Engineering and construction group, Kier Group (LON:KIE) said it continues to perform well with trading to date as expected and net cash balances at healthy levels. The construction division continues to achieve good results in all key performance measures of cash, profits and order books. Cash balances remain healthy, at broadly the same levels as at end-December 2009, and operating profits remain robust.

Order books of secured and 'probable' work provide all targeted construction revenue for the year to end-June 2010 and 82% of targeted revenues for 2011, slightly ahead of last year's position.  Kier recently became preferred bidder for a £20m academy in Peterborough which is likely to lead on to a further two academies with a combined value of £60m. Construction on the first academy is scheduled to commence in the autumn of 2010.

In the power sector, where Kier is a market leader, the major power station project for EDF at West Burton is progressing well. In the infrastructure sector Kier has started work on one of the enabling contracts for Crossrail in London. In Support Services, the group said it continues to have good long-term visibility of revenues. the £600m contract for North Tyneside Council, which started in September, is performing well. In April 2010 it commenced a five-year contract for Barnsley Metropolitan Borough Council at a value of £40m, excluding the five-year extension to the contract which would add a further £40m to the order book.

The market for housebuilding has stabilised with prices remaining firm and visitor levels satisfactory. The total order book of reserved and exchanged units at end-April 2010 is in line with the same time last year. Completions in the year to date together with the order book for this year represent approximately 93% of full-year targeted unit sales, which is a similar level to that achieved last year, albeit for a marginally lower level of targeted units.

Social housing demand remains high with long local authority waiting lists. Kier said although it remains in a period of economic uncertainty and the impact of the measures and policies of the incoming coalition government is as yet unknown, it is well placed to attract construction work through its wide network of local offices.

The Group's financial performance to date is in line with projections and the net cash position remains…

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