Kiely Bros Closes in on £100M Revenue as It Refocuses on Road Surfacing

Kiely Bros has reported strong revenue growth for the financial year ending 31 December 2024, coming within just £2.5 million of the £100 million mark.

The West Midlands-based company posted an annual turnover of £97.5 million — a 10.3% increase on the previous year’s figure of £88.4 million — following a strategic decision to streamline operations and concentrate solely on its core road surfacing division.

The company attributed its improved top-line performance to more stable economic conditions in 2024, which allowed for a more favourable trading environment.

However, despite the rise in revenue, profits declined year-on-year. Pre-tax profit fell to £2.4 million, a 20.5% drop from £3.1 million in 2023, while operating profit slipped by 22.7%, down to £2.7 million from £3.5 million.

Much of this decline was linked to the company’s now-defunct waste management division. A review conducted during the year highlighted several challenges in that arm of the business, including rising disposal costs, tax pressures, the reclassification of hazardous waste, and volatility in by-product markets. These factors, the company said, had significantly impacted performance, prompting the decision to close the division in mid-2024. Revenue from waste services fell sharply to £2.5 million, down from £7.1 million the previous year.

Road surfacing now represents nearly all of the company’s income, generating £94.9 million in 2024, up from £81.2 million the year before. This strategic narrowing of focus appears to be paying off, with the company citing a strong pipeline of secured contracts and an “excellent known order book” heading into the new financial year.

Alongside its operational changes, the company significantly improved its cash position. Cash at the year-end stood at £2.5 million — a sharp increase from just over £18,000 in 2023. The improved liquidity enabled Kiely Bros to issue £6 million in shareholder dividends, after issuing no dividends the previous year.

The company also modestly increased its workforce, growing staff numbers from 220 to 238 during the year.

In a statement accompanying the financial results, Managing Director Michael Kiely said the company would continue to build on its strengths in road surface treatment and seek steady, organic growth.

“We continue to plan for the profitable growth of the core business with a view to consolidate the company’s position within the market, and continue to organically grow the business,” he said.