Kier Group PLC Update (4235S)
March 11 2019 - 3:01AM
UK Regulatory
TIDMKIE
RNS Number : 4235S
Kier Group PLC
11 March 2019
11 March 2019
KIER GROUP PLC
UPDATE
Kier Group plc (the "Company" or "the Group") today provides an
update on the net debt position stated in its trading statement of
22 January 2019 and the Broadmoor Hospital redevelopment
project.
The Group has revised its net debt position as at 31 December
2018 to GBP180.5m (from c.GBP130m) and, accordingly, has
re-calculated its average month-end net debt for the six months
ended 31 December 2018 as being c.GBP430m (from c.GBP370m).
In the course of preparing its FY19 interim results and
finalising the 31 December 2018 net debt position, the Company
identified a number of adjustments (in aggregate: GBP10.3m),
principally relating to the Group's hedging activities, and has
revised the classification of the debt (in aggregate: GBP40.2m)
associated with certain Developments assets held for resale at 31
December 2018. The Group originally consolidated this debt balance
within assets held for resale on its balance sheet; following the
re-classification, the debt has been included within the Group's
net debt position.
Of the GBP40.2m net debt, GBP9.8m relates to assets which have
been sold since 1 January 2019, GBP14.1m relates to sales which are
subject to binding sale agreements and expected to complete by 30
April 2019 and the balance of GBP16.3m relates to assets which are
either being marketed for sale by 30 June 2019 or are under
offer.
The Group continues to forecast a net cash position at 30 June
2019 and remains focused on reducing its average month-end net
debt.
The Board has reviewed the operational progress and cost
recovery programme of the Broadmoor Hospital redevelopment project.
The first phase of the project is expected to be handed over
shortly and the remaining work on the project, which accounts for
less than 10% of its value, will commence shortly thereafter. The
Group has recently agreed a process with the client which is
designed to reach agreement with respect to the Group's entitlement
to the additional costs associated with the project's delay.
Following its most recent review, the Board has concluded that a
non-underlying provision of GBP25m will be included in the Group's
FY19 interim results in respect of future recoveries from the
client and other third parties.
Whilst the Board notes the current political and economic
uncertainty in the UK, and the implications for third party
investment, the Group remains on course to meet its underlying FY19
expectations, with the full-year results being weighted towards the
second-half of the financial year, as expected.
As previously announced, the Company will release its FY19
interim results on 20 March 2019.
- ENDS -
For further information, please contact:
Louise Turner-Smith, Kier investor relations +44 (0)7976 790 012
Kier press office +44 (0)1767 355 903
Richard Mountain/Nick Hasell, FTI Consulting +44(0)20 3727 1340
Continued ........
A conference call with Phil Cox (Executive Chairman) and Bev Dew
(Finance Director) for analysts and investors will be held at 08.00
GMT today. Dial-in details are as follows:
United Kingdom Dial-in Tollfree/Freephone 0800 279 4827
United Kingdom, Local Dial-in Local +44 (0)330 336 9401
-------- ------------------- -------------------
Participant Passcode: 974678
This announcement contains inside information for the purposes
of EU Regulation 596/2014. The person responsible for making this
announcement on behalf of the Company is Hugh Raven, General
Counsel and Company Secretary.
This announcement does not constitute an offer of securities by
Kier Group plc (the "Company"). Nothing in this announcement is
intended to be, or intended to be construed as, a profit forecast
or a guide as to the performance, financial or otherwise, of the
Company or any of its subsidiaries (together, the "Group") whether
in the current or any future financial year. This announcement may
include statements that are, or may be deemed to be,
"forward-looking statements". By their nature, forward-looking
statements involve risks and uncertainties because they relate to
events and depend on circumstances that may or may not occur in the
future and may be beyond the Company's or the Group's ability to
control or predict. Forward-looking statements are not guarantees
of future performance. You are advised to read the section headed
"Principal risks and uncertainties" in the Company's Annual Report
and Accounts for the year ended 30 June 2018 and the section of the
Company's rights issue prospectus dated 30 November 2018 entitled
"Risk factors" for a further discussion of the factors that could
affect the Company's or the Group's future performance and the
industry in which it operates. Other than in accordance with its
legal or regulatory obligations, the Company does not accept any
obligation to update or revise publicly any forward-looking
statement, whether as a result of new information, future events or
otherwise.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDJBMATMBABMPL
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