Kier confident amid private sector shift

18th May 2011 14:49

Housebuilder and contractor Kier Group said that it has secured £600m of new work since 1 January and that secured and probable work remains at levels in line with previous years. Recent contracts have been oriented towards the private sector in line with changing markets, the company said. New contracts the company has won include work on Liverpool Street and Whitechapel railway stations in London. The company has highlighted the continuing strength seen in order books for its Construction and Services divisions, as well as its still "healthy" cash balance, despite the significant investments undertaken during the period. Construction order books (of secured and probably work) have already secured the entire revenue target for the fiscal year ending 30 June, and 80% of the targeted revenue for the following twelve months.The services division is trading "in line with expectations", with the group being able to maintain its £2bn order book. Management also said that it feels confident that it will be able to sustain a 4.5% operating margin, thanks to the good long-term visibility for revenues in this area. "We have a strong balance sheet, an excellent track record of service delivery and very talented and capable people, all of which keeps Kier on track to deliver a good performance this year," the company said.