Shares in Kier (KIE) jumped nearly 4 per cent after the residential, construction and services group indicated that trading for the half year to December 2015 remained in line with management’s expectations. It also revealed that net debt was £175m, lower than earlier projections of £220m, reflecting in part a better working capital performance. In addition, full-year debt is also expected to be at the lower end of previous guidance.
Demand for housing boosted the residential division, with revenue expected to be up by nearly a third on the previous year, with completions edging up to 2,200. More than £350m of new work has been secured in the construction division, with targeted revenue for the year to June 2016 already booked in. On the services side, nearly all the year’s targeted revenue has been secured, and the Mouchel integration is expected to generate £4m of synergies in the second half.
