Kier Group Sees FY Underlying Profit Ahead Of Last Year

12th Jul 2010 07:11

LONDON (Dow Jones)--Kier Group PLC (KIE.LN), an integrated construction and property services group, said Monday it expects to report full year underlying profit before tax towards the upper end of current market expectations and ahead of last year's result. MAIN FACTS: -Net cash balances during the year have been strong ending the financial year at a record level of over GBP170 million (June 30, 2009: GBP93 million) which reflects the quality and strength of our order books and our continued strategy to reduce the company's investment in the Partnership Homes business. -Construction division traded well with strong operating margins and very healthy cash balances. -Order books of both signed contracts and preferred bidder and negotiated positions secure nearly 90% of the company's targeted revenue for 2011. -During the year, continued to secure high volumes of work with a significant proportion in education. -Seeing signs of the private commercial market returning as previously mothballed projects are being resurrected with private funding becoming available. -Exposure to the Building Schools for the Future program is limited and, therefore, Kier anticipates that the reduction in the program, announced last week, will not have a material impact on its order book and probable orders. -Anticipates further cuts to public sector expenditure -Shares closed Friday at 943.0 pence. -By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 12, 2010 02:11 ET (06:11 GMT)