecting to award its first jobs this year. “They’re very keen to get going,” Togwell added.

The firm said that its order book grew to a record £11.6bn with 94% of its revenue in the current year already secured and announced a £25m share buyback programme.

It added that it had booked a £10.7m exceptional cost relating to fire and cladding work, up from £7.5m last time, which is expected to be around £30m for the full year.