AGM Statement

Kier Group PLC 26 November 2001 26 November 2001 KIER GROUP plc AGM STATEMENT Kier Group plc, the major construction, support services and housebuilding group, held its Annual General Meeting at the Group's head office at Sandy, Bedfordshire on Saturday, 24 November at 11.00 am. Commenting to shareholders on the successful growth achieved by the Group in its financial year to 30 June 2001, Colin Busby, Chairman and Chief Executive went on to say that growth was continuing in the current financial year. He made the following comments: 'The events of 11 September in the US sent shock waves around the world but the markets in which we operate remain remarkably robust. Our order books in both Construction & Services and Housebuilding are exceptionally strong and enquiry levels remain high. 'The Housing business is performing well. It is benefiting from being in the right markets with the right product. In addition, the integration of Allison Homes into the business is proceeding well and is expected to make a significant contribution to the growth of the Housing business. Demand for new homes is still strong in all the areas in which Kier operates, completions are ahead of this time last year and, on a like-for-like basis, forward sales orders are very strong at 36% ahead of last year, excluding Allison Homes, and 67% ahead overall. 'Orders taken in both Regional and National construction divisions are at a strong level in the September quarter and opportunities to bid for new work remain plentiful. A number of major bids are currently being prepared in our fast-growing Support Services division. 'The target set two years ago of reaching operating margins of 1% in Construction & Services was achieved in the year to 30 June 2001. The programme of continuing improvement is being sustained to achieve further margin increases in the coming years. 'In respect of PFI, the Group's Infrastructure Investment team was successful in achieving financial close on Tendring Schools, Kier's first school project, and we have been selected as preferred bidder on Greenwich Carehomes. 'We will continue to build on the successful, integrated business of Kier which, over the last five years, has provided shareholders with 25% compound growth in earnings per share: our businesses continue to perform strongly and the prospects for further growth this year and beyond are good.' - ENDS - Colin Busby, Chairman Kier Group plc Tel: 01767 640111 Caroline Sturdy Bell Pottinger Financial Tel: 020 7861 3889

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