Kier Group PLC - Manchester-headquartered construction firm - For half year to December 31, revenue, not including share of joint-ventures, falls 11% to GBP1.62 billion from GBP1.82 billion year earlier. Swings to pretax profit of GBP9.0 million, from GBP41.2 million loss, amid sharp fall in restructuring costs to GBP6.0 million from GBP48.8 million. In addition, proposes equity raise in the range of GBP190 million to GBP240 million. "The proposed equity raise, which we plan to launch in the coming weeks, subject to market conditions, together with the continued support of our lending group, will further strengthen the group's balance sheet," says Chief Executive Officer Andrew Davies. Also sets out medium-term target of revenue between GBP4.0 billion and GBP4.5 billion, as well as "sustainable dividend policy with dividend cover of around three times earnings". Like last year, Kier declares no interim payout.
Current stock price: 92.40 pence
Year-to-date change: up 18%
By Eric Cunha; ericcunha@alliancenews.com
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Kier (KIE)