Shares in Kier Group rise as the firm continues to shrug off Brexit

 
Courtney Goldsmith
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The construction group is narrowing its focus (Source: Getty)

Shares in Kier Group rose as much as nine per cent today after the company's annual profit increased as it remained "relatively unaffected" by Brexit.

The figures

The construction group's profit before tax rose eight per cent in the year to the end of June, reaching £126m. Revenue rose five per cent to £4.27bn.

In construction and services, Kier said it had order books with £9.5bn worth of projects, together with around £2bn in property development and residential pipelines.

The company raised its dividend by five per cent to 67.5p.

Kier's share price jumped 8.2 per cent to 1,184.73p in afternoon trading.

Why it's interesting

Following on from a tumultuous year for housebuilding in the UK, Kier Group's positive update appeared to please investors.

While sterling's slump has raised costs for construction firms, the group said its building, infrastructure and housing operations, which now represent 90 per cent of the group's revenue and profit, have remained "relatively unaffected by Brexit".

The company also said it has been reviewing its cladding use after the tragic fire at Grenfell Tower in June.

Read more: Rock solid: Kier Group issues confident interim results

What Kier said

Haydn Mursell, chief executive, said the company was confident it would achieve its 2020 strategic targets.

Mursell said:

Our underlying performance for the year was good. Having simplified our portfolio, the group is more focused and able to pursue its growth ambitions in our three core markets: building, infrastructure and housing.

We continue to invest in the business to improve our operational efficiency, providing a robust platform on which to take advantage of the strong long­term fundamentals in these core markets.

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