Kier confident of meeting FY19; focusing on lowering debt
Kier Group
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16:35 26/04/24
UK infrastructure group Kier Group said it was confident of meeting 2019 full year expectations, with results weighted towards the second half.
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The firm added that the costs of streamlining the business would exceed savings by £10m in the first half, although over the year this would be earnings and cash flow neutral.
Kier, which also revealed that it was selling its interest in KHSA Limited to joint venture partner Downer Group for AUD$43.7m (£24m) in cash. The proceeds will service the reduction of the Group's net debt.
In a trading statement ahead of its annual meeting, Kier said it continued to focus on cash generation and net debt reduction. It expected average monthly net debt of about £390m for the first half of full year 2019, compared with £410m for the second half of 2018.
Companies like Kier have come under the spotlight after the collapse of government contractor and sector Carillion in January with massive debts and a large pension fund deficit.
“The level of net debt is increasingly a key focus for stakeholders in the industry and the board recognises the importance of a strong balance sheet to take advantage of opportunities to underpin its future performance,” Kier said.