1 August 2019
Kier Group plc
Kier Group plc ("Kier" or the "Group") today provides an update on net debt, trading and strategic initiatives, following the close of its 2019 financial year.
As at 30 June 2019, the Group's net debt was £167 million. Its average month-end net debt for the 2019 financial year was £422 million, at the lower end of previous guidance of £420-450 million.
The Group reported average payment days to its supply chain partners of 41 for the second half of the 2019 financial year, a significant reduction from 57 days for the first half of the year, whilst maintaining significant liquidity headroom.
Trading in the Group's Infrastructure Services and Buildings divisions has remained resilient. However, the Group's turnover for the 2019 financial year is anticipated to be approximately £100 million lower than for the 2018 financial year, principally as a result of property and land-led transactions which did not complete in June 2019, which will have an impact on the Group's profitability broadly in line with its historic gross margins.
The Group continues to make progress against the strategic initiatives announced on 17 June 2019. The Group has received significant interest in Kier Living, its housebuilding division, and has commenced the sale process for this business.
2019 results announcement
Kier will publish the results for its 2019 financial year on 19 September 2019.
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For further information, please contact:
Cynthia Alers, Investor Relations
Kier Press Office
+44 (0)20 3208 6059
+44 (0)1767 355 096
Richard Mountain/Nick Hasell, FTI Consulting
+44 (0)20 3727 1340
This announcement contains inside information for the purposes of Market Abuse Regulation (Regulation (EU) No. 596/2014). The person responsible for making this announcement on behalf of Kier is Hugh Raven, General Counsel and Company Secretary.
This announcement does not constitute an offer of securities by Kier Group plc (the "Company" and, together with its subsidiaries, the "Group"). This announcement may include statements that are, or may be deemed to be, ''forward-looking statements''. 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 or the Group's ability to control or predict. 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 2018 and the section of the Company's rights issue prospectus dated 30 November 2018 entitled "Risk factors" for a further discussion of the factors that could affect the Company's or the Group's future performance and the industry in which it operates. Other than in accordance with its legal or regulatory obligations, the Company does not accept any obligation to update or revise publicly any forward- 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 Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
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