Shares in Kier rose 3% on Monday after its chief executive told the City that first-quarter trading was in line with expectations and the firm was on track to achieve full-year targets.
In a trading statement to the stock exchange John Dodds said: 鈥淥ur construction division has had a strong start to the new financial year with a record level of revenue achieved in the first quarter.
鈥淭he market remains buoyant and our order books remain at healthy levels.鈥�
Commenting on the housing market, Dodds said Kier鈥檚 housebuilding division had noticed 鈥渁 notable reduction in the level of visitors鈥� since the Northern Rock banking crisis, but insisted that it should hits its unit sales for the year.
He said: 鈥淎lthough our reservations to the end of September are marginally fewer than the same period last year, our order book at 19 October 2007 is 4% ahead of 2006 by value, with over 50% of our full-year targeted unit sales secured by way of completions, exchanged contracts and reservations.鈥�
Kier鈥檚 shares are trading at about 拢21.13, roughly mid-way between its year low of 拢16.93, and a year high of 拢25.78.
Alastair Stewart, construction analyst at Dresdner Kleinwort, said: 鈥淎ccording to the group鈥檚 normally guarded management, its UK markets are the best in memory and, like several peers, it can afford to be selective in bidding for work.鈥�
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