Kier has said pre-tax profit for the year ended 30 June 2008 will be in line with expectations, provided there is no further deterioration in its housing business.

The current consensus forecast is for profit of £92m on turnover of £2.35bn.

In a trading update, the group said overall housing reservation levels for the past two months were 35% lower than last year.

Last week, chief executive John Dodds said private reservations at the end of April were running at a third of last year’s level.

Kier said making predictions for 2009 was “very difficult” due to the uncertainties in the market.