REG - Kier Group PLC - Full Year 2025 Trading Update

KierAnnouncement

Tue 07:00

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RNS Number : 9486R  Kier Group PLC  22 July 2025

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION

 

22 July 2025

Kier Group plc

 

Full Year 2025 Trading Update

 

Kier Group plc ("Kier" or "the Group"), a leading infrastructure services,
construction and property group issues a trading update for the year ended 30
June 2025, ahead of publishing Full Year 2025 ("FY25") results on 16 September
2025.

 

Highlights

 

·    Revenue and profit expected to be in line with the Board's
expectations

·    High quality year-end order book of c.£11.0bn, with 88% of revenue
for FY26 secured

·    Strong free cash flow generation, with a net cash position at 30 June
2025 of c.£204m, up 22% from 30 June 2024 (FY24: £167m)

·    Substantially improved average month-end net debt £(49)m (FY24:
£(116)m)

·    Initial share buyback programme of £20m well progressed and expected
to complete in the first half of FY26

 

The Group has also issued an announcement this morning, that Andrew Davies,
Chief Executive, will be retiring and succeeded by Stuart Togwell, currently
Kier's Group Managing Director, Construction.  Further details are set out in
that announcement.

 

Trading

 

The Group's FY25 results are expected to represent good growth on the prior
year and to be in line with market expectations, reflecting strong operational
execution. In particular, in the second half of the year, the ramp up of AMP 8
related activity in the Water business has offset more modest growth in the
Transportation sector and a steadying of volume in Construction, while the
Property business delivered significant project milestones in the period,
completing three major developments and improving ROCE towards its targeted
return.

 

Order book

 

Growth opportunities in the Group's core markets continue to be underpinned by
the Government's renewed investment commitments, to improving UK
infrastructure and regulated UK assets.

 

The evolution of the order book continues to reflect the Group's positive
momentum, and as at 30 June 2025 totalled c.£11bn (30 June 2024: £10.8bn).
This order book strength, supported through Kier's framework positioning,
means that approximately 88% of Group revenue for FY26 is already secured,
providing a high degree of visibility over our near-term performance.

 

During the last year, Kier has continued to win new, high quality work,
reflecting the bidding discipline and risk management processes embedded in
the business. The Group had a strong end to the year, securing awards
including:

 

·   Infrastructure Services:

o   Awarded a £139m Green Recovery contract to deliver the main works for
upgrade of the Wanlip Sewage Treatment works by Severn Trent

o   Southern Water - First three ECI schemes awarded under AMP8 Strategic
Delivery Partnership framework

·   Construction:

o   Appointed by Midlothian Council to deliver the new, £41.8m Mayfield
Community Learning Campus

o   Appointed under a PSCA by Warwick University to deliver the first phase
of the £700m STEM Connect development at their West Midlands campus

 

·   Property:

o   Strategic Partnerships - Two new joint ventures were established;
Investec Realis and Cervidae. Both are set to unlock significant long-term
value

o   Residential sector - Planning approvals have been secured on five sites:
Bishop's Stortford, South Wokingham, Guildford and Watford with 670 homes to
commence delivery during FY26

 

Balance sheet

 

The Group has generated substantial operating free cash flow during the year
ended 30 June 2025. We anticipate reporting a net cash position of £204m at
30 June 2025, 22% above the £167m reported at 30 June 2024. The year-end cash
position was partly driven by a seasonal inflow of working capital,
particularly in the Construction division which more than offset the increased
returns to shareholders, comprising the payment of higher dividends (£24m),
the initial share buyback programme launched in January 2025 (£7m spent to
date, out of £20m), and the in-year investment in the Property business
(c.£30m).

 

The FY25 average month-end net debt position was marginally above the first
half average net debt due to the timing of shareholder returns and property
investment (mentioned above) but is significantly improved over the prior year
at £(49)m (FY24: £(116)m), with the higher volume of activity across the
Group translating to strong cash generation, creating a strong platform to
further enhance shareholder value.

 

 

Andrew Davies, Chief Executive of Kier, commented:

 

"The Group has performed strongly in FY25, and is delivering well against its
long-term sustainable growth plan. This performance, alongside the continued
growth of our high quality order book and recapitalisation of our Property
business, supports the recent upgrade to our long term margin targets and
underpins the creation of strong and sustainable value for shareholders."

 

Inside Information

 

This announcement contains inside information for the purposes of Article 7 of
the Market Abuse Regulation. The person responsible for arranging the release
of this announcement on behalf of Kier is Jaime Tham, Company Secretary.

 

- 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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