AGM Trading Update and Board Changes
15 November 2019
Kier Group plc
AGM Trading Update and Board Changes
Kier Group plc (the "Group") issues a trading update prior to its Annual General Meeting to be held at 10.00 a.m. today (the "AGM").
Trading in line with expectations
The Group is trading in line with the Board's expectations. Since 30 June 2019, the Group has been awarded c.£1bn of new contracts and been appointed to a number of frameworks, including the £30bn Construction Works and Associated Services framework for the Crown Commercial Service.
Working capital and net debt both in line with expectations
The Group continues to focus on operational cash generation, with working capital and net debt both in line with the Board's expectations.
The Group remains on course to deliver a headcount reduction of c.1,200 by 30 June 2020 and annual cost savings of at least £55m in the financial year ending 30 June 2021. The Group recently agreed terms to outsource its IT and fleet management activities and is taking additional steps to reduce its costs, including exiting its offices at Tempsford Hall, Bedfordshire, and Foley Street, London and making a number of changes to the structure of its senior management.
The Group continues to progress the sale of Kier Living, its housebuilding division, and to explore options to further accelerate the release of capital from its Property business.
Claudio Veritiero, the Chief Operating Officer, will stand down from the Board and leave the business with immediate effect. The responsibilities of the Chief Operating Officer will be assumed by the Chief Executive and the Chief Financial Officer.
Adam Walker, who joined the Board on 1 January 2016, has informed the Board of his intention to step down from the Board with effect from 31 December 2019. Justin Atkinson, the Senior Independent Non-Executive Director, will then assume the role of Chair of the Risk Management and Audit Committee until a successor to Mr. Walker has been appointed.
The process to appoint a new Chairman is ongoing.
Andrew Davies, Chief Executive, said:
"We continue to build the foundations for the future of the Group through the execution of our strategic priorities. Our core businesses are performing in line with our expectations and we continue to win work from a number of our major clients, whilst significantly reducing the Group's overheads and costs."
Kier Press Office
+44 (0)1767 355 096
Richard Mountain/Nick Hasell, FTI Consulting
+44 (0)20 3727 1340
The Company withdraws resolution number 9 set out in the Notice of Annual General Meeting dated 4 October 2019 (the "Notice") relating to Mr. Veritiero's re-election as a director.
The remaining resolutions set out in the Notice will be put to shareholders at the AGM. The withdrawal of resolution 9 does not affect the validity of the proxy form circulated to shareholders for use in connection with the AGM or any proxy votes already submitted.
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