British builder Kier Group confident of meeting full-year expectations with results weighted towards second-half of financial year

Kier Group has announced that it is confident of meeting its full-year expectations ahead of its AGM today, with the full-year results being weighted towards the second half of the financial year.

The FTSE 250 listed company have said it will continue to focus on operational cash generation and reducing net debt as part of their Future Proofing Kier (FPK) programme. 

The programme has already had success in streamlining the business's operation and improving cash generation, while the costs of implementing it in the first half of the financial year are forecast to exceed realised savings by approximately £10m.

The leading infrastructure services, buildings and developments and housing group has agreed to sell its stake in KHSA Limited to Downer Group, the joint venture partner, for a fee of around AUS$43.7m (£24m).

Those proceeds will serve to help further reduce the company's net debt.

In the trading update, Kier also said it was anticipating that the average monthly net debt of £410m for the last half of this financial year, would be reduced to £390m for the first half of next year.

The British builder is keen to keep a strong balance sheet in the face of Brexit, with the construction industry relying heavily on employees from the EU.

The Carillion collapse served as a huge warning to the Kier Group, and sector as a whole, of the perils of debt as they buckled under £1.5bn's worth.