CONSTRUCTION group Kier reported better revenues and profits for the year to June 30 today.

The group, which operates a regional office on Speke’s Estuary Commerce Park as well as a maintenance business on Aintree Racecourse Business Park, also announced a 10% increase in its full year dividend of 64p as an expression of confidence in its financial position and future prospects.

Turnover rose from £2.09bn to £2.18bn, while pre-tax profits before exceptional items improved from £59.7m last year to £65.5m.

Net cash of £165m compares with £175m, after investment of about £50m throughout the year.

Order books for the construction and service divisions increased from £4.2bn to £4.3bn “with a strong pipeline of further opportunities”.

The group also announced today it has been appointed as the sole contractor to deliver a range of construction projects throughout the UK over the next four years valued up to £1bn on behalf of Scape, a local authority-controlled company aimed at achieving economy and efficiency in building contracts.

Chief executive Paul Sheffield said today: “Kier has had another successful year in a tough economic environment.

“Although we expect the next 12 months to be challenging, we remain confident that our positioning across a wide spectrum of service areas . . . will enable us to deliver a good performance in the new financial year.”

Construction remains the biggest division with revenues of £1.445bn and an operating profit of £39.3m during the year.

Services achieved sales of £484m and an operating profit of £21.7m, while property made sales of £97m and an £11.1m operating profit, while homes posted a turnover of £153m and an operating profit of £4.2m.

The tough conditions in construction has seen the group reduce its exposure to public sector contracts from 76% of awards last year to 56% in 2011. Chairman Phil White said he anticipates that will fall below 50% over the coming year.

Liverpool stockbroker Panmure Gordon retained its ‘hold’ call on the group’s stock.

Analyst Andy Brown said: “These are good results from Kier, with profit, dividend and cash ahead of our expectation.

“While the immediate outlook remains challenging, segments such as power, waste, regeneration and out-sourcing provide good opportunities.

“We maintain a neutral stance but, after the dividend increase, see good support coming from the yield.”