Company Description:
Kier Group plc, the contracting, services, housebuilding and property group, has posted an up-beat trading statement. Kier expects to report full year profits ahead of current market expectations and substantially more than last year//s result. Cash balances during the year have been strong ending the financial year at over ?145m, up from ?111m on June 30, 2006, net of borrowings. In construction, the level of awards has been high during the year resulting in a healthy order book reflecting a strong market and plenty of good quality contract awards for both the public and private sectors. Cash generation from construction activities has been excellent throughout the year with the division achieving record cash balances at June 30, 2007. Support services continues to grow, particularly in the building maintenance division where it now maintains around 185,000 public sector homes. Six new contracts have been awarded this year with combined annual revenues of around ?95m including Harrow on which Kier achieved financial close on June 29, 2007. In housing, Kier achieved 1,767 completions for the year including 162 units from Kier Homes Northern formerly Hugh Bourn Developments (Wragby) Ltd, which was acquired in July 2006. This represents a 16% increase over last year. Despite a modest reduction in visitors to sites in the last quarter of the year, reservation levels remained healthy and by the end of the first week of July, Kier had secured 30% of projected unit sales for the new financial year by way of completions, exchanged contracts and reservations. Property Development continues to take advantage of the strong development opportunities across all sectors. Kier//s reputation for tackling complex development sites continues to grow and it was pleased to win the contract to renovate the new UK Supreme Court in June with Wallis, its historic buildings refurbishment specialist, acting as principal contractor. Kier Group Chief Executive, John Dodds said: Kier is in excellent shape; our businesses are well placed to take advantage of their strong markets and our healthy cash balances put us in a good position to respond quickly to opportunities as they arise. All of this gives us a great deal of confidence for the future.""
Kier Group plc, the contracting, services, housebuilding and property group, has posted an up-beat trading statement. Kier expects to report full year profits ahead of current market expectations and substantially more than last year//s result. Cash balances during the year have been strong ending the financial year at over ?145m, up from ?111m on June 30, 2006, net of borrowings. In construction, the level of awards has been high during the year resulting in a healthy order book reflecting a strong market and plenty of good quality contract awards for both the public and private sectors. Cash generation from construction activities has been excellent throughout the year with the division achieving record cash balances at June 30, 2007. Support services continues to grow, particularly in the building maintenance division where it now maintains around 185,000 public sector homes. Six new contracts have been awarded this year with combined annual revenues of around ?95m including Harrow on which Kier achieved financial close on June 29, 2007. In housing, Kier achieved 1,767 completions for the year including 162 units from Kier Homes Northern formerly Hugh Bourn Developments (Wragby) Ltd, which was acquired in July 2006. This represents a 16% increase over last year. Despite a modest reduction in visitors to sites in the last quarter of the year, reservation levels remained healthy and by the end of the first week of July, Kier had secured 30% of projected unit sales for the new financial year by way of completions, exchanged contracts and reservations. Property Development continues to take advantage of the strong development opportunities across all sectors. Kier//s reputation for tackling complex development sites continues to grow and it was pleased to win the contract to renovate the new UK Supreme Court in June with Wallis, its historic buildings refurbishment specialist, acting as principal contractor. Kier Group Chief Executive, John Dodds said: Kier is in excellent shape; our businesses are well placed to take advantage of their strong markets and our healthy cash balances put us in a good position to respond quickly to opportunities as they arise. All of this gives us a great deal of confidence for the future.""