Kier group ‘moderately ahead of expectations’ after attempts to slash debt
Infrastructure services and construction group Kier, which worked on London’s HS2, has finished the year “moderately ahead of expectations”, it said today.
The group has been on the receiving end of hefty government contracts, namely a £1bn prisons contract for the Ministry of Justice, for the year ending 30 June.
Kier had also accepted a £75m capital works contract from Hammersmith and Fulham council, as well as a £190m maintenance and response contracts for highways in England.
Shares dipped 0.9 per cent this morning, taking its share price to 128.6p per share.
Beyond its contracts, the group had sold its housebuilding business Kier Living in April which, together with a capital raise, rallied around £350m to slash its debt – which stood at around £430m in the six months to 31 December last year.
The group said it is “confident” that it has to platform to rake in revenue somewhere between £4bn and £4.5bn in the medium-term.
CEO Andrew Davies said: “The group’s proven track record of delivery and focus on selected markets, coupled with its strong order book and strengthened balance sheet, gives the Board confidence in our strategy and the continued success of the group.”