Kier Group PLC AGM Trading Update (5500H)
November 16 2018 - 2:00AM
UK Regulatory
TIDMKIE
RNS Number : 5500H
Kier Group PLC
16 November 2018
KIER GROUP PLC
AGM TRADING UPDATE
Kier Group plc, a leading infrastructure services, buildings and
developments & housing group, announces its trading update
covering the period since 20 September 2018, prior to its Annual
General Meeting at 12 noon today.
Introduction
The Board is confident that the Group will meet its FY19
expectations, with the full-year results being weighted towards the
second half of the financial year.
Future Proofing Kier (FPK) programme
Since its launch, the FPK programme has made good progress with
respect to streamlining the business and improving cash
generation.
As anticipated, the costs of implementing the FPK programme in
the first half of the financial year are forecast to exceed the
realised savings by approximately GBP10m. The full-year FY19
position is still expected to be earnings and cashflow neutral.
Disposal
On 15 November 2018, Kier agreed the terms of the disposal of
its interest in KHSA Limited to Downer Group, the joint venture
partner, for a total cash consideration of up to AUS$43.7m
(c.GBP24m). The proceeds will service the reduction of the Group's
net debt.
Financial position
The Group continues to focus on operational cash generation and
net debt reduction, anticipating average monthly net debt of
approximately GBP390m for the first half of FY19, compared with
approximately GBP410m for the second half of FY18. The level of net
debt is increasingly a key focus for stakeholders in the industry
and the Board recognises the importance of a strong balance sheet
to take advantage of opportunities to underpin its future
performance.
Outlook
The FPK programme positions the Group well for an improvement in
profitability and cash generation, and its order books and
development pipelines remain strong.
- ENDS -
For further information, please contact:
Richard Mountain/Nick Hasell, FTI Consulting +44 (0)203 727 1340
Cautionary statement
This announcement does not constitute an offer of securities by
Kier Group plc (the "Company"). Nothing in this announcement is
intended to be, or intended to be construed as, a profit forecast
or a guide as to the performance, financial or otherwise, of the
Company or any of its subsidiaries (together, the "Group") whether
in the current or any future financial year. This announcement may
include statements that are, or may be deemed to be,
"forward-looking statements". By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future and may be beyond the Company's or the Group's ability to
control or predict. Forward-looking statements are not guarantees
of future performance. You are advised to read the section headed
"Principal risks and uncertainties" in the Company's Annual Report
and Accounts for the year ended 30 June 2018 for a further
discussion of the factors that could affect the Company's or the
Group's future performance and the industry in which it operates.
Other than in accordance with its legal or regulatory obligations,
the Company does not accept any obligation to update or revise
publicly any forward-looking statement, whether as a result of new
information, future events or otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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