14
November 2024
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
2024 to date ("the "period") prior to its Annual General Meeting
("AGM") to be held later today.
Trading
The current financial year,
("FY25"), has started well and the Group is trading in line with
the Board's expectations. Similar to the prior year, the Group's
performance is expected to be second-half weighted.
Order book
The order book currently stands at
c.£10.9bn (30 June 2024: £10.8bn) and c.95% of FY25 Group revenue
is now estimated to be secured, up from c.90% previously announced,
providing a high degree of certainty for the Group. Bidding
discipline and risk management embedded across the business
continue to drive the high quality and profitable order
book.
Recent awards include:
· Infrastructure Services, Natural Resources, Nuclear &
Networks:
o Appointed by Wessex Water to its five year Capital Delivery
Partner Framework for its Asset Management Period 8 ("AMP8") worth
up to £3.7bn. It includes the construction of new assets and works
to existing assets, including works on supply and waste networks,
capital maintenance projects, water processing and environmental
monitoring
During the period, the Group has
secured positions on 3 frameworks across 6 lots resulting in the
Group now working with a total of 9 customers through 15 frameworks
with an advertised value of up to £13.5bn.
· Construction:
o Awarded two education projects worth a total of
c.£30m
o Appointed by the Defence Infrastructure Organisation ("DIO")
for a major infrastructure project at Royal Naval Air Station
Culdrose. The works will include replacing and refurbishing 820
Naval Air Squadron Hangars, office buildings as well as the
Engineering Training School worth a total of £100m
o Kier Places has been awarded a place on Riverside Group's four
year framework to deliver the housing association's fire safety and
retrofit programme worth up to £300m
The construction and refurbishment
of key areas such as transport, education, healthcare, justice,
defence and nuclear form a key part of the new UK Government's
investment priorities. As a major supplier in all these areas
they should, alongside the significant investment in regulated
industries such as the water sector, provide significant growth
opportunities in the medium-term.
Net
cash / debt
Kier has maintained its focus on
operational delivery and cash management. The Group continues
to de-leverage in-line with the Board's expectations and
anticipates a significant period-on-period improvement.
Andrew Davies, Chief Executive of Kier,
commented:
"The current financial year has started well and we are
trading in line with our expectations. We are well positioned to
benefit from UK Government infrastructure spending plans into areas
where Kier offers market leading services. These strong structural
drivers and further investments will allow us to further generate
shareholder returns."
Capital Markets Event
Kier Group plc will be hosting a
Capital Markets Event for analysts and institutional investors on 3
June 2025.
The in-person event will be hosted
by Andrew Davies, CEO and Simon Kesterton, CFO, and will include
presentations from our Group Managing Directors of our core
business units.
Details will be announced closer to
the time.
- ENDS -
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For
further information, please contact:
Investor Relations
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+44 (0)7933 388 746
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Kier Press Office
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+44 (0)1767 355 096
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Richard Mountain, FTI
Consulting
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+44 (0)203 727 1340
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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 2024 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.