Chairman's AGM Statement

Kier Group PLC
29 November 1999


 
27 November 1999                              
                        KIER GROUP plc
                         AGM STATEMENT
                               
                               
Kier  Group  plc,  the  major construction  and  housebuilding
group,  held  its Annual General Meeting at the  Group's  head
office  at  Sandy, Bedfordshire on Saturday,  27  November  at
11.00 am.  Commenting to shareholders on the successful growth
achieved  by Kier Group plc in its financial year to  30  June
1999,  Chairman and Chief Executive, Colin Busby,  noted  that
interest  rates  were  now rising  as  part  of  the  Bank  of
England's  strategy to keep inflation in the UK at  or  around
2.5%  per annum.  There was growing confidence that this would
be achieved, leading to a more stable economy.  He went on:

'Our  industry  would be one of the major beneficiaries  of  a
more  stable  economy, probably more than any other  industry.
If  interest  rate increases are necessary let  us  have  them
quickly  in  order to protect the medium term  and  allow  our
industry to continue to prosper.

Kier's  Construction  and  FM businesses  in  the  UK  have  a
generally higher workload of better quality than at  any  time
in  the  past.  This is expected to lead to further growth  in
turnover  this year, though not as sharp as last  year's  25%,
but still increasing Kier's market share.

Internationally the return to profitability has  still  to  be
achieved  but  it  is  responding  to  the  attention  it   is
receiving.

Kier   has  also  set  itself  a  target  to  achieve  overall
construction  operating  margins of 1%  within  the  next  two
years, twice that of 1999.

The  Housing  business  is benefiting from  having  the  right
product  in  the marketplace.  Kier has budgeted  for  further
growth  in completions and profitability this year and  is  on
target to achieve this.'

Colin Busby concluded by telling shareholders:

'With our key business moving forward we expect your Group  to
continue its progress during 1999/2000.'

For further information, please contact:



Colin Busby
Chairman & Chief Executive
Kier Group plc
Tel:  [phone]
27 November 1999