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Wed July 28 2021

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Kier running ahead of expectations

13 Jul A trading update from Kier Group reveals that its financial results will be ‘moderately ahead’ of the board's previous expectations.

Kier chief executive Andrew Davies
Kier chief executive Andrew Davies

When Kier reveals its results in September for the year to 30th June 2021, they will show an adjusted operating profit margin of approximately 3%.

Kier has continued to win major contracts, sold its Kier Living house-building division for £350m, raised capital from shareholders and secured and extension to its revolving credit facility – all of which is making the board feel reasonably secure.

“Trading since the announcement of our half year results continued to be resilient and consequently the group's full year results are anticipated to be moderately ahead of the board's expectations,” it said today.

It added that it was confident of achieving its medium-term targets of a 3.5% adjusted operating profit margin and a cash conversion of operating profit rate of 90%.

Recent contract awards include:

  • £190m Area 3 maintenance and response contract for Highways England
  • £50m early works contract for HS2 Phase 2a
  • Openreach contract to construct new broadband infrastructure
  • appointed to the Ministry of Justice's £1bn new prisons programme
  • £75m capital works contract for Hammersmith & Fulham council

Chief executive Andrew Davies said: "The group's proven track record of delivery and focus on selected markets, coupled with its strong order book and strengthened balance sheet, gives the board confidence in our strategy and the continued success of the group."

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