MIDAS SHARE TIPS: Construction firm has plans that could build up profits
Daily Mail When the financial markets look uncertain, it pays to pick businesses with focus and a plan. Construction and infrastructure services group Kier, which produced its interim results earlier this month, is attempting to show it has both.
The company has gone through a major restructuring, which saw it shed jobs, suspend its dividend, and lose some parts of its business including housebuilding. Kier is now focused on two sectors: infrastructure and commodities. It has projects as diverse as repairing Scottish Water's sewer network and the restoration of Oldham Town Hall.
Chief executive Andrew Davies, who oversaw the restructure, says the company's increased order book provides investors with visibility. It is up 29 per cent at 10.1 billion, with 96 per cent of Kier's expected full-year revenue already secured. Davies adds that 60 per cent of the order book is under contracts where the costs are reimbursable or 'target cost' contracts, which means that the company is less exposed to rising inflation in raw materials and wage costs.
