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Investing.com -- Kier Group (LON:KIE) proposed a 38% increase in its full-year dividend to 7.2p per share and completed a £20m share buyback after reporting higher revenue and profit for the year ended June 30.
The construction and infrastructure services company posted revenue of £4.09 billion, up 3% from the previous year.
Adjusted operating profit rose 6% to £159.1 million, while statutory operating profit increased 10% to £113.7 million.
Profit before tax was £78.1 million, compared with £68.1 million a year earlier. Basic earnings per share rose to 12.8p from 11.8p. Adjusted earnings per share stood at 21.6p, up 5% year on year.
Free cash flow totaled £155.4 million, down from £185.9 million in 2024, representing a conversion of 125%.
The group closed the year with net cash of £204.1 million, an increase from £167.2 million. Average month-end net debt narrowed to £49.2 million from £116.1 million.
The order book grew to a record £11 billion, up from £10.8 billion, with 91% of expected revenue for fiscal 2026 and about 70% for fiscal 2027 already secured.
By division, Infrastructure Services generated £2.14 billion in revenue, a 7% increase, with adjusted operating profit of £111 million.
Construction reported revenue of £1.91 billion, broadly in line with the previous year, while adjusted operating profit rose 8% to £75 million.
Property, which represented 1% of group revenue, posted £38.4 million in revenue and £12.2 million in profit.
The company highlighted new contracts including about £45 million in Southern Water schemes, more than £100 million in prison projects under the Small Secure Houseblocks Alliance, and £210 million in education projects.
Kier also reported a 4.3% year-on-year reduction in carbon emissions, amounting to a 71% cut in Scope 1 and 2 emissions since 2020. The group said 71% of its fiscal 2025 revenue was derived from green products and services.
Chief executive Andrew Davies said fiscal 2025 marked the first year of the company’s long-term growth plan and confirmed he would step down after six years in the role.
He congratulated Stuart Togwell on his appointment as chief executive. The final dividend of 5.2p will be paid Dec. 3, subject to shareholder approval.