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Kier set to grow

Having acquired Mouchel, Kier should start to profit from a significantly enlarged order book.
July 1, 2015

Kier (KIE) has delivered a solid trading update, highlighting good growth in its property, residential and construction divisions.

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A buoyant property market means that trading in this division has exceeded the minimum target of 15 per cent return on capital, while on the residential side, the forward order book has already reached a quarter of next year's targeted output to June 2016. Furthermore more than 80 per cent of construction work for next year has also been secured. The service side is currently proceeding with the integration of Mouchel, and hopes to exploit its much larger presence in the UK highways management and maintenance market.

Analysts at broker Liberum expect pre-tax profit of £83.3m for the year to June 2015, rising to £141m the following year.