Growth in construction division lifts Kier profit 23% despite 6% fall in housing turnover

Kier has announced a 23% jump in pre-tax profit to 拢44.6m on the back of 18% turnover growth to 拢1.2bn in the six months to 31 December 2007.

John Dodds
Dodds: If all we did was sell houses I鈥檇 be a worried man

The strong growth came despite poor figures at its housebuilding division, where turnover fell from 拢151.8m to 拢143.2m and the average sale price dipped from 拢175,200 to 拢173,200. Although chief executive John Dodds wouldn鈥檛 reveal numbers, he said reservations to 1 February 2008 were 20% down on the previous year.

Dodds said: 鈥淚f all we did was sell houses I鈥檇 be a worried man but these results vindicate the policy of having a spread of businesses.鈥�

Turnover in the construction arm grew 21% to 拢816m and operating profit grew by 51% to 拢14.3m, which saw the margin grow from 1.4% to 1.8%.

In support services, turnover grew 26% to 拢179.3m and operating profit rose by 41.2% to 拢7.2m.

The results were broadly welcomed by the City. Kevin Cammack at Kaupthing called them 鈥渧ery strong鈥� and Andy Brown at Panmure Gordon said the numbers were 鈥渂etter than expected鈥�.

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