Kier has delivered another impressive performance despite a tough trading climate that looks set to become tougher still as government spending cuts start to bite. Still, the construction group's integrated business model means that it will remain one of the top contenders for whatever work there is.
In fact, the forward order book at £4.2bn is only £300m down from a year ago, and Kier reckons there is also a strong pipeline of further opportunities yet to be secured. Most sides of the business - including support services, partnership homes and UK construction - enjoyed an increase in work loads, although overall turnover dipped as a result of a contraction in overseas business.
Comparisons are distorted by last year's £44.5m writedown, mainly on land and work in progress, but underlying profits before tax still improved by 10 per cent to £55.5m. And margins were maintained or bettered too, unchanged at 2.6 per cent on the construction side but up from 4.1 per cent to 4.5 per cent in support services.
Broker Numis Securities expects pre-tax profits of £59m and EPS of 118.7p in the year to June 2011 (from £58.4m and 121.5p last year).
| KIER GROUP (KIE) | ||||
|---|---|---|---|---|
| ORD PRICE: | 1,120p | MARKET VALUE: | £420m | |
| TOUCH: | 1,114-1,120p | 12-MONTH HIGH: | 1,354p | LOW: 882p |
| DIVIDEND YIELD: | 5.2% | PE RATIO: | 10 | |
| NET ASSET VALUE: | 276p | NET CASH: | £175m | |
| Year to 30 Jun | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 1.84 | 59.1 | 155 | 26.0 |
| 2007 | 2.13 | 77.6 | 131 | 50.0 |
| 2008 | 2.33 | 63.4 | 131 | 55.0 |
| 2009 | 2.11 | 24.8 | 44.1 | 55.0 |
| 2010 | 2.06 | 57.7 | 108 | 58.0 |
| % change | -3 | +133 | +145 | +5 |
Ex-div:22 Sep Payment:26 Nov | ||||
