Kier Share News (KIE)

(Alliance News) - Kier Group PLC on Tuesday said its annual results are expected to be in line with management expectations.

"This reflects a strong operational performance despite inflationary pressure which the company remains confident it can continue to mitigate going forward," Kier said.

The Manchester-headquartered construction firm had recorded annual pretax profit of GBP6.5 million on revenue of GBP3.26 billion for the year ended June 30, 2021.

Its year-end order book is guided to be over GBP9.7 billion, up 26% on the year before.

It added: "The group continues to maximise value and opportunities. Kier has won new, high quality and profitable work in its markets reflecting the bidding discipline and risk management embedded in the business."

Kier also noted its positive cash flow during the period will lead to a net cash position at the year-end - in line with the firm's expectations.

Chief Executive Andrew Davies said: "Kier delivered a strong operational performance over the last year, despite inflation and political uncertainties. Core markets remain favourable and we continue to maximise value and opportunities.

"This, coupled with the strong order book and strengthened balance sheet, gives the board confidence in our medium-term value creation plan and the continued success of the group."

Looking ahead, Kier's medium targets remains revenue between GBP4.0 billion and GBP4.5 billion, with an adjusted operating profit margin of about 3.5%.

The firm is also planning for a sustainable dividend over the medium term.

Shares in Kier Group were 2.1% higher in London on Tuesday mid-morning at 76.90 pence each.

By Paul McGowan; paulmcgowan@alliancenews.com

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