REG - Kier Group PLC - Trading Update and Revised Margin Targets

KierAnnouncement

03/06/2025 07:00

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RNS Number : 1072L  Kier Group PLC  03 June 2025

3 June 2025
 

 

 

Kier Group plc

Capital Markets Event

Trading Update and Revised Margin Targets

 

Kier Group plc ("Kier" or "the Group"), a leading infrastructure services,
construction and property group issues a trading update for the period to 30
April 2025 ahead of holding a Capital Markets Event for analysts and
institutional investors later today.

 

 

Capital Markets Event

 

The Capital Markets Event will focus on the Group's unique operating model
which enables Kier to drive above market growth through the cycle and its
sector leading margins.

 

The event will be hosted by Chief Executive, Andrew Davies and Chief Financial
Officer, Simon Kesterton and will include presentations from, and the
opportunity to engage with, our senior management team.

 

The event presentation and recording will be made available on Kier's website.

 

 

Current Trading and Order Book

 

The Group continued to trade well and in line with the Board's expectations in
the period to 30 April 2025.

 

The order book was c.£11bn, consistent with the half-year position, which
represents a c.2% increase on the year-end position (30 June 2024: £10.8bn).
The Group has secured revenue of c.80% for FY26, providing a high degree of
visibility. Long-term framework positions are excluded from the order book and
represent an additional opportunity.

 

Recent awards include:

 

·   Infrastructure Services:

o   Natural Resources, Nuclear & Networks: a 5 year renewal of the
Anglian Water IOS Alliance worth up to £400m

o   Transportation: a one-year extension by Shropshire County Council for
the maintenance of local highways

·   Construction:

o   A PCSA by the University of Warwick to design and build STEM facilities

o   Two education projects worth c.£180m

·   Property: Planning permission received for £200m Bishop's Stortford
station redevelopment (Network Rail Joint Venture)

 

Revised Margin Targets

 

Bidding discipline and risk management embedded across the business has driven
a higher quality order book, which combined with the recapitalisation of our
property business has led us to increase our operating profit margin target to
4.0%-4.5% in 3 to 5 years.

 

The Group is focused on delivering against its long-term sustainable growth
plan, revised for the increased margin expectations:

 Revenue:                              GDP + growth through the cycle
 Adjusted operating profit margin:     4.0% - 4.5%
 Cash conversion of operating profit:  c.90%
 Balance sheet:                        Average month-end net cash with investment of surplus cash
 Dividend:                             Sustainable dividend policy: c.3x earnings cover through the cycle

 

 

- ENDS -

 

For further information, please contact:

 Investor Relations                +44 (0)7933 388 746
 Kier Press Office                 +44 (0)1767 355 096
 Richard Mountain, FTI Consulting  +44 (0)203 727 1340

 

About Kier Group plc

Kier is a leading UK infrastructure services, construction and property group.
We provide specialist design and build capabilities and the knowledge, skills
and intellectual capital of our people to ensure we are able to project manage
and integrate all aspects of a project.

 

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 2024 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.

 

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