Kier profit in line, home reservations down 35%
Kier expects to meet profit expectations this year barring any further significant market setbacks for its residential business, where reservations are down 35% on last year and margins are under pressure.
The housebuilder and contractor also expects fewer sales from its housing business this year, but said that the profits arising from these operations continue to form a progressively smaller proportion of overall pre-tax profit.
It added it continues to review and adjust its cost base in line with the reduced level of trading.
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Conditions for its property business have also continued to deteriorate over the last few months, while construction and support services are both trading well, again reaching record levels of cash and order books.
"Whilst the markets for our homes and property developments have continued to deteriorate over recent months, Kier's strength is in its diversity which allows us to benefit from those markets which remain sound; construction and support services," said the group.
"Barring any further significant market setbacks for our residential business overall profit before tax for this year is anticipated to be in line with expectations, our balance sheet is strong and our cash balances remain high," it added.
