Kier Group upbeat over future prospects

Kier Group has made a good start to the financial year with performance in line with expectation, according to its chief executive John Dodds today (Monday).

The company also said that order books at its construction and services and homes and property divisions are healthy.

"Kier's businesses are in good shape and all of our markets are sound," said Dodds. "We believe that prospects are good for further growth this year and beyond."

He added: "The construction market continues to be underpinned by government spending, particularly in the health and education sectors. The company's regional construction division orders to date are at healthy levels, as are enquiries, indicating further growth in turnover this year."

However, the national construction division's plan to reduce risk through being more selective has led to a smaller order book, although Kier said the programme was aimed at improving the construction and services margins.

"Kier Partnership Homes, which incurred significant losses last year, is now on budget and regional construction has continued its strong profit and cash performance," Dodds said.

Elsewhere, support services continues to trade in line with expectations with the £640m contract for Sheffield City Council performing well.