Kier Living’s operating profit was up 7% to £8.7m, with revenue for the period £166m. The division is on course to deliver >10% ROCE for the full year and it continues to reduce the units in its land bank.
Kier Living aims to deliver c.2,200 units over the full year and has a future pipeline of approximately £2bn, providing visibility over more than five years.
Kier’s focus in private sales is on affordable, competitively-priced homes with an average private sales price of £240k. Within Kier’s private business, reservations and pricing levels are tracking well with sales rates at approximately 0.7 units per week per trading site. Government focus and incentives continue to assist the market, with Help To Buy involved in around 50% of sales.
Kier Living remains committed to addressing the skills issue facing the market, with participation in today’s New Homes Debate chaired by Lord Hague and signing up to the Home Builders Federation’s (HBF) Skills Pledge. Kier’s Shaping Your World campaign continues to gather traction within the industry and more than 5,000 pupils across the UK have engaged with it to date.
Commenting on the results, Haydn Mursell, chief executive, said: “The Group is performing well. Our £9.5bn Construction and Services order book, combined with our £3.5bn pipeline in the Property and Residential divisions, provides good visibility of work over the medium term.
“The Group’s performance reflects the strength of our business model and our financial and operational disciplines. Our portfolio of businesses provides balance and resilience and our approach to risk management is evident in the margin performance we have delivered over many years. We remain on course to deliver double-digit profit growth in 2018 and to achieve our Vision 2020 strategic targets.”