Annual Report and Accounts Bedfordshire SG19 2BD for the Year Ended 30 June 2002 Telephone 01767 640111 Fax 01767 640002
Total Page:16
File Type:pdf, Size:1020Kb
Kier Group plc Kier Group Kier Group plc Kier Group plc Tempsford Hall Sandy annual report and accounts Bedfordshire SG19 2BD for the year ended 30 June 2002 Telephone 01767 640111 Fax 01767 640002 www.kier.co.uk building a successful business annual report and accounts for the year ended 30 June 2002 ended 30 June for the year 2002: £1382.7m In 2002, the tenth anniversary Turnover since the employee buy-out, £1,382.7m Kier Group achieved further increase 10.5% profit growth, generated 2002: £28.0m substantial additional cash Profit before tax from operating activities and £28.0m undertook further investment increase 27.9% 2002: 14.2p in Homes & Property. Dividends 14.2p increase 15.4% Contribution by operating sector to… Contents TURNOVER OPERATING PROFIT PROFIT BEFORE TAX Group highlights 1 The Kier Group structure 2 Board members 4 The year in review 6 Chairman’s statement 8 CONSTRUCTION & SERVICES Financial review 12 HOMES & PROPERTY Kier Regional 14 INFRASTRUCTURE INVESTMENT Kier National 18 Kier Support Services 22 Kier Residential 26 Kier Property 30 HIGHLIGHTS Kier Project Investment 34 Key policies and services 38 • Growth continues for tenth successive year Financial statements • 25% compound annual growth in earnings per share over six years Directors’ report 41 Corporate governance 46 • Operating profit up 23.0% to £26.2m (2001: £21.3m) Statement of directors’ responsibilities 48 Independent Auditors’ report 49 • Profit before tax at £28.0m up 27.9% (2001: £21.9m) Consolidated profit and loss account 50 Consolidated balance sheet 51 Company balance sheet 52 • Dividend increased by 15.4% to 14.2p (2001: 12.3p) Consolidated cash flow statement 53 Consolidated statement of total recognised gains and losses 54 • Strong cash performance – £50.0m generated from operating activities Reconciliation of movements in shareholders’ funds 54 Notes to the financial statements 55 • Significant cash investment in acquisitions during the year Principal operating subsidiaries 71 Principal joint arrangements, joint ventures & associated undertakings 72 Group principal businesses 74 Financial record 76 Corporate information inside back cover 1 Kier Group plc Annual report and accounts for the year ended 30 June 2002 KIER GROUP STRUCTURE CONSTRUCTION & SERVICES HOMES & PROPERTY KIER REGIONAL KIER RESIDENTIAL Mid-range construction contracts in locally FRENCH KIER ANGLIA High quality private housebuilding. ALLISON HOMES managed business units across the UK. IEI BUILDING SERVICES BELLWINCH HOMES ENGINEERS Turnover KIER HOMES Turnover KIER LONDON KIER LAND KIER NORTHERN TWIGDEN HOMES KIER NORTH WEST £145.6m £724.9m KIER SCOTLAND KIER SOUTHERN New completions KIER WESTERN MARRIOTT CONSTRUCTION MOSS CONSTRUCTION 877 homes WALLIS KIER NATIONAL KIER PROPERTY Major building, civil engineering and mining KIER BUILD Commercial property development. KIER COMMERCIAL INVESTMENTS projects in the UK and overseas. MAJOR BUILDING PROJECTS KIER VENTURES KIER CONSTRUCTION Turnover KIER DEVELOPMENTS (50%) Turnover CIVIL ENGINEERING MINING KIER INTERNATIONAL £13.2m £412.6m KIER PLANT Total development area (consented and in pipeline) 6m sq ft INFRASTRUCTURE INVESTMENT KIER SUPPORT SERVICES Outsourcing of managed services, FM services for PFI CAXTON INTEGRATED SERVICES KIER PROJECT INVESTMENT and PPP projects, building maintenance for commercial BUILDING MAINTENANCE Promotes and manages the Group’s interest in the private KIER PROJECT INVESTMENT clients, local authorities and other social landlords. CONSULTING finance initiative, creating concession holding businesses ACADEMY SERVICES FM MANAGED SERVICES in healthcare, education and other local services. BAGLAN MOOR HEALTHCARE Turnover PFI SERVICE PROVISION INFORMATION RESOURCES Turnover (BOURNEMOUTH) PROSPECT HEALTHCARE £80.9m (HAIRMYRES) £5.5m PROSPECT HEALTHCARE (READING) Committed investment £10.6m 2 Kier Group plc Annual report and accounts for the year ended 30 June 2002 3 Kier Group plc Annual report and accounts for the year ended 30 June 2002 BOARD MEMBERS EXECUTIVE DIRECTORS COLIN BUSBY DAVID HOMER MARTIN SCARTH PETER WARRY Aged 58, has been chairman and chief executive since leading the Aged 56, has extensive experience of the residential development Aged 59, joined the Group in 1962 and has held management Aged 53, is chairman of Victrex PLC and a non-executive director employee buy-out in 1992. His service with the Group began in sector, including eight years as a regional managing director with positions in a number of the regional construction offices. A of BSS Group PLC and of the Office of the Rail Regulator. 1969 and he held senior appointments in the international and UK a major national housebuilder. He joined Kier Group in 1994 divisional director since 1988, he has since the buy-out been the Previously he was an executive director of British Energy PLC and construction divisions between 1978 and 1992. He is chairman of and was appointed to the Board in 1996 with responsibility for director responsible for regional contracting and support services. chief executive of its English generating company. He was the Nomination Committee. residential development. He is now chairman of the four subsidiary appointed to the Board in 1998 and is a member of the Audit, housebuilding companies and strategic land company. INDEPENDENT NON-EXECUTIVE DIRECTORS Nomination and Remuneration Committees. DEENA MATTAR PETER BERRY Aged 37, was appointed to the Kier Group Board as an executive JOHN DODDS Aged 58, is executive chairman of The Crown Agents for Oversea SIMON LEATHES director in September 2001. Deena joined Kier in 1998 from KPMG Aged 57, has been with the Group since 1970, working much of Governments and Administrations Limited. He is also chairman of Aged 54, is vice chairman for support services at Barclays Capital, where she developed an in-depth knowledge of construction. the time overseas, particularly in Africa and Hong Kong. He also Martin Currie Portfolio Investment Trust plc and a non-executive the investment banking division of Barclays PLC. He previously She held the role of finance director of Kier National, the Group’s spent a period controlling major civil engineering in the UK and director of Henderson TR Pacific Investment Trust PLC. He was held senior appointments at Lend Lease Corporation, Hambros PLC major building and civil engineering projects arm, until July 2001, since the buy-out has been the director responsible for major appointed to the Board in 1997 and is senior independent director, and SG Warburg Group plc. He is chairman of the Audit Committee and became Group finance director in November 2001. projects, mining and international contracting. He is also chairman of the Remuneration Committee and a member of the and a member of the Nomination and Remuneration Committees. responsible for the Group’s infrastructure investment activities. Audit and Nomination Committees. 4 Kier Group plc Annual report and accounts for the year ended 30 June 2002 5 Kier Group plc Annual report and accounts for the year ended 30 June 2002 THE YEAR IN REVIEW 2002 Events to enhance future growth Great Place to Work United Utilities deal Kier Group was voted into the Sunday Times’ ‘Great Kier Construction teamed up with J Murphy & Sons Place to Work’ awards 2002 and is now classed as one and Interserve Project Services to form a joint of the best employers in Britain. The results were based venture, KMI Water. The joint venture won on responses to questionnaires directed at Kier personnel a £250m framework agreement to construct a randomly selected by the Sunday Times. In addition, variety of water infrastructure projects throughout employee benefits such as holidays, pensions, healthcare, West Lancashire and North Manchester for share ownership and training opportunities were taken United Utilities over the next three years. This into account. Kier scored highly in respect of its long represents the largest, by value, of three framework service record, its friendliness, openness and relaxed agreements awarded by United Utilities. KMI Water culture led from the top. will deliver over 100 projects, with capital values of up to £35m, covering a broad spectrum of water infrastructure works. Construction Skills Certificate Scheme In support of the Major Contractors Group Health & Safety Charter calling for a fully qualified site workforce, Kier Group introduced the Acquisition of Construction Skills Allison Homes Certificate Scheme The £27.5m acquisition of (CSCS) on all its sites. Allison Homes, a regional Kier invests in Laing Property Kier Group’s aim is to housebuilder operating in the In April, the Group, in joint venture with the train every one of its site Kier Plant bought Taylor Woodrow’s eastern counties of England, Bank of Scotland, acquired Laing Property workforce to qualify as a significantly increased the Developments in a deal worth £91.6m, CSCS cardholder by the end of 2003. After this UK tower crane hire business coverage of the Group’s representing the biggest acquisition Kier has date, only CSCS cardholders will be allowed to The acquisition included 28 modern tower existing homes division. With ever been involved in. This significantly work on Kier sites. cranes and ancillary equipment which increased Spalding-based Allison Homes enhances Kier’s property development interests Kier Plant’s tower crane fleet to 90. The transfer came an excellent holding of providing good opportunities for the future. of 18 Taylor Woodrow employees has enabled development land providing