Kier Group has issued a trading update and forecast for the financial year ahead.
The Group said trading is in line with Board expectations with a stronger performance anticipated in the second half of FY2024 – adding it is on track to resume dividend payments in the new financial year, starting with an interim dividend.
At the end of October this year Kier’s order book was valued at £10.5 billion (excluding long-term frameworks), up from £10.1 billion on 30 June.
Ninety-one per cent of Group revenue in FY2024 is also estimated to be secured, up from 85 per cent in July this year.
The Group continues to deleverage while focusing on operational delivery and cash management.
“We remain focused on winning profitable work through our longstanding client relationships and regionally based operations,” a trading statement reads.
In September, Kier agreed to acquire all of Buckingham Group’s rail assets and its HS2 contract for £9.6 million, after the £700 million turnover business went into administration.
It said it is “pleased with the performance delivered to date” having largely integrated the assets into its Transportation business.
Kier will provide construction services for the next four years to the £8 billion Procure Partnerships Framework.
Its Construction business was also appointed to deliver a £61 million expansion of NETPark Premier Science Park in Sedgefield.
Somerset Council recently awarded the company’s transportation business an eight-year £225 million road maintenance contract, which spans repairs, drainage, verge cutting and winter service.
It was also the preferred bidder for a £1 billion Birmingham highways maintenance and management PFI contract until June 2035.
A word from the top
“The current financial year has started well and, despite the ongoing inflationary pressure and supply chain challenges, it is especially pleasing that we are trading above the corresponding period last year, and in line with our expectations,” said Andrew Davies, chief executive of Kier.
“We remain well positioned to continue benefiting from UK Government infrastructure spending commitments and we remain focused on the delivery of a sustainable net cash position with capacity to invest, in line with our medium-term value creation plan.”
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