Kier defies expectations with strong profits as order book swells
Construction and services company Kier Group posted a better-than-expected nine per cent rise in profit this morning, fighting off investor fears following the collapse of competitor Carillion earlier in the year.
Bolstered by a growing order book, the FTSE 250 firm’s underlying pre-tax profit jumped to £137m in the year to June, compared with £126m the previous year.
Shares edged up 1.8 per cent in early morning trading.
Kier, which works in sectors such as defence, housing and mining, unveiled a cost-savings programme earlier in the year, in which the firm plans to sell its non-core assets amid a spell of bad weather and economic uncertainty which threatened profits in the construction industry.
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“There remain many moving parts and many strings to Kier’s bow and all are moving in the right direction … that construction did not move backwards is a good result in our view given the current challenges in the UK construction markets,” Jefferies analyst Anthony Codling said.
Kier boss Haydn Musell said: “Our strong market-leading positions, our record £10.2bn Construction and Services order books, and our £3.5bn property development and residential pipelines, will see the group deliver on its Vision 2020 targets.