Construction company Kier Group has said it finished its financial year on June 30 with a net cash balance of £90 million despite the challenging housing and property market conditions.
It said its annual underlying pre-tax profits were in line with expectations and ahead of the £82 million balance recorded on December 31.
Kier said its strong performance was down to its resilient construction division, which has been boosted by public sector projects in education and health sectors.
Recent contracts include a £250 million deal with United Utilities and a £27 million project to renew the roof at London’s King’s Cross rail station.
It added that 85% of targeted revenue for 2010 has either been negotiated or agreed with clients.
Despite the beleaguered housing sector, its partnership homes division has traded in line with expectations, selling 1,140 homes compared with 2,090 the previous year, and work has restarted at a “number of developments” and new sites where demand has improved.
Kier’s trading update said: “We remain cautious on the outlook for 2010 but we believe the difficult market conditions we have experienced over the last 12 months are beginning to ease.”
