Mixed outlook for Kier

12th Nov 2010 07:32

Housebuilder and contractor Kier's construction businesses are offsetting a slow start to its homes arm as the housing market sruggles."The group's overall financial performance to date is broadly in line with our expectations, our net cash position remains strong and we have healthy order books in Construction and Support Services," it said. Since July, construction has benefited from 'strong, high quality' order books. Nearly all of expected construction revenue for the year to 30 June 2011 is secured and 51% for the following year. The Support Services division has traded in line with good long-term visibility of revenues, largely through the building maintenance business, Kier added.In housing, the Comprehensive Spending Review changes are likely to mean a 'hiatus' in new build social housing as the implications of the spending review are absorbed. Lack of confidence coupled with the low availability of mortgage finance, meanwhile, has resulted in a slow start to the year for private sales.Kier adds it is too early to asses the full implications of October's spending review but it sees opportunities as local authorities adopt a different business model to fund their social housing plans, while major construction projects it is involved in, such as Crossrail, are still going ahead.