AGM Statement

Kier Group PLC
27 November 2006









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, 25 November 2006 at 11.00am.


Commenting to shareholders on the performance achieved by Kier Group plc in its
financial year to 30 June 2006, John Dodds, Chief Executive, went on to say that
the Group has made a promising start to the new financial year and that demand
remains strong in all of its markets.


He made the following comments:


"Kier's record of increasing profits continued in 2006 with strong earnings per
share growth supported by good cash generation in the Construction and Support
Services businesses.


"Our Construction businesses have had a good start to the new financial year
with a record level of revenue achieved by Kier Regional in the first quarter.
Order books are at healthy levels, supported by a strong pipeline of
opportunities, forming a sound foundation for further growth in revenue this
year.  Cash continues its impressive performance with month end balances
exceeding those at 30 June 2006.


"We continue to pursue opportunities for Building Maintenance contracts in our
Support Services business where there is a healthy bid list of projects. We are
preferred bidder on the repairs and maintenance contract in Harlow which is
expected to commence operations early in the New Year and will provide annual
revenues of £17m for 7 to 10 years.


The Housebuilding division has also had a promising start to the year.
Reservations are ahead of this time last year with no current signs of interest
rate increases affecting our markets.  Our combined unit completions and forward
order book are 22% ahead of last year (15% on a like for like basis excluding
the recently acquired Hugh Bourn Homes business).  This secures over 65% of our
projected unit sales for the current year with a higher proportion of affordable
housing unit sales this year than last year.  Whilst we anticipate growth in the
current financial year, as previously stated, we expect unit sales to be biased
towards the second half of the year.  This is expected to dampen the
housebuilding division's operating margin for the six months to 31 December
2006.


"In Property the market for high quality sites with blue chip tenants in good
locations remains strong and we are in the process of securing a number of sales
for the full year. We have recently been selected as preferred bidder to develop
the GQ2 site next to The Sage in Gateshead. This 5.5 acre mixed-use development
will include 24,000sq ft of restaurants, cafes and bars, a cinema, 55,000sq ft
of retail premises, a hotel and approximately 320 homes and apartments.


"Kier Project Investment continues to make progress on its portfolio of
investments achieving financial close on a new headquarters building in
Gravesend for Kent Police.


"With our key businesses continuing to move forward and prospects good in all of
our markets, we expect the Group to continue to progress during 2006/7.



                                    - ENDS -



For more information, please contact:

John Dodds, Chief Executive
Deena Mattar, Finance Director
Kier Group plc                                               Tel: [phone]


Caroline Sturdy
Madano Partnership                                           Tel: [phone]




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