Kier Group order book swells

New construction projects worth £400 million (€500 million) have been revealed in UK contractor Kier Group's interim management statement for the period of 1 July to 15 November 2012.

The new business takes Kier’s order book value to £2.1 billion (€2.6 billion), which represents 98% of forecast construction revenue for the year to 30 June 2013 and 53% of forecast construction revenue for the year to 30 June 2014.

New business wins include education awards totalling £80 million (€100 million) and health projects exceeding £45 million (€55 million). Kier also secured a £50 million (€62 million) Plymouth energy-from-waste project and overseas work totalling £80 million (€100 million) in Abu Dhabi and the Caribbean.

Kier Group’s services division secured new work worth more than £200 million (€250 million), while its property division reported a housing and development pipeline worth £1.3 billion (€1.6 million).

However, despite the new business wins, Kier has reduced its net cash position for the year by £100 million (€125 million).

Looking ahead, the group said it was experiencing a good level of bidding activity but acknowledged that today's trading environment remained difficult with little sign of improvement in the UK construction market. The firm is currently reviewing its construction operations with a view to driving greater efficiency.