Kier Group PLC
29 October 2007
29 October 2007
KIER GROUP PLC
INTERIM MANAGEMENT STATEMENT
This is the first interim management statement from Kier Group plc as required
by the UK Listing Authority's Disclosure and Transparency Rules. This statement
covers the period from 1 July 2007 to date.
We are pleased to report that the Group has made a good start to the new
financial year with first quarter trading in-line with our expectations putting
us on track to achieve our full year target.
Our Construction division has had a strong start to the new financial year with
a record level of revenue achieved in the first quarter. The market remains
buoyant and our order books remain at very healthy levels. We are pleased to
have been selected as preferred bidder on one of the first 'Academy' projects,
at Milton Keynes, under the new Contractors' Framework for Academies and other
Education Facilities, which is likely to provide further work in due course.
In Support Services our Building Maintenance business continues its success with
the award of preferred bidder status for Stoke-on-Trent City Council to deliver
a £400m joint venture contract to carry out repairs and maintenance on the
City's 20,000 homes over a period of 10 years, extendable for a further five.
Hammersmith and Fulham have awarded us a £25m contract to carry out repairs and
maintenance on 7,165 homes over five years. Further good opportunities remain
in this market in which we are establishing ourselves as a leading provider of
these services.
The Homes division has made a satisfactory start to the year despite negative
buyer sentiment and uncertainties in the mortgage lending market. Although our
reservations to the end of September are marginally fewer than the same period
last year, our order book at 19 October 2007 is 4% ahead of 2006 by value with
over 50% of our full year targeted unit sales secured by way of completions,
exchanged contracts and reservations. Our sites have experienced a notable
reduction in the level of visitors since the news broke on Northern Rock,
however our housing businesses are still achieving rates of reservations that
should enable us to attain our targeted unit sales for the year. As we have
previously indicated we expect the unit sales to be biased towards the second
half of the year with the half-year margin reflecting the phasing of anticipated
sales. Selling prices, in general, are holding up with little need to increase
incentives on most sites.
In Property the occupier market remains sound despite investment uncertainties
and in September we completed on the sale of a £40m regional headquarters
development in Milton Keynes to be occupied by Electronic Data Systems. More
recently we have exchanged on the sale of an entire industrial scheme of 22
units in Hemel Hempstead. The division was delighted to receive the award for '
best small unit developer' at the Industrial Agents Society annual award for
Hemel Hempstead and other industrial schemes. We are continuing to explore
opportunities to acquire further stock in order to expand the business.
Our markets in Construction and Support Services continue to be strong. The
Homes and Property markets are both subject to sentiment and the appetite of
lenders both of which are erring on the side of caution. Overall the Group's
financial performance to date is in line with our expectations putting us firmly
on track to achieve further growth this year.
- ENDS -
For further information, please contact:
John Dodds, Chief Executive
Deena Mattar, Finance Director
Kier Group plc Tel: 01767 640111
Caroline Sturdy/Matthew Moth
Madano Partneship Tel: 020 7593 4000
This information is provided by RNS
The company news service from the London Stock Exchange DDOKB
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