Kier Group Plc: Business and Financial Performance Analysis and Evaluation

Abstract

The subject matter of this paper is the analysis and evaluation of the business and financial performance of the Kier Group Plc over the three year period 2012–2014. The company is analysed against the comparator undertaking Balfour Beatty Plc and the average numbers of the UK and international construction industry.

The financial analysis is performed over the range of financial ratios commonly applied in undergraduate and graduate business studies. For the purposes of the business analysis, the SWOT Model and the PESTEL Framework are used. The research reveals that due to diversified divisions and a high market share the Kier Group Plc is able to generate growing revenues, albeit at the high administrative costs and with an extending operating cycle. Further, revenue growth is not accompanied by improved liquidity. The growing social diversification among residential customers, the steady technological change and the increasing demand for sustainable construction place additional challenges to the Group.

The results obtained are of interest for the construction industry researchers, financial analysts and financial and business analysis students.

Keywords: Financial Ratio Analysis, SWOT Model, PESTEL Framework

JEL Classification: A2, M10, M20, M21, M40, M41