Kier looking for land again

13th Jul 2009 07:54

Contractor Kier Group expects full-year underlying profit will be in line with market expectations despite the challenging market conditions.Net cash balances at the end of June 2009 was £90m, down from £144m at the end of June 2008 but up from £82m at the end of 2008.The Construction division has traded well with work continuing to flow in from the public sector. Operating margins remained strong during the course of the year. More than 85% of the division’s targeted revenue for 2010 has been secured, and almost half of 2011’s revenue is also in the bag, representing an improvement over previous years.The Support Services division continues to grow and be cash generative, but the Partnership Homes division has seen in dip in trading levels, as expected. The restructured social housing and private development business sold a total of 1,140 units during the year, compared to 2,090 units the year before, and prices continued to head lower in the second half of .the financial year, though this has now started to ease.In some areas prices have started to stabilise and visitor numbers have held up well, encouraging the company to recommence construction on a number of developments an to start looking for new plots to acquire.The Developments business saw little sales activity over the reporting period.