Shares in Kier rose almost 5 per cent after the construction and property services group confirmed that full-year earnings for the 12 months to end June will be at the upper end of expectations and up on the previous year. The construction side has performed particularly well, and the outlook remains bright too, with 90 per cent of targeted revenue for 2011 already secured.
What's more, the group's exposure to the Building Schools for the Future programme - the subject of government cutbacks - is relatively limited, and, given Kier's diverse revenue stream, is not expected to have a material impact on the size of the order book. And while other public sector projects are likely to be trimmed, Kier has a strong presence in what are regarded as non-discretionary spending projects such as power, waste and water. The group's support services side is also well placed, providing service maintenance on around 240,000 homes, while long-term earnings visibility stretches out to beyond 2020.
When: 10/07/09
Price: 964p
Performance to date: +2%
