Pre-tax profit at Kier rose 10% to 拢55.5m from 拢50.6m last year, largely thanks to its framework deals.
Despite the profit rise, turnover fell to 拢2.09bn in the year to 30 June 2010, from 拢2.14bn the previous year.
Paul Sheffield, who took over as chief executive last March, said: 鈥淥ur construction order books of secure and probable contracts remain robust, much of it won through framework agreements, providing confidence that we can sustain healthy operating margins and strong cash flows.鈥�
Turnover at Kier鈥檚 construction division was 拢1.4bn (2009: 拢1.5bn) and support services revenue rose to 拢471m from 拢438m. Turnover at its housing business edged up
to 拢158m from 拢151m.
Sheffield is keen to expand the contractor鈥檚 support services operations and it is in the running to buy the compliance and environmental arms of collapsed social housing specialist Connaught, which are being sold by administrator KPMG.
Margins in the construction business stayed at 2.6%, whereas they rose to 4.5% from 4.1% in the support services division. Net cash at the year end stood at a record high of 拢175m, up from 拢93m at the same point in 2009.
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