Kier trading in line as UK construction recovery continues

2nd Jul 2014 07:46

- Trading remains in line, strong pipeline of opportunities- Good progress across its divisions- Targeting double digit annual for the period to 2020FTSE 250-listed engineering and property firm Kier said its underlying performance for the year remains on course and is encouraged by its strong pipeline of opportunities.Kier said it made good progress across all its main division in the year ended June 30th 2014 and has a good visibility of earnings in 2015.In an update ahead of a seminar to be held later today, Kier said it will be setting out its strategy for future profit growth targeting double digit annual growth for the period to 2020.Across its divisions, Construction experienced a good second half with an encouraging level of opportunities, the group said. Operating margins remained stable at around 2% and the order book of secured or probable work at approximately £2.6bn, represents approximately 90% of anticipated revenue for the year to June 30th 2015. Its overseas construction business is seeing good quality opportunities, particularly in the Middle East, it explained.Elsewhere, its Services order book remained stable at £3.6bn, with long-term visibility of revenue and approximately 85% of forecast Services revenue for the year to June 30th 2015 is secured or probable. Operating margins for the full-year across the division will exceed 4.5%, in line with expectations, Kier said. The Property division, which has a pipeline in excess of £1bn, has solid development growth potential for the next financial year. Residential continues to enjoy a buoyant residential house-building market and an increasingly broad range of housing opportunities."Kier continues to invest in this market through its residential contracting, affordable housing and private house building offerings," it said in a company statement. CJ