Kier strategy reduces net debt by £100m

The group said trading was “in line with board expectations” with strong volume growth in construction, and a stronger performance is expected in the second half of FY2024.  

Kier’s order book value at 31 December 2023 was £10.7 billion, a 6 per cent increase on the year end (30 June 2023: £10.1 billion) and the prior year (31 December 2022: £10.1 billion). 

The group has secured revenue of 92 per cent for FY2024, providing a high degree of visibility. However, long-term frameworks are excluded from the order book, representing additional opportunities, it said.   

The business also continues to deleverage while focusing on operational delivery and cash management and has slashed average month-end net debt by £100 million to £140 million. 

It added it is on track to resume dividend payments in the current financial year, starting with an interim dividend alongside its half year results.   

Click here to read more about Kier’s business activities   

Buckingham Group  

In September last year, Kier acquired all of Buckingham Group’s rail assets and its HS2 contract for £9.6 million after the £700 million turnover business went into administration, which it said has now been successfully integrated into its Transportation business. 

A word from the top    

“Kier has made a good start to the year, in line with our expectations,” said Kier chief executive, Andrew Davies. “I am particularly pleased with the progress we are making on reducing debt, which has resulted in the group materially deleveraging its balance sheet in the first half. We have achieved this through disciplined growth as well as our unstinting focus on operational excellence, cash management and cash generation.”  

Adding: “Kier remains well positioned to continue benefiting from UK Government infrastructure spending commitments and this gives the board every confidence in delivering our medium-term value creation plan.” 

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