Trading StatementSource: RNS
10 July 2018
KIER GROUP PLC
Post close period trading update and new streamlining programme
Kier Group plc ("Kier" or "the Group"), a leading infrastructure services, buildings and developments & housing group, provides a trading update following the conclusion of its financial year on 30 June 2018 and in advance of the release of its full year results, scheduled for 20 September 2018.
· Underlying profit and earnings forecast to be in line with expectations;
· Year-end net debt is expected to be in the range of £170m - £190m as forecast, with average month-end net debt of c.£375m reflecting reduced volumes due to bad weather affecting the Construction business over the winter. Construction volumes have since returned to levels in line with management's expectations;
· Increased Construction and Services order books of more than £10bn, providing a 90% secured revenue position in these businesses for FY19; and
· In the highways sector, three-year extensions secured to the Highways England contracts for Areas 3 and 9, with aggregate total annualised revenues of c.£250m.
Launch of an efficiency and streamlining programme
Following the repositioning of the Group to focus on three key market positions, infrastructure services, buildings and developments & housing, in June 2018 the Group launched a new efficiency and streamlining programme, entitled 'Future Proofing Kier'. Facilitated by significant investment in new systems over the past two years, this programme will improve productivity, include the disposal of non-core operations and deliver an improvement in operating margins and cash generation. It is anticipated that material benefits will be realised in the financial year ending 30 June 2020 and beyond. Further details about the 'Future Proofing Kier' programme will be announced in due course and at the full year results in September.
The Group's core businesses operate in three growing UK markets, each of which is underpinned by robust macroeconomic and demographic fundamentals. The Group is focused on continuing to improve its performance and reducing its average net debt. The strength of the Construction and Services order books, together with the long-term Property and Residential pipelines, provides a robust platform to deliver our Vision 2020 targets.
- ENDS -
Analyst and investor trading update call - 10 July 2018
A conference call with Haydn Mursell, Chief Executive, and Bev Dew, Finance Director, will be held for analysts and investors at 0800 BST today. Dial in details are as follows:
Dial in number(s)
United Kingdom Toll Free: 0800 358 9473 PIN: 49673898#
United Kingdom Toll: 0333 300 0804 PIN: 49673898#
URL for international dial-in numbers
For further information, please contact:
Louise Turner-Smith, Kier investor relations +44(0)7976 790012
Kier press office +44 (0)1767 355903
Richard Mountain/Nick Hasell, FTI Consulting +44 (0)203 727 1340
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 2017 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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