Kier has reported total group revenue for the six months to 31 December 2011 was £1,046m (2010: £1,097m).
Construction margins narrowed from 2.7% to 2.5%. Services margins held steady at 4.5%.
Underlying pre-tax profits were up 8.6% to £34.0m (2010: £31.3m). Operating profit was up 13.5% to £33.7m (2010: £29.7m).
Order books for Construction and Services have been maintained at more than £4bn following £830m of awards in the period. Construction order books have reached targeted revenue for 2012 and 68% of the target for 2013 secured or probable. Services order books have secured 95% of targeted revenue for 2012 and 76% of the target for 2013.
Chief executive Paul Sheffield said: "Kier continues to perform in line with expectations despite the challenges that we face in many of the markets in which we operate. The group has delivered a good set of results for the six'month period to 31 December 2011, with strong operating margins, a healthy cash position and robust order books.
"The next 18 months will remain challenging as external macroeconomic factors weigh heavily on the public sector and the confidence of the private sector to invest. We will, however, continue to focus on those markets where we see the most potential for future growth.
"In Construction, we are encouraged by the opportunities in power, transport, waste and in our overseas operations; in Services, we continue to pursue opportunities to grow the Facilities Management (FM) and Environmental businesses; and in Property, our development pipeline and land bank provide a strong platform for attractive returns over the medium term.
"Our well balanced, integrated business model, coupled with our strong balance sheet, will provide greater resilience during these more testing times which, together with our committed and talented people, should underpin our future performance.”
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