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Construction group Kier sees first half profits rise by 21pc

CONSTRUCTION group Kier has posted strong results for the first half of its financial year seeing a 21 per cent rise in profits.

Profits before tax went up to £31.9m from £26.4m, while the company’s net cash for the half year reached £130.7m compared to 2008 when it was at £82.2m.

Chief executive John Dodds said: “We are delivering good profits with increasing net cash and our order books remain healthy supported by an extensive array of framework agreements and partnering arrangements.”

He said that political uncertainties and the public sector deficit have given rise to concerns over funding in the sector, however Kier’s raft of framework agreements in both the private and public sphere will continue to grow.

Kier saw construction margins grow slightly to 2.5 per cent from 2.4 per cent, while support services margins grew to 4.4 per cent from four per cent.

Construction and support services order books totalled £4.5bn for the period.

Dodds is set to retire, and Paul Sheffield will replace him in the role.