Business
Trading Statement
Trading Statement.
About this update from Kier Group Plc
[{"type":"text","content":"\n \nRNS Number : 0833U Kier Group PLC 10 July 2018 \n\n10 July 2018\n \nKIER GROUP PLC\nPost close period trading update and new streamlining programme\n \nKier Group plc (\"Kier\" or \"the Group\"), a leading infrastructure services, buildings and developments & housing group, provides a trading update following the conclusion of its financial year on 30 June 2018 and in advance of the release of its full year results, scheduled for 20 September 2018.\n \nOverview \n· Underlying profit and earnings forecast to be in line with expectations;\n· Year-end net debt is expected to be in the range of £170m - £190m as forecast, with average month-end net debt of c.£375m reflecting reduced volumes due to bad weather affecting the Construction business over the winter. Construction volumes have since returned to levels in line with management's expectations;\n· Increased Construction and Services order books of more than £10bn, providing a 90% secured revenue position in these businesses for FY19; and\n· In the highways sector, three-year extensions secured to the Highways England contracts for Areas 3 and 9, with aggregate total annualised revenues of c.£250m.\n \nLaunch of an efficiency and streamlining programme\nFollowing the repositioning of the Group to focus on three key market positions, infrastructure services, buildings and developments & housing, in June 2018 the Group launched a new efficiency and streamlining programme, entitled 'Future Proofing Kier'. Facilitated by significant investment in new systems over the past two years, this programme will improve productivity, include the disposal of non-core operations and deliver an improvement in operating margins and cash generation. It is anticipated that material benefits will be realised in the financial year ending 30 June 2020 and beyond. Further details about the 'Future Proofing Kier' programme will be announced in due course and at the full year results in September.\n \nOutlook\nThe Group's core businesses operate in three growing UK markets, each of which is underpinned by robust macroeconomic and demographic fundamentals. The Group is focused on continuing to improve its performance and reducing its average net debt. The s...