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Orders up at Kier

Construction giant Kier is benefiting from strong housing demand
February 26, 2015

Kier (KIE) is building on resurgent growth in construction markets. Revenues for the 2014-15 financial year are already in the bag thanks to a 5 per cent jump in the order book to £6.5bn, with the lion's share of orders coming from the group's transformed services division. This part of the business, which includes housing, highway maintenance and facilities management, secured £3.9bn of contracts from the likes of Anglian Water and Thames Water as it reaped the benefits of last year's acquisition of May Gurney.

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Underlying operating profit remained flat at £44m in the first half, despite an 11 per cent increase in revenue. Management wants to achieve double-digit compound annual growth in operating profit through to 2020 - which will require maintaining margins at the very least - yet there were a few setbacks to contend with at the half-year stage.

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