Earnings release
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RNS Number : 9486RKier Group PLC22 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 propertygroup 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, up22% 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 thefirst half of FY26 The Group has also issued an announcement this morning, that Andrew Davies, Chief Executive, willbe 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 linewith market expectations, reflecting strong operational execution. In particular, in the second half ofthe year, the ramp up of AMP 8 related activity in the Water business has offset more modest growthin the Transportation sector and a steadying of volume in Construction, while the Property businessdelivered significant project milestones in the period, completing three major developments andimproving ROCE towards its targeted return. Order book Growth opportunities in the Group's core markets continue to be underpinned by the Government'srenewed 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 30June 2025 totalled c.£11bn (30 June 2024: £10.8bn). This order book strength, supported throughKier's framework positioning, means that approximately 88% of Group revenue for FY26 is alreadysecured, 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 biddingdiscipline and risk management processes embedded in the business. The Group had a strong endto the year, securing awards including: · Infrastructure Services:o Awarded a £139m Green Recovery contract to deliver the main works for upgrade of theWanlip Sewage Treatment works by Severn Trento Southern Water - First three ECI schemes awarded under AMP8 Strategic DeliveryPartnership framework· Construction:o Appointed by Midlothian Council to deliver the new, £41.8m Mayfield Community LearningCampuso Appointed under a PSCA by Warwick University to deliver the first phase of the £700mSTEM Connect development at their West Midlands campus · Property:o Strategic Partnerships - Two new joint ventures were established; Investec Realis andCervidae. Both are set to unlock significant long-term valueo Residential sector - Planning approvals have been secured on five sites: Bishop's Stortford,South Wokingham, Guildford and Watford with 670 homes to commence delivery duringFY26 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
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reported at 30 June 2024. The year-end cash position was partly driven by a seasonal inflow ofworking capital, particularly in the Construction division which more than offset the increasedreturns to shareholders, comprising the payment of higher dividends (£24m), the initial sharebuyback programme launched in January 2025 (£7m spent to date, out of £20m), and the in-yearinvestment in the Property business (c.£30m). The FY25 average month-end net debt position was marginally above the first half average net debtdue to the timing of shareholder returns and property investment (mentioned above) but issignificantly improved over the prior year at £(49)m (FY24: £(116)m), with the higher volume ofactivity across the Group translating to strong cash generation, creating a strong platform to furtherenhance shareholder value. Andrew Davies, Chief Executive of Kier, commented: "The Group has performed strongly in FY25, and is delivering well against its long-term sustainablegrowth plan. This performance, alongside the continued growth of our high quality order book andrecapitalisation of our Property business, supports the recent upgrade to our long term margintargets 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 AbuseRegulation. The person responsible for arranging the release of this announcement on behalf of Kieris 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 specialistdesign and build capabilities and the knowledge, skills and intellectual capital of our people toensure 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 thisannouncement is intended to be, or intended to be construed as, a profit forecast or a guide as to the performance, financialor otherwise, of the Company or any of its subsidiaries (together, the "Group") whether in the current or any future financialyear. This announcement may include statements that are, or may be deemed to be, ''forward-looking statements''. By theirnature, forward-looking statements involve risks and uncertainties because they relate to events and depend oncircumstances that may or may not occur in the future and may be beyond the Company's or the Group's ability to control orpredict. 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 afurther discussion of the factors that could affect the Company's or the Group's future performance and the industry in whichit operates. Other than in accordance with its legal or regulatory obligations, the Company does not accept any obligation toupdate or revise publicly any forward-looking statement, whether as a result of new information, future events or otherwise. This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the FinancialConduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the useand distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com. RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with theinformation contained in this communication, and to share such analysis on an anonymised basis with others as part of ourcommercial services. For further information about how RNS and the London Stock Exchange use the personal data youprovide us, please see our Privacy Policy. END TSTSEDFAFEISEFW