Construction company Kier has seen its half-year profits before tax fall by 2% to £35.9m despite strong results from its property division.
The property division increased revenue on capital expended by 15%, assisted by the completion of eight development projects over the six months to the end of December 2014.
Property development revenues increased 11% in H1 to £44m, with PFI revenues down 68% to £5m.
In all, the property division increased profits to £14m, up 32% from £10.6m.
The pipeline of developments for the property division cover £1bn. Future projects include a £400m joint venture with Staffordshire council and police authority for future development and acquisition, due to come on stream in June 2015.
Chief executive Haydn Mursell said: “The property division is seeing increased demand for its capabilities as occupier demand and the availability of lending bank and institutional lending improves.”
