Kier Group PLC Update on trading, FPK programme, strategic review (8891A)
June 03 2019 - 2:00AM
UK Regulatory
TIDMKIE
RNS Number : 8891A
Kier Group PLC
03 June 2019
3 June 2019
Kier Group plc
Update on trading, Future Proofing Kier programme and strategic
review
Kier Group plc ("Kier" or the "Group") today provides an update
on its current trading and outlook for the 2019 financial year
("FY2019"), its Future Proofing Kier programme and the timing of
the strategic review announced on 15 April 2019.
Current trading and outlook
As highlighted in Kier's FY2019 interim results, the Group
continues to experience volume pressures within its Highways,
Utilities and Housing Maintenance businesses. In addition, whilst
continuing to perform well with double digit growth in its
orderbook during FY2019, the Buildings business' revenue growth for
FY2019 will be lower than previously forecast.
As a result, Kier now expects that FY2019 revenue will be
broadly in line with the Group's reported revenue for the 2018
financial year and currently expects that the Group's underlying
operating profit for FY2019 will be c. GBP25 million lower than
previous expectations and that the Group is likely to report a net
debt position as at 30 June 2019, which would have an adverse
impact on its FY2019 average month-end net debt position.
Against the background of the revised guidance in respect of
FY2019, Kier will provide updated guidance for FY2020 with its
FY2019 preliminary results announcement on 19 September 2019.
Future Proofing Kier programme
The net costs associated with the FPK programme for FY2019 are
now expected to be c. GBP15 million higher than previously
forecast. In part, this reflects an acceleration of the programme
following the appointment of Andrew Davies as Chief Executive.
These net costs are in addition to the GBP25 million reduction in
operating profit identified above. Kier will provide a further
update on the FPK programme when it announces the conclusions of
the strategic review.
Strategic review
On 15 April 2019, Kier announced that Andrew Davies would lead a
strategic review of the Group to consider ways of further
simplifying it, the allocation of capital resources across the
Group and additional steps to improve cash generation and reduce
leverage. Kier confirms that the conclusions of this review will be
announced on 30 July 2019.
This announcement contains inside information for the purposes
of Market Abuse Regulation (Regulation (EU) No. 596/2014). The
person responsible for making this announcement on behalf of the
Company is Hugh Raven, General Counsel and Company Secretary.
- ENDS -
For further information, please contact:
Kier press office +44 (0)1767 355096
Richard Mountain/Nick Hasell, FTI Consulting +44 (0)20 3727 1340
This announcement does not constitute an offer of securities by
Kier Group plc (the "Company" and, together with its subsidiaries,
the "Group"). 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
MSCLIFVSRLIVIIA
(END) Dow Jones Newswires
June 03, 2019 02:00 ET (06:00 GMT)
Kier (LSE:KIE)
Historical Stock Chart
From Jul 2024 to Jul 2024
Kier (LSE:KIE)
Historical Stock Chart
From Jul 2023 to Jul 2024