UK-based construction giant Kier Group has emerged from the mire of its JV partner Carillion’s recent collapse to post a satisfactory half-year trading update, which pushed shares up nearly 13%.
The trading update covering the six months to December revealed that Kier’s construction and services order books stood at about £9.5 billion, while 100% of forecast revenue for the 2018 financial year has been secured.
The news provided a timely boost to Kier’s share price, which rose by 12.9% to 1,081p on the FTSE250 index. Investors in the company endured a volatile period in the wake of Carillion’s demise into liquidation.
However, Kier stepped in to assume full responsibility of several ongoing contracts held by Carillion, such as the HS2 JV and various Highways England smart motorway schemes. The firm said the contracts were ‘performing well, operationally and financially’.
Haydn Mursell, Kier’s chief executive, said: “Our first half performance continues to demonstrate the strength and stability of the business.
“The group remains on course to deliver double digit profit growth in the current year and to achieve its Vision 2020 targets.”
