Trading Update

RNS Number : 9553Z

Kier Group PLC

16 January 2020

 

16 January 2020

Kier Group plc

Trading update

Kier Group plc ("the Group") issues an update on trading for the period from 15 November 2019 (the date of its AGM trading update) to 31 December 2019 ("the period") and certain other developments during the period.

Trading

Trading for the period was in line with the Board's expectations. The Group continues to be awarded new contracts across the markets in which it operates, including being appointed to all 20 lots of the four-year £8bn Procure Partnerships Framework in November 2019.

Net debt

The Group continued to manage its net debt closely during the period. The Group's average month-end net debt for the six-month period to 31 December 2019 was in line with the Board's expectations.

FY2020 interim results

Under its new leadership team, the Group will bring forward the date on which it announces its results for the six-month period ended 31 December 2019 from 19 March 2020 to 5 March 2020.

Strategic actions

The Group continues to make good progress with respect to its office closures, the outsourcing of certain functions and the reduction in headcount. The Group expects to deliver a headcount reduction of c.1,200 by 30 June 2020 and annual cost savings of at least £60m in the financial year ending 30 June 2021 and is reviewing further cost optimisation opportunities.

The Group continues to progress the disposal of Kier Living, its housebuilding business, and to evaluate the options for its Property business.  

Chairman

As announced on 16 December 2019, Matthew Lester was appointed as Chairman of the board of directors ("the Board") with effect from 1 January 2020, replacing Phillip Cox who stood down as Chairman and from the Board on that date.

Andrew Davies, Chief Executive, commented:

"The work to re-shape the Group continues through the careful execution of our strategic priorities and efforts to significantly reduce the Group's cost base.  The Group is performing in line with our expectations and we continue to win work from our customers."

- ENDS -

For further information, please contact:

Kier press office	[phone]
Richard Mountain / Nick Hasell, FTI Consulting	[phone]

This announcement does not constitute an offer of securities by Kier Group plc (the "Company"). Nothing in this announcement is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financial or otherwise, of the Company or any of its subsidiaries (together, the "Group") whether in the current or any future financial year. This announcement may include statements that are, or may be deemed to be, ''forward-looking statements''. By their nature, forward-looking statements involve risks and uncertainties because they relate to events and depend on circumstances that may or may not occur in the future and may be beyond the Company's or the Group's ability to control or predict. Forward-looking statements are not guarantees of future performance. You are advised to read the section headed ''Principal risks and uncertainties'' in the Company's Annual Report and Accounts for the year ended 30 June 2019 for a further discussion of the factors that could affect the Company's or the Group's future performance and the industry in which it operates.  Other than in accordance with its legal or regulatory obligations, the Company does not accept any obligation to update or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise.

 

END

 

 

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