Business
Update on trading, FPK programme, strategic review
Update on trading, FPK programme, strategic review.
About this update from Kier Group Plc
[{"type":"text","content":"\n \nRNS Number : 8891A Kier Group PLC 03 June 2019 \n\n3 June 2019\n \nKier Group plc\n \nUpdate on trading, Future Proofing Kier programme and strategic review\n\nKier Group plc (\"Kier\" or the \"Group\") today provides an update on its current trading and outlook for the 2019 financial year (\"FY2019\"), its Future Proofing Kier programme and the timing of the strategic review announced on 15 April 2019.\n \nCurrent trading and outlook \n \nAs highlighted in Kier's FY2019 interim results, the Group continues to experience volume pressures within its Highways, Utilities and Housing Maintenance businesses. In addition, whilst continuing to perform well with double digit growth in its orderbook during FY2019, the Buildings business' revenue growth for FY2019 will be lower than previously forecast.\n \nAs a result, Kier now expects that FY2019 revenue will be broadly in line with the Group's reported revenue for the 2018 financial year and currently expects that the Group's underlying operating profit for FY2019 will be c. £25 million lower than previous expectations and that the Group is likely to report a net debt position as at 30 June 2019, which would have an adverse impact on its FY2019 average month-end net debt position.\n \nAgainst the background of the revised guidance in respect of FY2019, Kier will provide updated guidance for FY2020 with its FY2019 preliminary results announcement on 19 September 2019. \n \nFuture Proofing Kier programme\n \nThe net costs associated with the FPK programme for FY2019 are now expected to be c. £15 million higher than previously forecast. In part, this reflects an acceleration of the programme following the appointment of Andrew Davies as Chief Executive. These net costs are in addition to the £25 million reduction in operating profit identified above. Kier will provide a further update on the FPK programme when it announces the conclusions of the strategic review. \n \nStrategic review\n \nOn 15 April 2019, Kier announced that Andrew Davies would lead a strategic review of the Group to consider ways of further simplifying it, the allocation of capital resources across the Group and additional steps to improve cash generation and reduce leverage. Kier confirms that the conclusions of this review will be announced on 30 July ...