Business
Kier Group PLC Trading Update
Kier Group PLC Trading Update.
About this update from Kier Group Plc
[{"type":"text","content":"\n \nRNS Number : 0660D Kier Group PLC 04 July 2016 \n\nFor release at 0700 hours on 4 July 2016\n \nKIER GROUP PLC\nTRADING UPDATE\n \nKier Group plc, a leading property, residential, construction and services group, provides an update on current trading following its year end on 30 June 2016. \n \nCurrent trading\nSince the announcement of its interim results on 17 March 2016, the Group's underlying trading performance has remained in line with management's expectations. \n \nThe EU referendum result has created some uncertainty albeit with no impact on the business to date. The Board, however, believes the Group's breadth of activities and strong order books provide both visibility and resilience. The acquisitions of May Gurney and Mouchel have significantly increased the level of visible, long-term earnings from our Construction and Services divisions. The Property division has a healthy pipeline of projects totalling more than £1bn, largely comprising non-speculative schemes, and the Residential division's mixed tenure business has a pipeline of over £600m.\n \nFinancial position\nFollowing an improved cash performance, the Group's net debt position of less than £140m at 30 June 2016 is ahead of the forecast range of £150m - £170m. This position includes the cash expenditure of £44m on the Mouchel integration and £25m on new systems and upgrades. This performance equates to a net debt to EBITDA ratio of <1, which has been achieved a year ahead of our Vision 2020 goal of a net debt to EBITDA ratio of 1 by 30 June 2017.\n \nThe Group has recently concluded the raising of £82m (€100m) of additional finance via the Schuldschein market. The placement has an average maturity of approximately five years and a blended interest rate of approximately 3% including fees. This fundraising further diversifies the Group's sources of funding and provides it with long-term, fixed-rate debt, thereby reducing the Group's exposure to increases in interest rates over the longer-term.\n \nMouchel update\nThe Mouchel business is performing well. The integration of the strategic highways and local authority highways maintenance businesses is now complete. In addition, the Mouchel business services operations have been integrated with Kier's facilities management operations, creating Kier Work...