30th Jun 2015 06:50
LONDON (Alliance News) - Construction, support services and property company Kier Group PLC on Tuesday said all four of its divisions are performing in line with its expectations on an underlying basis for the year to the end of June.
FTSE 250-listed Kier said its property arm is continuing to trade well, with a pipeline of opportunities valued at more than GBP1 billion. The division has outperformed its 15% return on capital employed target and is still being boosted by a buoyant property market in the UK, Kier said.
The group's residential arm expects completions for the year to the end of June to be around 2,100 units and said its current sale forward order book represents 25% of the units forecast to be completed in its next financial year.
Year-on-year organic growth in Kier's construction arm has been robust, it said, with margins in line with the company's expectations and an order book covering around 80% of forecast revenue for the 2016 financial year.
Kier also said its services arm has seen a rise in revenue on the back of significant contract wins over the course of the year, with margins again in line with its expectations. The company added that while its contract with Bristol City Council for environmental services remains challenging, it anticipates talks about terminating the deal will conclude in the near future.
By Sam Unsted; [email protected]; @SamUAtAlliance
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