AGM Statement

Kier Group PLC
29 November 2004



                                                                29 November 2004



KIER GROUP plc



                                 AGM STATEMENT



Kier Group plc, the major construction, support services, housebuilding and
property group, held its Annual General Meeting at the Group's head office at
Sandy, Bedfordshire on Saturday, 27 November 2004 at 11.00am.


Commenting to shareholders on the strong performance achieved by Kier Group plc
in its financial year to 30 June 2004, John Dodds, Chief Executive, went on to
say that prospects overall in Kier's markets were encouraging and that the Group
had made a strong start to the new financial year.


He made the following comments:


"The year to 30 June 2004 provided our 12th successive year of continuous growth
in profits, a record that has been sustained through our conservative and
prudent approach to risk management and accounting practices.


"Our Construction businesses have continued their robust performance in the
first quarter of the year which is reflected in good cash generation with
average cash balances £11m ahead of the previous quarter.  The healthy order
books and strong pipeline of opportunities with which we commenced the year have
been sustained, supported by both public and private sector spending, and
indicate further growth in the full year.


"We continue to pursue opportunities in our Support Services business and, on
1st November 2004, we started operations on two building maintenance contracts
for Leeds City Council which will provide an annual turnover of £10m for five
years extendable for a further five years. At Sheffield the commendable service
provided by our building maintenance team continues to please both local tenants
and the City Council and we are planning to start work on their Decent Homes
programme in the New Year.


"In Housebuilding the year started with a good level of reservations and
exchanged contracts which have converted to a high level of completions for the
period to date. Our unit completions and current forward order book, together,
are 13% ahead of last year, securing over 68% of our projected unit sales for
the current year. In the light of this we anticipate growth in the current
financial year. However both visitor levels and reservations are now lower than
at this time last year and, therefore, the spring selling season will be an
important indicator of the longer term prospects.


"In Property a number of sales have taken place since 1st July 2004 securing our
half-year targets.  The advance sale of the National Trust headquarters building
in Swindon provided an £18.2m cash inflow in July 2004 and good progress is
being made by Kier Regional on its construction. Mixed use opportunities
continue to emerge and a contract for a regeneration project at Poole Harbour
was signed on Friday 26 November 2004 with Network Rail. The six acre site will
provide 260 residential units and will involve the redevelopment of the railway
station and commercial development.


"Our business which invests in the Private Finance Initiative continues to make
good progress on its portfolio of investments. It is hopeful of achieving
financial close on Sheffield Schools in the second half of the financial year
which will provide Kier Regional with a £50m construction contract and Kier
Support Services with a 25-year services contract.


"With our key businesses continuing to move forward and prospects good, overall,
in our markets, we expect the Group to continue its progress during 2004/5.


"As previously announced our Chairman Colin Busby steps down from the Board at
the end of the Annual General Meeting to be replaced by Peter Warry.  I should
like to extend a warm thanks to Colin, on behalf of the Group, for his huge
contribution during his 35 years with the business and particularly the last 12
years the majority of which he served as Chairman and Chief Executive of Kier.
He has our very best wishes for the future."



                                    - ENDS -


                      This information is provided by RNS
            The company news service from the London Stock Exchange