Kier Group PLC Trading Update (6990N)
22 January 2019 - 6:00PM
UK Regulatory
TIDMKIE
RNS Number : 6990N
Kier Group PLC
22 January 2019
22 January 2019
KIER GROUP PLC - TRADING UPDATE
Kier Group plc ("the Group"), a leading infrastructure services,
buildings and developments & housing group, announces its
trading update covering the period since its previous trading
update of 16 November 2018. The Group will announce its half-year
results on 21 March 2019.
Highlights include:
-- On track to meet its FY19 expectations;
-- Average month-end net debt of c.GBP370m (H2 FY18: GBP410m),
reflecting the impact of the recent rights issue; and
-- The Future Proofing Kier programme (the "FPK programme") is progressing well.
Trading
The Board is confident that the Group will meet its FY19
expectations, with the full-year results being weighted towards the
second half of the financial year, as usual.
During the period, the Infrastructure Services and Buildings
businesses won a number of new contract awards and now have 100%
visibility of the forecast revenue for FY19 and an order book of
more than GBP10bn.
Examples of recent key awarded contracts include:
-- the renewal of a three-year c.GBP70m utility services contract in the south west of England;
-- over GBP500m of regional building projects secured during
November and December, including a major office development for
Argent at King's Cross in London, a new research facility for the
Pirbright Institute in Surrey, a flagship development for the Royal
College of Art and a new hospital for Frimley Health NHS Foundation
Trust; and
-- being appointed to three lots on the North West Construction
Hub three-year GBP1.5bn framework.
In the Developments & Housing businesses, we have
experienced a stable housing market, evidenced by a current sales
rate of 0.8 units per sales outlet per week (2018: 0.7). In
property developments, we have sold all schemes which were forecast
to be sold in the period, which highlights the strength of our
regional development activities.
Future Proofing Kier programme
As previously reported, the costs of implementing the FPK
programme in the first half of the financial year have exceeded the
savings by GBP10m. The full-year FY19 position is still expected to
be earnings and cashflow neutral and the programme is progressing
well.
Balance Sheet
The Group's balance sheet at 31 December 2018 has been
strengthened following the receipt of the GBP250m net cash proceeds
of the recent rights issue and the Group remains on track to report
a net cash position at the year-end (30 June 2019). As at 31
December 2018, the Group's net debt was c.GBP130m (31 December
2017: GBP239m), reflecting the rights issue proceeds and the
acceleration of supply chain payments, as expected. The average
month-end net debt for the six months ended 31 December 2018 was
c.GBP370m, as compared with GBP410m for the six months ended 30
June 2018.
- ENDS -
For further information, please contact:
Louise Turner-Smith, Kier investor +44 (0)7976
relations 790012
+44 (0)1767
Kier press office 355903
+44 (0)203 727
Nick Hasell, FTI Consulting 1340
Cautionary statement
This announcement does not constitute an offer of securities by
Kier Group plc (the "Company"). Nothing in this announcement is
intended to be, or intended to be construed as, a profit forecast
or a guide as to the performance, financial or otherwise, of the
Company or any of its subsidiaries (together, the "Group") whether
in the current or any future financial year. This announcement may
include statements that are, or may be deemed to be,
"forward-looking statements". By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future and may be beyond the Company's or the Group's ability to
control or predict. Forward-looking statements are not guarantees
of future performance. You are advised to read the section headed
"Principal risks and uncertainties" in the Company's Annual Report
and Accounts for the year ended 30 June 2018 for a further
discussion of the factors that could affect the Company's or the
Group's future performance and the industry in which it operates.
Other than in accordance with its legal or regulatory obligations,
the Company does not accept any obligation to update or revise
publicly any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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