Results point to “fragile” recovery

Despite a fragile market, a number of contractors posted profits last year point to a “progressive recovery”, Building reported.

Both Kier and Galliford Try reported increased profits despite a challenging environment revenue. Kier’s profits grew by 9% and underlying pre-tax profits jumped by over a quarter at Kier in the six months to 31 December. It made an underlying pre-tax profit of £31.3m compared to £24.8m in 2009 – although this excludes a profit in that year of £7.1m from Partnerships Homes land. Higher margins at Galliford Try’s construction business boosted profits by 29 % in the six months to 31 December 2010. After allowing for one off charges, the firm made a pre-tax profit in the last six months of 2010 of £17m, compared to £13.2m a year earlier.

Australian Lend Lease Group, saw operating  profits after tax increase by 17% in the first half of the 2010 financial year, and after tax profit increase to AU$220m in 2010, up from AU$188m in 2009- although global revenue fell 22% to AU$4.4bn (£2.75bn) in the first six months of its financial year, compared with AU$5.6bn (£3.5bn) in the same period a year earlier.