(Alliance News) - Kier Group PLC on Thursday said trading in its new financial year so far is in line with expectations, following "strong momentum" in its contract bidding activity.
The Manchester, England-based construction firm is holding its annual general meeting on Thursday.
Kier said its order book is stable at around GBP9.80 billion at the end of September, saying this reflects bidding discipline and good risk management. The same figure was reported for June 30, which was the end of Kier's last financial year. Kier's order book is 90% secured for financial 2023.
Kier has maintained medium-term revenue target of between GBP4.00 billion and GBP4.50 billion per annum and an adjusted operating profit margin of 3.5%. In financial 2022, Kier booked GBP3.26 billion in revenue and a 3.7% adjusted operating profit margin.
Kier said it is on track to generate positive adjusted operating cash flow for financial 2023, which will result in a net cash position at the year-end. At the end of financial 2022, Kier had net cash of GBP2.9 million and during the year had average month-end debt of GBP216 million.
For the first half of the year, Kier expects a seasonal working capital outflow, but a reversal is expected in the second half, which was also experienced in the prior year.
In July 2022, Kier repaid the remainder of its GBP50 million working capital supply chain facility.
Chief Executive Andrew Davies said: "The group remains well positioned to continue benefiting from UK government infrastructure spending commitments and remains focused on the delivery of a sustainable net cash position and a sustainable dividend, in line with our medium-term value creation plan."
Kier shares were up 0.5% to 61.20 pence on Thursday morning in London.
By Jaskeet Briah; jaskeetbriah@alliancenews.com
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Kier (KIE)