(RTTNews) - Construction company Kier Group Plc (KIE.L: News ) on Thursday annouced preliminary results for fiscal 2009, reporting a decline in profit, as revenues dropped sharply at its Construction and Partnership Homes divisions, reflecting tough economic conditions, and write-downs related to land increased. Looking ahead, the company said the year started well, but it expects the current economic climate would continue to pose challenges.

Profit attributable to equity holders of the parent for the fiscal year ended June 30, 2009 slipped to GBP 16.1 million from GBP 47.2 million reported in the prior year. Earnings per share were 44.0 pence, sharply lower than 129.7 pence a year earlier. Pre-tax profit declined to GBP 24.8 million from GBP 63.4 million a year earlier.

Profit attributable to equity holders of the parent, before exceptional items, was GBP 35.8 million, down from GBP 61.6 million a year ago. Earnings per share, before exceptional items, were 97.8 pence, compared to 169.2 pence in the previous year. Pre-tax profit, before exceptional items, was GBP 50.6 million, down from GBP 87.1 million last year.

The company noted that exceptional charges, associated with pension credit and other costs, totaled GBP 27.3 million in fiscal 2009, compared to charges of GBP 24.6 million in fiscal 2008. Land and work-in-progress write-downs increased to GBP 49.8 million from GBP 31.3 million in the previous year. In 2009, the company recorded a credit of GBP 24.3 million associated with changes in the salary related section of the Kier Group Pension Scheme. Reorganization costs in 2009 were GBP 1.8 million, compared to GBP 9.5 million last year.

Underlying pre-tax profit, which excludes amortisation of intangible assets and exceptional items, was GBP 52.8 million, compared to GBP 89.2 million a year earlier. Underlying earnings per share were 102.5 pence compared to 174.8 pence last year.
Revenue for the year fell to GBP 2.146 billion from GBP 2.374 billion in the previous year. Group revenue, which discounts share of joint ventures, for the latest year dropped to GBP 2.112 billion from GBP 2.332 billion generated last year.

Revenue from Construction segment, comprising Kier Regional and Kier Construction, declined to GBP 1.492 billion from GBP 1.585 billion, largely due to a decline in private sector projects. The company noted that 56% of its awards were for public sector projects, with education being the biggest source of work accounting for some GBP 600 million of total awards.

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