Kier Group upbeat after robust first half

(Sharecast News) - Construction group Kier Group reiterated annual guidance on Tuesday, on the back of a record order book and a jump in half-year earnings. Revenues at the FTSE 250 firm, which also provides infrastructure services, rose 2.6% in the six months to 31 December to £2.03bn, with adjusted operating profits 6.6% higher at £71m.

The order book grew by 5% to stand at £11.6bn as at the period end, which Kier called a record and said provided a "clear path" for future cash flows and earnings. In total, 94% of full-year revenues have now been secured.

Stuart Togwell, chief executive, said Kier had reached an average net cash position for the first time in 13 years during the first half, "a significant milestone".

He continued: "These results reflect the strength of our customer relationships, the quality of our teams and our operational excellence."

Looking to the full-year, and Togwell said momentum had continued into the second half, "with a number of appointments to frameworks in key sectors of health, education, water and roads, with further clear opportunities ahead in energy and defence.

"The group continues to trade well, with full-year performance forecast to be in line with the board's expectations."

Kier also confirmed on Tuesday it would be returning £25m to shareholders through a share buyback, and proposed boosting the interim dividend by 30% to 2.6p.