UK's Kier Group on track to meet double-digit profit expectations

By Li-mei Hoang

LONDON, Nov 12 (Reuters) - British support services and construction firm Kier Group (LSE: KIE.L - news) said it was on track to meet its target of double-digit annual earnings growth after seeing a strong performance in its construction and property divisions.

Chief Executive Haydn Mursell, who took over the role at the beginning of July, said he was targeting a greater than 10 percent growth in annual earnings as part of longer-term strategy to significantly expand the company's offering.

"We are targeting a greater than 10 percent growth on average, year on year ... and in year one we are seeing more than 10 percent and that obviously that will help the progress over the next five to six years," he told Reuters.

"I think probably the strongest performances is in property and construction," he said, adding noting the market was particularly buoyant due to Britain's economic recovery and strong demand for new housing.

The company, whose activities range from building power stations to providing outsourcing for local councils, said its property division had won more than 1 billion pounds worth of contracts, while its construction division order book stood at 2.6 billion pounds.

Shares in Kier were broadly flat at 1,474 pence by 0854. "The mid-term performance improvement appears to be on track so on a longer view the stock is good value," said analyst Stephen Rawlinson at brokerage Whitman Howard. (Reporting by Li-mei Hoang; Editing by David Holmes)