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Wed May 29 2024

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Robust Kier meeting expectations

25 Jun 12 Kier Group has a robust order book, a healthy cash position and is trading in line with expectations.

That is the upbeat message in an interim management statement from the board this morning, ahead of a visit from financial analysts today.

The board said that trading in the construction division ‘continues to be resilient with current operating margins above 2%’.

Work secured, or probably secured, represents 85% of its forecast construction revenue for the 2013 financial year. Tender activity remains busy across a range of public and private sector projects, including new health frameworks in Wales and Scotland and more than £1.5bn of infrastructure schemes across the UK. There is also ‘significant activity in Hong Kong and the Middle East’.

On top of this, the long awaited priority schools building programme (PSBP) has now been confirmed, with the first £400m of projects being delivered through the Academies (II) framework, of which Kier is a member.

Kier’s services and property division are also in line with expectations. The services division has recently secured a maintenance contract for London Fire Brigade and facilities management contracts for Westminster Kingsway College and the Royal Automobile Club, with a combined value of approximately £30m.

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