Engineer Kier likes Nick Clegg's stimulus plan

Deputy Prime Minister Nick Clegg's bid to revitalise Britain's ageing infrastructure received a warm reception from Kier boss Paul Sheffield today amid a backdrop of tough times for the UK construction industry.

Clegg pledged this week to hand-pick up to 40 of the biggest infrastructure projects for "special priority status" to help kick-start growth.

Sheffield said: "It's very welcome. The whole industry has been working hard in the background to remind the Government how important infrastructure development is to the nation. Every £1 spent in construction generates £2.84 in GDP."

Kier, which has recently landed nearly £100 million in private commercial work in the capital, has been rebalancing its business to reduce its reliance on public sector spending as budgets come under pressure. It is also working on major tunnelling contracts for Crossrail, London's east-west rail link.

Pre-tax profits for the year to June were 24% higher at £68.9 million - ahead of City hopes - on revenues 4% higher at £2.2 billion.

Investec analyst Andrew Gibb said: "Considering the macro backdrop, the fact that Kier has been able to deliver numbers ahead of market expectations underlines the strength in this business, we believe."