Kier issues healthy trading update following AGM

Kier has issued a positive trading update following its AGM, with cash strong and healthy order books in Construction and Support Services. 

The group said its construction division “has made an encouraging start to the new financial year”, and is “active on around 52 frameworks across the public and private sectors”.

Order books of secured and probable work account for  96% of expected construction revenue for the year to 30 June 2010 and 55% of targeted construction revenue for the year to 30 June 2011.

Recent contract wins include: the £50m Bolton Academies project; a £200m to build sports and learning communities for Telford & Wrekin Council; a position as one of 15 contractors on the Academies Framework 2; £70m of work through Procure21.

In its other businesses, Kier said it had “prequalified for the early contracts for Crossrail”, won £56m-worth of new social housing work, while in support services it has won another £38m of work, including an extension to an existing deal.

In the group’s Partnership Homes (private housing) business, the total order book of reserved and exchanged units at 31 October is 14% ahead of the same period last year. This, together with completions to date, represent around 73% of full-year targeted unit sales.

Kier said it was still considering an appeal against its £17.9m fine by the Office of Fair Trading for its part in the bid-rigging scandal, which would have to be lodged by the 22 November 2009. Its results for the half-year to 31 December 2009 will include an exceptional charge of £18m in respect of the fine.

The group also confirmed that its chief executive John Dodds has announced his retirement plants, and “the process of selecting his successor is well advanced”.