Kier says trading in line despite inflationary pressures

Construction group Kier said it expected full-year results to be in line with expectations, despite ongoing inflationary pressure.

In a trading update, the company said its year-end order book was expected to exceed £9.7bn, a rise of 26% year on year, with around 85% of revenue expected for fiscal 2023 already secured, reflecting a significant number of contract wins across all divisions.

Kier maintained medium-term guidance on revenue of £4bn - £4.5bn and an adjusted operating profit margin of 3.5%.

"Core markets remain favorable and we continue to maximize value and opportunities. This, coupled with the strong order book and strengthened balance sheet, gives the board confidence in our medium-term value creation plan and the continued success of the group," said chief executive Andrew Davies.

"This reflects a strong operational performance despite inflationary pressure which the company remains confident it can continue to mitigate going forward."

"These results also reflect the cost savings realised in responding to the anticipated reduced volumes in the Construction division during the financial year."