Kier said that its services division was continuing to trade in line with the board’s expectations, maintaining its £2bn order book and a 4.5% operating margin.
Kier also reports strong trading within its construction business and has already secured 86% of its targeted revenue for the next 12 months.
In a trading update to shareholders, Kier said that it was benefiting from a high quality construction order book – “generating good margins and healthy cash balances”.
It added: “Our presence on numerous public and private sector frameworks continues to put us in a strong position to secure further high quality work, ensuring that we maintain our operating margins firmly above 2%.”
The company concluded: “Although we continue to operate in a challenging environment, the group's financial performance in the year to date remains in line with our expectations. In particular, our order books in construction and services remain strong and our net cash position remains healthy.”
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