Kier builds on boom in housing

THE strong demand for housing made up for a weaker year in construction at building conglomerate Kier. Following the acquisition of Allison Homes, profits in the housing division grew by 37% to £22.2m in the year to 30 June, reflecting a 20% jump in the number of homes sold and a rise of £16,000 in the average selling price.

By contrast, construction had a relatively quiet year. UK operating margins are down after the mining division hit unexpectedly difficult ground conditions resulting in a loss. At the start of the new financial year, forward orders for construction were steady at £1.2bn while housing was enjoying its strongest ever forward sales position.

Overall, pre-tax profits, including a small exceptional gain were up 27.9% at £28m on sales of £1.37bn.

Diluted earnings per share are up 205 at 56.7p and the dividend has been raised by 15.4% to 14.2p a share.