Kier bosses' profits riposte to their critics
The Kier Group today answered critics of a boardroom romance between chief executive John Dodds and finance director Deena Mattar with a dramatic profits upgrade.
The company said full-year profits will come in ahead of current market expectations of £69.8 million and 'substantially' above last year's £59.1m. Shares in Kier jumped 76p to 2100p on the news.
Dodds and Mattar have faced growing pressure from shareholders over their affair and revelations that company employees were provided to renovate Mattar's new home. Kier stressed there is 'no scandal', and the value of the work would be included in the company accounts.
Today the firm looked to draw a line under the controversy with a bullish assessment of business in the 12 months to the end of June.
It included a 16% rise in the number of homes sold by Kier's housebuilding arm to 1767 despite rising interest rates.
Kier admitted there had been 'a modest reduction' in visitors to its sites in the last three months as a result of rising mortgage costs but said reservation levels remained 'healthy'.
Rival housebuilder Barratt Developments also brushed off fears over rising interest rates today, confirming that pre-tax profits will be in line with market expectations of around £402m, up from £394m last year.
Barratt completions jumped 6% to 15,517 thanks to a particularly strong last six months. Business was even better at Wilson Bowden - bought by Barratt for £2.2bn in April - where completions were up 19% to 2635 between January and June.
The update comes just days after rival Bovis Homes warned that rising interest rates have slammed the brakes on the housing market. It sent shares in Bovis and the sector tumbling.
However, Barratt chief executive Mark Clare said the group's focus on affordable housing across the whole of the UK meant it was well-placed to weather the storm.
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