Kier Group PLC AGM Trading Update (6088T)
16 November 2023 - 6:00PM
UK Regulatory
TIDMKIE
RNS Number : 6088T
Kier Group PLC
16 November 2023
16 November 2023
Kier Group plc
AGM Trading Update
Kier Group plc ("Kier" or the "Group"), a leading infrastructure
services, construction and property group issues a trading update
for the period from 1 July 2023 to date prior to its Annual General
Meeting ("AGM") to be held later today.
Trading
The current financial year, FY24, has started well and the Group
is trading above the prior period, and in line with the Board's
expectations. Similar to the prior year, the Group's performance is
expected to be second-half weighted. Given the resilience in
trading, orderbook security and ongoing strengthening of the
balance sheet we remain on track to resume dividend payments in
FY24, commencing with an interim dividend.
Business integration
On 4 September we acquired substantially all of the rail assets
of Buckingham Group Contracting Limited from administration
including its HS2 contract supplying Kier's HS2 joint venture,
EKFB, and it is now largely integrated into the Group's
Transportation business. We are pleased with the performance
delivered to date and are encouraged with the early opportunities
now arising.
Order book
At the end of October, the order book stood at c.GBP10.5bn (30
June 2023: GBP10.1bn) and 91% of FY24 Group revenue is now
estimated to be secured, up from 85% in July, providing a high
degree of certainty for the Group. Long-term framework positions
are excluded from the order book and represent an additional
opportunity. The Group continues to maximise value and
opportunities with strong momentum in its bidding activity. Our
high quality and profitable order book continues to reflect the
bidding discipline and risk management embedded across the
business. We remain focused on winning profitable work through our
longstanding client relationships and regionally based
operations.
Recent awards include:
-- Infrastructure Services, Transportation:
o Awarded a GBP225m contract with Somerset Council to deliver
core maintenance services across its road network for the next 8
years; and
o Announced as preferred bidder for the GBP1bn Birmingham
highways maintenance and management PFI contract until June
2035.
-- Construction:
o Appointed to provide construction services for the next 4
years to the GBP8bn Procure Partnerships Framework; appointed to
deliver GBP61m expansion of NETPark Premier Science Park in
Sedgefield; appointed by the Department for Education (DfE) to
deliver the net zero carbon in operation Oak Academy in
Bournemouth.
Net cash / debt
Kier has maintained focus on operational delivery and cash
management, and the Group continues to de-leverage in-line with our
expectations of a significant period-on-period improvement. The
Group anticipates the usual seasonal working capital outflow during
the first half of FY24 which will then reverse in the second
half.
Andrew Davies, Chief Executive of Kier, commented:
"The current financial year has started well and, despite the
ongoing inflationary pressure and supply chain challenges, it is
especially pleasing that we are trading above the corresponding
period last year, and in line with our expectations. We remain well
positioned to continue benefiting from UK Government infrastructure
spending commitments and we remain focused on the delivery of a
sustainable net cash position with capacity to invest, in line with
our medium-term value creation plan."
- ENDS -
For further information, please contact:
+44 (0)7933 388
Investor Relations 746
+44 (0)1767 355
Kier Press Office 096
+44 (0)203 727
Richard Mountain, FTI Consulting 1340
About Kier Group plc
Kier is a leading UK infrastructure services, construction and
property group. We provide specialist design and build capabilities
and the knowledge, skills and intellectual capital of our people to
ensure we are able to project manage and integrate all aspects of a
project.
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 2023 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.
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