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The Kier Group has reported a 31 per cent rise in pre-tax profits, with the construction and services business stressing that it is in "great shape".

In a statement today the company confirmed that its pre-tax profits before amortisation climbed to £79.6 million in the year to June 30th, up from £61 million in 2006.

After a year of strong growth across all its divisions, Kier said that its revenues had increased by 15.8 per cent – rising to £2.13 billion.

Kier stressed that its construction and support services order books are at "record" levels, standing at a combined £3.5 billion by the end of the year. That compares to the £2.9 billion worth of orders achieved by the end of the 2006 trading period.

The company said that with its construction businesses experiencing "very strong markets" it can be "highly selective" about the work it undertakes.

Kier's homes business also had a good year, with unit sales 16 per cent ahead of those for 2006 and order books 11 per cent up by value, as at August 31st.

Meanwhile the group's property division also has a "good portfolio of developments in the pipeline", Kier stressed, adding that it plans to grow the unit further through strategic acquisitions.

Kier's confidence in its performance saw the firm rebase its full-year dividend by 92.3 per cent, giving a total dividend for the year of 50p – up from 26p in 2006.

Commenting on the results Kier chief executive John Dodds said: "With its strong markets, a sound business infrastructure and talented management teams I have enormous confidence in the future prospects for Kier."