Kier hardy

16th Sep 2010 15:49

Housebuilder and contractor Kier is rolling in cash after a year in which underlying profitability surged despite a gentle slide in revenue.Net cash at the end of June stood at a record level of £175.2m, up from £92.5m a year earlier, with cash generation in the construction businesses especially strong.Underlying profit before tax, before the amortisation of intangible assets and exceptional items, grew 10.6% to £58.4m in the year to end-June from £52.8m the year before, despite revenue easing to £2,056m from £2,112m.Marginal growth in UK construction revenues was offset by a reduction in overseas construction revenues, while the group saw growth in revenue in each of its Support Services and Partnership Homes divisions.The order books are looking healthy at £4.2bn, down from £4.5bn at the end of June 2009. "Market conditions in 2011 will remain challenging for all our businesses," admitted chairman Phil White. "However, with our strong track record of delivery and our innovative financing and planning skills, we expect to continue to grow our UK market share, particularly in Construction and Support Services. I therefore anticipate that the group will make further progress in the new financial year," White added.The full year dividend has been cranked up to 58p from 55p the year before.