Kier issues confident outlook

17th May 2010 07:42

Contractor and housebuilder Kier said it is trading in line with company expectations and is on track to deliver an 'encouraging underlying performance this year.' The group said its construction division has achieved good results in all of its key performance measures of cash, profits and order books."Our cash balances remain healthy, at broadly the same levels as at 31 December 2009, and our operating profits remain robust," Kier said."Our order books of secured and 'probable' work provide all of our targeted construction revenue for the year to 30 June 2010 and 82% of our targeted revenues for 2011, slightly ahead of last year's position," it added.It also has 'good long-term visibility of revenues' at its support services division.Kier said although it remains, "in a period of economic uncertainty and the impact of the measures and policies of the incoming coalition government is as yet unknown... it is well placed to attract construction work through its wide network of local offices."Kier said the market for housebuilding has stabilised with prices remaining firm and visitor levels satisfactory. Its total order book of reserved and exchanged units at 30 April 2010 is in line with the same time last year.In a separate statement Kier said it as acquired Pure Recycling Warwick for £2m and a further maximum of £5.1m, which is contingent.