The Scottish construction operations of Kier Group have offset a “disappointing” performance for the diversified company across the UK.
A focus on “heritage, health and education” kept business on track north of the border during the year to June 30, according to regional development manager Gordon Reid.
Results from Bedfordshire-based Kier yesterday revealed pre-tax losses of £244.9 million for the period, against profits of £16.2m a year earlier, while revenue slid by more than £100m to £4.14 billion.
Chief executive Andrew Davies said: “Kier experienced a difficult year, resulting in a disappointing financial performance.”
Kier’s activities cover infrastructure, buildings, developments and housing.
Speaking during a visit to Aberdeen, where the group completed work on a multi-million-pound revamp of the 200-year-old Music Hall last year, Mr Reid said Kier had a strong pipeline of construction projects across Scotland.
“Heritage, health and education are the three main areas of focus for our business,” he said, adding: “The pipeline is healthy and the market opportunities are very exciting.”
Mr Reid said he was optimistic about the outlook for Kier north of the border, thanks to its focus on framework agreements for new schools and healthcare facilities, as well as prestigious projects at the Citizens Theatre and Burrell Collection in Glasgow. Current education sector work for the firm includes the new Alness Academy, a £32m project led by hub North Scotland on behalf of Highland Council.
Kier – whose Scotland and north-east England division employs nearly 200 people across offices in Aberdeen, Glasgow and Newcastle – is also carrying out improvement and refurbishment projects worth £2m at Aberdeen University.
Health sector work includes a £6m refurbishment of the Royal Cornhill Hospital in Aberdeen and ward upgrades at Raigmore Hospital in Inverness.
Mr Reid said revenue from the Scotland and north-east England division grew by £30m to around £160m in the year to June.