Kier Group's share price climbed today are it posted a solid set of interim results.
Underlying revenue at the construction firm was down one per cent for the six months ending 31 December, at £2bn, but profit before tax rose four per cent, up from £54.4m to £56.5m.
In construction and services, Kier Group said it had an order book with £9bn worth of projects. By the year end, the company will deliver 2,200 units.
The group upped its interim dividend by five per cent to 22.5p per share. Kier Group's share price was up two per cent at time of writing.
Why it's interesting
Kier Group's confident update comes after a tumultuous year for housebuilding. The devaluation of sterling has pushed up the cost of construction goods, and the low supply of construction workers may be further eroded when Brexit negotiations are concluded.
This has made competent construction groups all the more valuable, as they are able to name their price when it comes to working with housebuilders. Kier Group confirmed today that it is in demand, announcing a joint venture with housing association Cross Keys Homes. The venture in the east of England will provide £64m of capital to Kier Group for future investment.
What Kier Group said
Haydn Mursell, chief executive of Kier Group, said: "Today's results reflect the ongoing financial and operational discipline employed across the group and the strength of our flexible, integrated business model.
"The group's breadth provides some resilience against economic uncertainty and we continue to shape Kier to focus on our core competencies."