Kier chief executive Haydn Mursell has set a target of “double digit compound annual growth” between 2014 and 2020 after he took the reins at one of the UK’s biggest contractors.
The firm announced today it has has brought all its residential work in contracting, affordable housing and private house building into one brand, Kier Living, to be run by a single management team.
In a trading update to the City, Kier said its construction division has operating margins at around 2 per cent and an order book of secured or probable work at around £2.6bn, approximately 90 per cent of anticipated revenue for the year to 30 June 2015.
Among its recent contract wins in the division was the £44m Nottingham Priority Schools Batch for seven schools, as revealed by Construction News in May, bringing its total PSBP framework wins to over £200m in the past year.
Kier’s property division has a pipeline of over £1bn and said it is achieving its targeted 15 per cent return on capital employed. The division is operating with £100m of capital, invested in a variety of development opportunities.
The firm is currently bidding for over 1m sq ft of office space including four regional office developments outside of London.
Haydn Mursell takes Kier reins
Haydn Mursell has started as Kier chief executive, having taken over from Paul Sheffield this month.
Mr Mursell had been with Kier for four years as group finance director, having formerly held senior roles at Balfour Beatty and Bovis Lend Lease.
He said: “Having had the opportunity to work at Kier over the last four years it is a privilege to be taking on the role of chief executive. The business has some of the most experienced and skilled teams in the industry and a diverse portfolio of clients spanning the construction, services and property sectors so it is incredibly well placed to make the most of recovering markets.
Kier Group chairman Phil White hailed Mr Mursell as a “driving force” in the acquisition of May Gurney last year. He added: “I am delighted that we have been able to appoint such a strong successor to Paul from within the group. It enables us to bring new momentum and vision to the leadership team, informed by a robust understanding of the business.
It said its overseas business was seeing “good quality opportunities, particularly in the Middle East”, with negotiated opportunities in the Caribbean being pursued.
In services, its order book is £3.6bn and approximately 85 per cent of forecast revenue for the year to 30 June 2015 is secured or probable.
Operating margins for the full year across the division will exceed 4.5 per cent, in line with expectations.
Utilities: Kier was selected as preferred bidder for two new long-term contracts with Anglian Water under its AMP6 programme, with a combined total value of up to £130m.
Housing maintenance: A four-year £140m repairs and maintenance contract, commencing early October, with Genesis Housing Association to provide responsive repair services to over 10,000 properties as well as undertaking planned maintenance work across the whole Genesis portfolio of 33,000 homes.
Kier infrastructure won the Network Rail Western and Wales rail framework, one of its key strategic targets.