Construction, services and property group Kier said its overall trading performance remains in line with expectations as it maintains robust order books and a healthy cash position.
Trading at its construction division continues to be resilient with current operating margins above 2%, it said.
"The construction order book of secured and probable work represents 85% of its forecast construction revenue for the 2013 financial year and the level of tender activity remains high across a range of public and private sector projects," Kier explained in company trading update.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Trading at its services division is also in line with expectations, and since the IMS, the division has achieved several contract wins that underpin its £2bn order book.
Kier, which was recently confirmed as preferred bidder for the £50m PFI project to design, build and maintain 11 fire stations across the county for Staffordshire Fire and Rescue Service, said its property unit is trading in line with company forecasts.
While the group has previously cautioned that it expects the next 18 months to be challenging, amid external macroeconomic factors, Kier said it is confident that it is positioned well to maintain its progressive dividend policy, pursue its chosen growth markets and seek investment opportunities.
CJ
-
Water companies blocked from using customer money to pay “undeserved” bonusesThe regulator has blocked three water companies from using billpayer money to pay £1.5 million in exec bonuses
-
Will the Bitcoin price hit $100,000?With Bitcoin prices trading just below $100,000, we explore whether the cryptocurrency can hit the milestone.
