Kier Group PLC (LON:KIE) has nudged up full-year expectations after its pandemic-inspired cost cutting measures saved more money than expected.
The infrastructure services and construction group said trading since its last update in January has continued to be resilient. Thanks to cost-cutting and operational efficiencies, the group is expected to deliver a full year adjusted operating profit margin of about 3% for the fiscal year just ended.
The group's year end order book continues to be underpinned by significant long-term framework agreements including new awards in the second half of the year albeit at lower levels than that seen last year due to procurement delays resulting from the pandemic, Kier said.
Once the full-year numbers are totted up Kier expects to have generated positive adjusted operating cash flow in the year to the end of June [FY21]. Cash generation has continued to be strong, as a result of which the board is expecting the net debt/cash position at the end of June will be better than its previous expectations.
The group's average month-end net debt for FY21 remained at a level similar to the average month-end net debt for FY20 due to the group's receiving money from its share issue and the sale of Kier Living in the final months of the fiscal year.
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"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," said Andrew Davies, the chief executive of Kier Group.