Kier chief executive Colin Busby describes his company as bomb-proof over the next 12 months. Thou...
Kier chief executive Colin Busby describes his company as bomb-proof over the next 12 months. Though normally it is unwise to make yourself such a hostage to fortune, in housebuilder to contractor Kier's case he might have a point.
There is a huge amount of construction around at present according to Busby. Given the needs for upgrades to the railway and road infrastructure, a need for new hospitals and prisons and other private finance initiative work, lack of opportunity will not hold Kier back.
Recent results suggest Kier is well placed to take full advantage. Profits rose 35% to £5.4m. Brokers forecast EPS growth to be 13.5% in 2001 and 9.6% in 2002. A downturn in the housing market looks the one area of worry, but that is well in the price on forward P/E ratio of just 7.8. Buy.