REG - Kier Group PLC - FY25 Results
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RNS Number : 4220Z Kier Group PLC 16 September 2025
16 September 2025
Kier Group plc
FY25 Results
Continued strong operational delivery, profitable growth and increased
shareholder returns
Kier Group plc ("Kier", the "Company" or the "Group"), a leading UK
infrastructure services, construction and property group, announces its
results for the year ended 30 June 2025 ("FY25").
Financial Highlights - Continuing Operations
(£m unless otherwise stated) Year to Year to Change
30 June 2025 30 June 2024
Adjusted results
Revenue(1) 4,087.8 3,969.4 3%
Adjusted operating profit(2) 159.1 150.2 6%
Adjusted operating margin (%) 3.9 3.8 10bps
Adjusted profit before tax(3) 125.4 118.1 6%
Adjusted basic earnings per share (p) (note 9) 21.6 20.6 5%
Net cash(4) 204.1 167.2 22%
Average month-end net debt (49.2) (116.1) 58%
Free cash flow 155.4 185.9 (16)%
Order book (£bn) 11.0 10.8 2%
Statutory reported
Group revenue 4,077.1 3,905.1 4%
Operating profit 113.7 103.1 10%
Profit before tax 78.1 68.1 15%
Basic earnings per share (p) (note 9) 12.8 11.8 8%
Proposed full year dividend per share (p) (note 8) 7.2 5.2 38%
( )
(1 Revenue of the Group and its share of revenue from joint ventures.)
(2 Stated before adjusting items of £23.8m (FY24: £23.9m) and amortisation
of acquired intangible assets of £21.6m (FY24: £23.2m).)
(3 Stated before adjusting items of £25.7m (FY24: £26.8m) and amortisation
of acquired intangible assets of £21.6m (FY24: £23.2m).)
(4 Disclosed net of the effect of hedging instruments and excludes leases -
see note 13 to the preliminary financial statements.)
FY25 Highlights
· Revenue and operating profit growth with strong positive cashflow:
o Revenue growth of 3% and adjusted operating profit growth of 6%
o Strong operational delivery across all businesses
o Adjusted operating margin grew 10bps to 3.9%, progressing towards
increased long-term margin target of 4.0%-4.5%
o Reported operating profit increased 10% to £113.7m (FY24: £103.1m)
o Free cash flow of £155.4m (FY24: £185.9m), representing 125% operating
cash conversion, significantly above sustainable growth plan target of 90%
o Strengthened balance sheet: average month-end net debt materially
improved by £67m to £(49)m
· Record order book:
o High quality order book increased to £11.0bn (FY24: £10.8bn) providing
significant visibility of future cashflows
o 91% of expected FY26 revenue and c.70% of FY27 revenue secured
· Creating value through a disciplined approach to capital allocation:
o Proposed full year dividend increased by 38% to 7.2p, representing
earnings cover of 3x
o £20m share buyback announced in January 2025 (over 30% complete at 30
June 2025)
o Increased investment in the Property segment: capital employed now
£198m and on track to deliver ROCE target of 15% by FY28
Andrew Davies, Chief Executive, said:
"In the first year of our long-term sustainable growth plan the Group
delivered strongly, with profit performance, in particular, ahead of our
initial expectations. Our adjusted operating profit margin of 3.9% has
progressed well towards our target range of 4.0%-4.5%, while we also grew our
order book to a record £11bn, providing considerable, multi-year revenue
visibility. These achievements, together with our strong recurring cashflow
and balance sheet discipline, enabled us to invest further in our Property
business; commence an initial £20m share buyback programme; and significantly
increase the level of dividends payable to shareholders.
Building on our outperformance in FY25, the Group has started the current
financial year well and for FY26 is trading slightly ahead of the Board's
expectations. Kier remains well positioned to continue to deliver
infrastructure that matters and benefit from the UK Government's 10-year
Infrastructure Strategy spending commitments. We remain confident in our
strong sustainable cash generation, allowing us to allocate capital
efficiently, utilising our integrated capabilities to drive compounding
returns for our stakeholders.
On a personal note, it has been a privilege to lead Kier over the last six
years and to see the Group transformed into a strong and sustainable business
with enhanced resilience and a reinforced financial position. That
transformation has only been possible due to the capability, professionalism
and hard work of Kier's teams and the support of our customers and partners. I
would like to thank them for their support and commitment in ensuring Kier's
continued success in delivering infrastructure that is vital to the UK.
Finally, I would like to congratulate Stuart on his well-deserved appointment
as the next Chief Executive of Kier and wish him every success."
FY25 Results Presentation
Kier Group plc will host a presentation for analysts and investors at 9:00am
on 16 September 2025 at the offices of Deutsche Numis, 45 Gresham Street,
London EC2V 7BG.
Analysts wishing to attend should contact FTI Consulting to register -
Connie.Gibson@fticonsulting.com
Analysts unable to attend in person will be able to join the webcast using the
details below:
Webcast: https://www.investis-live.com/kier/6891d8e85467670031fffd77/ofwg
(https://www.investis-live.com/kier/6891d8e85467670031fffd77/ofwg)
United Kingdom: +44 808 189 0158
United Kingdom (Local): +44 20 3936 2999
Conference password: 480556
An audio recording will be available on our website in due course.
Online Retail Investor Presentation
Andrew Davies, Chief Executive Officer, Stuart Togwell, CEO Designate and
Simon Kesterton, Chief Financial Officer, will be hosting a live online retail
investor presentation 10:30 on Thursday 25(th) September 2025. To attend,
please register via the following link: Webinar Registration - Kier Group
investor presentation
(https://us06web.zoom.us/webinar/register/WN_j_35RoSqS0KXgVCCSVOfFQ) .
Further Information:
Kier Group plc
Investor Relations +44 (0) 7933 388 746
Kier Press office +44 (0) 1767 355 096
FTI Consulting +44 (0) 20 3727 1340
Richard Mountain
Cautionary Statement
This announcement does not constitute an offer of securities by 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 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''. These forward-looking statements
can be identified by the use of forward-looking terminology, including the
terms ''believes'', ''estimates'', ''anticipates'', ''expects'', ''intends'',
''plans'', ''target'', ''aim'', ''may'', ''will'', ''would'', ''could'' or
''should'' or, in each case, their negative or other variations or comparable
terminology. They may appear in a number of places throughout this
announcement and include statements regarding the intentions, beliefs or
current expectations of the directors, the Company or the Group concerning,
amongst other things, the operating results, financial condition, prospects,
growth, strategies and dividend policy of the Group or the industry in which
it operates. 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 ability to
control or predict. Forward-looking statements are not guarantees of future
performance. The Group's actual operating results, financial condition,
dividend policy or the development of the industry in which it operates may
differ materially from the impression created by the forward-looking
statements contained in this announcement. In addition, even if the operating
results, financial condition and dividend policy of the Group, or the
development of the industry in which it operates, are consistent with the
forward-looking statements contained in this announcement, those results or
developments may not be indicative of results or developments in subsequent
periods. Important factors that could cause these differences include, but are
not limited to, general economic and business conditions, industry trends,
competition, changes in government and other regulation, changes in political
and economic stability and changes in business strategy or development plans
and other risks.
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.
Principal Risks and Uncertainties
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 discussion of the factors that could affect the Group's
future performance and the industry in which it operates.
About Kier
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 ensure we are able to project manage
and integrate all aspects of a project.
We take pride in bringing specialist knowledge, sector-leading experience and
fresh thinking to create workable solutions for our clients across the
country.
Together, we have the scale and breadth of skills of a major company, while
retaining a local focus and pride that comes from never being far from our
clients, through a network of offices spanning across England, Wales, Scotland
and Northern Ireland.
For further information and to subscribe to our news alerts, please visit:
www.kier.co.uk (http://www.kier.co.uk)
Connect with us on LinkedIn: Kier Group
Introduction
The Group's continued focus on operational excellence and disciplined cash
management has produced another strong set of results for the year. We have
continued to deliver against our long-term sustainable growth plan as our
operational activity converts into high levels of profitability and cash
generation, enhancing our balance sheet flexibility.
On 21 January 2025, we announced the launch of an initial £20m share buyback
programme, building on the reintroduction of dividend payments during FY24.
Given our significant operational and financial progress, allied to the
Board's ongoing confidence in the Group's performance, a final dividend of
5.2p has been proposed (subject to shareholder approval) which would total a
7.2p dividend for the full year representing a 38% increase on the FY24 total
dividend.
The future prospects for the Group are underpinned by the order book growing
to a record £11bn at the end of FY25, with 91% of Group revenue for FY26 now
secured. During the year, Kier won new, high-quality and profitable work in
our markets reflecting our leading operational capabilities, as well as the
bidding discipline and risk management embedded in the business. Long-term
frameworks, as well as pipeline opportunities and income from the Property
division, represent additional areas of opportunity, all of which provide us
with substantial multi-year revenue visibility.
Long-term sustainable growth plan
The Group is focused on delivering against its long-term sustainable growth
plan, first announced in September 2024 and subsequently evolved in June 2025
for an improved margin target range:
Revenue: GDP + growth through the cycle
Adjusted operating profit margin: 4.0% - 4.5%, in 3 to 5 years
Cashflow conversion of operating profit: c.90%
Balance sheet: Average net cash with investment of surplus cash
Dividend: Sustainable dividend policy: c.3x earnings cover through the cycle
Strategy
The Group's strategy continues to be focused on:
· UK Government, regulated industries and blue-chip customers
· Operating in the business-to-business market
· Contracting through long-term frameworks
Our core businesses are well placed to benefit from Government and regulated
industry spending commitments in respect of UK infrastructure. We are a
strategic supplier to the UK Government and c.90% of our contracts are with
the public sector and regulated companies.
Despite wider political and economic uncertainties, our core markets remain
favourable with a clear commitment to long-term UK infrastructure spending
driven by key structural factors, such as population growth, transportation
pressures, aging infrastructure, energy security and climate change.
Given that public funding may be insufficient to maintain public assets,
customer behaviours continue to shift towards long-term partnerships, which
continues to favour Kier, given our scale, integrated design and project
management capability, track record of delivery and Environmental, Social and
Governance ('ESG') credentials.
Customers and winning new work
Our contract awards reflect our longstanding customer relationships and
regionally focused operations across the UK. During the year, we saw
significant growth in both Infrastructure Services and Construction orders,
providing us with good multi-year revenue visibility.
Highlights include:
· Infrastructure Services:
o Secured our first contracts on Southern Water's AMP8 framework, working on
clean and waste water schemes totalling c. £45m.
· Construction:
o Awarded a more than £100m contract to deliver additional prison places at
HMP Northumberland, as part of the Small Secure Houseblocks (SSHP) Alliance
for the Ministry of Justice (MoJ)
o Education - awarded four projects worth c.£210m
o Kier Places - appointed by Wiltshire Council to their five-year Facilities
Management contract worth £3.4m p.a.
Financial summary
Kier's revenue of £4.1bn reflects solid growth, with strong performances
achieved across the business.
Our order book has continued to grow, up 2% year over year to £11.0bn.
Approximately 60% of the order book is under target cost or cost reimbursable
contracts, with the remainder based on fixed priced contracts where the risk
is negotiated and managed with our customers and supply chain partners.
Additionally, with over 400 live projects at any given time, we are regularly
delivering existing projects and pricing new contracts which mitigates against
any rising cost pressures. Furthermore, we have a modest average order size,
of c.£20m in our Construction business, limiting our exposure in the event a
project does not go to plan.
The Group delivered adjusted operating profit of £159.1m, representing a 6%
increase on the prior year (FY24: £150.2m) as growth from Infrastructure
Services and evolution of Construction mix converted to profits, combined with
a more favourable overall mix of profitability by business. The adjusted
operating profit margin of 3.9% represented 10bps growth on the prior year
(FY24: 3.8%). Reported operating profit increased 10% to £113.7m (FY24:
£103.1m).
Adjusted earnings per share (EPS) increased 5% to 21.6p (FY24: 20.6p) and
reported EPS increased 8% to 12.8p (FY24: 11.8p).
The Group generated £155.4m of free cash flow in FY25 (FY24: £185.9m),
driven by strong operating cash conversion of 125%. This reflects more
normalised working capital flows compared to FY24 but maintains cash
conversion significantly above the long-term sustainable growth plan target of
90%. The resulting capital has been allocated in line with the Group's
priorities, including increasing returns to shareholders through a share
buyback programme, and higher dividend payments. Furthermore, we have invested
additional capital in the Property business, in order to optimise returns in
this area.
The Group's net cash position at 30 June 2025 was £204.1m (FY24: £167.2m)
with supplier payment days remaining consistent with the prior year as volume
growth translated to increased cash receipts.
Average month-end net debt for the year ended 30 June 2025 was £(49.2)m
(FY24: £(116.1)m). The strong operational cash flow allowed the Group to
continue to reduce levels of debt, while also providing scope to allocate
capital as mentioned above.
In January 2025, the Group fully repaid its remaining USPP Notes and the RCF
reduced to £150m in line with both facility agreements. This RCF, combined
with the £250m five-year Senior Notes, provides the Group with £400m of
committed liquidity.
Capital allocation
The Group maintains a disciplined approach to capital allocation and
continuously reviews priorities with the aim of maximising shareholder
returns:
· Capex - ongoing investment to support the business
· Ordinary Dividend - targeting dividend cover of c.3x
earnings through the cycle
· Investment in Property - disciplined investment in the
Property segment. ROCE target of 15% with up to £225m of capital deployed
· Acquisitions - the Group will consider value accretive
acquisitions in core markets
We have committed to returning any remaining unallocated capital to
shareholders:
· Incremental Shareholder returns - initial £20m share
buyback programme launched in January 2025
These priorities are underpinned by the Group's commitment to maintain a
strong balance sheet targeting an average month-end net cash position.
Dividend
Given the continuing operating and financial progress made during the year,
the Board is proposing a final dividend of 5.2p per share and thus a total
dividend of 7.2p representing cover of 3x, compared to 4x in FY24.
Subject to shareholder approval, the final dividend amounting to approximately
£22.7m will be paid on 3 December 2025 to shareholders on the register at
close of business on 31 October 2025. The shares will be marked ex-dividend on
30 October 2025. Kier has a Dividend Reinvestment Plan ("DRIP"), provided by
Equiniti Financial Services Limited, which allows shareholders to reinvest
their cash dividends in our shares. The final election date for the DRIP is 14
November 2025.
Performance Excellence
Through our Performance Excellence programme Kier maintains a strong
operational and financial risk management framework across the Group which is
embedded into contract selection and delivery processes.
The Group's core themes for FY25 have been Digitalisation and Simplification
as we look to continuously improve the operational performance of the
business. The key elements of these themes were as follows:
· Site set-up - standardisation of site offices and enhancing site
connectivity
· Health, safety and wellbeing - simplifying health and safety data
and sharing best practice
· Quality assurance - improving capability and digital tools
· Functions - simplifying processes and enhancing current systems
Supply chain partners
We continue to focus on maintaining and growing relationships with our key
stakeholders, including our supply chain, where many of our suppliers are
valued long-term partners of the Group.
We are pleased to report that in the period 1 January 2025 to 30 June 2025,
the Group's aggregate average payment days was 34 (H1: 33 days) and the
percentage of payments made to suppliers within 60 days was 91% (H1: 92%).
We remain committed to further improvements in our payment practices and
continue to work with customers and suppliers to achieve this. We are fully
committed to complying with updated procurement legislation including the
30-day payment requirements for small and medium-sized firms.
Environmental, Social and Governance (ESG)
Kier's purpose is to sustainably deliver infrastructure which is vital to the
UK economy. Our role serving the UK Government and regulated industries means
we are closely aligned to act responsibly for both the environment and the
communities we service. As UK Government contracts (above £5m p.a.) require
net zero carbon and social value commitments, our ESG credentials are
fundamental to our ability to win work and secure positions on long-term
frameworks.
Our sustainability framework, 'Building for a Sustainable World', focuses on
three pillars: Our People, Our Places and Our Planet, with relevant metrics
that report progress. During the year we have developed these metrics across
all three pillars and strengthened our disclosures in these areas.
Health, Safety and Wellbeing
The Group's 12-month rolling Accident Incident Rate (AIR) in FY25 of 115
represents a decrease of 25.8% compared to the prior year (155).
The Group's 12-month rolling All Accident Incident Rate (AAIR) in FY25 of 343
has reduced by 5.5% compared to the prior year (FY24: 363).
The improved FY25 safety performance reflects the Group's consistent approach
to health, safety and wellbeing: integrating robust processes, procedures and
a risk management framework to ensure that Kier has a high-performing safety
culture.
Environment
Climate action
The current year has seen continued progress towards meeting our carbon
reduction targets, to become net zero carbon for Scope 1 and 2 by 2039. In
FY25 we achieved a 4.3% year-on-year reduction in Scope 1 and 2 carbon
emissions. This amounts to a 71% reduction in Scope 1 & 2 emissions since
FY19.
Regarding Scope 3 (supply chain) emissions we have begun to target strategic
supply chain partners and materials in order to achieve meaningful
reductions. During FY25 we transferred six key suppliers to a more granular,
activity-based inventory methodology building towards our aim to be net zero
carbon by 2045 across our value chain.
Accreditations
In FY25, we received external verification of our approach to delivering our
sustainability ambitions:
o Independent limited assurance from the British Standards Institution (BSI)
for our sustainability framework measures (outside of carbon) for the first
time
o Independent reasonable assurance from BSI of our carbon footprint to
ISO14064-1 standards. This has been in place since FY23.
As well as reducing our own carbon footprint, Kier continues to work with its
customers to remove carbon from UK infrastructure designs. Since FY23 Kier has
achieved the London Stock Exchange Green Economy Mark, with 71% of our FY25
revenue derived from green products and services, increasing by 200bps from
FY24 (69%).
Social
In FY25 we delivered £531m (FY24: £548m) of added social value(5) through
our workforce, supply chain and the overall positive impact on our local
communities.
(5 In FY25, we adjusted how we report social value created by SME and VCSE
spend, moving from gross reporting to net reporting. This was in response to
improving assurance and transparency of social value data. In FY24, we
reported £583m of added social value using a gross spend method. The
equivalent value using a net spend method is £548m.)
Emerging Talent
Attracting, developing and retaining future talent are key to the Group
delivering our long-term sustainable growth strategy. We offer numerous
apprenticeships and graduate programmes to achieve this.
In FY25 11.3% of our people were in formal training and development
programmes, with the Group earning 'Platinum' membership of the 5% Club(6).
The Group also welcomed 86 future graduates on work experience placements
and 179 graduates onto our graduate programme, 40.8% of which were women. We
also make places on these programmes available to current Kier employees who
wish to develop their careers further.
( )
(6 5percentclub.org.uk)
Community engagement
In addition to the training and development opportunities we offer our people,
we identify those with the potential to become the next generation of talent,
operating schemes such as:
· Kierriculum: our award-winning educational outreach programme to
inspire the next generation to work in construction.
· STEM ('Science, Technology, Engineering and Mathematics')
ambassadors: our network of ambassadors are the bridge between school
experiences of studying STEM topics and real-world exposure to a career in
construction.
· Open Doors Week: we participate in Build UK's Open Doors week
which is a nationwide programme, showcasing the range of careers available in
the construction industry.
( )
Built by Brilliant People(TM)
Kier is Built by Brilliant People(TM) who have been instrumental in delivering
the success of the Group to date and will continue to do so in the future. To
ensure that Kier is the construction employer of choice we have invested in
the rewards and benefits we offer to our people and their families:
· We are a proud Real Living Wage employer, meaning that we have
been accredited by the United Kingdom's Living Wage Foundation as paying a
fair wage, which reflects the cost of living in the UK.
· All our people receive life assurance and access to a range of
wellbeing support including a virtual GP, confidential advice and counselling
services.
· Other initiatives include Your Voice, a survey tracking employee
engagement and focused on wellbeing, where the FY25 score of 80.5% represents
an increase from the previous year (76.1%(7)).
(7 In previous years, we reported employee engagement based on 'positive
emotions'. This metric was based on the average number of positive emotions
selected across our surveys. To improve our measurement of how our people feel
about working with Kier, we have moved to an employee engagement 'index',
which is based on the average score across eight questions in our survey. This
evolution allows us to better understand contributing factors to employee
engagement across a wider range of indicators. As such, we have restated our
previously reported 67% as 76.1% according to the new methodology.)
Summary and outlook
In the first year of our long-term sustainable growth plan the Group delivered
strongly, with profit performance, in particular, ahead of our initial
expectations. Our adjusted operating profit margin of 3.9% has progressed well
towards our target range of 4.0%-4.5%, while we also grew our order book to a
record £11bn, providing considerable, multi-year revenue visibility. These
achievements, together with our strong recurring cashflow and balance sheet
discipline, enabled us to invest further in our Property business; commence an
initial £20m share buyback programme; and significantly increase the level of
dividends payable to shareholders.
Building on our outperformance in FY25, the Group has started the current
financial year well and for FY26 is trading slightly ahead of the Board's
expectations. Kier remains well positioned to continue to deliver
infrastructure that matters and benefit from the UK Government's 10-year
Infrastructure Strategy spending commitments. We remain confident in our
strong sustainable cash generation, allowing us to allocate capital
efficiently, utilising our integrated capabilities to drive compounding
returns for our stakeholders.
Operational Review
Infrastructure Services - 52% of FY25 Group revenue
Year ended Year ended
30 June 2025 30 June 2024 Change
Revenue (£m) 2,136.0 1,988.3 7%
Adjusted operating profit (£m) (8) 111.0 112.3 (1)%
Adjusted operating margin (%) 5.2 5.6 (40)bps
Reported operating profit (£m) 89.5 88.7 1%
Order book (£bn) 6.5 6.4 2%
( )
(8 Stated before adjusting items of £21.5m (FY24: £23.6m).)
( )
· Key contract wins include:
Natural Resources, Nuclear & Networks:
o Secured our first contracts on Southern Water's AMP8 framework, working on
clean and waste water schemes totalling c. £45m.
· 87% of revenue secured for FY26
Infrastructure Services comprises the Transportation and Natural Resources,
Nuclear & Networks businesses.
Revenue increased 7% against the prior year reflecting the continued
acceleration of HS2 works together with growth in the water and nuclear
sectors. Adjusted operating profit reduced by 1% to £111.0m (FY24: £112.3m),
reflecting the benefit of a one-off £6m customer claim in the prior year,
excluding which underlying growth would be 4%. Adjusting items include the
amortisation of contract rights from the Buckingham and other acquisitions.
The Transportation business division undertakes design, build and maintenance
of assets primarily in the road, rail and aviation sectors.
The business benefited from the start of several contracts won in previous
periods and the continued successful delivery of works for HS2. This has been
partly offset by anticipated delays in finalising the new phase of the Road
Investment Strategy (RIS3) as well as a later than anticipated start to work
under Control Period 7 (CP7) for our rail business.
The Natural Resources, Nuclear & Networks division delivers long-term
contracts in maintenance and capital projects to the water, nuclear and energy
sectors as well as the protection of habitats and communities in our natural
environment and waterways. The business is well positioned to benefit from
the increase in opportunities from the new water spending cycle (AMP8) as well
as growth in the environment and energy sectors.
During the period we saw marked revenue growth in Water and Nuclear, as we
start to fulfil projects delivered under these new spending cycles.
Currently, the Group is working with a total of 9 customers through 17
frameworks with an advertised value of up to £15bn. In addition to the
Government's £104bn long term commitment to the AMP8 investment programme,
the Group is seeing opportunities to grow market share by broadening support
for natural water management.
Construction - 47% of FY25 Group revenue
Year ended Year ended
30 June 2025 30 June 2024 Change
Revenue (£m) 1,910.5 1,907.8 -%
Adjusted operating profit (£m) (9) 75.0 69.2 8%
Adjusted operating margin (%) 3.9 3.6 30bps
Reported operating profit (£m) 54.9 59.6 (8)%
Order book (£bn) 4.5 4.4 2%
( )
(9) (Stated before adjusting items of £20.1m (FY24: £9.6m))
· Key contract wins include:
o Awarded a more than £100m contract to deliver additional prison places at
HMP Northumberland, as part of the Small Secure Houseblocks (SSHP) Alliance
for the Ministry of Justice (MoJ)
o Education - awarded four projects worth c.£210m
o Kier Places - appointed by Wiltshire Council to their five-year Facilities
Management contract worth £3.4m p.a.
· 95% of revenue secured for FY26
The Construction segment comprises both regional and large scale strategic
projects, together with property management services (Kier Places). The
business delivers schools, hospitals, prisons and defence estate optimisation,
as well as commercial, residential and heritage buildings for local
authorities, the Ministry of Justice, other government departments, and the
private sector.
Revenue remained in line with the prior year overall, with growth from both
regional and strategic projects such as the successful hand over of HMP
Millsike during FY25 offsetting the exit of some lower margin contracts within
Kier Places. Work also commenced on the HMP Glasgow project towards the end
of FY25 with full activity levels anticipated to be reached in the second half
of FY26.
Adjusted operating profit increased 8% to £75m driven by the improved
business mix, including the Kier Places contract management mentioned above.
Adjusting items include £17m relating to fire and cladding compliance costs.
As a regional Tier 1 contractor, we continue to be well placed to benefit from
the UK Government's focus on spending to improve under-invested assets such as
schools, hospitals and custodial services, where our Construction business has
specialist expertise.
Property - 1% of FY25 Group revenue
Year ended Year ended
30 June 2025 30 June 2024 Change
Revenue (£m)(10) 38.4 71.0 (46)%
Adjusted operating profit (£m)(11) 12.2 6.2 97%
Adjusted operating margin (%) 31.8 8.7 2,310bps
Reported operating profit (£m) 12.2 1.9 542%
Capital employed (£m) 198 166 19%
ROCE (%) 6.7 3.9 280bps
( )
(10 Revenue of the Group and its share of revenue from joint ventures)
(11 Stated before adjusting items of £nil (FY24: £4.3m))
( )
· Planning secured for:
o Six Trade City industrial units at Maple Cross
o 55 homes in Saffron Walden under the Vistry Joint Venture
· Construction phase:
o Eleven Trade City units at Bognor Regis
o Ten Trade City units at St Albans
· Acquired a four-acre site at Sharston, Manchester
· Further development at Watford with development starting on new
Town Square, Riverwell Square
The Property business invests in and develops mixed-use commercial and
residential schemes across the UK, largely through joint ventures. For FY25,
Property generated revenue of £38.4m (FY24: £71.0m) reflecting a large
one-off asset sale (Southampton) in the prior year, as well as a higher
proportion of land (vs building) sales overall. In FY25 Property transaction
volumes grew, to nine (from five in the prior year), driving the growth in
adjusted operating profit, to £12m (FY24: £6m).
The Group is focused on the disciplined expansion of the Property business
through select investments and strategic joint ventures, targeting a
consistent ROCE of 15% by 2028. As at 30 June 2025, the capital employed in
the Property segment was £198m excluding third-party debt and fair value
gains. We expect to increase the average capital employed towards £225m,
while reinvesting to deliver more consistent returns over the medium term. The
ROCE result for FY25 demonstrates modest but steady progress, particularly in
the second half of the year, towards the targeted level of returns as the
property portfolio continues to season and overall capital employed approaches
more optimal levels.
Corporate
Year ended Year ended
30 June 2025 30 June 2024 Change
Adjusted operating loss (£m)(12) (39.1) (37.5) (4)%
Reported operating loss (£m) (42.9) (47.1) 9%
12 Stated before adjusting items of £3.8m (FY24: £9.6m)
The Corporate segment comprises the costs of the Group's central functions
which have increased over the prior year due to underlying cost inflation and
investment in people and systems to support the Group's growth in operational
activity. Net adjusting items of £3.8m in the year primarily relate to
corporate property.
Financial Review
Introduction
The Group performed well during the year, with further improvement in the
order book being converted into revenue and profit growth. The Group continues
to deleverage with average month-end debt improving significantly as a result
of the focus on operational delivery and cash management.
The Group delivered growth of 3.0% giving total revenues of £4,087.8m (FY24:
£3,969.4m) and which helped generate an adjusted operating profit of £159.1m
(FY24: £150.2m).
The continued strong operational performance led to a 10.3% increase in
operating profit to £113.7m (FY24: £103.1m) and an increase in profit before
tax to £78.1m (FY24: £68.1m).
Adjusting items were £47.3m (FY24: £50.0m). The current period charge
includes £21.6m of amortisation of intangible contract rights and £17.0m of
fire and cladding compliance costs.
Net finance charges for the period were £35.6m (FY24: £35.0m), broadly in
line with the prior year.
Adjusted earnings per share increased by 4.9% to 21.6p (FY24: 20.6p).
The Group generated a free cash inflow of £155.4m during the year (FY24:
£185.9m), driven by strong operating cash conversion of 125%. The reduction
compared to FY24 is due to the prior year working capital inflow benefitting
from a year on year increase in revenue of 17%, whilst FY25 has had more
modest revenue growth of 3.0%. In addition, interest payments increased
compared to the prior year as a result of the Senior Notes issued in February
2024.
Out of its free cashflow, the Group has invested in its Property division
joint ventures, commenced a share buyback programme, paid dividends, adjusting
items and pension deficit obligations and purchased existing Kier shares on
behalf of its employees. Net cash at 30 June 2025 of £204.1m was
significantly improved compared to the prior year (FY24: £167.2m).
Average month-end net debt for the year ended 30 June 2025 was £(49.2)m
(FY24: £(116.1)m), a significant reduction from the prior year end.
The Group continued to win new, high quality and profitable work in its
markets on terms and rates which reflect the Group's bidding discipline and
risk management.
The order book increased to £11.0bn, a 1.9% increase since the year-end
(FY24: £10.8bn). Approximately 91% of revenue for FY26 is already secured
which provides certainty for next year.
Summary of financial performance
Adjusted(13)results Statutory reported results
30 Jun 30 Jun Change 30 Jun 30 Jun Change
2025 2024 % 2025 2024 %
Revenue (£m) - Total 4,087.8 3,969.4 3.0 4,087.8 3,969.4 3.0
Revenue (£m) - Excluding JV's 4,077.1 3,905.1 4.4 4,077.1 3,905.1 4.4
Profit from operations (£m)( ) 159.1 150.2 5.9 113.7 103.1 10.3
Profit before tax (£m) 125.4 118.1 6.2 78.1 68.1 14.7
Earnings per share (p) 21.6 20.6 4.9 12.8 11.8 8.5
Total dividend per share (p) 7.2 5.2 38.5
Free cash flow (£m) 155.4 185.9 (16.4)
Net cash (£m) 204.1 167.2 22.1
Net debt (£m) - average month-end (49.2) (116.1) 57.6
Order book (£bn) 11.0 10.8 1.9
(13 Reference to 'Adjusted' excludes adjusting items, see note 3.)
Revenue
The following table bridges the Total Group revenue from the year ended 30
June 2024 to the year ended 30 June 2025.
£m
Total Group revenue for the year ended 30 June 2024 3,969.4
Infrastructure Services 147.7
Construction 2.7
Property and Corporate (32.0)
Total Group revenue for the year ended 30 June 2025 4,087.8
Total Group revenue grew by £118.4m in the year, primarily through its
Infrastructure Services business, which reported revenue growth of 7.4%
compared to the prior year primarily due to the ramp up in AMP 8 related
activity.
The Group continues to focus on delivering high quality and high margin
work.
Alternative performance measures ("APMs")
The Directors continue to consider that it is appropriate to present an income
statement that shows the Group's statutory results only.
In addition to the Group's statutory results, the Directors believe it is
appropriate to disclose those items which are one-off, material or
nonrecurring in size or nature. The Group is disclosing as supplementary
information an "adjusted profit" APM. The Directors consider doing so
clarifies the presentation of the financial statements and better reflects the
internal management reporting and is therefore consistent with the
requirements of IFRS 8.
Adjusted Operating Profit
£m
Adjusted operating profit for the year ended 30 June 2024 150.2
Volume / price / mix changes 0.6
Property transactions, net of valuation gains 6.0
Cost inflation (9.3)
Management actions 11.6
Adjusted operating profit for the year ended 30 June 2025 159.1
A reconciliation of reported to adjusted operating profit is provided below:
Operating profit Profit before tax
30 Jun 30 Jun 30 Jun 30 Jun
2025 2024 2025 2024
£m
£m
£m £m
Reported profit 113.7 103.1 78.1 68.1
Amortisation of acquired intangible assets 21.6 23.2 21.6 23.2
Fire compliance costs 17.0 15.0 17.0 15.0
Property-related items 4.8 7.2 4.8 7.2
Recycling of foreign exchange - (5.9) - (5.9)
Refinancing fees - 4.5 - 4.5
Net financing costs - - 1.9 2.9
Other 2.0 3.1 2.0 3.1
Adjusted profit 159.1 150.2 125.4 118.1
Additional information about these items is as follows:
· Amortisation of acquired intangible assets £21.6m (FY24:
£23.2m): Comprises the amortisation of acquired contract rights through the
acquisitions of MRBL Limited (Mouchel Group), May Gurney Integrated Services
plc, McNicholas Construction Holdings Limited and the Buckingham Group.
· Fire and cladding compliance costs £17.0m (FY24: £15.0m): The
Group continues to review all of its current and legacy constructed buildings
where it has used cladding solutions and continues to assess the action
required in line with the latest updates to Government guidance, as it
applies, to multi-storey and multi-occupied residential buildings.
The charge incurred in the period is for those projects where the Group has
confirmed liability and has a reasonable estimate of the cost to rectify the
issues identified, less any confirmed insurance recoveries.
· Property-related items £4.8m (FY24: £7.2m): This includes
costs relating to vacated corporate offices, including the purchase and
subsequent sale of a vacant leasehold office in Manchester, which allows the
Group to de-risk the balance sheet and eliminate future rental payments. In
addition, costs have been included in relation to the relocation and
rationalisation of the Group's corporate offices in London. This
rationalisation is now complete and the Group expects no further adjusting
items in respect of corporate offices.
· Other £2.0m (FY24: £3.1m): Other costs consist of a payment
made to settle part of an insurance-related claim that has previously been
treated as an adjusting item
Earnings per share
Earnings per share ("EPS"), before adjusting items, amounted to 21.6p (FY24:
20.6p). Reported EPS, after adjusting items, from continuing operations
amounted to 12.8p (FY24: 11.8p).
Finance income and charges
The Group's finance charges include interest on the Group's bank borrowings
and Senior Notes as well as finance charges relating to leases recorded under
IFRS 16.
Net finance charges for the period were £35.6m (FY24: £35.0m).
Interest on bank borrowings and Senior Notes amounted to £30.8m (FY24:
£31.5m), the decrease being as a result of the lower average month-end net
debt. The Group was able to partially mitigate the risk of higher interest
rates with a £50m interest rate swap which expired in June 2025.
Lease interest was £9.1m (FY24: £9.5m).
The Group had a net interest credit of £4.3m (FY24: £5.7m) in relation to
the defined benefit pension schemes which has arisen due to the overall
pension surplus. We anticipate this will be a c.£2.5m credit in FY26.
The Group continues to exclude lease liabilities from its definition of net
cash/(debt).
Dividend
The Board reinstated a dividend in FY24. Through the cycle, the Board's target
is to deliver a sustainable dividend, covered 3x by adjusted earnings and in a
payment ratio of approximately one-third interim dividend and two thirds final
dividend.
As a result, the Board has proposed, subject to shareholder approval, a final
dividend of 5.2p per share (FY24: 3.5p) which together with the interim
dividend of 2.0p represents 3x adjusted earnings cover.
Balance sheet
Net assets
The Group had net assets of £517.2m at 30 June 2025 (FY24: £520.1m).
Goodwill
The Group held intangible assets of £608.4m (FY24: £638.2m) of which
goodwill represented £543.5m (FY24: £543.5m).
The Group completed its annual review of goodwill assuming a pre-tax discount
rate of 13.5% (FY24: 12.4%) and concluded that no impairment was required.
The Infrastructure Services group of cash generating units ('CGU') comprise
£523.1m of the total goodwill balance. No impairment is noted as management
believes the discounted cash flows are underpinned by the order book and
current pipeline prospects and the CGU is not sensitive to changes in key
assumptions.
Deferred tax asset
The Group has a significant deferred tax asset of £136.7m recognised at 30
June 2025 (FY24: £133.1m) primarily due to historical losses. The
year-on-year increase in the asset is driven by the tax impact of the
actuarial pension losses in the year, partly offset by the utilisation of tax
losses.
Due to the improved profitability of the business, based on the Group's
forecasts it is expected that the deferred tax asset will be utilised over a
period of approximately seven years (FY24: eight years).
A tax credit of £8.5m (FY24: £11.6m) has been included within adjusting
items.
Right-of-use assets and lease liabilities
At 30 June 2025, the Group had right-of-use assets of £96.5m (FY24: £95.0m)
and associated lease liabilities of £151.1m (FY24: £173.1m). The movements
at each balance sheet date, reflect operational equipment requirements less
associated depreciation and lease repayments
Investment properties
As at 30 June 2025, the Group had investment properties of £100.6m (FY24:
£104.9m).
The Group had long-term leases on three office buildings which were formerly
utilised by the Group that have been vacated and are now leased out to third
parties, as well as one freehold property no longer used by the business that
is being held for capital appreciation. These are all held as investment
properties.
During the period the Group disposed of one of the leasehold properties
(Fountain Street, Manchester), and moved back into the vacant floors in Foley
Street, London.
In addition, the Group's Property business invests and develops primarily
mixed-use commercial and residential schemes and sites across the UK. Four of
these sites are held as investment properties.
Investment in JVs
A number of projects within the Property division are developed alongside
joint venture partners. Investment in JVs at 30 June 2025 was £145.8m (2024:
£91.7m), an increase of 59%, and is as a result of the commitment to further
invest in the Property business.
Contract assets & liabilities
Contract assets represent the Group's right to consideration in exchange for
works which have already been performed. Similarly, a contract liability is
recognised when a customer pays consideration before work is performed. At 30
June 2025, total contract assets amounted to £374.0m (FY24: £358.1m).
Contract liabilities were £168.0m (FY24: £128.4m).
Retirement benefits obligation
Kier operates a number of defined benefit pension schemes. At 30 June 2025,
the reported surplus, which is the difference between the aggregate value of
the schemes' assets and the present value of their future liabilities, was
£47.2m (FY24: £80.5m), before accounting for deferred tax, with the movement
in the period primarily as a result of actuarial losses of £42.5m (FY24:
£36.5m).
The net actuarial loss is due to lower than assumed asset returns, partially
offset by changes in financial assumptions, in particular higher corporate
bond yields leading to decreased pension scheme liabilities. In addition,
deficit reduction contributions have further reduced the schemes' liabilities.
The Group has started the process of agreeing its triennial pension
valuations, which are due to be completed by June 2026.
Free cash flow and Net cash
30 Jun 30 Jun
2025 2024
£m £m
Operating profit 113.7 103.1
Depreciation of owned assets 5.6 8.3
Depreciation of right-of-use assets 46.1 39.0
Amortisation 38.7 33.8
EBITDA 204.1 184.2
Adjusting items excluding adjusting amortisation and interest 23.8 23.9
Adjusted EBITDA 227.9 208.1
Working capital inflow 27.7 68.4
Net capital expenditure including finance lease capital payments (64.9) (57.3)
Joint Venture dividends less losses / profits 5.4 0.7
Other free cash flow items 3.1 (2.8)
Operating free cash flow 199.2 217.1
Net interest and tax (43.8) (31.2)
Free cash flow 155.4 185.9
2025 2024
£m £m
Net cash at 1 July 167.2 64.1
Free cash flow 155.4 185.9
Adjusting items (17.8) (36.7)
Net investment in Joint Ventures (51.0) (18.2)
Pension deficit payments and fees (7.8) (9.2)
Net purchase of own shares (16.1) (3.7)
Acquisition of Buckingham - (9.4)
Dividends paid (24.1) (7.3)
Other (1.7) 1.7
Net cash at 30 June 204.1 167.2
The Group generated £155.4m of free cash flow in FY25 (FY24: £185.9m),
driven by strong operating cash conversion of 125%. This reflects more
normalised working capital flows compared to FY24, due to the FY24 working
capital inflow benefiting from a 17% increase in revenue compared to a 3%
increase in FY25. The Group delivered a net cash position of £204.1m at 30
June 2025 (FY24: £167.2m).
The average month-end net debt position is better than the comparative year at
£(49.2)m, (FY24: £(116.1)m). The business generated adjusted operating
profit and positive working capital which was used to invest in our Property
business joint ventures, commence a share buyback programme, pay dividends,
adjusting items, tax and interest, pension deficit obligations, and purchase
existing Kier shares on behalf of employees. Capital employed in our Property
division increased from £166m at 30 June 2024, to £198m at 30 June 2025.
The purchase of existing shares relates to the Group's employee benefit trusts
which acquire Kier shares from the market for use in settling the Long Term
Incentive Plan ("LTIP") and Sharesave share schemes when they vest. The trusts
purchased and sold shares at a net cost of £9.7m (FY24: £3.7m). A further
£6.4m (FY24: £nil) of shares were purchased as part of the share buyback
programme.
Accounting policies
The Group's annual consolidated financial statements are prepared in
accordance with UK-adopted International Accounting Standards and with the
requirements of the Companies Act 2006. There have been no significant changes
to the Group's accounting policies during the period.
Treasury facilities
At 30 June 2025, the Group had committed debt facilities of £400m as well as
access to uncommitted short-term borrowing facilities, such as overdrafts.
The committed facilities comprised £250m Senior Notes and £150m Revolving
Credit Facility. In January 2025 the Group repaid the remaining £37.3m USPP
notes and reduced its RCF facility by £111m, the repayments having been made
from operating free cash flow.
With £400m of facilities, consisting of £250m Senior Notes maturing in
February 2029 and a £150m RCF expiring in March 2027, the Group has
significant committed funding to support its evolved long-term sustainable
growth plan.
The Group's remaining financial instruments mainly comprise cash and liquid
investments. The Group selectively enters into derivative transactions
(interest rate and currency swaps) to manage interest rate and currency risks
arising from its sources of finance. The US dollar denominated USPP notes were
hedged with fixed cross-currency swaps at inception to mitigate the foreign
exchange risk. Following the repayment of the final USPP notes in January 2025
these swaps have now matured.
One non-recourse, project specific, property joint venture loan is hedged
using an interest rate derivative to fix the cost of borrowing.
There are minor foreign currency risks arising from the Group's operations
both in the UK and through its limited number of international activities.
Currency exposure to international assets is hedged through inter-company
balances and borrowings, so that assets denominated in foreign currencies are
matched, as far as possible, by liabilities. Where exposures to currency
fluctuations are identified, forward exchange contracts are completed to buy
and sell foreign currency.
The Group does not enter into speculative transactions.
Going concern
The Directors are satisfied that the Group has adequate resources to meet its
obligations as they fall due for a period of at least twelve months from the
date of approving these financial statements and remain covenant compliant.
For these reasons, they continue to adopt the going concern basis in preparing
these financial statements. Further information on this assessment is detailed
in note 1 of the consolidated financial statements.
Financial statements
Condensed consolidated income statement
For the year ended 30 June 2025
Note 2025 2024
£m
£m
Continuing operations
Group revenue including share of joint ventures(1) 2 4,087.8 3,969.4
Less share of joint ventures 2 (10.7) (64.3)
Group revenue 4,077.1 3,905.1
Cost of sales (3,746.3) (3,570.1)
Gross profit 330.8 335.0
Administrative expenses (223.2) (240.0)
Share of post-tax results of joint ventures 12 (1.5) 1.6
Other income 4 7.6 6.5
Operating profit 2 113.7 103.1
Finance income 5 8.0 9.2
Finance costs 5 (43.6) (44.2)
Profit before tax 2 78.1 68.1
Taxation 7 (21.7) (16.8)
Profit for the year from continuing operations 2 56.4 51.3
Discontinued operations
Loss for the year from discontinued operations (attributable to equity holders 2,3 - (8.3)
of the Company)
Profit for the year 2 56.4 43.0
Attributable to:
Owners of the Company 56.4 42.7
Non-controlling interests - 0.3
56.4 43.0
Earnings/(losses) per share
Basic:
- Continuing operations 9 12.8p 11.8p
- Discontinued operations 9 - (1.9)p
Total 12.8p 9.9p
Diluted:
- Continuing operations 9 12.1p 11.3p
- Discontinued operations 9 - (1.8)p
Total 12.1p 9.5p
Supplementary information - continuing operations
Adjusted2 operating profit 3 159.1 150.2
Adjusted2 profit before tax 3 125.4 118.1
Adjusted2 basic earnings per share 9 21.6p 20.6p
(1 ) Group revenue including share of joint ventures is an
alternative performance measure.
(2 ) References to 'adjusted' excludes adjusting items, see note 3.
These are alternative performance measures.
Financial statements
Condensed consolidated statement of comprehensive income
For the year ended 30 June 2025
Note 2025 2024
£m
£m
Profit for the year 56.4 43.0
Other comprehensive income/(loss)
Items that may be reclassified subsequently to the income statement
Fair value movements on cash flow hedging instruments 0.4 (2.6)
Fair value movements on cash flow hedging instruments recycled to the income 5 (0.2) -
statement
Deferred tax on fair value movements on cash flow hedging instruments - 0.9
Foreign exchange translation differences - (0.1)
Foreign exchange movements recycled to the income statement - (9.2)
Items that will not be reclassified to the income statement
Re-measurement of retirement benefit assets and obligations 6 (42.5) (36.5)
Tax on re-measurement of retirement benefit assets and obligations 10.7 9.1
Other comprehensive loss for the year (31.6) (38.4)
Total comprehensive income for the year 24.8 4.6
Attributable to:
Equity holders of the Company 24.8 4.3
Non-controlling interests - 0.3
24.8 4.6
Total comprehensive income/(loss) for the year attributable to equity holders
of the Company arises from:
Continuing operations 24.8 12.6
Discontinued operations - (8.3)
24.8 4.3
Financial statements
Condensed consolidated balance sheet
As at 30 June 2025
Note 2025 2024
£m
£m
Non-current assets
Intangible assets 10 608.4 638.2
Property, plant and equipment 28.0 27.7
Right-of-use assets 96.5 95.0
Investment properties 11 100.6 104.9
Investments in and loans to joint ventures 12 145.8 91.7
Deferred tax assets 7 136.7 133.1
Contract assets 57.0 53.6
Trade and other receivables 30.0 28.5
Retirement benefit assets 6 74.1 105.0
Non-current assets 1,277.1 1,277.7
Current assets
Inventories 65.6 74.0
Contract assets 317.0 304.5
Trade and other receivables 202.8 237.3
Corporation tax receivable 0.6 -
Other financial assets - 7.1
Cash and cash equivalents 13 1,689.4 1,563.1
Current assets 2,275.4 2,186.0
Total assets 3,552.5 3,463.7
Current liabilities
Bank overdrafts 13 (1,221.4) (1,101.4)
Borrowings 13 - (58.8)
Lease liabilities (40.8) (42.2)
Trade and other payables 14 (1,105.7) (1,109.8)
Contract liabilities (168.0) (128.4)
Provisions (53.1) (55.3)
Current liabilities (2,589.0) (2,495.9)
Non-current liabilities
Borrowings 13 (263.9) (242.0)
Lease liabilities (110.3) (130.9)
Trade and other payables 14 (19.1) (28.4)
Retirement benefit obligations 6 (26.9) (24.5)
Provisions (26.1) (21.9)
Non-current liabilities (446.3) (447.7)
Total liabilities (3,035.3) (2,943.6)
Net assets 2 517.2 520.1
Equity
Share capital 4.5 4.5
Share premium 3.6 3.2
Retained earnings 158.6 162.1
Merger reserve 350.6 350.6
Other reserves - (0.2)
Equity attributable to owners of the Company 517.3 520.2
Non-controlling interests (0.1) (0.1)
Total equity 517.2 520.1
Financial statements
Condensed consolidated statement of changes in equity
As at 30 June 2025
Share capital(1) Share (Accumulated losses)/ Merger Other reserves(5) Equity attributable to owners of Non- Total
£m
premium(2)
reserve(4)
the Company
controlling
equity
£m retained earnings(3)
£m £m
£m
interests
£m
£m
£m
At 1 July 2023 4.5 684.3 (539.5) 350.6 13.5 513.4 (0.4) 513.0
Profit for the year - - 42.7 - - 42.7 0.3 43.0
Other comprehensive loss - - (27.4) - (11.0) (38.4) - (38.4)
Total comprehensive income/(loss) for the year - - 15.3 - (11.0) 4.3 0.3 4.6
Dividends paid 8 - - (7.3) - - (7.3) - (7.3)
Issue of own shares - 3.3 - - - 3.3 - 3.3
Capital reduction - (684.4) 687.1 - (2.7) - - -
Share-based payments - - 9.3 - - 9.3 - 9.3
Deferred tax on share-based payments - - 0.9 - - 0.9 - 0.9
Purchase of own shares via employee benefit trust - - (3.7) - - (3.7) - (3.7)
At 30 June 2024 4.5 3.2 162.1 350.6 (0.2) 520.2 (0.1) 520.1
Profit for the year - - 56.4 - - 56.4 - 56.4
Other comprehensive (loss)/income - - (31.8) - 0.2 (31.6) - (31.6)
Total comprehensive income for the year - - 24.6 - 0.2 24.8 - 24.8
Dividends paid 8 - - (24.1) - - (24.1) - (24.1)
Issue of own shares - 0.4 - - - 0.4 - 0.4
Share-based payments - - 8.9 - - 8.9 - 8.9
Deferred tax on share-based payments - - 3.2 - - 3.2 - 3.2
Purchase of own shares via employee benefit trust - - (9.7) - - (9.7) - (9.7)
Purchase of own shares via share buyback - - (6.4) - - (6.4) - (6.4)
At 30 June 2025 4.5 3.6 158.6 350.6 - 517.3 (0.1) 517.2
(1. ) The share capital includes 452,875,390 of authorised, issued
and fully paid Ordinary Shares of 1p each (2024: 452,133,752). The holders of
Ordinary Shares are entitled to receive dividends as declared from time to
time and are entitled to one vote per share at meetings of the Company. During
the year, 741,638 shares were issued under the Sharesave Scheme (2024:
5,819,317).
(2. ) On 22 December 2023, the Company completed a capital
reduction exercise, resulting in £684.4m of share premium being cancelled and
transferred to retained earnings.
(3. ) On 21 January 2025, the Company commenced a share buyback
programme to return capital to shareholders. During the year, the Company
purchased a total of 4,552,151 shares with a negligible nominal value at a
cost of £6.4m. These are held as treasury shares at the balance sheet date.
(4. ) £134.8m of the merger reserve arose on the shares issued at
a premium to acquire May Gurney on 8 July 2013. In addition, a further
£215.8m relates to the issue of share capital on 18 June 2021.
(5. ) Other reserves include capital redemption reserve, cash flow
hedge reserve and translation reserve. On 22 December 2023, the Company
completed a capital reduction exercise, resulting in £2.7m of capital
redemption being cancelled and transferred to retained earnings.
Financial statements
Condensed consolidated statement of cash flows
For the year ended 30 June 2025
Note 2025 2024(1)
£m
£m
Cash flows from operating activities
Profit before tax - continuing operations 78.1 68.1
- discontinued operations 3 - (9.1)
Net finance cost 5 35.6 35.0
Share of post-tax trading results of joint ventures 12 1.5 (1.6)
Pension cost charge 2.1 1.8
Equity-settled share-based payments charge 8.9 9.3
Amortisation of intangible assets and mobilisation costs 38.7 33.8
Change in fair value of investment properties 11 (7.6) (6.5)
Depreciation of property, plant and equipment 5.6 8.3
Depreciation of right-of-use assets 46.1 39.0
Recycling of foreign exchange movements to the income statement - (9.2)
Loss/(profit) on disposal of property, plant and equipment, right-of-use 0.4 (1.3)
assets and intangible assets
Operating cash inflows before movements in working capital and 209.4 167.6
deficit contributions to pension funds
Deficit contributions to pension funds 6 (7.0) (8.6)
Decrease/(increase) in inventories 2.0 (1.1)
Decrease/(increase) in receivables 19.6 (48.6)
(Increase)/decrease in contract assets (15.9) 43.8
(Decrease)/increase in payables (20.5) 23.7
Increase in contract liabilities 39.6 37.9
Increase in provisions 2.0 8.1
Cash inflow from operating activities 229.2 222.8
Dividends received from joint ventures 12 3.9 6.7
Interest received 5 3.7 3.5
Income tax paid (1.8) (2.9)
Net cash inflow from operating activities 235.0 230.1
Cash flows from investing activities
Proceeds from sale of property, plant and equipment 1.0 1.8
Purchase of property, plant and equipment (11.1) (7.1)
Purchase of intangible assets 10 (5.4) (9.5)
Purchase of capitalised mobilisation costs (1.9) (1.9)
Acquisition of assets - (9.4)
Investment in joint ventures (60.9) (23.8)
Loan repayment and return of equity from joint ventures 12 9.9 5.6
Net cash used in investing activities (68.4) (44.3)
Cash flows from financing activities
Issue of shares 0.4 3.3
Purchase of own shares (16.1) (3.7)
Interest paid (40.6) (32.7)
Principal elements of lease payments (47.5) (40.6)
Drawdown of borrowings 4.7 247.5
Repayment of borrowings (44.3) (267.4)
Settlement of derivative financial instruments 7.2 -
Dividends paid 8 (24.1) (7.3)
Net cash used in financing activities (160.3) (100.9)
Increase in cash, cash equivalents and bank overdrafts 6.3 84.9
Effect of change in foreign exchange rates - (0.1)
Opening cash, cash equivalents and bank overdrafts 461.7 376.9
Closing cash, cash equivalents and bank overdrafts 13 468.0 461.7
(1 ) In the comparative information, £28.3m of research and
development credit cash flows that were previously disclosed within operating
cash flows before movements in working capital have been re-presented as part
of movements in receivables in cash flow from operating activities.
Financial statements
Notes to the condensed consolidated financial statements
For the year ended 30 June 2025
1 Significant accounting policies
Reporting entity
Kier Group plc (the Company) is a public limited company which is listed on
the London Stock Exchange and incorporated and domiciled in the UK. The
Company's registered number is 2708030. The address of its registered office
is 2(nd) Floor, Optimum House, Clippers Quay, Salford, M50 3XP.
The consolidated financial statements (financial statements) for the year
ended 30 June 2025 comprise the Company and its subsidiaries (together
referred to as the Group) and the Group's interest in joint arrangements.
Basis of preparation
These results have been prepared in accordance with the UK Financial Conduct
Authority and in accordance with the UK-adopted International Accounting
Standards effective for accounting periods beginning on or after 1 July 2024
and with the requirements of the Companies Act 2006 as applicable to companies
reporting under those standards.
The financial information contained in this preliminary announcement does not
constitute the Company's statutory accounts as at and for the year ended 30
June 2025, but is derived from those statutory accounts. The Company's
statutory accounts as at and for the year ended 30 June 2025 were approved by
the Board on 15 September 2025 and received an unqualified audit report. These
will be delivered to the Registrar of Companies following the Company's Annual
General Meeting on 13 November 2025.
Going concern
In determining the appropriate basis of preparation of the financial
statements, the Directors are required to consider whether the Group can
continue in operational existence during the going concern period, which the
Directors have determined to be until 31 December 2026.
The Directors have carried out an assessment of the Group's ability to
continue as a going concern for the period of at least 12 months from the date
of approval of the financial statements. This assessment has involved the
review of cash flow forecasts for the period to 31 December 2026 for each of
the Group's divisions; and also considered recent historical trading
performance where the Group's cashflow forecasts have been achieved. The
Directors have also considered the strength of the Group's order book which
amounted to £11.0bn at 30 June 2025 and will provide a pipeline of secured
work over the going concern assessment period.
The Directors have considered a number of stressed but plausible downside
scenarios in assessing going concern:
• potential reductions in trading volumes;
• potential future challenges in respect of ongoing projects;
• project inflation and subcontractor insolvency;
• plausible changes in the interest rate environment;
• other potential issues, including the cost of adoption of green
legislation; and
• the availability of proportionate and reasonable mitigating actions that
could be taken by management in such a scenario.
The Directors also considered the macroeconomic and political risks affecting
the UK economy. The Directors noted that the Group's forecasts are underpinned
by a significant proportion of revenue that is either secured or considered
probable, often as part of long-term framework agreements. The Group operates
primarily in sectors such as road, rail, water, energy, prisons, health and
education, which are considered likely to remain largely unaffected by
macroeconomic factors and will continue to benefit from sustained government
investment commitments reinforced in the June Spending Review. Although
inflationary pressures remain a risk, both in the supply chain and the labour
market, this is partly mitigated by c.60% of contracts being target cost or
cost plus.
The Directors have also considered the potential impact of climate change and
do not consider the Group's operations are at risk from physical
climate-related risks such as hurricanes and temperature changes in the short
term. In the medium term the Directors have concluded that any adverse
financial impacts from required changes to operations in line with ESG
requirements will be offset by opportunities which present the Group with
additional volumes and profits, such as construction of sustainable buildings,
climate impact and water management, as well as nuclear infrastructure. As
such, the longevity of the Group's business model means that climate change
has no material adverse impact on going concern.
In January 2025, the Group repaid the remaining £37.3m USPP notes and reduced
its RCF facility by £111m, the result being that the Group now has £400m of
committed facilities, consisting of 5 Year £250m Senior Notes maturing in
February 2029 and a £150m RCF facility to March 2027.
Having reviewed the Group's cash flow forecasts, the Directors consider that
the Group is expected to continue to have available liquidity headroom under
its finance facilities and operate within its financial covenants over the
going concern period, including in a severe but plausible downside scenario.
As a result, the Directors are satisfied that the Group has adequate resources
to meet its obligations as they fall due for a period of at least 12 months
from the date of approving these financial statements and, for this reason,
they continue to adopt the going concern basis in preparing these financial
statements.
2 Segmental reporting
Year to 30 June 2025
Infrastructure Services Construction Property Corporate Group
£m
£m
£m
£m
£m
Revenue1
Group revenue including share of joint ventures 2,136.0 1,910.5 38.4 2.9 4,087.8
Less share of joint ventures (1.3) - (9.4) - (10.7)
Group revenue 2,134.7 1,910.5 29.0 2.9 4,077.1
Timing of revenue1
Products and services transferred at a point in time 6.9 - 33.1 - 40.0
Products and services transferred over time 2,129.1 1,910.5 5.3 2.9 4,047.8
Group revenue including share of joint ventures 2,136.0 1,910.5 38.4 2.9 4,087.8
Profit/(loss) for the year
Adjusted operating profit/(loss)2 111.0 75.0 12.2 (39.1) 159.1
Adjusting items2 (21.5) (20.1) - (3.8) (45.4)
Operating profit/(loss) 89.5 54.9 12.2 (42.9) 113.7
Net finance income/(costs)3 6.7 4.4 (5.9) (40.8) (35.6)
Profit/(loss) before tax 96.2 59.3 6.3 (83.7) 78.1
Taxation (21.7)
Profit for the year from continuing operations 56.4
Loss for the year from discontinued operations -
Profit for the year 56.4
Balance sheet
Operating assets4 920.8 351.0 297.0 294.3 1,863.1
Operating liabilities4 (511.9) (788.5) (37.0) (212.6) (1,550.0)
Net operating assets/(liabilities)4 408.9 (437.5) 260.0 81.7 313.1
Cash, cash equivalents, bank overdrafts and borrowings 642.6 757.4 (225.2) (970.7) 204.1
Net financial assets -
Net assets/(liabilities) 1,051.5 319.9 34.8 (889.0) 517.2
Other information
Inter-segmental revenue 11.2 3.5 - 40.2 54.9
Capital expenditure on property, plant, equipment and intangible assets 2.2 1.0 - 13.3 16.5
Depreciation of property, plant and equipment (0.5) (0.2) (0.2) (4.7) (5.6)
Amortisation of computer software (1.7) (0.8) - (11.1) (13.6)
Year to 30 June 2024
Infrastructure Services Construction Property Corporate Group
£m
£m
£m
£m
£m
Revenue1
Group revenue including share of joint ventures 1,988.3 1,907.8 71.0 2.3 3,969.4
Less share of joint ventures - (2.4) (61.9) - (64.3)
Group revenue 1,988.3 1,905.4 9.1 2.3 3,905.1
Timing of revenue1
Products and services transferred at a point in time 5.9 0.6 57.8 - 64.3
Products and services transferred over time 1,982.4 1,907.2 13.2 2.3 3,905.1
Group revenue including share of joint ventures 1,988.3 1,907.8 71.0 2.3 3,969.4
Profit/(loss) for the year
Adjusted operating profit/(loss)2 112.3 69.2 6.2 (37.5) 150.2
Adjusting items2 (23.6) (9.6) (4.3) (9.6) (47.1)
Operating profit/(loss) 88.7 59.6 1.9 (47.1) 103.1
Net finance income/(costs)3 4.4 1.4 (3.7) (37.1) (35.0)
Profit/(loss) before tax 93.1 61.0 (1.8) (84.2) 68.1
Taxation (16.8)
Profit for the year from continuing operations 51.3
Loss for the year from discontinued operations (8.3)
Profit for the year 43.0
Balance sheet
Operating assets4 908.3 424.4 217.9 342.9 1,893.5
Operating liabilities4 (499.8) (814.2) (14.8) (212.6) (1,541.4)
Net operating assets/(liabilities)4 408.5 (389.8) 203.1 130.3 352.1
Cash, cash equivalents, bank overdrafts and borrowings 540.4 700.4 (171.3) (908.6) 160.9
Net financial assets - - - 7.1 7.1
Net assets/(liabilities) 948.9 310.6 31.8 (771.2) 520.1
Other information
Inter-segmental revenue 4.9 0.1 - 39.8 44.8
Capital expenditure on property, plant, equipment and intangible assets 2.4 4.4 - 9.8 16.6
Depreciation of property, plant and equipment (0.7) (0.4) (0.2) (7.0) (8.3)
Amortisation of computer software (1.1) (0.2) - (6.1) (7.4)
(1 ) Revenue is stated after the exclusion of inter-segmental
revenue. 100% of the Group's revenue is derived from UK-based customers. 16%
of the Group's revenue was received from High Speed Two (HS2) Limited (2024:
15%). Group revenue including joint ventures is an alternative performance
measure.
(2 ) See note 3 for adjusting items.
(3 ) Interest was (charged)/credited to the divisions at a
notional rate of 4.0% (2024: 4.0%).
(4 ) Net operating assets/(liabilities) represent assets
excluding cash, cash equivalents, bank overdrafts, borrowings, financial
assets and liabilities, and interest-bearing inter-company loans.
3 Adjusting items
(a) Reconciliation to adjusted profit
2025 2024
Continuing operations Adjusting Total Adjusting Total
£m
£m
Adjusted items Adjusted items
£m
£m
£m £m
Group revenue 4,077.1 - 4,077.1 3,905.1 - 3,905.1
Cost of sales (3,727.3) (19.0) (3,746.3) (3,555.1) (15.0) (3,570.1)
Gross profit 349.8 (19.0) 330.8 350.0 (15.0) 335.0
Administrative expenses (197.6) (25.6) (223.2) (216.2) (23.8) (240.0)
Share of post-tax results of joint ventures (1.5) - (1.5) 6.0 (4.4) 1.6
Other income 8.4 (0.8) 7.6 10.4 (3.9) 6.5
Operating profit 159.1 (45.4) 113.7 150.2 (47.1) 103.1
Net finance charges (33.7) (1.9) (35.6) (32.1) (2.9) (35.0)
Profit before tax 125.4 (47.3) 78.1 118.1 (50.0) 68.1
Taxation (30.2) 8.5 (21.7) (28.4) 11.6 (16.8)
Profit for the year from continuing operations 95.2 (38.8) 56.4 89.7 (38.4) 51.3
Loss for the year from discontinued operations - - - - (8.3) (8.3)
Profit for the year 95.2 (38.8) 56.4 89.7 (46.7) 43.0
Adjusting items include:
· Cost of sales:
o Fire and cladding compliance costs of £17.0m - these consist of costs
incurred in rectifying legacy issues to comply with the latest Government
guidance. The net charge of £17.0m includes a credit of £8.7m in respect of
insurance proceeds.
o Other adjusting items of £2.0m - other costs consist of a payment made to
settle part of an insurance-related claim that has previously been treated as
an adjusting item.
· Administrative expenses:
o Amortisation of acquired intangible assets of £21.6m - comprises
amortised contract rights arising from prior year acquisitions.
o Property-related items of £4.0m - these costs include the impact of the
purchase and subsequent sale of a vacant leasehold office in Manchester, as
well as income and costs incurred in respect of corporate properties vacated
as part of the review of Group premises.
· Net finance charges:
o Net financing costs of £1.9m - these relate to IFRS 16 interest charges
on leased investment properties previously used as offices.
(b) Discontinued operations
Following the sale of its residential property building business ('Kier
Living') in FY21, the Group retained responsibility for the cost of defect
rectification works relating to former Kier Living sites. At the time of the
sale, provisions were made for the expected rectification costs. These costs
were included in discontinued operations as they were directly associated with
the disposal of Living.
During FY24, the Group reviewed the remaining liabilities for the defect
rectification works, based on the outstanding scope of works to be completed
and current market price. The cost increased by £8.3m, net of tax credit of
£0.8m, the majority of which remained as a provision on the year-end balance
sheet. The £8.3m was recognised as an adjusting item within discontinued
operations.
(c) Cash outflow from adjusting items
2025 2024
£m
£m
Adjusting items reported in the income statement
- Continuing operations 47.3 50.0
- Discontinued operations - 8.3
Less: non-cash items incurred in the year (38.4) (31.4)
Add: payment of prior year accruals and provisions 8.9 9.8
Cash outflow from adjusting items 17.8 36.7
4 Other income
2025 2024
£m
£m
Fair value gain on investment properties 7.6 6.5
Other income 7.6 6.5
5 Finance income and costs
2025 2024
£m
£m
Finance income
Bank deposits 3.6 3.4
Interest receivable on loans to related parties 0.1 0.1
Net interest on net defined benefit obligation 4.3 5.7
8.0 9.2
Finance costs
Interest payable on loans and overdrafts (8.3) (23.1)
Interest payable on bonds (22.5) (8.4)
Interest payable on leases (9.1) (9.5)
Foreign exchange movements on foreign denominated borrowings (0.5) (0.6)
Fair value movements on cash flow hedges recycled from other comprehensive 0.2 -
income
Other (3.4) (2.6)
(43.6) (44.2)
Net finance costs (35.6) (35.0)
6 Retirement benefit obligations
The principal assumptions used by the independent qualified actuaries are
shown below.
2025 2024
%
%
Discount rate 5.50 5.15
Inflation rate (Retail Price Index) 2.90 3.20
Inflation rate (Consumer Price Index) 2.20 - 2.65 2.40 - 2.85
(1 ) CPI rates are based on individual scheme expected
durations.
The amounts recognised in the financial statements in respect of the Group's
defined benefit schemes are as follows:
2025 2024
Kier Acquired schemes Total Kier Acquired schemes Total
Group
£m
£m
Group
£m
£m
£m
£m
Opening net surplus/(deficit) 96.9 (16.4) 80.5 117.5 (13.0) 104.5
Credit/(charge) to income statement 3.1 (0.9) 2.2 4.8 (0.9) 3.9
Employer contributions - 7.0 7.0 - 8.6 8.6
Actuarial losses (31.3) (11.2) (42.5) (25.4) (11.1) (36.5)
Closing net surplus/(deficit) 68.7 (21.5) 47.2 96.9 (16.4) 80.5
Comprising:
Fair value of scheme assets 763.0 372.2 1,135.2 825.2 393.4 1,218.6
Net present value of the defined benefit obligation (694.3) (393.7) (1,088.0) (728.3) (409.8) (1,138.1)
Net surplus/(deficit) 68.7 (21.5) 47.2 96.9 (16.4) 80.5
Presentation of net surplus/(deficit) in the Consolidated balance sheet:
Retirement benefit assets 68.7 5.4 74.1 96.9 8.1 105.0
Retirement benefit obligations - (26.9) (26.9) - (24.5) (24.5)
Net surplus/(deficit) 68.7 (21.5) 47.2 96.9 (16.4) 80.5
7 Taxation
2025 2024
£m
£m
Profit before tax 78.1 68.1
Losses from joint venture companies - 1.6
Profit before tax excluding income from joint ventures 78.1 69.7
Current tax (12.5) (12.2)
Deferred tax (9.2) (4.6)
Total tax charge in the income statement (21.7) (16.8)
Effective tax rate 27.8% 24.1%
The deferred tax asset of £136.7m (2024: £133.1m) includes £100.2m of tax
losses (2024: £106.8m) and £36.5m of other deferred tax assets and
liabilities (2024: £26.3m).
When considering the recoverability of net deferred tax assets, the taxable
profit forecasts are based on the same Board-approved information used to
support the going concern and goodwill impairment assessments.
The following evidence has been considered when assessing whether these
forecasts are achievable and realistic:
· The business traded in line with Board expectations in 2025;
· The Group has completed its restructuring activities and is focusing on the
achievement of the long-term sustainable growth plan; and
· The Group's core businesses are well-placed to benefit from the announced
and committed UK Government spending plans to invest in infrastructure and
decarbonisation.
When considering the length of time over which the losses are expected to be
utilised, the Group has taken into account that generally only 50% of profits
in each year can be offset by brought forward losses.
Based on these forecasts, the Group is expected to utilise its deferred tax
asset over a period of approximately 7 years.
The Research and Development Expenditure Credit ('RDEC') of £41.0m was
included in operating profit during the year (2024: £28.3m). Included in
other receivables at 30 June 2025 were RDEC receivables of £31.8m (2024:
£30.0m). This predominantly represents in year claims, with the FY24 balance
received during the year.
8 Dividends
2025 2024
£m pence per share £m pence per share
Prior year final 15.2 3.5 - -
Current year interim 8.9 2.0 7.3 1.7
Total dividend recognised in the year 24.1 5.5 7.3 1.7
2025 2024
£m pence per share £m pence per share
Interim 8.9 2.0 7.3 1.7
Final 22.7 5.2 15.1 3.5
Total dividend relating to the year 31.6 7.2 22.4 5.2
The proposed final dividend for the year ending 30 June 2025 of 5.2p pence per
share (2024: 3.5p) was not declared until after the balance sheet date and so
has not been included as a liability in these financial statements. The
dividend totalling approximately £22.7m will be paid on 3 December 2025 to
shareholders on the register on 31 October 2025.
9 Earnings per share
2025 2024
Continuing operations Basic Diluted Basic Diluted
£m
£m
£m
£m
Profit for the year 56.4 56.4 51.3 51.3
Less: non-controlling interest share - - (0.3) (0.3)
Profit after tax and minority interests 56.4 56.4 51.0 51.0
Adjusting items (excluding tax) 47.3 47.3 50.0 50.0
Tax impact of adjusting items (8.5) (8.5) (11.6) (11.6)
Adjusted profit after tax from continuing operations 95.2 95.2 89.4 89.4
Discontinued operations
Adjusting items from discontinued operations (net of tax) - - (8.3) (8.3)
Weighted average number of shares (no, m) 441.5 466.1 433.5 451.7
Basic earnings (p)
Attributable to the ordinary equity holders of the Company from continuing 12.8 12.1 11.8 11.3
operations
Attributable to the ordinary equity holders of the Company from discontinued - - (1.9) (1.8)
operations
Total basic earnings per share attributable to the ordinary equity holders of 12.8 12.1 9.9 9.5
the Company
Adjusted basic earnings (p)
Adjusted basic earnings per share attributable to the ordinary equity holders 21.6 20.4 20.6 19.8
of the Company
The weighted average number of shares is lower than the number of shares in
issue by 11.4m (2024: 18.6m) primarily due to the movement of shares that are
held by the Group's employee benefit trusts and treasury shares acquired
through Kier's share buyback programme, which are excluded from the
calculation.
Options granted to employees under the Sharesave and LTIP schemes are
considered to be potential ordinary shares. They have been included in the
determination of diluted earnings per share if the required performance
obligations would have been met based on the Group's performance up to the
reporting date, and to the extent to which they are dilutive. The options have
not been included in the determination of basic earnings per share.
10 Intangible assets
Goodwill Intangible Computer Total
£m
contract rights
£m
£m software
£m
Cost
At 1 July 2023 538.8 235.7 125.7 900.2
Additions - - 9.5 9.5
Arising on acquisition 6.8 7.5 - 14.3
Disposals - - (0.1) (0.1)
At 30 June 2024 545.6 243.2 135.1 923.9
Additions - - 5.4 5.4
Disposals - - (5.4) (5.4)
At 30 June 2025 545.6 243.2 135.1 923.9
Accumulated amortisation and impairment
At 1 July 2023 (2.1) (170.9) (82.2) (255.2)
Charge for the year - (23.2) (7.4) (30.6)
Disposals - - 0.1 0.1
At 30 June 2024 (2.1) (194.1) (89.5) (285.7)
Charge for the year - (21.6) (13.6) (35.2)
Disposals - - 5.4 5.4
At 30 June 2025 (2.1) (215.7) (97.7) (315.5)
Net book value
At 30 June 2025 543.5 27.5 37.4 608.4
At 30 June 2024 543.5 49.1 45.6 638.2
11 Investment properties
Owned assets Right-of-use assets Total
£m
£m
£m
At 1 July 2023 52.9 45.5 98.4
Fair value gain/(loss) recognised in other income 8.2 (1.7) 6.5
At 30 June 2024 61.1 43.8 104.9
Transfers 3.6 (15.5) (11.9)
Fair value gain/(loss) recognised in other income 8.3 (0.7) 7.6
At 30 June 2025 73.0 27.6 100.6
12 Investment in and loans to joint ventures
2025 2024
£m
£m
At 1 July 91.7 78.6
Additions 76.4 23.8
Disposals (7.0) -
Loan repayments and return of equity (9.9) (5.6)
Share of:
Operating loss (0.4) (0.7)
Finance costs (0.9) (0.5)
Tax (expense)/income (0.2) 2.8
Post-tax results of joint ventures (1.5) 1.6
Dividends received (3.9) (6.7)
At 30 June 145.8 91.7
13 Net cash
2025 2024
£m
£m
Cash and cash equivalents 1,689.4 1,563.1
Bank overdrafts (1,221.4) (1,101.4)
Net cash, cash equivalents and bank overdrafts 468.0 461.7
Borrowings due within one year - (58.8)
Borrowings due after one year (263.9) (242.0)
Impact of cross-currency hedging - 6.3
Net cash 204.1 167.2
Average month-end net debt was £49.2m (2024: £116.1m). Net debt excludes
lease liabilities.
In January 2025, the Group repaid the remaining £37.3m USPP notes and the
associated cross-currency swap matured.
14 Trade and other payables
2025 2024
£m
£m
Current:
Trade payables 311.0 328.4
Accruals 580.7 580.2
Subcontract retentions 37.1 30.8
Other taxation and social security 168.1 152.1
Other payables and deferred income 8.8 18.3
1,105.7 1,109.8
Non-current:
Trade payables - 3.9
Subcontract retentions 19.1 24.5
19.1 28.4
15 Guarantees, contingent liabilities and contingent assets
The Company has given guarantees and entered into counter-indemnities in
respect of bonds relating to certain of the Group's own contracts. The Company
has also given guarantees in respect of certain contractual obligations of its
subsidiaries and joint ventures, which were entered into in the normal course
of business, as well as certain of the Group's other obligations (for example,
in respect of the Group's finance facilities and its pension schemes).
Financial guarantees over the obligations of the Company's subsidiaries and
joint ventures are initially measured at fair value, based on the premium
received from the joint venture or the differential in the interest rate of
the borrowing including and excluding the guarantee. Subsequent to initial
recognition, financial guarantee contracts are measured at the higher of the
initial fair value measurement (adjusted for any income amounts recognised)
and the amount determined in accordance with the expected credit loss model.
Performance guarantees are treated as a contingent liability until such time
as it becomes probable that payment will be required under its terms.
In line with comparable construction businesses, from time to time, the Group
is involved in legal claims in the ordinary course of business. The Group
assesses the likelihood of success of claims taking into consideration
specific circumstances in each case and any legal advice received. Provisions
are recorded for the Directors' best estimate of the probable outflow in
respect of such matters. If the Directors consider that a claim is unlikely to
succeed, no provision is made.
Fire and cladding review
The Group continues to review its current and legacy constructed buildings
where it has used cladding solutions and continues to assess the action
required in line with the latest Government guidance, as it applies, to
multi-storey and multi-occupied residential buildings. The buildings,
including the cladding works, were signed off by approved inspectors as
compliant with the relevant Building Regulations at the time of completion.
In preparing the financial statements, currently available information has
been considered, including the current best estimate of the extent and future
costs of work required, based on the detailed expert reports, fire safety
assessments and physical inspections undertaken.
Where an obligation has been established and a reliable estimate of the costs
to rectify is available, a provision has been made. No provision has been made
where an obligation has not been established.
These estimates may be updated as further inspections are completed and as
work progresses which could give rise to the recognition of further
liabilities. Such liabilities, should they arise, are expected to be covered
materially by the Group's insurance arrangements thereby limiting the net
exposure. Any insurance recovery must be considered virtually certain before a
corresponding asset is recognised and so this could potentially lead to an
asymmetry in the timing of the recognition of assets and liabilities.
16 Related parties
The Group has related party relationships with its joint ventures, key
management personnel and pension schemes in which its employees participate.
There have been no significant changes in the nature of related party
transactions since the last annual financial statements for the year ended 30
June 2024.
Details of contributions made to the pension schemes by the Group are detailed
in note 6.
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