Preliminary Results

RNS Number : 2650O
Kier Group PLC
15 September 2011
 



KIER GROUP PLC

PRELIMINARY RESULTS FOR THE

YEAR TO 30 JUNE 2011

15 September 2011

·      Strong results with underlying pre‑tax profits* up 24% to £68.9m (2010: £55.5m**)

·      Underlying EPS* up 26% to 148.4p (2010: 117.7p**), enhanced by a 2% reduction in the effective tax rate

·      Full year dividend up 10% to 64p (2010: 58p)

·      Exceptional items total a credit before tax of £7.0m (2010: charge of £2.0m)

·      Net cash at £165m (2010: £175m) after investment of approximately £50m during the year, with average month end net cash of £129m (2010: £95m)

·      Construction margins improved to 2.7% (2010: 2.6%) and Services margins resilient at 4.5% (2010: 4.5%)

·      Order books for Construction and Services increased to £4.3bn (2010: £4.2bn), with a strong pipeline of further opportunities

* Underlying pre‑tax profits and EPS are stated before amortisation of intangible assets of £3.4m (2010: £2.9m) and before exceptional items comprising a pension credit resulting from the change from RPI to CPI of £25.7m, a write‑down of the value of our land and work in progress of £33.5m, a reduction in the Office of Fair Trading (OFT) fine and associated appeal costs of £15.6m and external costs related to the acquisitions of Beco Limited and the property portfolio from Lloyds of £0.8m.

** Excluding Homes 2010 one‑off land transaction profit of £7.1m.

Commenting on the results, Paul Sheffield, Chief Executive said:

"Kier has had another successful year in a tough economic environment; underlying revenue and profit before tax are well ahead of last year and cash generation has been very strong, with average month‑end cash balances at a high level.

"Our diverse skills and integrated business model have provided greater resilience during these challenging economic conditions. We are encouraged by the prospects we see in markets such as power and waste, in mixed‑use regeneration and in the growth we see in public sector outsourcing.

"Kier continues to benefit from its long‑term client relationships and the numerous frameworks in which we are involved. Our network of local offices allows us to respond to the ever‑widening requirement of customers for local capability to deliver 'bundled' services.

"Today we have announced a full‑year dividend of 64 pence per share, a 10% increase on last year. This demonstrates the strength of our financial position and the confidence we have in our business going forward.

Although we expect the next 12 months to be challenging, we remain confident that our positioning across a wide spectrum of service areas, coupled with our committed and professional staff, will enable us to deliver a good performance in the new financial year."


Chairman's statement

I am pleased to report impressive results for Kier Group plc for the year ended 30 June 2011. Underlying profit before tax, before the amortisation of intangible assets and exceptional items, improved 24% to £68.9m (2010: £55.5m excluding Homes land transaction) and earnings per share on the same basis increased 26% to 148.4p (2010: 117.7p), enhanced by a 2% reduction in the effective tax rate.

Overall, revenue increased to £2,179m (2010: £2,099m) displaying underlying growth in all four divisions of the Group and the strength of our business.

Particularly pleasing were the operating margins, which increased in our Construction division to 2.7% (2010: 2.6%) and remained strong in our Services division at 4.5% (2010: 4.5%). The Homes and Property divisions also saw an increase in underlying operating margin.

There were exceptional items that totalled a net credit before tax of £7.0m (2010: charge of £2.0m). These comprised inflation changes to the Kier Group Pension Scheme, a reduction in the fine levied by the Office of Fair Trading, a write‑down in the value of land and work in progress following recent land sales and a further review, and external costs relating to two acquisitions in the year.

The Group's cash performance has remained exceptionally strong, particularly within our Construction and Services divisions, with average Group month‑end net cash of £129m (2010: £95m). In our Property division, following the £35m first stage payment for the property portfolio from Lloyds, we were pleased to see the early sale of two assets recoup much of that outlay and support a Group net cash position at 30 June of £165m (2010: £175m).

Taking into account the performance of the Group and its cash position, and continuing the Group's progressive dividend policy, the Board proposes to increase the total dividend for the year by 10% to 64p (2010: 58p), which is more than twice covered by adjusted earnings per share and reflects the Board's confidence in the business going forward. The final dividend of 44p will be paid on 30 November 2011 to shareholders on the register on 23 September 2011 and there will be a scrip dividend alternative.

Board changes

As we announced at the time of our interim results in February, Dick Simkin, the executive director for the Property division, retired at the end of the 2011 financial year and Ian Lawson, executive director for the Services and Homes divisions, has taken over the role from 1 July 2011. We would like to thank Dick for his excellent contribution to the Group and we wish him well in his retirement.

In September 2010, we announced that Simon Leathes, non‑executive director and chairman of the Audit Committee, would also be stepping down from the Board at the Company's 2010 annual general meeting after nearly ten years. Richard Bailey, who joined the Board on 1 October 2010, has succeeded him.

Recently there has been debate generally about board diversity and, in particular, the representation of women in the boardrooms of FTSE companies. The Board acknowledges the recommendations from Lord Davies of Abersoch's report entitled 'Women on Boards', which highlights the value of effective diversity policies. As a board, we are considering how best to implement the key recommendations of this report, whilst recognising the importance of maintaining an appropriate balance of independence, skills and experience. In addition, the Group's corporate responsibility committee, which is chaired by the chief executive and reports regularly to the Board, is currently reviewing the Group's diversity, equality and inclusion policies.

Outlook

Over the last few years, we have positioned ourselves to capitalise on what we perceive as the growth markets. Whilst market conditions in 2012 will remain challenging; our order books in the Construction and Services divisions were at a healthy level of £4.3bn. The Construction order book (secured and probable) stood at £2.3bn (June 2010: £2.1bn) and represented 95% of the division's targeted revenue for 2012 and 46% of its targeted revenue for 2013, which was slightly ahead of normal, and we expect our operating margins to remain firmly above 2%. Our order book in Services stood at £2.0bn (2010: £2.1bn) giving good forward visibility of workload, which coupled with a strong pipeline of further opportunities will translate into revenue growth for the division in the year to June 2013. Moreover, we expect our operating margins to be maintained at a resilient 4.5%.

The Property division remains a key generator of integrated opportunities for the Group. With increased scale, particularly following the acquisition of the property portfolio from Lloyds, the division is actively working on a variety of development schemes. When coupled with the recent disposals of three of our Private Finance Initiative (PFI) investments, in line with our strategy of selectively disposing of our mature PFI investments, it now means that the Property division is, and will continue to be, one of the key contributors to the Group's performance.

Our refocused Homes division is continuing to pursue the growing opportunities in the mixed tenure market and we remain committed to developing and disposing of parcels of land over time in order to reduce the disproportionate size of our land bank and to realise cash, which will be invested in the Group's future growth.

Our integrated business model continues to provide a good breadth of opportunities and, with our strong track record of delivery, the Group is well placed to make further progress in the new financial year.

Phil White

Chairman

Chief executive's review

Overview

Kier has had another successful year to 30 June 2011, with underlying revenue and profit before tax ahead of last year. This good performance has been supported by strong cash generation, with an average Group month‑end net cash balance of £129m (June 2010: £95m).

Much hard work has produced these strong results. Our broad skill base and integrated business model continues to provide Kier with a wide range of opportunities across our different divisions. Our diversity and flexibility, when combined with our track record of delivery and customer service, ensures that we are in a position to significantly benefit from the varying market opportunities and be the partner of choice for our customers.

Financial performance

Total revenue £m

Operating profit* £m

Construction

1,445

39.3

Services

484

21.7

Property

97

11.1

Homes

153

4.2

Centre

‑

(5.2)


2,179

71.1

*Before exceptional items and amortisation of intangible assets

Revenue for the year at £2,179m was slightly higher than last year (£2,099m). Underlying growth was achieved in all divisions, most notably in Property following the acquisition of the property portfolio from Lloyds; however, it is the quality of our revenue that is most pleasing.

Operating profit for the Group, before the amortisation of intangible assets, was 23% ahead of last year at £71.1m (2010: £57.7m excluding Homes land transaction) principally because of the significant operating margin of 2.7% in Construction and the resilient operating margin of 4.5% in Services, both of which were underpinned by strong cash generation.

Exceptional items amounted to a net credit before tax of £7.0m for the year (2010: net charge of £2.0m), as follows:

·      a gain of £25.7m arising from inflation changes (RPI to CPI) announced in the 2010 budget which have been applied to the Kier Group Pension Scheme;

·      a reduction in the fine levied by the Office of Fair Trading (OFT), from £18.0m to £1.7m, with associated costs of £0.7m incurred in relation to our appeal;

·      a charge of £33.5m relating to a write‑down of our land and work in progress following a further review and in light of the values received from recent land sales; and

·      external costs of £0.8m relating to the acquisitions of Beco Limited (Beco) and the property portfolio from Lloyds.

Profit before tax, before the amortisation of intangible assets and exceptional items, for the year was 24% ahead of last year at £68.9m (2010: £55.5m excluding Homes land transaction). On the same basis, earnings per share was 26% ahead at 148.4p (2010: 117.7p excluding Homes land transaction).

The trading result for the year was underpinned by strong cash generation, with high average Group month‑end net cash balances of £129m (June 2010: £95m) after investment of approximately £50m during the year including the property portfolio from Lloyds, deferred land payments, further investment in Pure Recycling, and the acquisition of Beco.

Group structure and strategic developments

Four divisions support our integrated business model: Construction, Services, Property and Homes. The Group's management structure and segmental analysis for reporting purposes for the year to 30 June 2011 are based on these four divisions.

We are able to offer integrated solutions through the provision of a range of services including investment, planning and design, construction, maintenance, soft and hard facilities management, waste, energy and environmental services and regeneration. This is a combination of services, which few other organisations can offer and makes us resilient during the current challenging economic environment.

Our strategy is to continue to focus on growth areas in each of our divisions, leveraging the many opportunities that arise through our integrated model. Our diversity enables us to find work in a wide range of sectors, and allows us to respond to and strengthen our relationships with both private and public sector customers.

In the overall construction market conditions remain challenging in the short term because of the budgetary constraints on many of our public sector clients and the difficult economic conditions for our private sector clients. There has been a contraction, over the past couple of years in the UK, in the level of construction activity and it is unlikely there will be any improvement until at least 2013. This means new schemes are attracting a larger number of bidders and are being very competitively contested.

However, our network of local offices, coupled with our diverse set of capabilities, enable us to pursue a wide range of opportunities. This is evident in this division by our move away from public sector work and into the private sector whilst growing revenues, particularly in areas of non‑discretionary, economic infrastructure investment, such as:

 

·        power, where we are a leading player in the provision of civil engineering works;

·        waste, a growing market which includes recycling and power generation opportunities; and

·        transport, both in the UK and overseas.

Other growth areas include:

·        commercial, primarily in London and the south‑east;

·        mixed‑use and urban regeneration; and

·        overseas, where we are growing in our three principal territories: Hong Kong, the Middle East and the Caribbean.

In our Services division, we are seeing an increase in the number of tender opportunities across all sectors, as both public sector and private businesses seek to outsource more operations to help ease their cost pressures. We anticipate that this is most likely to translate into revenue growth in the year to June 2013. We have long‑term visible revenues to 2020 and beyond, at strong, consistent margins and these long‑term contracts allow us to expand our activities through the involvement of other Group businesses as our clients and partners seek a one‑stop, integrated delivery model to service their requirements.

Our Property division, which is a key generator of integrated opportunities for the Group, is in a strong position to expand its portfolio and to contribute an increasing proportion of the Group's results in the next few years. We will continue our strategy of pursuing largely non‑speculative development, together with identifying innovative funding routes to support our growth and making the best use of the Group's cash reserves.

In our Homes division, we have refocused the business towards social and mixed‑tenure housing, while maintaining a 500 to 600 unit private housing business, building on Kier‑owned land. We will continue to reduce our land bank by developing homes for sale, or disposing of parts of it, which will unlock our cash investment over time. The receipt of £12.5m of Affordable Homes Programme (AHP) grant funding, our relationships with our framework partners and our position on the Homes and Communities Agency Delivery Partner Panel (HCA DPP) will enable us to exploit opportunities in the affordable housing market over the next few years.

Business review, markets and outlook

Kier Construction

The Construction division encompasses our UK regional contracting, civil engineering and overseas businesses, which are highly skilled in the construction of the full range of building projects, together with power, waste, nuclear and infrastructure facilities and rail and mining projects. The division now includes a newly formed Process & Engineering business which provides mechanical and electrical (M&E) design and delivery services to grow our in‑house M&E capability. Through the development of our own 4D building information modelling (BIM) processes, we are at the forefront of the industry and are ready to respond to the Government's Construction Strategy that will require the use of this technology in the future.

Construction business review

Revenue in Construction was 2% above last year, at £1,445m (2010: £1,417m), with modest growth in our UK revenues. Operating profit increased to £39.3m from £36.2m, at an improved 2.7% margin, ahead of last year's 2.6%. The margin performance was underpinned by excellent cash generation with a year‑end cash balance at a record £423m (2010: £418m). Contract awards were higher than last year with 68% arising from our numerous frameworks and collaborative bidding arrangements. These awards have provided us with a secured order book amounting to £1,386m (2010: £1,320m), together with £859m of probable awards, comprising contracts on which we are preferred bidder or are in one‑to‑one negotiations (2010: £723m). In total, we are active on over 70 frameworks across the UK through which clients continue to procure a significant element of their work with a focus on quality and whole lifecycle costs.

56% of our awards were for public sector projects (2010: 74%). The transition from public sector to private sector is a trend that will continue and we expect to see the proportion of public sector work drop to less than 50% over the next year.

Of the public sector awards, many continue to be in the education sector, which accounted for 33% of awards (2010: 41%). Our education projects included six completed academies (£150m); another eight academies are on schedule to be handed over in the next 12 months and a further 11 academies (£180m) are progressing towards financial close. We have responded to the Government's 'more for less' initiative with innovative design solutions leaving us well placed to target the 70 further academies (£1.0bn) approved under the framework.

Our health sector revenue continues to grow and is approaching £100m per year. The sector represented 6% of our 2011 awards and a notable milestone was securing a position on the successful ProCure 21+ framework. In the first nine months of the framework, Kier has been selected to deliver up to £110m of healthcare projects, with a further £200m of opportunities to pursue before the end of the 2011 calendar year.

In the private sector, the commercial, power and waste sectors are providing us with the most significant opportunities, particularly in London and the south‑east in the case of the commercial sector.

During the year, we secured circa £150m of commercial building projects, including the £45m Howick Place development for Terrace Hill and £57m of schemes for Coca‑Cola and Pontsarn Properties in Uxbridge and Fetter Lane, Holborn. We are preferred bidder on a further two schemes for the developer, Argent, at King's Cross, with a combined value of £110m, and for a £70m medical facility for UCL.

During the year we have been particularly successful in the transport sector, which accounts for over 13% of the division's contract awards. We were successful in securing contracts on the Crossrail programme (in joint venture) winning the C300/410 Western Tunnels and Station Caverns at Tottenham Court Road and Bond Street valued at £500m, and subsequently the station enabling works contracts at Liverpool Street and Whitechapel, valued at approximately £50m. We are continuing to tender for major works schemes on the Crossrail programme.

We have also secured the station development contract at Epsom station and are named preferred bidder at Twickenham station for Solum Regeneration, our joint venture with Network Rail, valued at £40m. Our rail project to replace the roof at King's Cross Station, a Grade I listed structure, is on programme for completion ahead of the Olympic Games.

The energy sector remains a key focus for our plans and we expect significant activity in this area as the UK's ageing fleet of power stations is replaced over the next ten years. Our operations in the sector include our 14th combined cycle gas turbine power station for EDF Energy (EDF) at West Burton (£130m), which completed during the year. We have also been awarded the £50m contract to build an energy‑from‑waste plant in Plymouth for MVV and South Devon Waste Partnership and we are preferred bidder for a new £45m waste treatment facility at Wakefield and have been short‑listed in the tender process for the Peterborough waste project.

At Hinkley in Somerset, we are the first contractor, in joint venture, to commence advance works on site for EDF's planned new nuclear power station. Our joint venture is short‑listed for a number of major packages of work on this scheme totalling in excess of £400m. In the nuclear market, we also continue to deliver projects at Aldermaston and Sellafield, and we see a number of other opportunities coming to tender in this sector with significant barriers to entry.

Overseas, our key markets are growing and a number of major awards have been secured during the year, representing 13% of the division's total contract awards.

In Hong Kong, we have secured approximately £320m of work, in joint venture, for the Mass Transit Railway Corporation (MTRC) and prospects in the territory remain encouraging. A number of further contracts with the MTRC are being selectively targeted together with other government infrastructure works. Our business in the Caribbean has enjoyed a particularly good year, winning over £35m of work in the period, with a strong pipeline of future prospects in its key sectors.

In Saudi Arabia, we have completed two years of an eight‑year phosphate mining contract for our client, Ma'aden. We are pursuing further opportunities as the Saudi mining sector expands. We are also bidding in joint venture for some significant railway development projects planned in the region. Despite the challenging economic environment in the Middle East, we remain assured of the longer‑term potential in the region and anticipate a period of sustained and profitable growth.

Construction markets and outlook

Notwithstanding the excellent position we are in with a strong forward workload there is a significant shift in spending patterns from public sector social infrastructure projects to private sector and areas of regulated spend. Companies like Kier, with a broad capability and skills to adapt to these growing markets, are well placed to access a healthy pipeline of quality opportunities. Competition for the declining public sector workload is increasing and our focus remains on securing quality work through frameworks and targeting the power, waste and nuclear markets and commercial building projects from our long‑term customers. The power market alone, in which we are a leading player, is likely to provide us with over £13bn of opportunities over the next ten years and we are already winning work in this sector.

Our mix of work has shifted from 74% to 56% for the public sector in the last year and we expect this to continue such that our public sector work will decrease to less than 50% over the next 12 months. However, we expect to maintain a good proportion of the work from the public sector, as evidenced by our appointment in September 2011 as sole contractor to deliver up to £1.0bn of construction projects over four years on behalf of Scape, a local authority alliance. It is estimated we will be carrying out over 2,500 projects in this national framework across education, police, leisure, residential and other civic services with assistance from our Services division.

Overall Kier Construction is well positioned in its key markets. The division has a diversity of skills, which is one of its key strengths, and this has enabled it to grow its order book during the current financial year while maintaining its selective bidding processes.

The order book (secured and probable) stands at £2.3bn (June 2010: £2.1bn) and represents 95% of the division's targeted revenue for 2012 and 46% of its targeted revenue for 2013, which is slightly ahead of normal, and we expect our operating margins to remain firmly above 2%.

Kier Services

Kier Services comprises five main businesses: Maintenance, which provides both reactive and planned maintenance largely to local authorities and housing associations; Facilities Management (FM), providing services to public and private sector clients; Environmental, offering services for domestic and commercial waste collection and the management and operation of a major recycling facility, street scene and grounds maintenance; Asset Management, which was formerly within the Property division; and Energy Solutions, including our photovoltaic production, design and installation business.

Services business review

Revenue increased 3% to £484m (2010: £471m) with growth, in particular, in Maintenance and Environmental. Operating profit, before deducting the amortisation of intangibles of £3.4m, increased to £21.7m (2010: £21.4m), with a resilient operating margin of 4.5% (2010: 4.5%). Cash balances were healthy at £28m (2010: £32m), underpinning the profit recognition and come after approximately £18m of further investment in Pure Recycling, the acquisition of Beco and additions to our Street Services and Plant equipment.

The order books are at a healthy £2,030m at 30 June 2011 (2010: £2,128m); this figure does not include potential contract extensions, which could add approximately £750m if all were exercised by our customers.

Our Maintenance business saw revenues increase by 2% to £351m (2010: £344m), which highlights the strength of this business given the budget restrictions that are now affecting local authorities. We currently maintain approximately a quarter of a million homes, placing us as one of the largest providers of housing maintenance services in the UK.

We have been successful in negotiating an extension to our partnership with Sheffield City Council, Kier Sheffield LLP, for a further year to 2014, with a value of £64m. We have also secured the remainder of Sheffield City Council's Decent Homes Programme for the three‑year period to 2014, with a value of up to £27m over the period.

We were awarded three contracts for Homes for Islington (HFI), the arms length management organisation (ALMO) for Islington Council. The contracts, to repair and maintain 29,500 properties in the Borough of Islington, are for an initial four‑year period, extendable up to ten, and all commenced in October 2010. This contract with Islington Council was first secured in 2000 and, therefore, represents our first 're‑win'.

Having been re‑awarded a £20m responsive repairs contract with Ealing Council over five years, we have also secured a £60m partnership with Gosport Borough Council for ten years, extendable for a further five years, and have secured valuable framework positions with EMPA, Riverside Group and North Bransholme for the next four years.

The Facilities Management business generated more than £100m of revenue in the year and was successful in renewing key contracts of approximately £30m including Surrey County Council, Sussex Police and London Fire Brigade and adding new customer contracts of almost £20m.

Our Environmental business has been awarded several significant contracts, valued in aggregate at more than £150m. An eight‑year contract, with a potential eight‑year extension, for North Norfolk District Council and the Borough Council of King's Lynn and West Norfolk, serving 240,000 homes, and a seven‑year contract for East Northamptonshire serving 37,600 homes, were also awarded. In addition, we have secured a £48m waste and recycling services contract for London Borough of Waltham Forest for eight years, with the potential to increase to £90m with extensions.

Our new Pure Recycling materials recovery facility (MRF) in Ettington, Warwickshire officially opened for business at the end of February 2011. The MRF is licensed to process 150,000 tonnes of mixed dry recyclable materials a year, and is one of the largest in the UK. The completion of the MRF is an important milestone for our Environmental business and we already have contracts to process dry recyclables for 80,000 tonnes per annum. With councils committed to meeting increasingly demanding recycling targets over the next few years, the MRF offers a fully integrated waste and recycling collection solution.

The newly formed Energy Solutions business, strengthened by the acquisition of Beco in November 2010, has provided a stronger platform to enter the energy solutions marketplace. This business, together with the Maintenance business, has secured several contracts in the year covering up to 10,000 properties (£30m) in North Tyneside, Stoke‑On‑Trent and Harlow, the latter where we are delivering a funded photovoltaic scheme onto 1,200 rooftops of council housing stock. The business has identified a good pipeline of opportunities in the retrofit social housing market, which will utilise the combined strengths of the Maintenance business and the structured finance business.

Services markets and outlook

As expected, levels of activity have been subdued over the past 12 months. However, we are seeing an increasing number of outsourcing opportunities as both the public and registered provider sectors, in particular, seek to alleviate cost pressure and examine their current service delivery requirements. We anticipate that this increase in activity will translate into revenue growth for the division in the year to June 2013.

Our order book in the Services division is at a healthy level of £2.0bn giving good forward visibility of workload, coupled with a strong pipeline of further opportunities. We expect our operating margins to be maintained at a resilient 4.5%.

The Maintenance business continues to offer best value solutions for clients through proven partnership and provides long‑term visible revenues to 2020 and beyond at strong, consistent margins. These long‑term contracts and partnerships allow us to expand our activities through the involvement of other Group businesses as our clients and partners seek a one‑stop, integrated delivery model to service their businesses, a model that we are well placed to deliver.

The cost pressures on local authorities are also leading to increasing opportunities for us in the waste collection and street scene market where we have seen considerable success this year and remain optimistic about growth. The private sector is also examining its cost base and is demonstrably outsourcing more of its non‑core activities. Our diverse offering, covering both hard and soft FM, is doing well but we consider it would benefit from greater scale in the premium office and retail market. This remains a key focus for us in the coming years.

Kier Property

The Property division comprises two main businesses: commercial, industrial, retail and mixed‑use property development and structured property financing (PFI). Both businesses provide significant opportunities for Kier to work with land owners, occupiers and the public sector, and offer innovative property solutions and services to maximise asset values and generate profits.

The Property division continues to focus on non‑speculative projects where we know we can forward sell or pre‑let key elements of the schemes, thereby reducing the associated risk and demands on the Group's cash reserves. Increasingly, we bring together the total skills and expertise across the Group to deliver greater value to our schemes and provide a 'One Kier' approach for our clients.

Revenue for the year to 30 June 2011 of £97m (2010: £53m) was 83% higher than that for last year, with operating profit of £11.1m (2010: £4.5m).

Following the acquisition of the property portfolio from Lloyds in April 2011 for £91m, we sold our retail scheme in Chichester and our central London office in Cavendish Place thus raising £26m of cash, which offset the initial £35m consideration paid to Lloyds.

In early 2009, we were selected as preferred developer by the University of Reading to deliver its 55,000sq ft Science and Enterprise Centre. The Construction division undertook the construction works and the project was completed in April 2011. The project was externally funded and forward sold.

Our joint venture with Network Rail, Solum Regeneration, is progressing well. We are on site at Epsom on a £32m mixed‑use pre‑let scheme with completion due in the summer of 2012. Construction is due to commence at Walthamstow for a similar scheme in October 2011 and we are at an advanced stage of the planning process on the Twickenham and Maidstone East redevelopments worth a combined £107m. A testament to the strength of the partnership is reflected in the additional schemes added to the portfolio with a total development value of approximately £500m.

As part of our strategy to work closely with large land owners, at Sydenham we are working with National Grid on a 20‑acre site for warehouse and industrial development. Pre‑let terms are being agreed with several large retailers and work on site is forecast to start in early 2012, with Kier undertaking the construction work. This form of alliance, similar to Solum Regeneration, is a key area of focus for this division.

During the year, in our Structured Finance business, we continued our strategy of selectively disposing of mature PFI investments from our portfolio. We disposed of three of our investments, Norwich, Oldham and Sheffield Schools, for a combined value of £13.7m, representing a valuation discount rate of around 7%. Whilst Norwich and Oldham were sold to an external buyer, due to pre‑emption rights, our investment in Sheffield was transferred to the Kier Group Pension Scheme at its market value of £4.5m. Over time, we expect to offer further PFI assets to this pension scheme as part of the pension deficit recovery plan. We believe that these assets, with their long‑term cash flows, are well suited to the pension scheme.

The construction of the £60m Norfolk and Suffolk Police Investigation Centres scheme is now nearing completion and, in March 2011, we achieved financial close on the £22m Gloucester Fire project, which is now under construction. In addition, we are short‑listed on a further five projects with a combined value of approximately £250m.

Our portfolio of PFI projects following the disposals during the year now totals ten. Our full equity investment in these schemes amounts to £21m (2010: £28m) of which £16m has been invested to date. The directors' valuation of our investment at a discount rate of 7.5% is £38m. Our Structured Finance business continues to seek new opportunities by applying its investment and finance structuring skills to a broad range of schemes such as social housing, residential regeneration and student accommodation.

Property markets and outlook

The division continues to focus on expanding its portfolio to contribute an increasing proportion of the Group's results. We continue to look at innovative funding routes to support our growth and make the best use of our cash reserves.

We have recently strengthened and expanded our team to increase our focus in the west and north of England with the aim of providing additional work across the Group in these locations.

The Property business is set to deliver continued profit growth over the next few years with many of its schemes already identified and secured. We therefore remain confident in our business strategy of acquiring development opportunities in well‑located and marketable areas with significant potential for occupier led, pre‑let or forward sale solutions.

Kier Homes

Kier Homes provides mixed tenure and affordable housing, specialising in urban regeneration with the skills and experience to deliver innovative and environmentally sustainable construction and finance solutions. These include leveraging multiple funding and investment sources and providing cross‑subsidy options. We have reduced the scale of our private sales operation to maintain a stable 500 to 600 unit per year business focused on the south‑east and East Midlands area.

Homes business review

There remains uncertainty in the housing market although a modest demand for newly built homes supported an improved underlying performance for the year for the Homes business.

In the private sector, the housing market continues to be constrained by the lack of mortgage availability, which is affecting housing demand throughout the country. In the affordable housing sector, following the Government's Comprehensive Spending Review, the change from social rent to an affordable rent structure will transform the way that affordable housing is financed.

Overall, we completed 998 units this year (2010: 1,060) a similar mix to last year, with 466 arising from private development sales and 532 through affordable housing sales (2010: 499 private and 561 affordable homes).

These unit sales, together with land sales, generated revenues of £153m (2010: £158m) and operating profits improved to £4.2m in 2011 (2010: £2.8m excluding Homes land transaction).

Our cash investment in this division has slightly increased to £259m (June 2010: £248m), reflecting the settlement of deferred land payments, which have now been made in full, increased investment in work in progress on apartment schemes, which have a different cash profile to a typical housing scheme, partially offset by the first instalment proceeds on land sales.

The instalments represent part of a committed £20m (350 plots) of completed land sales on deferred cash terms. Having completed these sales, and following a review of our land and work in progress, we have written down the value of our land and work in progress and it now better reflects our strategy for the private housing business and the current market conditions. Whilst it remains our intent to sell further land over time, we do not anticipate realising profit from these transactions, the emphasis being on cash generation.

Our land bank at 30 June 2011 is carried at a value of £159m (June 2010: £214m), after the current year's write‑down and is represented by 4,800 plots (2010: 5,700 plots), all with planning consent. Our strategy to position our land bank so that it supports a 500 to 600 unit business continues with the aim of having a land bank equivalent to approximately four to five years' supply. Thiswill release cash, which is available for investment in the Group's future growth. All new housing is being built primarily on land acquired prior to the market correction in 2008 and we therefore anticipate modest margins through this business over the next few years.

Housing Association Registered Providers (HARPs) have responded positively to the challenge of funding future development using an affordable rental income stream to leverage finance and a strong pipeline of development opportunities, to be delivered over the next four years, is emerging.

Through our partnerships with key public housing funding bodies and registered providers of affordable housing, and working with our investment and development specialists within the Group, we are well positioned to provide a comprehensive delivery solution to the UK's current housing challenges.

Our membership of the HCA DPP framework continues to provide a steady supply of public sector land for the development of affordable and mixed tenure housing. All of these types of projects involve free land provided by the HCA; one such example is our development at Balaam Wood, Egg Hill, which has progressed well and we have delivered our first sales reservations alongside the affordable housing on the site.

Homes market and outlook

Our strategy continues to focus on reducing the cash investment in our land bank by developing homes for sale, or disposing of parts of the land bank as opportunities arise. The private homes market remains challenging, as mortgage finance still requires significant deposits, and there remains a low level of public confidence given the current economic conditions. We therefore expect overall private sales for the year to 30 June 2012 to be at a similar level to those for this year at this stage.

Our focus is the development of mixed‑tenure affordable housing through our well‑established relationships with local authorities and housing associations. In the recent allocation of AHP funding, we were delighted to receive the entire allocation of grant requested (£12.5m) which will help us deliver in excess of 1,000 new affordable homes alongside our HARPs over the next four years. This excellent result combined with our relationships with our framework partners and our position on the HCA DPP set us well to exploit opportunities in the affordable housing market in the medium term.

We will remain flexible and responsive to the uncertain private housing market and will pursue growth in our affordable housing business and the opportunities that it presents.

Health and safety

Our focus continues to be on our Health & Safety Leadership and Behavioural Safety Programme, which is now firmly embedded within the Construction division and is being rolled out across the Group. This programme focuses on encouraging active discussions with the workforce on health and safety issues, with in excess of 41,000 discussions recorded during the year, a 66% increase on 2010.

Our future focus will encompass all health, safety and environmental issues to ensure we fully support the Group's sustainability aspirations. A long‑term programme of health and well‑being is currently being developed across the business to ensure that health is an integral part of the safety, health & environment culture.

The commitment of our management teams and our supply chain partners has resulted in a further reduction in our accident incident rate (AIR) from 312 in June 2010 to 300 in June 2011; this is significantly lower than the current Health and Safety Executive benchmark rate of 736. These positive results continue to focus and motivate all of us on a safety first culture.

Reflecting this outstanding performance, Kier projects were awarded 42 national awards by the Considerate Constructors Scheme in recognition of the standards we set ourselves. We also received five Royal Society for the Prevention of Accidents (ROSPA) President's Awards and five ROSPA Gold medals, in recognition of ten consecutive years of Gold Awards.

People

During the year, we were active on over 330 construction projects across the UK, were responsible for approximately 250,000 homes and 7,000 commercial premises and built 1,000 new homes. All of our people, across the UK and overseas, have worked hard this year to produce these results.

It is a sign of our professionalism that time after time our projects are delivered to programme, on budget and to great quality. I am continually impressed by the quality and professionalism displayed by our people and the tremendous effort that goes into all of the work that we do.

I am proud to represent Kier, and of the great work our teams deliver in the communities they represent. I am delighted to announce this year that we are establishing a charitable trust, the Kier Foundation, to provide a more co‑ordinated approach to the huge amount of time and financial support we put into our communities. This will enable us to better manage our corporate giving and to generate further value in the areas in which we participate.

Finally, I would like to thank all of our people at every level throughout our many businesses for their continuing support and contribution to the continuing success of the Group. Whilst I expect 2012 to be challenging, I am confident that our teams will meet that challenge as they have done so consistently in the past.

Markets and prospects

The year to 30 June 2011 has been busy for all our businesses in bidding for work in an increasingly competitive environment. The requirements from our clients for 'bundled services' has required all our teams to rethink and re‑engineer the way we bid and deliver our work.

The next 12 months will remain challenging as the reduction in government spending continues to affect levels of construction and services activity. Low levels of public confidence and therefore uncertainty will affect the private housing market.

The Group, with its diverse set of capabilities, is able to respond to the changing market and position itself in those areas where there is most opportunity for growth. This is evident in our Construction division by our move away from public sector work and into the private sector whilst growing revenues.

We are encouraged by the prospects we see in the economic infrastructure markets such as power, transport and waste, both in the UK and overseas, and in improving social infrastructure sectors such as affordable housing, mixed‑use regeneration and commercial projects, predominantly in the south‑east.

Our Services division is beginning to see larger opportunities come to market as local authorities outsource different bundled services, and our Property division is in a strong position to expand its portfolio and seek non‑speculative schemes in the medium term.

Our Construction and Services order books of secure and probable contracts are robust with many of the construction awards having been secured through frameworks and collaborative agreements, providing us with confidence that we can sustain good operating margins and strong cash flows.

Our integrated business model continues to present opportunities across a wide range of sectors, right across the country, which will provide greater resilience during the current challenging economic environment. Our strong balance sheet will inevitably be seen as increasingly important as customers scrutinise the strength of their chosen partners.

We remain a robust and sustainable business, with committed and professional staff in whom we have confidence and their abilities will underpin further progress by the Group in the new financial year.

Paul Sheffield

Chief Executive

Financial review

In conjunction with the chairman's statement and the chief executive's review, this report provides further information on the key aspects of the financial performance and the financial position of the Group.

Accounting policies

The Group's annual consolidated financial statements have been prepared in accordance with International Financial Reporting Standards as adopted by the EU. Except as stated below or in the disclosures in note 1 to the consolidated financial statements, there have been no significant changes to the accounting policies adopted by the Group during the year to 30 June 2011.

During the year, in our Structured Finance business, we continued with our strategy to regularly dispose of our mature PFI investments from our portfolio and recycle the capital. The profit on disposal has previously been disclosed as an exceptional item; however the directors believe this presentation is no longer appropriate, as they are now expected to be recurring items, and have included the profit on disposal in the operating profit for the year to 30 June 2011. The 2010 comparative figures have been restated accordingly.

Financial performance

2011

           2010

% change


£m

             £m


Revenue: Group and share of joint ventures

2,179

     2,099

+4%

Operating profit: Group and share of joint ventures*

71.1

57.7**

+23%

Profit before tax*

68.9

55.5**

+24%


p

                 p


Earnings per share*

148.4

117.7**

+26%

Dividend per share

64.0

        58.0

+10%


£m

             £m


Average month end net cash balance

129

          95

+36%

*Before exceptional items and amortisation of intangible assets

**Excluding Homes 2010 land transaction profit of £7.1m.

Revenue has increased by 4% (£80m), predominantly through organic growth; however, the acquisition of Beco Limited (Beco) in November 2010 and the early sale of two properties from the property portfolio acquired from Lloyds, in April 2011, have contributed a combined £18m of that amount. Underlying growth, excluding the 2010 land transaction in the Homes division, is spread across all four divisions, which reflects the strength and depth of the Group's activities.

Operating profit including joint ventures, before the amortisation of intangible assets, was 23% ahead of last year at £71.1m with operating margins of 2.7% in our Construction division, up on 2.6% in 2010, and good, consistent margins in our Services division of 4.5% (2010: 4.5%). The Homes and Property divisions also saw an increase in underlying operating margins. Detailed information on the operating performance of each of the divisions is provided within the chief executive's review.

The Group's net finance cost, analysed below, includes interest receivable arising from average net cash balances of £129m for the year (2010: £95m). The increase in interest payable includes the fees following the increase and renegotiation of our banking facilities.

2011

2010


£m

£m

Group interest receivable

3.7

3.1

Interest payable

Unwinding of discount on long-term liabilities

Share of joint venture interest


(1.9)

(2.3)

Profit before tax, amortisation of intangible assets and exceptional items increased by 24% to £68.9m (2010: £55.5m**). This includes a joint venture tax charge of £0.3m (2010: credit of £0.1m) and is stated before minority interests of £0.5m (2010: £0.8m). The minority interest relates to the share of profits of our Maintenance business which are attributable to contracts it has with local authorities.

The Group's effective tax rate, including joint venture tax on joint venture profits, has reduced from 21% last year to 19% mainly as a consequence of the increase in the profit on disposal of the PFI investments and the reduction in the standard corporation tax rate.

Earnings per share before amortisation of intangible assets and exceptional items was 26% ahead of last year at 148.4p (2010: 117.7p**), benefiting from the reduction in the effective tax rate.

Exceptional items

Exceptional items amounted to a net credit before tax of £7.0m, as follows:

£m

Pension credit arising from inflation changes to the
Kier Group Pension Scheme

25.7

Reduction in the provision in respect of the OFT fine and associated costs

Write-down of land and work in progress

Acquisition costs

Total exceptional items

7.0

The £25.7m credit in the income statement and corresponding improvement in the funding position of the Kier Group Pension Scheme (the Pension Scheme) has arisen from changes announced in the 2010 budget which apply to private sector pension schemes. These changes will result in future pensions increasing at the rate of the Consumer Price index (CPI) rather than at the Retail Price index (RPI) and, therefore, reduce pension scheme liabilities.

On 22 September 2009, Kier, along with 102 other construction companies, was fined in respect of the OFT investigation into cover-pricing in the construction industry. We appealed against the quantum (£17.9m) of the fine and established an exceptional provision of £18.0m in 2010. In May 2011 the Competition Appeals Tribunal concluded the appeal process and the quantum of the fine was reduced to £1.7m. The resulting £15.6m exceptional credit reflects the reduction in the fine and £0.7m of external costs incurred in relation to the appeal process.

As a result of the values received from a number of land sales during the second half of the year and following a review of our land bank, we have written down the value of our land and work in progress by £33.5m. It now better reflects the current market conditions and our strategy to downsize our land bank and maintain a 500 to 600 unit private housing business.

We have incurred external costs relating to the acquisitions of Beco and the property portfolio from Lloyds which totalled £0.8m.

Cash performance

The cash performance has remained very strong, with average Group month-end net cash of £129m (2010: £95m). Following the initial payment, in April 2011, of £35m for the property portfolio from Lloyds, the subsequent early sale of two assets recouped £26m of that outlay which supported a net cash position at 30 June 2011, after deducting £30m relating to loan notes, of £165m (2010: £175m).

Overall the Group has invested approximately £50m during the year in its own growth, including land payments, mining equipment, further investment in Pure Recycling, the acquisition of Beco and the property portfolio from Lloyds.

The Group's cash balances at 30 June 2011 include £73m (2009: £52m) which is held in joint contracting agreements, overseas bank accounts and other cash arrangements and is therefore not readily available to the Group. The liquid cash position is also affected by seasonal, monthly and contract-specific cycles.

Dividend policy

We continue to maintain our progressive dividend policy and taking into account the performance of the Group and its strong cash position, the Board has recommended a final dividend of 44p, making the full‑year dividend 64p, an increase of 10% on the total paid in respect of 2010 (58p) reflecting the confidence in the business going forward. This is 2.3 times covered by underlying earnings per share.

Treasury facilities and policies

The Group has a number of committed bilateral facilities, which amount to £90m, an uncommitted £10m overdraft facility and long-term debt of £30m, all managed by the centralised treasury function.

The bilateral facilities were renewed during the year and extend to February 2014. A small number of relationship banks provide these facilities which support the Group and its future growth plans. The long-term debt of £30m represents a 10‑year UK and US private placement and is due to be repaid in February 2013.

The Group's financial instruments comprise cash and liquid investments. The Group, largely through its PFI and Property joint ventures, enters into derivatives transactions (principally, interest rate swaps) to manage interest rate risks arising from the Group's operations and its sources of finance. We do not enter into speculative transactions.

There are minor foreign currency risks arising from operations. The Group has a limited number of overseas operations in different currencies. Currency exposure to overseas assets is hedged through inter-company balances and borrowings, so that assets denominated in foreign currencies are matched, as far as possible, by liabilities. Where there may be further exposure to foreign currency fluctuations, forward exchange contracts are entered into to buy and sell foreign currency.

Balance sheet and capital structure

Total equity at 30 June 2011 is £164m (2010: £104m).

Acquisitions and intangible assets

The balance sheet at 30 June 2011 includes intangible assets of £27m (2010: £28m) of which £11m relates to building maintenance contracts.

During the year, we made two acquisitions as follows:

·     In November 2010, we acquired Beco for a total consideration of £2.4m. £1.3m has been paid in the year to 30 June 2011 with the remainder contingent upon the completion of certain events, together with the results of the business through to 2013. The net present value of the deferred consideration is £1.0m.

·     In April 2011, we acquired Lloyds Banking Group's 50% interest in our jointly owned portfolio of property assets. The aggregate consideration was £91m, of which £35m was paid in cash on completion, £30m will be paid in cash in October 2012 and £26 million will be paid in cash in October 2013. The net present value of the deferred consideration is £52m.

Inventories

An analysis of inventories is given below:

As at 30 June

As at 30 June


2011

2010


£m

£m

Residential land

159

214

Residential work in progress

Property land and work in progress

Other work in progress


431

407

The review of our land bank which resulted in a write-down of the value of the land and work in progress by £33.5m, accounts for much of the decrease in the residential land balance above, with the remainder due to unit and land sales.

The increase in residential work in progress highlights an increase in investment on apartment schemes, which have a different cash profile to a typical housing scheme.

Property land and work in progress has increased as it now includes the property assets acquired as part of the property portfolio transaction with Lloyds.

Pensions

The Group participates in two principal schemes: the Kier Group Pension Scheme, which includes a defined benefit section, and a defined benefit scheme on behalf of its employees in Kier Sheffield LLP. The financial statements reflect the pension scheme deficits calculated in accordance with IAS 19.

The triennial valuation of the Kier Group Pension Scheme, dated 1 April 2010, was completed during the year and showed a funding position of 88%. Following discussion with the trustees, a funding plan has been agreed that maintains the current annual £8m additional deficit funding. This will also be supplemented with transfers of the Group's PFI assets as they become available and are suitable for the Scheme. The Group is committed to continuing to support the funding position of the Scheme.

At 30 June 2011, the net deficit under the Kier Group Pension Scheme was £23m (2010: £57m). The net deficit position is after taking into account the exceptional credit of £25.7m arising from changes announced in the 2010 budget which apply to private sector pension schemes. These changes will result in future pensions increasing at the rate of CPI rather than RPI and, therefore, reduce the Scheme liabilities.

The market value of the Pension Scheme's assets was £680m (2010: £611m) and the net present value of the liabilities was £711m (2010: £690m). The increase in the assets during the year is because equity and other return‑seeking assets increased more than previously assumed, while bond markets remained relatively flat. The increase in the liabilities during the year is primarily the result of the increase in RPI to 3.6% (2010: 3.2%) and the hardening of mortality assumptions offset by the increase in discount rate to 5.5% (2010: 5.3%) and the change in inflation assumptions (RPI to CPI) described earlier.

At 30 June 2011, the scheme relating to Kier Sheffield LLP showed a net surplus position of £1m (2010: net deficit £6m).

Net pension charges of £4.8m (before the exceptional credit of £25.7m) (2010: £11.9m) have been made to the income statement in accordance with IAS 19. The lower charge reflects the higher return on scheme assets.

Going concern

The directors' report states that appropriate enquiries have been made regarding the level of resources to continue in operational existence for the foreseeable future and the chief executive's review highlights the activities of the Group with factors likely to affect the Group's future development, performance and financial position.

The Group has considerable financial resources, committed banking facilities, long‑term contracts and a strong order book, and for this reason the directors have continued to adopt the going concern basis in preparing the Group's financial statements.

Haydn Mursell

Finance Director


Consolidated income statement

for the year ended 30 June 2011


2011

2010



Before



Before





exceptional

Exceptional


exceptional

Exceptional




items

items*

Total

items

items*

Total






restated

restated



£m

£m

£m

Revenue








Group and share of joint ventures

2

2,178.8

-

2,178.8

2,098.7

-

2,098.7

Less share of joint ventures

(55.8)

-

(55.8)

Group revenue

2,123.0

-

2,123.0

Cost of sales

(1,911.5)

(33.5)

(1,945.0)

Gross profit

211.5

(33.5)

178.0

Administrative expenses


(151.8)

(0.8)

(152.6)

(151.2)

-

(151.2)

Credits on retirement benefit obligations

-

25.7

25.7

Movement in provision for fine imposed by the
Office of Fair Trading

-

15.6

15.6

Share of post tax results of joint ventures

0.4

-

0.4

Profit on disposal of joint ventures

5.9

-

5.9

Profit from operations

2

66.0

7.0

73.0

60.7

(2.0)

58.7

Finance income


3.7

-

3.7

3.1

-

3.1

Finance cost

(4.2)

-

(4.2)

Profit before tax

2

65.5

7.0

72.5

59.7

(2.0)

57.7

Income tax

4a

(12.3)

2.1

(10.2)

(12.7)

(4.5)

(17.2)

Profit for the year


53.2

9.1

62.3

47.0

(6.5)

40.5

Attributable to:








Equity holders of the parent


52.7

9.1

61.8

Minority interests


0.5

-

0.5



53.2

9.1

62.3

Earnings per share

6







- basic

141.7p


166.1p

- diluted

139.8p


163.9p

Adjusted earnings per share (excluding the amortisation of intangible assets)

6







- basic

148.4p



- diluted

146.4p



*Exceptional items as detailed in note 3 relate to:

·   movement in the provision for a fine imposed by the Office of Fair Trading;

·   property, land and work in progress write-downs;

·   acquisition costs; and

·   pensions past service credits.

All results are derived from continuing operations.

 

Consolidated statement of comprehensive income

for the year ended 30 June 2011


2011

2010


£m

Profit for the year

62.3  

         40.5  

Other comprehensive income/(loss)



Cash flow hedge movements realised on sale of joint ventures

10.1

Share of joint venture fair value movements in cash flow hedging instruments

(4.7)

Fair value movements in Group cash flow hedging instruments

-  

Actuarial gains/(losses) on defined benefit pension schemes

12.6  

Other comprehensive income/(loss) before taxation

18.0  

Deferred tax on items recognised directly in equity (including effect of change in tax rate)


Share of joint venture cash flow hedging instruments

(1.7)  

Group cash flow hedging instruments

-  

Actuarial gains/(losses) on defined benefit pension schemes

(7.8) 

Taxation on other comprehensive income/(loss)

(9.5)  

Other comprehensive income/(loss) for the year

8.5  

(8.8)  

Total comprehensive income for the year

70.8  

31.7  

Attributable to:



Equity holders of the parent

70.3  

30.9  

Minority interests

0.5  

0.8  


70.8  

31.7  

Consolidated statement of changes in equity

for the year ended 30 June 2011







Attributable






Capital


Cash flow


to equity




Share

Share

redemption

Retained

hedge

Translation

holders of

Minority

Total


capital

premium

reserve

earnings

reserve

reserve

the parent

interests

equity


£m

£m

£m

£m

£m

£m

£m

£m

£m

At 30 June 2009

0.4

36.1

2.7

59.1

(9.8)

0.2

88.7

0.6

89.3

Profit for the year

Other comprehensive loss for the year

Dividends paid

Issue of own shares

Share-based payments charge

At 30 June 2010

Profit for the year

Other comprehensive income for the year

Dividends paid

Issue of own shares

Share-based payments charge

Tax on share-based payments

At 30 June 2011

0.4

46.9

2.7

120.7

(7.6)

0.2

163.3

0.9

164.2

 

Consolidated balance sheet

at 30 June 2011


2011

2010


£m

Non-current assets




Intangible assets

27.0

Property, plant and equipment

96.0

Investment in joint ventures

9.1

Retirement benefit asset

1.5

Deferred tax assets

34.4

Trade and other receivables

17.6

Non-current assets

185.6

Current assets




Inventories

430.9

Trade and other receivables

329.9

Income tax receivable

3.0

Other financial assets

0.2

Cash and cash equivalents

195.1

Current assets

959.1

Total assets


1,144.7

1,118.1

Current liabilities




Other financial liabilities

-

Trade and other payables

(799.2)

Tax liabilities

-

Provisions

(10.0)

Current liabilities

(809.2)

Non-current liabilities




Long‑term borrowings

(30.3)

Other financial liabilities

-

Trade and other payables

(68.3)

Retirement benefit obligations

(31.1)

Provisions

(41.2)

Deferred tax liabilities

(0.4)

Non-current liabilities

(171.3)

Total liabilities


(980.5)

(1,013.9)

Net assets

2

164.2

104.2

Equity




Share capital

0.4

Share premium

46.9

Capital redemption reserve

2.7

Retained earnings

120.7

Cash flow hedge reserve

(7.6)

Translation reserve

0.2

Equity attributable to equity holders of the parent


163.3

103.3

Minority interests

0.9

Total equity


164.2

104.2

 

Consolidated cash flow statement

for the year ended 30 June 2011


2011

2010


£m

Cash flows from operating activities




Profit before tax

72.5

Adjustments for exceptional items





Credits on retirement benefit obligations

(25.7)


Movement in provision for fine imposed by the Office of Fair Trading

(15.6)


Acquisition costs

0.8


Property, land and work in progress write-downs

33.5

Other adjustments





Share of post tax trading results of joint ventures

(0.4)


Normal contributions to pension fund in excess of pension charge

(6.8)


Equity settled share-based payments charge

2.7


Amortisation and impairment of intangible assets

3.4


Depreciation charges

14.5


Profit on disposal of joint ventures

(5.9)


Profit on disposal of property, plant & equipment

(4.3)


Net finance expense

0.5

Operating cash flows before movements in working capital

69.2

Special contributions to pension fund


(12.5)

(21.2)

Payment of acquisition costs

(0.8)

Payment of fine imposed by the Office of Fair Trading

(1.7)

Payment of restructuring costs

-

Decrease in inventories

19.9

Decrease in receivables

4.2

(Decrease)/increase in payables

(24.1)

Increase in provisions

7.7

Cash inflow from operating activities

61.9

Dividends received from joint ventures


0.1

0.8

Interest received

2.7

Income taxes paid

(11.4)

Net cash generated from operating activities

53.3

Cash flows from investing activities




Proceeds from sale of property, plant & equipment

14.8

Proceeds from sale of joint ventures

13.7

Purchases of property, plant & equipment

(28.4)

Purchase of intangible assets

(1.4)

Acquisition of subsidiaries

(37.7)

Net investment in joint ventures

(6.8)

Net cash used in investing activities

(45.8)

Cash flows from financing activities




Issue of shares

0.2

Interest paid

(3.4)

Dividends paid to equity holders of the parent

(14.2)

Dividends paid to minority interests

(0.5)

Net cash used in financing activities

(17.9)

(Decrease)/increase in cash and cash equivalents


(10.4)

82.8

Opening cash and cash equivalents

205.5

Closing cash and cash equivalents

195.1

Reconciliation of net cash flow to movement in net funds




(Decrease)/increase in cash and cash equivalents

(10.4)

Increase in long‑term borrowings

-

Opening net funds

175.2

Closing net funds

164.8

Net funds consist of:




Cash and cash equivalents

195.1

Long‑term borrowings

(30.3)

Net funds


164.8

175.2

 

Notes to the consolidated financial statements

1. Accounting policies

Profits on the disposal of Private Finance Initiative (PFI) investments have previously been disclosed as exceptional items. However as a result of the ongoing strategy to make regular disposals of PFI investments the directors believe that it is no longer appropriate to include such disposals as exceptional items in the Group's income statement as they are now expected to be recurring items. Disposals in the year to June 2011 have been reported within profit from operations before exceptional items and the results for the prior year to June 2010 have also been restated accordingly. The impact of this restatement was to increase profit after taxation before exceptional items for the year ended 30 June 2010 by £3.8m to £47.0m and decrease exceptional items by £3.8m to a charge of £6.5m. There was no impact on the group's consolidated total profit for the year. In addition to the income statement, notes 3, 4 and 6 have been restated.

Other than detailed above there have been no significant changes to the accounting policies in these financial statements. They have been prepared in accordance with International Financial Reporting Standards as adopted by the EU.

2 Revenue, profit and segmental reporting

The Group comprises four divisions: Construction, Services, Property and Homes and it is on this basis that the Group reports its segmental information.

Segment information is based on the information provided to the chief executive who is the chief operating decision maker. The segments are strategic business units with separate management and have different core customers and offer different services. The segments are discussed in the chief executive's review.

Construction

Property

Group

Year to 30 June 2011

£m

£m

£m

£m

£m

£m

Revenue1







Group and share of joint ventures

1,444.5

483.8

97.4

153.1

-

2,178.8

Less share of joint ventures

(55.8)

Group revenue

2,123.0

Profit







Group operating profit

59.7

Share of joint ventures' operating profit

2.1

Profit on disposal of joint ventures

5.9

Group and share of joint ventures

39.3

18.3

11.1

4.2

(5.2)

67.7

Share of joint ventures  - finance cost

(1.4)

- tax

(0.3)

Profit from operations before exceptional items

39.3

18.3

9.4

4.2

(5.2)

66.0

Exceptional items

Past service credit on retirement benefit obligation

25.7

Movement in provision for fine imposed by the
Office of Fair Trading

15.6

Property, land and work in progress write-downs

(33.5)

Acquisition costs

(0.8)

Profit from operations

54.9

18.3

6.9

(26.8)

19.7

73.0

Finance income/(cost)2

(0.5)

Profit before tax

70.2

17.9

7.6

(39.4)

16.2

72.5

Balance sheet







Investment in joint ventures

9.1

Other assets

940.5

Liabilities excluding long‑term debt

(950.2)

Net operating (liabilities)/assets

(0.6)

Cash, net of debt

164.8

Net assets

136.7

32.1

19.8

51.6

(76.0)

164.2

Other information







Inter-segmental revenue

45.4

Amortisation of intangible assets

3.4

Capital expenditure

28.6

Depreciation of property, plant and equipment

14.5

1Revenue is stated after the exclusion of inter-segmental revenue

2Interest was (charged)/credited to the divisions at a notional rate of 4.5% and 4.0% respectively

Notes to the consolidated financial statements continued

2 Segmental reporting continued

Construction

Property

Group

Year to 30 June 2010

£m

£m

£m

£m

£m

£m

Revenue1







Group and share of joint ventures

Less share of joint ventures

Group revenue

Profit







Group operating profit

Share of joint ventures' operating profit

Profit on disposal of joint ventures

Group and share of joint ventures

Share of joint ventures - finance cost

- tax

Profit from operations before exceptional items

Exceptional items

Past service credit on retirement benefit obligation

Movement in provision for fine imposed by the
Office of Fair Trading

Profit from operations

Finance income/(cost)2

Profit before tax

Balance sheet







Investment in joint ventures

Other assets

Liabilities excluding long‑term debt

Net operating (liabilities)/assets

Cash, net of debt

Net assets

Other information







Inter-segmental revenue

Amortisation of intangible assets

Capital expenditure

Depreciation of property, plant and equipment

1Revenue is stated after the exclusion of inter-segmental revenue

2Interest was (charged)/credited to the divisions at a notional rate of 4.5% and 4.0% respectively

Inter-segmental pricing is determined on an arm's length basis.

Net operating assets represent assets excluding cash, bank overdrafts, long‑term borrowings and interest-bearing inter-company loans.

3. Exceptional items

2011

2010



restated

£m

Past service credits on retirement benefit obligations

25.7

16.0

Movement in provision for fine imposed by the Office of Fair Trading

15.6

(18.0)

Property, land and work in progress write-downs:



Land and work in progress held for development

(32.6)

Property

(0.9)


(33.5)

-  

Acquisition costs

(0.8)

-  

Exceptional items before tax

7.0

(2.0)  

Taxation

2.1

(4.5)  

Exceptional items after tax

9.1

(6.5)  

Notes to the consolidated financial statements continued

3. Exceptional items continued

Exceptional items for the prior year have been restated to reflect the change in accounting policy to include profits on disposal of PFI investments within profit from operations before exceptional items as detailed in note 1.

The pension credits arose as a consequence of the announcement by the UK government that the inflation index to be used to derive statutory pension increases would be changed from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). These changes were announced for public sector pension schemes in June 2010 and for private sector schemes in July 2010.

The credits arising in the prior year and the current year have been accounted for following the guidance set out in UITF48 'Accounting implications of the replacement of RPI with CPI for retirement benefits'. As the Group had a pre-existing constructive obligation under both the Kier Sheffield LLP scheme and the Kier Group Pension Scheme and the changes from RPI to CPI were notified to scheme members, the past service credits have been accounted for as a change in benefits and recognised in the income statement in both years.

The gain of £25.7m in the current year reflects the impact of this change on the Kier Group Pension Scheme. This change only affects certain elements of the increase in pensions payable by the scheme. Deferred revaluation and the majority of increases to pensions in payment continue to be based in RPI. The gain in the prior year of £16.0m reflects the impact of this change on the pension scheme in which the employees of Kier Sheffield LLP participate.

On 22 September 2009 the Group was fined £17.9m in respect of The Office of Fair Trading's investigation into cover pricing in the construction industry. An exceptional provision of £18.0m was made in the prior year to reflect this potential fine. The Group appealed this fine to the Competition Appeals Tribunal, who on 11 March 2011 announced their decision to reduce the original fine imposed from £17.9m to £1.7m. The exceptional credit in the current year reflects the write-back of the original provision of £18.0m less the fine paid of £1.7m and the external legal costs of £0.7m.

During the current year the carrying value of properties, and land and work-in-progress have been written down to their net realisable value as a result of the current market conditions and following the values received from recent land sales.

During the current year external costs of £0.8m have been incurred and expensed on the acquisition of Beco Limited (£0.2m) in November 2010 and Kier Developments Limited (£0.6m) in April 2011. Further details of these acquisitions are provided in note 8.

4. Income tax

a) Recognised in the income statement



2011




2010


Before




Before




exceptional

Exceptional



exceptional

Exceptional



items

items

Total


items

items

Total






restated

restated



£m

£m

£m


£m

£m

£m

Current tax expense








UK corporation tax

13.0

(5.8)

7.2


8.7

-

8.7

Overseas tax

(0.1)

-

(0.1)


0.1

-

0.1

Adjustments for prior years

0.5

-

0.5


(0.3)

-

(0.3)

Total current tax

13.4

(5.8)

7.6


8.5

-

8.5

Deferred tax expense








Origination and reversal of temporary differences

2.8

3.7

6.5


3.6

4.5

8.1

Effect of change in tax rate

(1.8)

-

(1.8)


-

-

-

Adjustments for prior years

(2.1)

-

(2.1)


0.6

-

0.6

Total deferred tax

(1.1)

3.7

2.6


4.2

4.5

8.7

Total income tax expense in the income statement

12.3

(2.1)

10.2


12.7

4.5

17.2

Reconciliation of effective tax rate








Profit before tax

65.5

7.0

72.5


59.7

(2.0)

57.7

Adjust: tax on joint ventures included above

0.3

-

0.3


(0.1)

-

(0.1)

Adjusted profit before tax

65.8

7.0

72.8


59.6

(2.0)

57.6

Income tax at UK corporation tax rate of 27.5% (2010: 28%)

18.1

1.9

20.0


16.7

(0.6)

16.1

Non-deductible expenses

0.7

(4.0)

(3.3)


1.2

5.1

6.3

Tax relief on expenses not recognised in the income statement

(0.4)

-

(0.4)


(4.5)

-

(4.5)

Effect of change in tax rate

(1.8)

-

(1.8)


-

-

-

Profits attributable to minority interest not taxable

-

-

-


(0.1)

-

(0.1)

Effect of tax rates in foreign jurisdictions

(0.1)

-

(0.1)


(0.1)

-

(0.1)

Capital gains not taxed

(2.3)

-

(2.3)


(0.8)

-

(0.8)

Tax losses utilised not recognised as a deferred tax asset

-

-

-


(0.1)

-

(0.1)

(Over)/under provision in respect of prior years

(1.6)

-

(1.6)


0.3

-

0.3

Total tax (including joint ventures)

12.6

(2.1)

10.5


12.6

4.5

17.1

Tax on joint ventures

(0.3)

-

(0.3)


0.1

-

0.1

Group income tax expense

12.3

(2.1)

10.2


12.7

4.5

17.2

Notes to the consolidated financial statements continued

4. Income tax continued

b) Recognised in the statement of comprehensive income

2011

2010


£m

£m

Deferred tax expense (including effect of change in tax rate)



Fair value movements on cash flow hedging instruments:



Group

-

0.3

Joint ventures

1.7

(0.8)

Actuarial gains/(losses) on defined benefit pension schemes

7.8

(2.9)

Total income tax charge/(credit) in the statement of comprehensive income

9.5

(3.4)

c) Factors that may affect future tax charges

The Chancellor has announced that the UK corporation tax rate will reduce from 28% to 23% over a period of four years by April 2014. The first reduction from 28% to 26% was substantively enacted on 29 March 2011 and is effective from 1 April 2011. This has had the effect of reducing the net deferred tax asset included in the above figures by £2.8m, with £1.8m being credited to the income statement and £4.6m being charged directly to the statement of comprehensive income.

The reduction in the UK corporation tax rate from 26% to 25% was substantively enacted on 5 July 2011 and is effective from 1 April 2012. This will reduce the Group's future current tax charge accordingly.

If the rate change from 26% to 25% had been substantively enacted at 30 June 2011 it would have had the effect of reducing the net deferred tax asset of £29.9m (Group £34.0m asset, joint ventures £4.1m liability) held at this date by £2.0m, with £0.3m being credited to the income statement and £2.3m being charged directly to the statement of comprehensive income.

It has not been possible to quantify the full-anticipated effect of the further 2% rate reduction, although this will further reduce the Group's future tax charge and reduce the deferred tax assets accordingly.

5. Dividends

Amounts recognised as distributions to equity holders in the year.

2011

2010


£m

£m

Final dividend for the year ended 30 June 2010 of 39.5 pence (2009 of 37.0 pence)

14.6

13.6

Interim dividend for the year ended 30 June 2011 of 20.0 pence (2010 of 18.5 pence)

7.5

6.8


22.1

20.4

The proposed final dividend of 44.0 pence (2010: 39.5 pence) bringing the total dividend for the year to 64.0 pence (2010: 58.0 pence) had not been approved at the balance sheet date and so has not been included as a liability in these financial statements. The dividend totalling £16.6m will be paid on 30 November 2011 to shareholders on the register at the close of business on 23 September 2011. A scrip dividend alternative will be offered.

6. Earnings per share

A reconciliation of profit and earnings per share, as reported in the income statement, to adjusted profit and earnings per share is set out below. The adjustments are made to illustrate the impact of exceptional items and the amortisation of intangible assets.

2011


2010


Basic

Diluted


Basic

Diluted





restated

restated


£m

£m


£m

£m

Earnings (after tax and minority interests), being net profits attributable to
equity holders of the parent

61.8

61.8


39.7

39.7

Exclude: exceptional items

(7.0)

(7.0)


2.0

2.0

Tax thereon

(2.1)

(2.1)


4.5

4.5

Earnings excluding exceptional items

52.7

52.7


46.2

46.2

Add: amortisation of intangible assets

3.4

3.4


2.9

2.9

Less: tax on amortisation of intangible assets

(0.9)

(0.9)


(0.8)

(0.8)

Adjusted earnings

55.2

55.2


48.3

48.3


million

million


million

million

Weighted average number of shares

37.2

37.2


36.7

36.7

Weighted average impact of LTIP and Sharesave Scheme

-

0.5


-

0.3

Weighted average number of shares used for earnings per share

37.2

37.7


36.7

37.0


pence

pence


pence

pence

Earnings per share

166.1

163.9


108.2

107.3

Earnings per share (excluding exceptional items)

141.7

139.8


125.91

124.91

Adjusted earnings per share (excluding exceptional items and the
amortisation of intangible assets)

148.4

146.4


131.61

130.51

1The figures for the prior year have been restated to reflect the change in accounting policy to include profits on disposal of PFI investments within the profit from operations before exceptional items as detailed in note 1.

 

Notes to the consolidated financial statements continued

7. Retirement benefit obligations

The amounts recognised in respect of the Group's defined benefit schemes are as follows:

Kier Group Pension Scheme

Kier Sheffield LLP


2011

2010

2011

2010

£m

£m

Opening deficit

(78.6)

(96.1)

(8.6)

(18.6)

Charge to operating profit

(3.5)

(9.1)

(1.3)

(2.8)

Past service credits

25.7

-

-

16.0

Employer contributions

22.8

32.5

1.3

1.1

Actuarial gains/(losses)

2.5

(5.9)

10.1

(4.3)

Closing (deficit)/surplus

(31.1)

(78.6)

1.5

(8.6)

Comprising





Total market value of assets

680.2

611.2

159.5

135.1

Present value of liabilities

(711.3)

(689.8)

(158.0)

(143.7)

(Deficit)/surplus

(31.1)

(78.6)

1.5

(8.6)

Related deferred tax asset/(liability)

8.1

22.0

(0.4)

2.4

Net pension (liability)/asset

(23.0)

(56.6)

1.1

(6.2)

The Group has made the following special cash contributions to the Kier Group Pension Scheme:

·  In December 2009 £13.2m which was settled through the transfer of residential land at market value as determined by DTZ an independent firm of chartered surveyors; and

·  In June 2011 £4.5m which was settled through the transfer of the Group's 50% interest in Sheffield Schools PFI project (Academy Services (Sheffield) Holdings Limited). These amounts have been included as a contribution received by the scheme.

The past service credits arose due to changes announced by the government to use the CPI in place of the RPI to determine pension increases. These has been accounted for as a change in benefits and recognised in the income statement as exceptional credits. Further details of these credits are provided in note 3.

8. Acquisitions and disposals

a) Summary of consideration paid for acquisitions during the year net of bank balances, overdrafts and loans aquired

2011

£m

2010

Beco Limited

1.8

-

Kier Developments Limited

33.9

-

Construction and building services operations of North Tyneside Council

1.0

3.4

Kent LEP

-

2.2

Pure Recycling

1.0

2.0

Hugh Bourn Developments (Wragby) Limited

-

0.5

Total

37.7

8.1

External costs of £0.8m have been incurred and expensed during the year to 30 June 2011 on the acquisition of Beco Limited (£0.2m) and Kier Developments Limited (£0.6m).

Acquisition of investment in Beco Limited

On 22 November 2010 the Group, through its subsidiary Kier Limited, purchased the entire issued share capital of Beco Limited (Beco). The consideration representing the fair value of the net assets acquired is payable wholly in cash.

The total consideration for the purchase was £2.4m of which £1.3m was paid in cash in November 2010. The balance of £1.1m is due in instalments by November 2013. £0.7m of this balance is contingent on the results of the business acquired. It has been discounted to its present value of £1.0m.

The fair values of the identifiable net assets acquired and the goodwill arising from the transaction are as follows:

Fair value


£m

Property, plant and equipment

         0.1

Inventories

         0.4

Receivables

0.8

Payables

           (1.1)

Bank overdraft and loans

           (0.5)

Identifiable net assets

           (0.3)

Goodwill

             2.6

Total consideration

            2.3

The acquisition of Beco resulted in £2.6m of goodwill. This goodwill was paid as the acquisition gave the Group immediate access to the solar photovoltaic market through Beco's industry accreditation and the knowledge and experience of its staff.

The cash outflow in respect of this acquisition during the year ended 30 June 2011 was £1.8m, being £1.3m of consideration and £0.5m for the repayment of bank overdrafts and loans acquired.

Notes to the consolidated financial statements continued

8. Acquisitions and disposals continued

Acquisition of investment in Kier Developments Limited

On 14 April 2011 the Group, through its subsidiary Kier Property Limited, acquired from Lloyds Banking Group its 50% interest in the jointly owned Kier Developments Limited incorporating a portfolio of real estate assets.

As a result of the transaction, Kier Property Limited now owns the entire issued share capital of Kier Developments Limited.

The total amount payable to Lloyds Banking Group for the purchase was £91.0m, of which £35.0m was paid in cash in April 2011. The balance of £56.0m is due in two instalments of £30.0m in October 2012 and £26.0m in October 2013, it has been discounted to its present value of £52.1m.

This transaction has been accounted for as a step acquisition under IFRS 3 'Business combinations'.

The carrying value of the Group's existing 50% interest in Kier Developments Limited on 14 April 2011 was £18.3m comprising a shareholder loan of £20.3m net of £2.0m for the Group's share of the retained losses of Kier Developments Limited at the date of acquisition.

The directors determined that the fair value of the pre-existing interest in the joint venture was the same as its carrying value of £18.3m, and therefore no gain or loss has been recognised within the income statement to reflect the deemed disposal of the interest in the joint venture. The total consideration due to the Lloyds Banking Group for the remaining 50% interest is £91.0 million. The level of consideration in comparison to the fair value for the previous 50% interest reflects the debt-free state in which the entity is being bought as existing bank debt and shareholder loans are being capitalised into equity as part of the transaction.

The fair value of the existing 50% interest has been calculated based on a value in use basis, incorporating knowledge of the current development sites and access to clients and employees of the business.

The fair values of the identifiable net assets of the whole of Kier Developments Limited and the goodwill arising from the transaction are as follows:

Fair value


£m

Property, plant and equipment

9.0

Deferred tax asset

22.2

Inventories

76.2

Receivables

5.7

Bank balances

1.1

Payables

            (8.9)

Identifiable net assets

105.3

Goodwill

0.1

Total fair value

105.4

The gross contractual amount of receivables was £13.8m, the fair value of these receivables was £5.7m as it is estimated that £8.1m will not be received.

The total fair value of the whole of Kier Developments Limited on increasing the Group's ownership from 50% to 100% is made up as follows:

£m

Payable to Lloyds Banking Group for their existing 50% equity interest and outstanding bank loans:


 

Cash paid in April 2011

35.0

Deferred consideration of £56.0m discounted to present value

52.1


87.1

Fair value of the previous 50% interest in Kier Developments Limited

18.3

Total fair value

105.4

The cash outflow in respect of this acquisition during the year ended 30 June 2011 was £33.9m, being £35.0m paid to Lloyds Banking Group net of £1.1m of bank balances acquired.

In the period from 14 April 2011 Kier Developments Limited contributed revenue of £15.1m and profit before tax of £4.2m.

If the acquisition had occurred on 1 July 2010, the directors have estimated that consolidated revenue would have been £59.4m, and consolidated profit before tax for the year would have been £4.1m. In determining these amounts, it has assumed that the fair value adjustments, determined provisionally, that arose on the acquisition date would have been the same if the acquisition had occurred on 1 July 2010.

Acquisition of the business and assets of the construction and building services operation of North Tyneside Council

On 6 September 2009 the Group, through its subsidiary Kier North Tyneside Limited, acquired the business and assets of the building services operation of North Tyneside Council. The consideration, payable wholly in cash, was £6.9m representing the value of the net assets acquired.

The consideration is payable as follows:

£m

Total consideration payable

6.9

Paid at 30 June 2010

(3.4)

Paid during the year to 30 June 2011

(1.0)

Unwinding of discount

0.2

Deferred at 30 June 2011

2.7

The deferred consideration is a fixed payment due in instalments by March 2014, it has been discounted to its present value.

Notes to the consolidated financial statements continued

8. Acquisitions and disposals continued

Acquisition of investment in Pure Recycling

On 14 May 2010 the Group through its subsidiary Kier Services Limited, purchased the entire issued share capital of Pure Recycling Warwick Limited and Pure Buildings Limited. The consideration payable wholly in cash, was £6.4m representing the fair value of the net assets acquired.

The consideration is payable as follows:

£m

Total consideration payable

6.4

Paid at 30 June 2010

(2.0)

Paid during the year to 30 June 2011

(1.0)

Unwinding of discount

0.4

Deferred at 30 June 2011

3.8

The deferred consideration is contingent on the completion of certain events and on the results of the business acquired and is due in instalments by October 2016. It has been discounted to its present value.

b) Disposal of investments in joint ventures

During the year the Group, through its subsidiary Kier Project Investment Limited, sold its investments in three PFI projects, for combined consideration of £13.7m (Sheffield Schools £4.5m, Oldham Schools £5.4m and Norwich Schools £3.8m).

Oldham Schools and Norwich Schools were sold externally and the cash consideration was received in full, Sheffield Schools were transferred to the Kier Group Pension Scheme. Further details of this transfer are provided in note 7.

During the prior year the Group, through its subsidiary Kier Project Investment Limited, sold its investment in two PFI projects, Waltham Forest Schools and Tendring Schools for a combined cash consideration of £7.3m, received in full in December 2009.

The disposal proceeds can be reconciled to the profits on disposal of as follows:

2011

2010


£m

Sales proceeds

13.7

7.3

Book value of net assets and loans of joint ventures

(7.3)

Sale costs and loan interest receivable included in sales proceeds

(0.5)

Profit on disposal

5.9

9. Statutory accounts

The information set out above does not constitute statutory accounts for the years ended 30 June 2011 or 2010 but is derived from those accounts.

Statutory accounts for 2010 have been delivered to the Registrar of Companies and those for 2011 will be delivered following the Company's annual general meeting and will be made available on the Company's website, www.kier.co.uk. The accounts have been prepared on a going concern basis which the directors consider appropriate. The auditors have reported on the 2010 and 2011 accounts, their reports were unqualified and did not contain statements under section 498 (1) or (2) of the Companies Act 2006.


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

Companies

Kier Group (KIE)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today