Kier Group on track with turnaround plans

(Sharecast News) - Kier Group updated the market on its trading for the period from 15 November to 31 December on Thursday, reporting that it was in line with the board's expectations.
The London-listed company said it was being awarded new contracts across the markets in which it operates, including being appointed to all 20 lots of the four-year £8bn 'Procure Partnerships Framework' in November.

It said it had continued to manage its net debt "closely" during the period, with the group's average month-end net debt for the six months to 31 December in line with the board's expectations.

Kier said it was also making "good progress" on its office closures, the outsourcing of certain functions and the reduction in headcount.

The group said it expected to deliver a headcount reduction of around 1,200 by 30 June, and annual cost savings of at least £60m in the financial year ending 30 June 2021, adding that it was reviewing further cost optimisation opportunities.

It said it was also still progressing the disposal of its house building business, Kier Living, and evaluating the options for its property business.

As it had announced on 16 December, Matthew Lester was appointed as chairman of the board with effect from 1 January, Kier reiterated, replacing Phillip Cox, who stood down as chairman and from the board on that date.

"The work to re-shape the group continues through the careful execution of our strategic priorities and efforts to significantly reduce the group's cost base," said chief executive officer Andrew Davies.

"The group is performing in line with our expectations and we continue to win work from our customers."

Kier also said that under its new leadership team, it was bringing forward the date on which it would announce its results for the six-month period ended 31 December, to 5 March from a previous 19 March.

At 1206 GMT, shares in Kier Group were up 2.18% at 79.19p.