John Dodds, Kierβs chief executive, this week predicted the UK construction boom would continue for βat least three yearsβ, despite the present credit crunch, and said he was looking to buy a housebuilder and a property company.
Dodds made his comments while announcing that Kier made a profit of Β£77.6m for the financial year. This result, which is ahead of forecasts and 30% higher than last year, reflects improved margins in the firmβs construction business and greater housebuilding output.
Margins in construction edged up to 1.6% from 1.5%. Dodds said he was βreasonably confidentβ they would reach 2% over the next year and a half.
More than a third of Kierβs profit came from its housebuilding division.
Commenting on the global credit squeeze, Dodds said: βEveryone wants to talk down the housing market. Six months ago everyone was talking about interest rates. Now it is about mortgage availability. There is a cottage industry in coming up with reasons why the housing market is turning down.β
He added: βOur reservation rates are highly satisfactory, as are market fundamentals.β
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