AGM Trading Update

RNS Number : 5500H

Kier Group PLC

16 November 2018

 

KIER GROUP PLC

AGM TRADING UPDATE

Kier Group plc, a leading infrastructure services, buildings and developments & housing group, announces its trading update covering the period since 20 September 2018, prior to its Annual General Meeting at 12 noon today.

Introduction

The Board is confident that the Group will meet its FY19 expectations, with the full-year results being weighted towards the second half of the financial year.

Future Proofing Kier (FPK) programme

Since its launch, the FPK programme has made good progress with respect to streamlining the business and improving cash generation.

As anticipated, the costs of implementing the FPK programme in the first half of the financial year are forecast to exceed the realised savings by approximately £10m. The full-year FY19 position is still expected to be earnings and cashflow neutral.

Disposal

On 15 November 2018, Kier agreed the terms of the disposal of its interest in KHSA Limited to Downer Group, the joint venture partner, for a total cash consideration of up to AUS$43.7m (c.£24m). The proceeds will service the reduction of the Group's net debt.

Financial position

The Group continues to focus on operational cash generation and net debt reduction, anticipating average monthly net debt of approximately £390m for the first half of FY19, compared with approximately £410m for the second half of FY18. The level of net debt is increasingly a key focus for stakeholders in the industry and the Board recognises the importance of a strong balance sheet to take advantage of opportunities to underpin its future performance. 

Outlook

The FPK programme positions the Group well for an improvement in profitability and cash generation, and its order books and development pipelines remain strong.

- ENDS -

For further information, please contact:

Richard Mountain/Nick Hasell, FTI Consulting                   [phone]

Cautionary statement

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 2018 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.

 

END

 

 

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