TIDMKIE
RNS Number : 9442X
Kier Group PLC
23 February 2012
KIER GROUP PLC INTERIM RESULTS FOR THE SIX MONTHS TO 31 DECEMBER
2011
23 February 2012
-- Total revenue of GBP1,046m (2010: GBP1,097m)
-- Underlying pre--tax profits* of GBP34.0m (2010: GBP31.3m)
-- Underlying EPS* of 70.3p (2010: 63.5p)
-- Construction margins at 2.5% (2010: 2.7%) and Services margins* at 4.5% (2010: 4.5%)
-- Interim dividend of 21.5p (2010: 20p)
-- Group net cash of GBP131m at 31 December 2011 (30 June 2011:
GBP165m), after approximately GBP33m reinvestment in the Group
-- Order books for Construction and Services maintained at more
than GBP4bn following GBP830m of awards in the period
-- Construction order books have targeted revenue for 2012 and
68% of the target for 2013 secured or probable
-- Services order books have secured 95% of targeted revenue for
2012 and 76% of the target for 2013
*Underlying margins, pre--tax profits and EPS are stated before
amortisation of intangible assets of GBP1.7m (2010: GBP1.7m)
Commenting on the results, Phil White, chairman said:
"I am pleased to report a good set of results for Kier for the
six months ended 31 December 2011. The increase in underlying
pre--tax profits to GBP34.0m and the continued strong cash position
demonstrate the strength of the Group's performance and we expect
this good performance to continue for the full year.
"As we look to the medium term, conditions continue to be
difficult in the UK construction market and we are inevitably
seeing greater pressure on our current operating margins. In
Services, public sector outsourcing opportunities are taking longer
to come to market and are often reduced in scale, which means the
financial effect of any public sector outsourcing is not likely to
be recognised until 2014.
"The Group has more than GBP4bn of secured and probable work in
Construction and Services, and a growing Property division, all of
which provide a well balanced platform for the future.
"Given the six--month performance and our cash position, the
Board is pleased to announce an interim dividend of 21.5p and
expects to maintain a one--third: two--thirds split for the current
financial year."
Commenting on the results, Paul Sheffield, chief executive
said:
"Kier continues to perform in line with expectations despite the
challenges that we face in many of the markets in which we operate.
The Group has delivered a good set of results for the six--month
period to 31 December 2011, with strong operating margins, a
healthy cash position and robust order books.
"The next 18 months will remain challenging as external
macroeconomic factors weigh heavily on the public sector and the
confidence of the private sector to invest. We will, however,
continue to focus on those markets where we see the most potential
for future growth.
"In Construction, we are encouraged by the opportunities in
power, transport, waste and in our overseas operations; in
Services, we continue to pursue opportunities to grow the
Facilities Management (FM) and Environmental businesses; and in
Property, our development pipeline and land bank provide a strong
platform for attractive returns over the medium term.
"Our well balanced, integrated business model, coupled with our
strong balance sheet, will provide greater resilience during these
more testing times which, together with our committed and talented
people, should underpin our future performance.
"I am also pleased to announce that at the end of November 2011
The Kier Foundation was formally given charitable status by the
Charity Commission. The Foundation and its Trustees will support
our businesses' already impressive list of charitable activities
carried out within the local communities in which we work. We have
also signed a two--year partnership with Barnardo's to give focus
to our fundraising activities and to give us an opportunity to help
some of the neediest young people in society today."
Chief Executive's Review
Overview
The Group has continued to perform well and has delivered a good
set of interim results to 31 December 2011, which is testament to
the strength of our integrated and well--balanced business model in
this increasingly competitive environment.
Underlying profit before tax for the half--year increased by 9%
to GBP34.0m (2010: GBP31.3m). Our cash position continues to be
strong with net cash of GBP131m at 31 December 2011 and average
month--end balances of GBP110m, after further investment in our own
business of approximately GBP33m.
In Construction, we achieved revenues of GBP720m (2010: GBP728m)
at an operating margin of 2.5% delivering GBP17.8m of operating
profit (2010: GBP19.8m). Our focus continues to be the provision of
intelligent, value--engineered solutions working in partnership
with our customers. Our significant number of framework agreements,
long--standing customer relationships and consistently good
execution underpin our awards and order books, which have remained
robust at GBP2.2bn at 31 December 2011 (June 2011: GBP2.2bn). All
of our targeted revenue for the current financial year and 68% of
our targeted revenue for 2012/13 is secure or probable (2010: 65%),
with our workload increasingly focused towards the private
sector.
In Services, revenue decreased to GBP218m (2010: GBP243m)
reflecting a lower level of activity in Maintenance, as a result of
the ongoing budget pressures faced by our local authority
customers, particularly in the area of capital works. This was,
however, partially mitigated by an improvement in the FM and
Environmental businesses where revenue improved through successful
contract renewals and extensions. Overall our order books have
remained stable at GBP2.0bn (June 2011: GBP2.0bn), while operating
margins, before amortisation of intangible assets, were sustained
at 4.5% (2010: 4.5%), generating GBP9.8m of operating profit (2010:
GBP10.9m), supported by a good cash performance. We remain focused
on the growth of this division, particularly in FM and
Environmental, so as to increase our scale and further improve
operating performance.
The Property division achieved a strong first half result, with
an operating profit of GBP10.0m (2010: GBP3.4m), well ahead of the
same period in 2010. This performance demonstrates the strength and
breadth of this division, which now encompasses our Property
Development, Structured Property Finance (PFI) and Homes
businesses. Despite reduced levels of credit and uncertain investor
confidence, our strong financial position and the pipeline of
opportunities provides a platform for growth in this division,
while maintaining our non--speculative approach to new schemes.
In summary, Kier has responded well to the increasingly
challenging environment and we are constantly reviewing our cost
base as markets become more competitive. We are well positioned to
win work in growth markets that will strengthen the business in the
medium term.
Financial Results
Total revenue for the six months to 31 December 2011 decreased
by 4% on the same period in 2010 to GBP1,046m (2010: GBP1,097m)
resulting principally from a decline in activity in our Services
division.
Underlying profit before tax grew by 9% to GBP34.0m (2010:
GBP31.3m) reflecting a stable performance in Construction and
Services and a significantly increased contribution from Property.
Our Construction revenues converted into an operating profit of
GBP17.8m, providing a 2.5% operating margin (2010: 2.7%). In
Services, after adding back amortisation, we achieved an operating
profit of GBP9.8m which equates to a strong operating margin of
4.5% (2010: 4.5%). In Property, the GBP10.0m operating profit was
well ahead of the result in the same period in 2010 reflecting a
steady performance in our Homes businesses and an increasing level
of profit derived from our Property Development and Structured
Property Finance businesses.
The increase in the Group's net finance cost is primarily a
result of the interest unwind on the deferred consideration
following the Lloyd's property transaction, which completed in
April 2011. We have two tranches of consideration totalling GBP56m,
due in October 2012 and October 2013.
The effective tax rate of 20% compares favourably with the rate
in 2010, following agreement on certain issues with HM Revenue
& Customs. Underlying earnings per share of 70.3p has increased
by 11% and has benefitted from the lower effective tax rate (2010:
63.5p).
The management of cash continues to be of critical focus across
the Group and we are pleased that the trading result is supported
by a good cash performance. Net month--end cash balances in the
period averaged GBP110m, ending the period at a net balance of
GBP131m (June 2011: GBP165m). This is after reinvestment of circa
GBP33m of cash in the business over the past six months to drive
future growth. In addition to our own net cash position, we have
GBP90m of undrawn committed banking facilities that are available
until 2014.
Net assets at 31 December 2011 have remained stable at GBP158m
(June 2011: GBP164m).
Taking into account the performance of the Group and its strong
cash position, the Board is pleased to announce an increase to the
interim dividend of 8% to 21.5p (2010: 20.0p). The interim dividend
is well covered by adjusted earnings per share and reflects the
Board's confidence in the business going forward. The interim
dividend will be paid to shareholders on 11 May 2012 and the scrip
dividend alternative will also be available.
Construction
The Construction division encompasses our UK building,
infrastructure and overseas businesses, all of which are highly
skilled in the construction of the full range of building projects,
together with power, waste, infrastructure and mining projects.
Whilst Construction revenue for the six months to 31 December
2011 decreased slightly to GBP720m (2010: GBP728m), this reflects a
robust performance in light of the ongoing challenging market
conditions. This performance is underpinned by our involvement on
more than 70 frameworks, the flexibility of our workforce in being
able to move between a variety of sectors and our consistent track
record of delivery, all of which support our long--term
relationships with customers.
Operating profit of GBP17.8m (2010: GBP19.8m) highlights the
competitive pressures faced by the construction sector. This
equates to a 2.5% (2010: 2.7%) operating margin reflecting the high
quality work we carry out, much of which is through frameworks and
similar arrangements which accounted for approximately 60% of our
awards in the six--month period. We are, however, seeing a
tightening in the market that will inevitably put greater pressure
on our operating margins over the next 18 months. Cash levels, one
of the key measures in this division, continued to be strong with
cash balances of GBP414m at 31 December 2011 (30 June 2011:
GBP423m).
Contract awards in the period were maintained at approximately
GBP700m and, together with the secured position and the level of
'probable' awards (comprising contracts on which we are the
preferred bidder or are in one--to--one negotiations), provided
order books of GBP2.2bn (30 June 2011: GBP2.2bn). This secures all
of our targeted revenue for the current financial year and 68% of
the target for 2012/13, a similar position to 31 December 2010.
In the period, 48% of our awards were for UK public sector
projects, compared with 63% for the same period in 2010, with
education continuing to be our largest source of work accounting
for some 32% (circa GBP200m) of awards (2010: 34%). The replacement
Contractors' Framework for Academies continues to provide a steady
stream of opportunities and we have entered into contract for nine
schools with an order value of GBP150m, with a further four schools
with a value of GBP50m nearing financial close. Potential
opportunities under this framework for the first quarter of 2012
are circa GBP250m and we retain a keen interest in the forthcoming
Priority Schools Building Programme.
In the healthcare sector, the Procure 21+ Framework continues to
generate excellent opportunities with over GBP350m of schemes that
come to market in the six--month period, and Kier has been selected
for six of them, with a potential value in excess of GBP100m. We
have been awarded a place as one of three construction delivery
partners for the Design for Life Wales regional frameworks for
delivery of healthcare projects of up to GBP10m each and we are
pursuing the National Framework for projects over GBP10m.
In September 2011, Kier was awarded the GBP1bn four-year Scape
Framework (in partnership with the Services division) as the
exclusive delivery partner for public sector capital works projects
of up to GBP2m throughout the UK. Early interest is encouraging
with more than GBP100m of projects currently in development.
In the private sector commercial building market, the emphasis
remains largely south--east and London focused. During this period
Kier commenced construction on the GBP42m Arthouse at King's Cross
in London and was appointed as preferred contractor to build the
Camden Civic Offices at King's Cross, valued at GBP64m.
Over the past six months, Kier Living has been established as a
focus to target the care home, student accommodation and high--rise
affordable housing markets throughout the UK. We have secured
positions on 10 frameworks valued at circa GBP2.5bn, which are
expected to provide good quality work in these sectors. So far this
year, Kier Living has secured over GBP40m of new work.
Our Process & Engineering business continues to grow and its
success, supported by the use of building information management
(BIM) technology, will bring improved efficiency and value to our
customers as we increase adoption through 2012 in response to the
Government Construction Strategy.
As expected, our Infrastructure business continues to be
successful in the expanding transport, power and waste markets in
the UK and overseas.
Building on our previous major contract awards on the Crossrail
project in London, we have been awarded in joint venture a further
GBP210m contract for major works at Farringdon Station. This brings
the total awards on Crossrail, in joint venture, to date to more
than GBP800m and we are continuing to tender for further major
works.
In power, we have been awarded a GBP100m+ contract, in joint
venture, by EDF Energy to carry out site preparation works for
Hinkley Point C nuclear power station in Somerset. This is the
first major package to be let as part of the new nuclear
programme.
The GBP50m energy--from--waste plant in Plymouth, awarded to
Kier last year, has now seen all the necessary approvals granted
and we have mobilised on site. The GBP45m Wakefield waste treatment
facility is another good opportunity, for which we are preferred
bidder, and we anticipate financial close during the second half of
2012.
In our overseas operations, good progress is being made on our
Hong Kong contracts, totalling more than GBP300m in joint venture,
for the Mass Transit Railway Corporation, and we continue to pursue
other infrastructure opportunities arising from Hong Kong's
multi--year infrastructure plan. In Jamaica, we were pleased to be
awarded a GBP17m contract to deliver a hydroelectric power station
expansion project in St Elizabeth and we have secured our first
project in Haiti, an office refurbishment for Digicel. In Saudi
Arabia, we are making good progress at the Al Jalamid phosphate
mine. The reputation we have established is now leading to other
potential mining opportunities with our client, Ma'aden. We are
also pursuing a number of education, industrial and infrastructure
opportunities.
Overall, the Construction division is well positioned in its key
markets. Our strong order books and the core of our new work coming
through frameworks in the UK provide a stable platform from which
to target the areas where we see the best opportunities for growth,
both in the UK and overseas. Inevitably, the current trading
environment will see a tightening of margins as competition
increases and management of our working capital will become more
challenging. However, we will continue to focus on good quality
work where we can best utilise the flexibility and technical
capability of our workforce.
Services
Services comprises three main businesses: Maintenance, which
provides both planned and reactive maintenance largely to local
authorities and housing associations; Facilities Management (FM),
providing services to public and private sector clients; and
Environmental, offering services for domestic and commercial waste
collection, street scene and grounds maintenance and the management
and operation of a major recycling facility.
Revenue in Services during the half--year period decreased by
10% to GBP218m (2010: GBP243m) principally due to a lower level of
activity in Maintenance, reflecting more than 40% reductions in the
capital works areas of our established contracts, which is partly
mitigated by contract renewals and extensions in the FM and
Environmental businesses.
Operating profit, before deducting amortisation of intangible
assets of GBP1.7m (2010: GBP1.7m), decreased by 10% to GBP9.8m
(2010: GBP10.9m), in line with revenue, maintaining the operating
margin at 4.5% (2010: 4.5%). Cash generation was good with cash
balances at 31 December 2011 of GBP16m (30 June 2011: GBP28m) after
further investment in plant, vehicles and in our recycling plant
totalling GBP10m during the six--month period.
The order book at 31 December 2011 of GBP2.0bn (30 June 2011:
GBP2.0bn) showed resilience in the current market and continues to
provide long--term visibility of revenues. This secures 95% of our
targeted revenue for the current financial year and 76% of the
target for the 2012/13 financial year. The order book figure does
not include contract extensions which could add approximately
GBP700m if all were exercised by our customers. We do not
anticipate any of our significant contracts being re--tendered
before 2014, which provides stability in the short term.
Maintenance, the largest part of this division, saw revenue
levels decline to GBP140m (2010: GBP179m) as a direct result of the
reduction in spend by local authorities, particularly in the
discretionary area of capital works in our established contracts.
Contracts valued at more than GBP40m were secured in the period,
including Richmondshire Maintenance and Improvement Partnership,
Wakefield District Council Housing Regeneration Partnership, South
Essex Homes and Leeds East North East ALMO delivering planned
maintenance activity. We are being particularly selective in our
tenders for local authority maintenance work in light of an
aggressive pricing environment.
During the period we were successful in accessing further
framework opportunities with University of Durham (minor works),
First Choice Homes Oldham (highways repairs and maintenance,
procurement for housing supply and installation of insulation),
Sanctuary Group (South), Shropshire Council and Scape National
Minor Works Framework (in partnership with our Construction
division).
In FM and Environmental, revenue increased to GBP78m (2010:
GBP64m) despite the market conditions remaining competitive. In FM
our current customer relationships are strong, our current
contracts are performing well and in line with our expectations and
a number of contracts have been successfully renewed or extended,
including Legal and General valued at GBP7m per annum. We can
clearly see the opportunity for operational synergies that could be
realised by enlarged scale across this business sector and see the
private sector as more receptive to outsourcing to meet their
budget pressures.
The Environmental business continues to grow with new contract
wins in East Northamptonshire, Waltham Forest, Tewkesbury, North
Norfolk and King's Lynn and Windsor & Maidenhead. We have also
been successful in securing contract extensions in Rugby and
renewals with our existing clients, such as Bromley. We are
benefiting from our integrated offering including street cleansing,
refuse collection and downstream waste management and processing
operations, where we are currently processing over 100,000 tonnes
of waste per year through our Pure Recycling materials recovery
facility and have capacity for additional volumes to support our
growing pipeline of opportunities.
The growth we were seeing in our Energy Solutions business in
the first part of the year has been affected by the dramatic change
to the feed--in tariffs available for photovoltaics. However, this
embryonic business is now looking to help enhance our energy saving
capabilities for our many customers across the Group.
While the current economic conditions continue to provide
outsourcing opportunities, we recognise that the ongoing cost
pressures and consequent uncertainty particularly in the public
sector will, as we predicted, mean the financial effect of any
public sector outsourcing is not likely to be recognised until
2014.
The Services division has long--term contracts which provide
good revenue visibility to 2020 and beyond, and with its
long--standing partnership arrangements will continue to offer
innovative and comprehensive solutions for customers across their
estates. We remain optimistic about the medium--term growth in our
core markets and will continue to progress with our strategy of
seeking greater scale in our FM and Environmental businesses.
Property
Our Property division comprises three main activities:
commercial, industrial, retail and mixed--use property development;
structured property financing; and homes, including both private
and affordable housing.
The Property division continues to focus on predominantly
non--speculative property development opportunities where we know
we can forward sell or pre--let key elements of the schemes thereby
reducing the associated risk and demands on the Group's cash
reserves.
Revenue for the six--month period to 31 December 2011 was
GBP108m (2010: GBP126m), generating operating profit of GBP10.0m
(2010: GBP3.4m). This was significantly ahead of the same period in
2010, as a result of the continued progress with our GBP700m (gross
development value) property development pipeline, the ongoing
strategy of selectively disposing of our mature PFI investments
from our portfolio and the activities of our homes businesses. At
31 December 2011, the net operating assets of the Property
Development and Structured Property Finance businesses were GBP60m
(June 2011: GBP54m) and in the homes businesses were GBP299m (June
2011: GBP311m). In the Property Development business we anticipate
the level of capital investment to increase to approximately GBP80m
by June 2013, on which we are targeting a 15% return on
capital.
In Property Development, we continued the development of
industrial units at Uxbridge, selling two units with further sales
anticipated by the year end. In December 2011, we announced the
conditional disposal of our property at 3 Savile Row in London for
approximately GBP32m, subject to certain lease and contracting
works being finalised, with completion of the sale to take place by
31 March 2012.
Solum Regeneration, our joint venture with Network Rail,
continues to expand with the Epsom Station regeneration scheme
advancing well and all affordable and private apartments pre--sold.
Construction is also underway at Walthamstow Station for a 107--bed
hotel and 35 affordable apartments, all of which have been forward
sold to a housing association. In December 2011, planning
permission was granted for the regeneration of Twickenham Station
in advance of the 2015 Rugby World Cup, with the GBP46m project
being expected to commence later this year.
During the six--month period, the Structured Property Finance
business disposed of our equity stakes in West Berkshire and
Hinchingbrooke Hospitals for combined revenue of GBP8m, the latter
being transferred to the Kier Group Pension Scheme. These sales
represented a valuation discount rate of approximately 7%.
Our portfolio of PFI projects now totals eight schemes. Our
committed equity investment in these schemes stands at GBP18.3m of
which GBP16.8m has been invested to date. The directors' valuation
of the committed investment at a discount rate of 7.5% is GBP30.3m.
The Structured Property Finance business remains short--listed on
four PFI projects with a combined capital value of circa GBP200m,
three of which we are one of the two remaining bidders.
The residential regeneration team is progressing well with Tavy
Bridge, London, where we are preferred bidder to build 294
mixed--tenure homes together with a new library and four retail
units (valued at GBP40m). This team has also agreed a deal with the
Homes and Communities Agency (HCA) and Derby Council to create
around 700 new homes at the Manor & Kingsway site in Derby,
valued at GBP100m. The regeneration team utilises and benefits from
the combined resources within our Construction, Homes and
Structured Property Finance businesses, which is a differentiator
for Kier and positions us well for further regeneration schemes,
particularly in London.
Private housing completions during the six--month period
exceeded expectations at 280 completions (2010: 176 completions)
whilst affordable housing at 196 completions (2010: 217
completions) were broadly in line with our expectations.
The private housing market has been stable during the period
despite wider economic uncertainty. Mortgage availability remains
an issue but this has been eased by the introduction of the
Government's Firstbuy initiative under which we have an allocation
of 231 units.
We have disposed of a further GBP18m of land during the
six--month period on deferred terms, bringing the total for land
sales to GBP38m since the beginning of 2011. The land bank at 31
December 2011 comprised 4,412 units which, although reducing as we
have not bought any new land, remains above 3,000 units, which we
believe is the level necessary to service our targeted area of
operation across Central England. We continue to seek to reduce the
cash investment in our land bank by developing homes for sale and
disposing of parcels of land as opportunities arise.
Our strategy of re--focusing our affordable housing business to
a mixed--tenure regeneration business is progressing well. Our
position as a HCA investment partner, coupled with our Affordable
Housing Grant allocation of 1,055 units, leaves us well placed to
take advantage of the current opportunities in the affordable
housing market being generated both by local authorities and
housing association registered providers.
We have also secured and achieved preferred bidder status on
approximately GBP200m of work in the first half of the year, spread
over four years, which represents a forward pipeline of 1,300 plots
for mixed--tenure development where we should generate a healthy
blended margin with no capital requirement for land purchases.
The current financial year will be challenging for the property
market, with liquidity constraints a major factor at both corporate
and consumer level. However, we believe this presents Kier with a
significant opportunity to utilise its strong balance sheet
position to unlock viable schemes that have been unable to progress
due to the lack of funding.
Increasingly, the Property division is bringing together the
total skills and expertise across the Group to deliver greater
value to our schemes and provides an integrated offering and
service to our customers. We therefore remain confident that this
division will continue to grow over the next few years, with many
of its schemes already identified and secured, such that it becomes
a significant, consistent and therefore predictable contributor to
the Group's overall performance.
Pensions
The Group participates in two principal schemes: the Kier Group
Pension Scheme which includes a defined benefit section, and a
local government scheme on behalf of its employees in Kier
Sheffield LLP.
At 31 December 2011, the position of the Kier Group Pension
Scheme for accounting purposes was valued showing a net deficit of
GBP25m (30 June 2011: net deficit of GBP23m) as a result of the
changes to the key assumptions (discount rate and inflation).
Following the latest triennial actuarial valuation, dated 1 April
2010, which showed a funding position of 88%, we continue to
progress with the funding plan agreed with the Trustees, under
which, in addition to the current annual GBP8m deficit
contributions, we will seek to transfer the Group's PFI assets as
they become available and are suitable for the Scheme.
Under the scheme relating to Kier Sheffield LLP there was a net
deficit of GBP4m (30 June 2011: net surplus of GBP1m).
Health, safety and environment
Throughout the year we have continued to focus on a 'back to
basics' approach to safety, health and environmental standards. Our
supply chain works with us to ensure that we focus on standards at
the planning stages of projects and that they are reviewed
regularly to ensure suitability throughout the project life
cycle.
We have had significant success in reducing our accident rates
and we continue to progress our safety training programme across
all of our businesses, with the inclusion of our supply chain
supervisors on our training courses. This assists to develop a
close working relationship on site with our operational teams.
We continue to implement our Behavioural Safety Programme across
the whole Group, which has seen 29,000 targeted safety discussions
during the period, a 30% increase on the period to December 2010.
Our occupational health teams are also very proactive in ensuring
that we have educational programmes in place that support the
workforce and reduce sickness absence.
Each Kier business unit has produced and implemented a carbon
reduction plan, aimed at reducing the Group's carbon emissions. We
continue to make good progress in meeting our landfill commitment
target by the end of 2012, which is to send only 18% of the
construction, demolition and excavation waste produced by our sites
to landfill.
At the 2011 Green Apple Awards for Environmental Best Practice,
Kier was awarded five silver awards in recognition of its
environmental performance.
Prospects
As we continue to streamline our operations and to leverage our
cross--divisional capabilities, we are able to harness the value of
our integrated model to the increasing benefit of our
customers.
In Construction, our focus on growth markets that have higher
barriers to entry, such as power, waste and transport, together
with a core of work still coming through frameworks, will help us
partly mitigate highly competitive pressures, over the medium term,
on open--market opportunities. However, the current trading
environment will see a tightening of margins over the shorter term
and management of our working capital will become more challenging.
Our focus remains on pursuing higher quality work where we can
utilise our innovation and technical skills to deliver the best
solution for our customers.
In Services, the long anticipated increase in outsourcing work
is beginning to come to market. However, budget pressures on local
authorities mean that some opportunities are taking longer to
materialise and are often reduced in scale. In Maintenance, it is
now more likely that it will be 2014 before we see the financial
impact of a number of these public sector opportunities. The FM and
Environmental businesses provide the best opportunities for growth
in the short term and it is in these businesses that we will
continue to pursue, both organically and by acquisition, greater
scale to provide an enhanced operating performance.
Our Property division continues to trade well and is increasing
its contribution to the Group's results. The GBP700m pipeline of
development schemes, GBP30m of PFI assets and the ongoing
activities of the homes businesses, including cash generation from
the land bank, provide a robust platform to sustain strong
performances from this division in the future.
We recognise the next 18 months will be challenging with greater
pressure on margins and further cost cutting in the public sector.
We will continue to position ourselves in growth markets in order
to establish a larger, better--balanced business. We have a strong
track record of delivery, versatile and technically capable people
and enduring relationships with customers, to whom we bring
innovative and leading edge solutions, all of which should underpin
our future performance.
Paul Sheffield Chief Executive
Consolidated income statement
for the six months ended 31 December 2011
Unaudited Unaudited
6 months 6 months
to to
31 December 31 December
2011 2010 Year to 30 June 2011
----------- ------------ -----------------------------------
Before
exceptional Exceptional Total
Total Total items items*
Notes GBPm GBPm GBPm GBPm GBPm
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Revenue
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Group and share of joint
ventures 5 1,045.9 1,096.7 2,178.8 - 2,178.8
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Less share of joint ventures (15.5) (47.6) (55.8) - (55.8)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Group revenue 1,030.4 1,049.1 2,123.0 - 2,123.0
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Cost of sales (929.6) (951.7) (1,911.5) (33.5) (1,945.0)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Gross profit 100.8 97.4 211.5 (33.5) 178.0
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Administrative expenses (74.1) (68.3) (151.8) (0.8) (152.6)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Credit on retirement benefit
obligation - - 25.7 25.7
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Movement in provision for
fine imposed by the
Office of Fair Trading - - - 15.6 15.6
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Share of post tax results
of joint ventures 0.3 0.6 0.4 - 0.4
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Profit on disposal of joint
ventures 6.7 - 5.9 - 5.9
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Profit from operations 5 33.7 29.7 66.0 7.0 73.0
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Finance income 1.4 1.8 3.7 - 3.7
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Finance cost (2.8) (1.9) (4.2) - (4.2)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Profit before tax 5 32.3 29.6 65.5 7.0 72.5
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Income tax 7 (6.4) (7.0) (12.3) 2.1 (10.2)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Profit for the period 25.9 22.6 53.2 9.1 62.3
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Attributable to:
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Equity holders of the parent 25.3 22.3 52.7 9.1 61.8
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Minority interests 0.6 0.3 0.5 - 0.5
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
25.9 22.6 53.2 9.1 62.3
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Earnings per share
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
- basic 9 67.1p 60.3p 141.7p 166.1p
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
- diluted 66.2p 59.6p 139.8p 163.9p
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
Adjusted earnings per share
(excluding the amortisation
of intangible assets)
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
- basic 9 70.3p 63.5p 148.4p
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
- diluted 69.4p 62.8p 146.4p
----------------------------- ----- ----------- ------------ ----------- ----------- ---------
There were no exceptional items during the six months ended 31
December 2011, or the six months ended 31 December 2010.
*Exceptional items in the year ended 30 June 2011 as detailed in
note 6 relate to
-- movement in the provision for a fine imposed by the Office of Fair Trading;
-- property, land and work in progress write-downs;
-- acquisition costs; and
-- past service credit on retirement benefit obligation.
All results are derived from continuing operations.
Consolidated statement of comprehensive income
for the six months ended 31 December 2011
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
------------------------------------------------------ ------------ ------------ --------
Profit for the period 25.9 22.6 62.3
------------------------------------------------------ ------------ ------------ --------
Other comprehensive income/(loss)
------------------------------------------------------ ------------ ------------ --------
Share of joint venture recycling of cash flow
hedge movements - - 10.1
------------------------------------------------------ ------------ ------------ --------
Share of joint venture fair value movements
in cash flow hedging instruments (8.3) (3.5) (4.7)
------------------------------------------------------ ------------ ------------ --------
Actuarial (losses)/gains on defined benefit
pension schemes (21.7) 14.5 12.6
------------------------------------------------------ ------------ ------------ --------
Other comprehensive (loss)/income before taxation (30.0) 11.0 18.0
------------------------------------------------------ ------------ ------------ --------
Deferred tax on items recognised directly in
equity (including effect of change in tax rate)
------------------------------------------------------ ------------ ------------ --------
Share of joint venture cash flow hedging instruments 1.9 0.8 (1.7)
------------------------------------------------------ ------------ ------------ --------
Actuarial losses/(gains) on defined benefit
pension schemes 3.4 (6.2) (7.8)
------------------------------------------------------ ------------ ------------ --------
Taxation credit/(charge) on other comprehensive
(loss)/income 5.3 (5.4) (9.5)
------------------------------------------------------ ------------ ------------ --------
Other comprehensive (loss)/income for the period (24.7) 5.6 8.5
------------------------------------------------------ ------------ ------------ --------
Total comprehensive income for the period 1.2 28.2 70.8
------------------------------------------------------ ------------ ------------ --------
Attributable to:
------------------------------------------------------ ------------ ------------ --------
Equity holders of the parent 0.6 27.9 70.3
------------------------------------------------------ ------------ ------------ --------
Minority interests 0.6 0.3 0.5
------------------------------------------------------ ------------ ------------ --------
1.2 28.2 70.8
------------------------------------------------------ ------------ ------------ --------
Consolidated statement of changes in equity
for the six months ended 31 December 2011
Attributable
Capital Cash to equity
flow
Share Share redemption Retained hedge Translation holders Minority Total
of
capital premium reserve earnings reserve reserve the interests equity
parent
GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm GBPm
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
At 30 June 2010 0.4 38.8 2.7 72.5 (11.3) 0.2 103.3 0.9 104.2
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Profit for the period - - - 22.3 - - 22.3 0.3 22.6
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Other comprehensive
income/(loss) for
the period - - - 8.3 (2.7) - 5.6 - 5.6
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Dividends paid - - - (14.6) - - (14.6) (0.4) (15.0)
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Issue of own shares - 5.0 - - - - 5.0 - 5.0
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Share-based payments
charge - - - 1.4 - - 1.4 - 1.4
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
At 31 December 2010 0.4 43.8 2.7 89.9 (14.0) 0.2 123.0 0.8 123.8
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Profit for the period - - - 39.5 - - 39.5 0.2 39.7
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Other comprehensive
(loss)/income for
the period - - - (3.5) 6.4 - 2.9 - 2.9
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Dividends paid - - - (7.5) - - (7.5) (0.1) (7.6)
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Issue of own shares - 3.1 - - - - 3.1 - 3.1
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Share-based payments
charge - - - 1.3 - - 1.3 - 1.3
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Tax on share-based
payments - - - 1.0 - - 1.0 - 1.0
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
At 30 June 2011 0.4 46.9 2.7 120.7 (7.6) 0.2 163.3 0.9 164.2
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Profit for the period - - - 25.3 - - 25.3 0.6 25.9
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Other comprehensive
loss for the period - - - (18.3) (6.4) - (24.7) - (24.7)
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Dividends paid - - - (16.6) - - (16.6) - (16.6)
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Issue of own shares - 7.6 - - - - 7.6 - 7.6
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Share-based payments
charge - - - 1.3 - - 1.3 - 1.3
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
At 31 December 2011 0.4 54.5 2.7 112.4 (14.0) 0.2 156.2 1.5 157.7
---------------------- ------- ------- ---------- -------- ------- ----------- ------------ --------- -------
Consolidated balance sheet
at 31 December 2011
Unaudited Unaudited
31 December 31 December 30 June
2011 2010 2011
Notes GBPm GBPm GBPm
---------------------------------------------- ------ ------------ ------------ --------
Non-current assets
---------------------------------------------- ------ ------------ ------------ --------
Intangible assets 25.3 28.6 27.0
---------------------------------------------- ------ ------------ ------------ --------
Property, plant and equipment 10 103.3 87.5 96.0
---------------------------------------------- ------ ------------ ------------ --------
Investment in joint ventures 5.7 28.3 9.1
---------------------------------------------- ------ ------------ ------------ --------
Retirement benefit asset 11 - - 1.5
---------------------------------------------- ------ ------------ ------------ --------
Deferred tax assets 31.9 17.7 34.4
---------------------------------------------- ------ ------------ ------------ --------
Trade and other receivables 21.5 20.0 17.6
---------------------------------------------- ------ ------------ ------------ --------
Non-current assets 187.7 182.1 185.6
---------------------------------------------- ------ ------------ ------------ --------
Current assets
---------------------------------------------- ------ ------------ ------------ --------
Inventories 408.6 419.7 430.9
---------------------------------------------- ------ ------------ ------------ --------
Trade and other receivables 346.1 282.3 329.9
---------------------------------------------- ------ ------------ ------------ --------
Income tax receivable 4.3 - 3.0
---------------------------------------------- ------ ------------ ------------ --------
Other financial assets - - 0.2
---------------------------------------------- ------ ------------ ------------ --------
Cash and cash equivalents 161.3 174.5 195.1
---------------------------------------------- ------ ------------ ------------ --------
Current assets 920.3 876.5 959.1
---------------------------------------------- ------ ------------ ------------ --------
Total assets 1,108.0 1,058.6 1,144.7
---------------------------------------------- ------ ------------ ------------ --------
Current liabilities
---------------------------------------------- ------ ------------ ------------ --------
Other financial liabilities (0.1) (0.1) -
---------------------------------------------- ------ ------------ ------------ --------
Trade and other payables (787.4) (751.2) (799.2)
---------------------------------------------- ------ ------------ ------------ --------
Tax liabilities - (1.2) -
---------------------------------------------- ------ ------------ ------------ --------
Provisions (1.6) (19.5) (10.0)
---------------------------------------------- ------ ------------ ------------ --------
Current liabilities (789.1) (772.0) (809.2)
---------------------------------------------- ------ ------------ ------------ --------
Non-current liabilities
---------------------------------------------- ------ ------------ ------------ --------
Long-term borrowings (30.3) (30.3) (30.3)
---------------------------------------------- ------ ------------ ------------ --------
Trade and other payables (45.9) (20.1) (68.3)
---------------------------------------------- ------ ------------ ------------ --------
Retirement benefit obligations 11 (39.1) (65.6) (31.1)
---------------------------------------------- ------ ------------ ------------ --------
Provisions (45.9) (43.3) (41.2)
---------------------------------------------- ------ ------------ ------------ --------
Deferred tax liabilities - (3.5) (0.4)
---------------------------------------------- ------ ------------ ------------ --------
Non-current liabilities (161.2) (162.8) (171.3)
---------------------------------------------- ------ ------------ ------------ --------
Total liabilities (950.3) (934.8) (980.5)
---------------------------------------------- ------ ------------ ------------ --------
Net assets 157.7 123.8 164.2
---------------------------------------------- ------ ------------ ------------ --------
Equity
---------------------------------------------- ------ ------------ ------------ --------
Share capital 0.4 0.4 0.4
---------------------------------------------- ------ ------------ ------------ --------
Share premium 54.5 43.8 46.9
---------------------------------------------- ------ ------------ ------------ --------
Capital redemption reserve 2.7 2.7 2.7
---------------------------------------------- ------ ------------ ------------ --------
Retained earnings 112.4 89.9 120.7
---------------------------------------------- ------ ------------ ------------ --------
Cash flow hedge reserve (14.0) (14.0) (7.6)
---------------------------------------------- ------ ------------ ------------ --------
Translation reserve 0.2 0.2 0.2
---------------------------------------------- ------ ------------ ------------ --------
Equity attributable to equity holders of the
parent 156.2 123.0 163.3
---------------------------------------------- ------ ------------ ------------ --------
Minority interests 1.5 0.8 0.9
---------------------------------------------- ------ ------------ ------------ --------
Total equity 157.7 123.8 164.2
---------------------------------------------- ------ ------------ ------------ --------
Consolidated cash flow statement
for the six months ended 31 December 2011
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
-------------------------------------------------------- ------------ ------------ --------
Cash flows from operating activities
-------------------------------------------------------- ------------ ------------ --------
Profit before tax 32.3 29.6 72.5
-------------------------------------------------------- ------------ ------------ --------
Adjustments for exceptional items
-------------------------------------------------------- ------------ ------------ --------
Credit on retirement benefit obligation - - (25.7)
------------------------------------------------------- ------------ ------------ --------
Movement in provision for fine imposed by
the Office of Fair Trading - - (15.6)
------------------------------------------------------- ------------ ------------ --------
Acquisition costs - - 0.8
------------------------------------------------------- ------------ ------------ --------
Property, land and work in progress write-downs - - 33.5
------------------------------------------------------- ------------ ------------ --------
Other adjustments
-------------------------------------------------------- ------------ ------------ --------
Share of post tax results of joint ventures (0.3) (0.6) (0.4)
------------------------------------------------------- ------------ ------------ --------
Normal contributions to pension fund in excess
of pension charge (5.1) (3.1) (6.8)
------------------------------------------------------- ------------ ------------ --------
Equity settled share-based payments charge 1.3 1.4 2.7
------------------------------------------------------- ------------ ------------ --------
Amortisation and impairment of intangible
assets 1.7 1.7 3.4
------------------------------------------------------- ------------ ------------ --------
Depreciation charges 6.9 7.2 14.5
------------------------------------------------------- ------------ ------------ --------
Profit on disposal of joint ventures (6.7) - (5.9)
------------------------------------------------------- ------------ ------------ --------
Profit on disposal of property, plant & equipment (0.7) (0.6) (4.3)
------------------------------------------------------- ------------ ------------ --------
Net finance cost 1.4 0.1 0.5
------------------------------------------------------- ------------ ------------ --------
Operating cash flows before movements in working
capital 30.8 35.7 69.2
-------------------------------------------------------- ------------ ------------ --------
Special contributions to pension fund (7.1) (4.0) (12.5)
-------------------------------------------------------- ------------ ------------ --------
Payment of acquisition costs - - (0.8)
-------------------------------------------------------- ------------ ------------ --------
Payment of fine imposed by the Office of Fair
Trading - - (1.7)
-------------------------------------------------------- ------------ ------------ --------
Decrease/(increase) in inventories 22.3 (12.5) 19.9
-------------------------------------------------------- ------------ ------------ --------
(Increase)/decrease in receivables (20.3) 43.9 4.2
-------------------------------------------------------- ------------ ------------ --------
Decrease in payables (36.0) (61.8) (24.1)
-------------------------------------------------------- ------------ ------------ --------
(Decrease)/increase in provisions (3.8) 1.5 7.7
-------------------------------------------------------- ------------ ------------ --------
Cash (outflow)/inflow from operating activities (14.1) 2.8 61.9
-------------------------------------------------------- ------------ ------------ --------
Dividends received from joint ventures - 0.1 0.1
-------------------------------------------------------- ------------ ------------ --------
Interest received 1.8 1.7 2.7
-------------------------------------------------------- ------------ ------------ --------
Income taxes paid (2.2) (5.8) (11.4)
-------------------------------------------------------- ------------ ------------ --------
Net cash (used in)/generated from operating
activities (14.5) (1.2) 53.3
-------------------------------------------------------- ------------ ------------ --------
Cash flows from investing activities
-------------------------------------------------------- ------------ ------------ --------
Proceeds from sale of property, plant & equipment 1.5 1.1 14.8
-------------------------------------------------------- ------------ ------------ --------
Proceeds from sale of joint ventures 8.1 - 13.7
-------------------------------------------------------- ------------ ------------ --------
Purchases of property, plant & equipment (14.4) (10.9) (28.4)
-------------------------------------------------------- ------------ ------------ --------
Purchase of intangible assets - - (1.4)
-------------------------------------------------------- ------------ ------------ --------
Acquisition of subsidiaries, including net borrowings
acquired (0.2) (1.8) (37.7)
-------------------------------------------------------- ------------ ------------ --------
Net investment in joint ventures (3.8) (6.6) (6.8)
-------------------------------------------------------- ------------ ------------ --------
Net cash used in investing activities (8.8) (18.2) (45.8)
-------------------------------------------------------- ------------ ------------ --------
Cash flows from financing activities
-------------------------------------------------------- ------------ ------------ --------
Proceeds from issue of share capital 0.2 0.1 0.2
-------------------------------------------------------- ------------ ------------ --------
Interest paid (1.5) (1.6) (3.4)
-------------------------------------------------------- ------------ ------------ --------
Dividends paid to equity shareholders (9.2) (9.7) (14.2)
-------------------------------------------------------- ------------ ------------ --------
Dividends paid to minority interests - (0.4) (0.5)
-------------------------------------------------------- ------------ ------------ --------
Net cash used in financing activities (10.5) (11.6) (17.9)
-------------------------------------------------------- ------------ ------------ --------
Decrease in cash and cash equivalents (33.8) (31.0) (10.4)
Opening cash and cash equivalents 195.1 205.5 205.5
-------------------------------------------------------- ------------ ------------ --------
Closing cash and cash equivalents 161.3 174.5 195.1
-------------------------------------------------------- ------------ ------------ --------
Reconciliation of net cash flow to movement
in net funds
-------------------------------------------------------- ------------ ------------ --------
Decrease in cash and cash equivalents (33.8) (31.0) (10.4)
-------------------------------------------------------- ------------ ------------ --------
Opening net funds 164.8 175.2 175.2
-------------------------------------------------------- ------------ ------------ --------
Closing net funds 131.0 144.2 164.8
-------------------------------------------------------- ------------ ------------ --------
Net funds consist of:
-------------------------------------------------------- ------------ ------------ --------
Cash and cash equivalents 161.3 174.5 195.1
-------------------------------------------------------- ------------ ------------ --------
Long-term borrowings (30.3) (30.3) (30.3)
-------------------------------------------------------- ------------ ------------ --------
Net funds 131.0 144.2 164.8
-------------------------------------------------------- ------------ ------------ --------
Notes to the interim financial statements
1. Reporting entity
Kier Group plc (the Company) is a company domiciled in the
United Kingdom. The condensed consolidated interim financial
statements (interim financial statements) of the Company as at, and
for the six months ended, 31 December 2011 comprise the Company and
its subsidiaries (together referred to as the Group) and the
Group's interest in jointly controlled entities.
The comparative figures for the financial year ended 30 June
2011 are not the Company's statutory accounts for that financial
year. Those accounts have been reported on by the Company's
auditors and delivered to the Registrar of Companies. The report of
the auditors was (i) unqualified, (ii) did not include a reference
to any matters to which the auditors drew attention by way of
emphasis without qualifying their report, and (iii) did not contain
a statement under section 498 (2) or (3) of the Companies Act
2006.
2. Statement of compliance
These interim condensed financial statements have been prepared
in accordance with International Financial Reporting Standard IAS
34 'Interim Financial Reporting' as adopted by the European Union
and the Disclosure and Transparency Rules (DTR) of the Financial
Services Authority. They do not include all of the information
required for the full annual financial statements, and should be
read in conjunction with the financial statements of the Group as
at, and for the year ended, 30 June 2011.
These interim condensed financial statements were approved by
the directors on 22 February 2012.
3. Significant accounting policies
Except as disclosed below, the accounting policies applied by
the Group in these interim financial statements are consistent with
those applied by the Group in its financial statements as at, and
for the year ended, 30 June 2011.
The following amendments to standards or interpretations are
mandatory for the first time for the financial year ending 30 June
2012:
IAS 24 'Related party disclosures (revised 2009)'
IFRIC 14 'Amendment - prepayments of a minimum funding requirement'
The adoption of these amendments and interpretations has not
resulted in changes to the Group's accounting policies and has not
had a material impact on amounts reported for the current or prior
years.
The following new standards, amendments to standards and
interpretations have been issued, but are not effective for the
financial year ending 30 June 2012:
IAS 27 'Separate financial statements (revised 2011)'
IAS 28 'Investments in associates and joint ventures (revised 2011)'
IAS 32 'Amendment - offsetting financial assets and financial liabilities'
IFRS 9 'Financial instruments'
IFRS 10 'Consolidated financial statements'
IFRS 11 'Joint arrangements'
IFRS 12 'Disclosures of interest in other entities'
IFRS 13 'Fair value measurement'
IFRIC 20 'Stripping costs in the production phase of a surface mine'
Improvements to IFRS's (2010)
The directors have considered the impact of these new standards
and interpretations in future periods and no significant impact is
expected. The Group has chosen not to adopt any of the above
standards and interpretations early.
4. Estimates and financial risk management
The preparation of interim financial statements requires the
directors to make judgements, estimates and assumptions that affect
the application of the accounting policies and the reported amounts
of assets and liabilities, income and expenses. Actual results may
differ from these estimates.
In preparing these interim financial statements, the significant
judgements made by the directors in applying the Group's accounting
policies and the key sources of estimation uncertainty together
with the Group's financial risk management objectives and policies
were the same as those that applied to the financial statements as
at, and for the year ended, 30 June 2011.
5. Segmental analysis
During the year to 30 June 2011 the Group comprised four
divisions: Construction, Services, Property and Homes and it was on
this basis that the Group presented its primary segmental
information.
Recognising the reduced scale of the Homes division, the Group
combined the predominantly asset based operations of the Property
and Homes divisions on 1 July 2011 into a single Property
division.
The revised structure comprises three divisions, Construction,
Services and Property and is the basis on which the Group now
reports its primary segmental information. The results for the six
months to 31 December 2010 and the year to 30 June 2011 have been
restated accordingly.
Notes to the interim financial statements continued
5. Segmental analysis continued
Six months to 31 December 2011 Construction Services Property Centre Group
------------------------------------------
GBPm GBPm GBPm GBPm GBPm
------------------------------------------ ------------ -------- -------- ------- -------
Revenue(1)
------------------------------------------ ------------ -------- -------- ------- -------
Group and share of joint ventures 720.3 217.7 107.9 - 1,045.9
------------------------------------------ ------------ -------- -------- ------- -------
Less share of joint ventures (1.2) - (14.3) - (15.5)
------------------------------------------ ------------ -------- -------- ------- -------
Group revenue 719.1 217.7 93.6 - 1,030.4
------------------------------------------ ------------ -------- -------- ------- -------
Profit
------------------------------------------ ------------ -------- -------- ------- -------
Group operating profit 17.8 8.1 2.8 (2.0) 26.7
------------------------------------------ ------------ -------- -------- ------- -------
Share of joint ventures' operating profit - - 0.5 - 0.5
------------------------------------------ ------------ -------- -------- ------- -------
Profit on disposal of joint ventures - - 6.7 - 6.7
------------------------------------------ ------------ -------- -------- ------- -------
Group and share of joint ventures 17.8 8.1 10.0 (2.0) 33.9
------------------------------------------ ------------ -------- -------- ------- -------
Share of joint ventures - finance cost - - (0.1) - (0.1)
------------------------------------------ ------------ -------- -------- ------- -------
- tax - - (0.1) - (0.1)
------------------------------------------ ------------ -------- -------- ------- -------
Profit from operations 17.8 8.1 9.8 (2.0) 33.7
------------------------------------------ ------------ -------- -------- ------- -------
Finance income/(cost)(2) 7.1 (0.5) (7.0) (1.0) (1.4)
------------------------------------------ ------------ -------- -------- ------- -------
Profit before tax 24.9 7.6 2.8 (3.0) 32.3
------------------------------------------ ------------ -------- -------- ------- -------
Balance sheet
------------------------------------------ ------------ -------- -------- ------- -------
Total assets excluding cash 325.1 136.6 461.7 23.3 946.7
------------------------------------------ ------------ -------- -------- ------- -------
Liabilities excluding long-term debt (583.0) (115.8) (102.8) (118.4) (920.0)
------------------------------------------ ------------ -------- -------- ------- -------
Net operating assets/(liabilities) (257.9) 20.8 358.9 (95.1) 26.7
------------------------------------------ ------------ -------- -------- ------- -------
Cash, net of debt 414.1 16.3 (290.9) (8.5) 131.0
------------------------------------------ ------------ -------- -------- ------- -------
Net assets 156.2 37.1 68.0 (103.6) 157.7
------------------------------------------ ------------ -------- -------- ------- -------
Six months to 31 December 2010
------------------------------------------ ------- ------- ------- ------- -------
Revenue(1)
------------------------------------------ ------- ------- ------- ------- -------
Group and share of joint ventures 728.4 242.5 125.8 - 1,096.7
------------------------------------------ ------- ------- ------- ------- -------
Less share of joint ventures (0.9) - (46.7) - (47.6)
------------------------------------------ ------- ------- ------- ------- -------
Group revenue 727.5 242.5 79.1 - 1,049.1
------------------------------------------ ------- ------- ------- ------- -------
Profit
------------------------------------------ ------- ------- ------- ------- -------
Group operating profit 19.8 9.2 2.0 (1.9) 29.1
------------------------------------------ ------- ------- ------- ------- -------
Share of joint ventures' operating profit - - 1.4 - 1.4
------------------------------------------ ------- ------- ------- ------- -------
Group and share of joint ventures 19.8 9.2 3.4 (1.9) 30.5
------------------------------------------ ------- ------- ------- ------- -------
Share of joint ventures - finance cost - - (0.7) - (0.7)
------------------------------------------ ------- ------- ------- ------- -------
- tax - - (0.1) - (0.1)
------------------------------------------ ------- ------- ------- ------- -------
Profit from operations 19.8 9.2 2.6 (1.9) 29.7
------------------------------------------ ------- ------- ------- ------- -------
Finance income/(cost)(2) 7.5 (0.1) (5.5) (2.0) (0.1)
------------------------------------------ ------- ------- ------- ------- -------
Profit before tax 27.3 9.1 (2.9) (3.9) 29.6
------------------------------------------ ------- ------- ------- ------- -------
Balance sheet
------------------------------------------ ------- ------- ------- ------- -------
Total assets excluding cash 290.5 121.4 434.3 37.9 884.1
------------------------------------------ ------- ------- ------- ------- -------
Liabilities excluding long-term debt (596.1) (118.7) (43.7) (146.0) (904.5)
------------------------------------------ ------- ------- ------- ------- -------
Net operating (liabilities)/assets (305.6) 2.7 390.6 (108.1) (20.4)
------------------------------------------ ------- ------- ------- ------- -------
Cash, net of debt 433.8 31.7 (301.5) (19.8) 144.2
------------------------------------------ ------- ------- ------- ------- -------
Net assets 128.2 34.4 89.1 (127.9) 123.8
------------------------------------------ ------- ------- ------- ------- -------
(1) Revenue is stated after the exclusion of inter-segmental
revenue
(2) Interest is (charged)/credited to the divisions at a
notional rate of 4.5% (2010: 4.5%) and 4.0% (2010: 4.0%)
Notes to the interim financial statements continued
5. Segmental analysis continued
Construction Services Property Centre Group
---------------------------------------------
Year to 30 June 2011 GBPm GBPm GBPm GBPm GBPm
--------------------------------------------- ------------ -------- -------- -------- --------
Revenue(1)
--------------------------------------------- ------------ -------- -------- -------- --------
Group and share of joint ventures 1,444.5 483.8 250.5 - 2,178.8
--------------------------------------------- ------------ -------- -------- -------- --------
Less share of joint ventures (1.9) - (53.9) - (55.8)
--------------------------------------------- ------------ -------- -------- -------- --------
Group revenue 1,442.6 483.8 196.6 - 2,123.0
--------------------------------------------- ------------ -------- -------- -------- --------
Profit
--------------------------------------------- ------------ -------- -------- -------- --------
Group operating profit 39.3 18.3 7.3 (5.2) 59.7
--------------------------------------------- ------------ -------- -------- -------- --------
Share of joint ventures' operating profit - - 2.1 - 2.1
--------------------------------------------- ------------ -------- -------- -------- --------
Profit on disposal of joint ventures - - 5.9 - 5.9
--------------------------------------------- ------------ -------- -------- -------- --------
Group and share of joint ventures 39.3 18.3 15.3 (5.2) 67.7
--------------------------------------------- ------------ -------- -------- -------- --------
Share of joint ventures - finance cost - - (1.4) - (1.4)
--------------------------------------------- ------------ -------- -------- -------- --------
- tax - - (0.3) - (0.3)
--------------------------------------------- ------------ -------- -------- -------- --------
Profit from operations before exceptional
items 39.3 18.3 13.6 (5.2) 66.0
--------------------------------------------- ------------ -------- -------- -------- --------
Exceptional items
Past service credit on retirement benefit
obligation - - - 25.7 25.7
--------------------------------------------- ------------ -------- -------- -------- --------
Movement in provision for fine imposed
by the Office of Fair Trading 15.6 - - - 15.6
--------------------------------------------- ------------ -------- -------- -------- --------
Property, land and work in progress
write-downs - - (32.9) (0.6) (33.5)
--------------------------------------------- ------------ -------- -------- -------- --------
Acquisition costs - - (0.6) (0.2) (0.8)
--------------------------------------------- ------------ -------- -------- -------- --------
Profit from operations 54.9 18.3 (19.9) 19.7 73.0
--------------------------------------------- ------------ -------- -------- -------- --------
Finance income/(cost)(2) 15.3 (0.4) (11.9) (3.5) (0.5)
--------------------------------------------- ------------ -------- -------- -------- --------
Profit before tax 70.2 17.9 (31.8) 16.2 72.5
--------------------------------------------- ------------ -------- -------- -------- --------
Balance sheet
--------------------------------------------- ------------ -------- -------- -------- --------
Total assets excluding cash 332.1 121.5 470.7 25.3 949.6
--------------------------------------------- ------------ -------- -------- -------- --------
Liabilities excluding long-term debt (618.2) (117.2) (106.3) (108.5) (950.2)
--------------------------------------------- ------------ -------- -------- -------- --------
Net operating (liabilities)/assets (286.1) 4.3 364.4 (83.2) (0.6)
--------------------------------------------- ------------ -------- -------- -------- --------
Cash, net of debt 422.8 27.8 (293.0) 7.2 164.8
--------------------------------------------- ------------ -------- -------- -------- --------
Net assets 136.7 32.1 71.4 (76.0) 164.2
--------------------------------------------- ------------ -------- -------- -------- --------
(1) Revenue is stated after the exclusion of inter-segmental
revenue
(2) Interest is (charged)/credited to the divisions at a
notional rate of 4.5% and 4.0%
6. Exceptional items
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
------------------------------------------------------ ----------------- ------------------ --------------
Past service credit on retirement benefit obligation - - 25.7
------------------------------------------------------ ----------------- ------------------ --------------
Movement in provision for fine imposed by the
Office of Fair Trading - - 15.6
------------------------------------------------------ ----------------- ------------------ --------------
Property, land and work in progress write-downs - - (33.5)
------------------------------------------------------ ----------------- ------------------ --------------
Acquisition costs - - (0.8)
------------------------------------------------------ ----------------- ------------------ --------------
Exceptional items before tax - - 7.0
------------------------------------------------------ ----------------- ------------------ --------------
Taxation - - 2.1
------------------------------------------------------ ----------------- ------------------ --------------
Exceptional items after tax - - 9.1
------------------------------------------------------ ----------------- ------------------ --------------
Notes to the interim financial statements continued
7. Income tax
The taxation charge for the six months ended 31 December 2011
has been calculated at 20% (June 2011: 19%, December 2010: 24%) of
adjusted profit before tax, being profits adjusted for the Group's
share of tax in equity accounted joint ventures and excluding
exceptional items. This represents the estimated effective rate of
tax for the year. Exceptional items are taxed at their underlying
rate.
The estimated effective rate of tax of 20% for the year to June
2012 reflects the reduction in the UK corporation tax rate from 26%
to 25% with effect from 1 April 2012. In addition to reducing the
Group's future tax charge this reduction in tax rate has had the
effect of reducing the net deferred tax asset of GBP29.9m (Group
GBP34.0m asset, joint ventures GBP4.1m liability) held at 30 June
2011 by GBP2.0m, with GBP0.3m being credited to the income
statement and GBP2.3m being charged directly to the statement of
comprehensive income.
31 December 31 December
2011 2010 Year to 30 June 2011
---------------- ---------------- ---------------------------------------------------
Before
exceptional Exceptional
Total Total items items Total
GBPm GBPm GBPm GBPm GBPm
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Profit before tax 32.3 29.6 65.5 7.0 72.5
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Adjust: tax on joint
ventures
included above 0.1 0.1 0.3 - 0.3
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Adjusted profit before tax 32.4 29.7 65.8 7.0 72.8
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Current tax 0.9 6.2 13.4 (5.8) 7.6
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Deferred tax (including
effect
of change in tax rate) 5.5 0.8 (1.1) 3.7 2.6
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Total income tax expense in
the
income statement 6.4 7.0 12.3 (2.1) 10.2
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Tax on joint ventures 0.1 0.1 0.3 - 0.3
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Effective tax charge 6.5 7.1 12.6 (2.1) 10.5
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
Rate 20% 24% 19% 14%
----------------------------- ---------------- ---------------- --------------- ---------------- ----------------
8. Dividends
Amounts recognised as distributions to equity holders in the
period.
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
-------------------------------------------------- ------------ ------------ --------
Final dividend for the year ended 30 June 2011
of 44.0 pence (2010: 39.5 pence) 16.6 14.6 14.6
-------------------------------------------------- ------------ ------------ --------
Interim dividend for the year ended 30 June 2011
of 20.0 pence - - 7.5
-------------------------------------------------- ------------ ------------ --------
16.6 14.6 22.1
-------------------------------------------------- ------------ ------------ --------
The proposed interim dividend for the year ending 30 June 2012
of 21.5 pence (2011: 20.0 pence) had not been approved at the
balance sheet date and so has not been included as a liability in
these financial statements. The dividend totalling GBP8.2m will be
paid on 11 May 2012 to shareholders on the register at the close of
business on 2 March 2012. A scrip dividend alternative will be
offered.
Notes to the interim financial statements continued
9. Earnings per share
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
----------------------------------------------------- -------------- ------------ --------
Earnings (after tax and minority interests), being
net profits attributable to equity
holders of the parent 25.3 22.3 61.8
----------------------------------------------------- -------------- ------------ --------
Exclude: exceptional items - - (7.0)
----------------------------------------------------- -------------- ------------ --------
Tax thereon - - (2.1)
----------------------------------------------------- -------------- ------------ --------
Earnings excluding exceptional items 25.3 22.3 52.7
----------------------------------------------------- -------------- ------------ --------
Add: amortisation of intangible assets 1.7 1.7 3.4
----------------------------------------------------- -------------- ------------ --------
Less: tax on the amortisation of intangible assets (0.5) (0.5) (0.9)
----------------------------------------------------- -------------- ------------ --------
Adjusted earnings 26.5 23.5 55.2
----------------------------------------------------- -------------- ------------ --------
million million million
----------------------------------------------------- -------------- ------------ --------
Weighted average number of shares used for earnings
per share
----------------------------------------------------- -------------- ------------ --------
- basic 37.7 37.0 37.2
----------------------------------------------------- -------------- ------------ --------
- diluted 38.2 37.4 37.7
----------------------------------------------------- -------------- ------------ --------
pence pence pence
----------------------------------------------------- -------------- ------------ --------
Earnings per share
----------------------------------------------------- -------------- ------------ --------
- basic 67.1 60.3 166.1
----------------------------------------------------- -------------- ------------ --------
- diluted 66.2 59.6 163.9
----------------------------------------------------- -------------- ------------ --------
Earnings per share (excluding exceptional items)
----------------------------------------------------- -------------- ------------ --------
- basic 67.1 60.3 141.7
----------------------------------------------------- -------------- ------------ --------
- diluted 66.2 59.6 139.8
----------------------------------------------------- -------------- ------------ --------
Adjusted earnings per share (excluding exceptional
items and the amortisation of intangible assets)
--------------------------------------------------------- ---------- ------------ --------
- basic 70.3 63.5 148.4
----------------------------------------------------- -------------- ------------ --------
- diluted 69.4 62.8 146.4
----------------------------------------------------- -------------- ------------ --------
10. Property, plant and equipment
During the six months ended 31 December 2011 the Group acquired
assets with a cost of GBP14.7m (2010: GBP10.8m). Assets with a
carrying amount of GBP0.8m were disposed of during the period
(2010: GBP0.5m) resulting in a gain on disposal of GBP0.7m (2010:
GBP0.6m), which is included within gross profit.
In addition, GBP3.8m (2010: GBPnil) of existing owned assets
were refinanced through finance leases during the period. At 31
December 2011 the net carrying value of leased plant and equipment
was GBP3.8m (2010: GBPnil).
11. Retirement benefit obligations
The amounts recognised in the interim financial statements in
respect of the Group's defined benefit schemes are as follows:
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
------------------------------ ------------ ------------ --------
Kier Group Pension Scheme
------------------------------ ------------ ------------ --------
Opening deficit (31.1) (78.6) (78.6)
------------------------------ ------------ ------------ --------
Charge to operating profit (0.6) (2.1) (3.5)
------------------------------ ------------ ------------ --------
Past service credit - - 25.7
------------------------------ ------------ ------------ --------
Employer contributions 12.2 9.4 22.8
------------------------------ ------------ ------------ --------
Actuarial (losses)/gains (13.4) 6.1 2.5
------------------------------ ------------ ------------ --------
Closing deficit (32.9) (65.2) (31.1)
------------------------------ ------------ ------------ --------
Comprising
------------------------------ ------------ ------------ --------
Total market value of assets 716.9 666.5 680.2
------------------------------ ------------ ------------ --------
Present value of liabilities (749.8) (731.7) (711.3)
------------------------------ ------------ ------------ --------
Deficit (32.9) (65.2) (31.1)
------------------------------ ------------ ------------ --------
Related deferred tax asset 8.2 17.6 8.1
------------------------------ ------------ ------------ --------
Net pension liability (24.7) (47.6) (23.0)
------------------------------ ------------ ------------ --------
The past service credit arose due to changes announced by the
government to use the CPI in place of the RPI to determine pension
increases. These have been accounted for as a change in benefits
and recognised in the income statement as an exceptional
credit.
Notes to the interim financial statements continued
11. Retirement benefit obligations continued
Unaudited Unaudited
6 months 6 months Year
to to to
31 December 31 December 30 June
2011 2010 2011
GBPm GBPm GBPm
---------------------------------------- ------------ ------------ --------
Kier Sheffield LLP
---------------------------------------- ------------ ------------ --------
Opening surplus/(deficit) 1.5 (8.6) (8.6)
---------------------------------------- ------------ ------------ --------
Charge to operating profit (0.3) (0.7) (1.3)
---------------------------------------- ------------ ------------ --------
Employer contributions 0.9 0.5 1.3
---------------------------------------- ------------ ------------ --------
Actuarial (losses)/gains (8.3) 8.4 10.1
---------------------------------------- ------------ ------------ --------
Closing (deficit)/surplus (6.2) (0.4) 1.5
---------------------------------------- ------------ ------------ --------
Comprising
---------------------------------------- ------------ ------------ --------
Total market value of assets 157.3 154.1 159.5
---------------------------------------- ------------ ------------ --------
Present value of liabilities (163.5) (154.5) (158.0)
---------------------------------------- ------------ ------------ --------
(Deficit)/surplus (6.2) (0.4) 1.5
---------------------------------------- ------------ ------------ --------
Related deferred tax asset/(liability) 1.6 0.1 (0.4)
---------------------------------------- ------------ ------------ --------
Net pension (liability)/asset (4.6) (0.3) 1.1
---------------------------------------- ------------ ------------ --------
12. Share-based payments
The Group has established a Long-Term Incentive Plan (LTIP)
under which directors and senior employees can receive awards of
shares subject to the Group achieving targets. Further details of
the LTIP were disclosed in the 2011 annual financial
statements.
No shares have vested under the LTIP during the six months to 31
December 2011.
On 17 December 2011 grants were made under the LTIP as
follows:
Shares granted - directors 105,985
---------------------------------------------------------- --------
- employees 514,324
---------------------------------------------------------- --------
620,309
---------------------------------------------------------- --------
Share price at grant 1,420p
---------------------------------------------------------- --------
Exercise price nil
---------------------------------------------------------- --------
Option life 3 years
---------------------------------------------------------- --------
Dividend yield 4.58%
---------------------------------------------------------- --------
Fair value per option
- TSR element (based upon a stochastic model) 869p
---------------------------------------------------------- --------
- EPS element (based upon the Black-Scholes model) 1,219p
---------------------------------------------------------- --------
The fair value of the TSR element incorporates an assessment of
the number of shares that will be awarded as the performance
conditions are market conditions under IFRS 2 'Share-based
payments'.
The performance conditions of the EPS element are non-market
conditions under IFRS 2. The fair value therefore does not include
an assessment of the number of shares that will be awarded. Instead
the amount charged for this element is based on the fair value
factored by a 'true up' for the number of awards that are expected
to vest.
13. Related parties
Transactions with key management personnel
The managing director of Kier Homes Limited is engaged to
provide consultancy services, payments for which are made via a
third party company (Princegate Estates plc). Payments of
GBP108,000 were made during the period (six months to 31 December
2010: GBP54,000, year to 30 June 2011: GBP262,000).
Transactions with pension schemes
The Group has made the following special cash contributions to
the Kier Group Pension Scheme:
-- In June 2011 GBP4.5m which was settled through the transfer
of the Group's 50% interest in Sheffield Schools PFI project
(Academy Services (Sheffield) Holdings Limited).
-- In November 2011 GBP3.1m which settled through the transfer of the Group's 50% interest in Hinchingbrooke Hospital PFI project (Prospect Healthcare (Hinchingbrooke) Holdings Limited)
These amounts have been included as contributions received by
the Scheme.
There have been no other significant changes in the nature and
amount of related party transactions since the last annual
financial statements as at, and for the year ended, 30 June
2011.
Responsibility statement of the directors in respect of the
interim financial report
We confirm that to the best of our knowledge:
-- the condensed set of financial statements has been prepared
in accordance with IAS 34 Interim Financial Reporting as adopted by
the European Union;
-- the interim management report includes a fair review of the information required by:
(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being
an indication of important events that have occurred during the
first six months of the financial year and their impact on the
condensed set of financial statements; and a description of the
principal risks and uncertainties for the remaining six months of
the year; and
(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being
related party transactions that have taken place in the first six
months of the current financial year and that have materially
affected the financial position or performance of the entity during
that period; and any changes in the related party transactions
described in the last annual report that could do so.
Signed on behalf of the Board
M P Sheffield Chief Executive
H J Mursell Finance Director
22 February 2012
Independent review report to Kier Group plc
Introduction
We have been engaged by the Company to review the condensed set
of financial statements in the half-yearly financial report for the
six months ended 31 December 2011 which comprises the consolidated
income statement, the consolidated statement of comprehensive
income, the consolidated balance sheet, the consolidated statement
of changes in equity, the consolidated cash flow statement, and the
related explanatory notes. We have read the other information
contained in the half-yearly financial report and considered
whether it contains any apparent misstatements or material
inconsistencies with the information in the condensed set of
financial statements.
This report is made solely to the Company in accordance with the
terms of our engagement to assist the Company in meeting the
requirements of the Disclosure and Transparency Rules (DTR) of the
UK's Financial Services Authority (UK FSA). Our review has been
undertaken so that we might state to the Company those matters we
are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept
or assume responsibility to anyone other than the Company for our
review work, for this report, or for the conclusions we have
reached.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and
has been approved by, the directors. The directors are responsible
for preparing the half-yearly financial report in accordance with
the DTR of the UK FSA.
As disclosed in note 2, the annual financial statements of the
Group are prepared in accordance with International Financial
Reporting Standards as adopted by the European Union. The condensed
set of financial statements included in this half-yearly financial
report has been prepared in accordance with IAS 34 'Interim
Financial Reporting' as adopted by the European Union.
Our responsibility
Our responsibility is to express to the Company a conclusion on
the condensed set of financial statements in the half-yearly
financial report based on our review.
Scope of review
We conducted our review in accordance with International
Standard on Review Engagements (UK and Ireland) 2410 Review of
Interim Financial Information Performed by the Independent Auditor
of the Entity issued by the Auditing Practices Board for use in the
UK. A review of interim financial information consists of making
enquiries, primarily of persons responsible for financial and
accounting matters, and applying analytical and other review
procedures. A review is substantially less in scope than an audit
conducted in accordance with International Standards on Auditing
(UK and Ireland) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not
express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the condensed set of financial statements
in the half--yearly financial report for the six months ended 31
December 2011 is not prepared, in all material respects, in
accordance with IAS 34 as adopted by the European Union and the DTR
of the UK FSA.
Andrew Marshall for and on behalf of KPMG Audit Plc Chartered
Accountants 15 Canada Square London E14 5GL
22 February 2012
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR EANAAAFEAEFF
Kier (LSE:KIE)
Historical Stock Chart
From Dec 2024 to Jan 2025
Kier (LSE:KIE)
Historical Stock Chart
From Jan 2024 to Jan 2025
