John Dodds, Kier鈥檚 chief executive, this week predicted the UK construction boom would continue for 鈥渁t least three years鈥�, 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 拢77.6m for the financial year. This result, which is ahead of forecasts and 30% higher than last year, reflects improved margins in the firm鈥檚 construction business and greater housebuilding output.

Margins in construction edged up to 1.6% from 1.5%. Dodds said he was 鈥渞easonably confident鈥� they would reach 2% over the next year and a half.

More than a third of Kier鈥檚 profit came from its housebuilding division.

Commenting on the global credit squeeze, Dodds said: 鈥淓veryone 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.鈥�

He added: 鈥淥ur reservation rates are highly satisfactory, as are market fundamentals.鈥�

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