2nd Jul 2014 07:37
LONDON (Alliance News) - Kier Group PLC saw its shares surge Wednesday after it said its underlying trading performance for the full year remains on track for expectations with good visibility of earnings in 2015.
Kier Group shares were quoted up 3.3% at 1,842.04 pence, making them the biggest gainer on the FTSE 250. The shares touched 1,883.00p at the open.
The company said its construction division experienced a good second half with an encouraging level of opportunities. Operating margins remain stable at around 2% and the order book of secured or probable work stood at GBP2.6 billion, which represents around 90% of anticipated revenue for the year to June 2015.
Kier Group said its services division has also performed well, with its order book stable at GBP3.6 billion. In addition, Kier Group said 85% of forecast services revenue for the year to June 2015 is secured or probable. It said operating margins for the full-year across the division will exceed 4.5%, in line with expectations.
The property division has also benefited from an increase in investor appetite, the company said. Kier said the division is bidding for over one million square feet of office space including four regional office developments outside of London. The property division has a pipeline in excess of GBP1 billion giving good development growth potential for the next financial year, Kier said.
On Thursday, Kier Group will hold a seminar for analysts and investors, where newly appointed Chief Executive Hayden Mursell will set out his strategy going forward.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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