Trading Statement

Kier Group PLC
04 July 2005

                                                                     4 July 2005



                                 KIER GROUP PLC
                                 TRADING UPDATE
                            YEAR ENDED 30 JUNE 2005

Kier Group plc, the contracting, services, housebuilding and property group is
pleased to provide the following update to current trading in advance of a site
visit with analysts and institutions today.

Kier Group plc expects to report full year profits well ahead of last year and
at the higher end of market expectations.

In Construction both public and private sector investment has provided us with
plenty of good quality opportunities resulting in a record level of awards for
the year. Cash generation has exceeded our expectations reflecting the quality
of contracts in progress and our focus on cash.

Support Services continues to make good progress, particularly in the Building
Maintenance division where more opportunities are becoming available.

In Housing we started the financial year with a very strong order book which
provided us with a high level of sales in the first half of the year. We
anticipated a reduced level of sales in the second half of the year and have
overall achieved 1,215 completions for the year providing a 5% increase over
last year. The predicted recovery in the housing market post-election has not
materialised, with reservation levels varying from week to week but at a level
lower than at this time last year. Nevertheless we enter the new financial year
with an order book representing more than our first quarter's projected sales.
We will continue to favour improving margins over increased volume.

Our Property business continues to benefit from opportunities across our sectors
including those for mixed-use and regeneration projects in joint venture with
our housing and construction businesses.  Within our wholly owned property
business we completed the development of the headquarters building for the
National Trust in Swindon and the office development in Whitehall, both of which
have contributed strongly to profits this year.

Our PFI business continues to grow with financial close reached on a schools
project in Sheffield in April which will provide Kier Regional with a £50m
construction contract and Caxton with a 25 year support services contract.

Kier remains well positioned in all its markets and prospects are good for the
future.

Kier Group expects to announce its preliminary results for the year to 30 June
2005 on 15 September 2005.

                                    - ENDS -


For further information, please contact:

John Dodds, Chief Executive
Kier Group plc                    Tel: [phone]

Deena Mattar, Finance Director
Kier Group plc                    Tel: [phone]

Caroline Sturdy
Madano Partnership                Tel: [phone]




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