Kier anticipates chunky profits

Kier has issued a trading statement to report that pre-tax profits in the year to the end of June will be “ahead of current market expectations and substantially more than last year’s result”.

Cash balance at the financial year-end (30 June 2006) stood at £145m (£110m).

John Dodds, chief executive, said: “Cash generation from our construction activities has been excellent throughout the year with the division achieving a record cash balance.”

Kier’s housing division completed 1,800 homes including 160 from Kier Homes Northern, formerly Hugh Bourn Developments, a business bought in July 2006.

Dodds commented: “Kier Group is in excellent shape. Our businesses are well placed to take advantage of their strong markets and our cash balances put us in a good position to respond quickly to opportunities.”