A trading update released today by Kier reveals its order book has risen from £6.5bn to £9.3bn following its acquisition of Mouchel.
The company says its underlying performance for all four of its divisions over the year to 30 June is in line with management expectations. Kier announced it would buy Mouchel in £265M cash deal in April.
The company said that had been significant growth in its construction division. Margins remain at approximately 2% and orders either secured or likely make up more than 80% of anticipated revenue for the year ending June 30, 2016.
The company cites recent big contract wins as the reason for the construction division’s strong performance. These include re-securing a place on the North West Construction Hub medium-value framework for projects worth between £2M and £9M as well as all three lots under the £4bn Southern Construction Framework. It is also preferred bidder to for the £170M first phase of The Ram Brewery regeneration development in Wandsworth. It has also won more than £200M of contracts under the ProCure 21+ health framework.
Kier also announced is looking to sell its mining operations in Greenburn in Scotland.