Kier reports improved order book

Kier has reported a slight improvement it its construction order book for this year compared with 2009.

In an interim management statement covering the period from 1 January to date it says its order books of secured and "probable" work provide all of its targeted construction revenue up to 30 June 2010 and 82% of targeted revenues for 2011. This puts it slightly ahead of last year.

The firm has also completed the acquisition of Pure Recycling, a materials recycling facility at Ettington in Warwickshire for £7.1million. The plant, which is currently under construction, is due for completion in March 2011 and will be one of the largest of its kind in the UK and capable of processing a minimum of 25 tonnes of recycled waste per hour.

The majority of Kiers current workload has been awarded through its 50 plus framework programmes. Education is a major source of work and the firm has recently been announced preferred bidder for a £20m academy in Peterborough which is likely to lead on to a further two academies with a combined value of £60m.

According to the statement the support services and facilities businesses are performing well and it expects power and infrastructure markets to grow significantly over the next five years.

Kier says the market for housebuilding has stabilised with prices remaining firm and visitor levels satisfactory. Its total order book of reserved and exchanged units at 30 April 2010 is in line with the same time last year.

Completions in the year to date together with the order book for this year represent approximately 93% of its full-year targeted sales, which is a similar level to that achieved last year. The firm has a land bank of nearly 6,000 plots.

Looking forward Kier says the impact of the measures and policies of the incoming coalition government is as yet unknown.

However it believes it is well placed to attract construction work through its network of local offices and numerous frameworks.