Kier not fazed by schools cutbacks

12th Jul 2010 07:30

Housebuilder and contractor Kier's full year underlying profit before tax will be towards the upper end of current market expectations and ahead of last year.The reduction in the Building Schools for the Future programme, announced by the new government, will not have a material impact its order book and probable orders, Kier said.The group added that while education business accounts for a significant proportion of its contracting work, exposure to the Building Schools for the Future programme is limited. Construction "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 targeted revenue for 2011, it said.Work for the private commercial market returning as previously mothballed projects are being resurrected with private funding becoming available, it added. Partnership Homes traded broadly in line with expectations and sold a total of 1,060 social and private homes during the year (30 June 2009: 1,140 units). Selling prices have stabilised and visitor levels, whilst reducing since the election, have been steady over the last six months.Net cash balances during the year have been strong and at the year end the financial year stood at a record level of over £170m (30 June 2009: £93m) reflecting reduced investment in Partnerships Homes.Deena Mattar, finance director since 2001, is to stand down in November. Haydn Mursell, currently deputy group finance director of Balfour Beatty, is to take over.