The firm said it was well placed for further growth with construction orders up a third to £3.3bn in the year ending June 2015, and better than expected costs savings integrating consultant Mouchel, acquired last June.
Across the group underlying pre-tax profit jumped 17% to £86m on sales up 14% to £3.4bn.
Kier Group chief executive, Haydn Mursell said: “Economic confidence is returning to our core markets and, furthermore, the acquisition of Mouchel represents a major step in accelerating the Group’s five-year strategy.”
“All our divisions have performed well. In construction, the regional building business has an established position on public and private sector frameworks and our infrastructure business is benefiting from continued greater investment by the UK Government in infrastructure in the medium term and internationally, the Middle East pipeline is strengthening.
The construction order book of secured and probable work, at £3.3bn, is equivalent to 95% of forecast revenue for the 2016 financial year
New projects include being appointed preferred bidder for the £28m Bitterne Park School project in Southampton under the Southern Batch Priority School’s Programme and the £14m Hillview Lodge project for Avon and Wiltshire Mental Health Partnership NHS Trust.
“In property, the market remains strong and we have ample support from funders and other investors.
He added: “Following its expansion, our residential division is well-placed to help address the national shortage of affordable housing.
Revenues increased to £257m at the mixed private house and social house building division with total completions increasing by 35% to 2,130 units ,generating an increase in underlying operating margin to 4.4%.
Private sale completions on Kier-owned land, jumped 17% to 706 completions.
Mursell added: “Our services division will benefit from the £700m AMP6 contracts secured during the year and the Mouchel acquisition has made Kier the sector leader in the UK highways management and maintenance sector.”