Our strategy focuses on leveraging our attractive market positions to sustainably deliver infrastructure which is vital to the UK.
Strategic objectives
Leverage our attractive market share positions in growing markets
What we have done:
- Closely aligned Group capabilities to UK Government priorities
- Developed an integrated 360 approach through key interconnected capabilities delivering significant synergies across the business
- 91% of revenue from UK Government or regulated industries
Next steps:
- Supporting our clients’ infrastructure needs that are driven by structural factors such as population growth, transportation pressures, aged infrastructure, energy security and climate change
Maintain and enhance long-term customer relationships
What we have done:
- Order book of £11bn with 91% of FY26 revenue secured
- Framework positions of £156bn (total advertised value)
- >50% of revenue from frameworks
Next steps:
- Continue to align the Group to our customers’ needs and the increasing shift to long-term partnerships and delivering value for money
- Continue to deliver projects on time, to budget and in line with customer requirements
Resilient and well-balanced portfolio
What we have done:
- Continued deleveraging, allocating the cash generated from our Infrastructure Services and Construction segments, investing for future growth from our Property segment
- Attraction and retention of talent through our people programmes, including:
- Culture workshops and launch of our nine healthy behaviours supporting the growth of both Kier and our people
- Improved measurement of performance through launch of Balanced Performance Scorecard
- Relationships with supply chain developed and retained through:
- Prompt Payment Code adherence
- Training via the Supply Chain Sustainability School
Next steps:
- Infrastructure Services and Construction – winning market opportunities from UK Government spending and UK asset owner investment plans
- Property – employing additional capital efficiently and delivering target returns
Deliver disciplined growth, consistent profitability and cash generation
What we have done:
- Revenue growth of 3% to £4.1bn
- Adjusted operating profit growth of 6% to £159.1m, a margin of 3.9%
- Free cash flow of £155.4m (FY24: £185.9m) with a conversion of 125%
- Increased shareholder returns:
- Proposed dividend of 7.2p, at 3x cover
- Share buyback of £6.4m purchased in the year
Next steps:
- Continue to grow the business with discipline
- Win new business with low-risk profiles and attractive margins
- Monitor risk at every stage of the project
