Kier optimistic about 2010

Kier Group reported annual sales of UK£ 2,1 billion (€ 2,3 billion), down -9,4% on the UK£ 2,3 billion (€ 2,5 billion) recorded last year.

Following write-downs on land and work in progress and restructuring costs, pre-tax profits for the year fell -60,8% to UK£ 24.8 million (€ 27 million), down from UK£ 63,4 million (€ 70 million) 12 months ago.

Despite declines in sales and profits, the Group's construction order book at 30 June stood at UK£ 2,2 billion (€ 2,4 billion), up +4,7% on the UK£ 2,1 billion (€ 2,3 billion) reported in June last year, while its support services order book grew +15% from UK£ 2,1 billion (€ 2,3 billion) in 2008 to UK£ 2,3 billion (€ 2,5 billion) this year.

Group CEO, John Dodds said, "Kier Group has performed well, with profits for the year ahead of expectations. We continue to be cash positive with healthy order books in our construction and support services businesses.

"These two divisions achieved record levels of profit this year and now have combined order books of UK£ 4,5 billion (€ 4,9 billion) reflecting the awards of several new framework agreements and large contracts."

Of the construction order book, a statement said that 93% of the target revenue for 2010 was now in place as was 50% of the target for 2011.

Looking forward, Kier expects to maintain a healthy margin and cash position in its construction and support services divisions, according to a company statement. Meanwhile, the restructured Partnership Homes division will seek opportunities to sell 6150 plots of land with residential planning permission while continuing to build social housing in response to the current market.

"While the current markets for our developments business remain tough, they are beginning to show signs of improvement and we have a number of excellent long-term prospects that will provide value for the future," said Mr Dodds.