Kier Group PLC AGM Trading Update and Board Changes (5000T)
November 15 2019 - 2:00AM
UK Regulatory
TIDMKIE
RNS Number : 5000T
Kier Group PLC
15 November 2019
15 November 2019
Kier Group plc
AGM Trading Update and Board Changes
Kier Group plc (the "Group") issues a trading update prior to
its Annual General Meeting to be held at 10.00 a.m. today (the
"AGM").
Trading in line with expectations
The Group is trading in line with the Board's expectations.
Since 30 June 2019, the Group has been awarded c.GBP1bn of new
contracts and been appointed to a number of frameworks, including
the GBP30bn Construction Works and Associated Services framework
for the Crown Commercial Service.
Working capital and net debt both in line with expectations
The Group continues to focus on operational cash generation,
with working capital and net debt both in line with the Board's
expectations.
Strategic priorities
The Group remains on course to deliver a headcount reduction of
c.1,200 by 30 June 2020 and annual cost savings of at least GBP55m
in the financial year ending 30 June 2021. The Group recently
agreed terms to outsource its IT and fleet management activities
and is taking additional steps to reduce its costs, including
exiting its offices at Tempsford Hall, Bedfordshire, and Foley
Street, London and making a number of changes to the structure of
its senior management.
The Group continues to progress the sale of Kier Living, its
housebuilding division, and to explore options to further
accelerate the release of capital from its Property business.
Board changes
Claudio Veritiero, the Chief Operating Officer, will stand down
from the Board and leave the business with immediate effect. The
responsibilities of the Chief Operating Officer will be assumed by
the Chief Executive and the Chief Financial Officer.
Adam Walker, who joined the Board on 1 January 2016, has
informed the Board of his intention to step down from the Board
with effect from 31 December 2019. Justin Atkinson, the Senior
Independent Non-Executive Director, will then assume the role of
Chair of the Risk Management and Audit Committee until a successor
to Mr. Walker has been appointed.
The process to appoint a new Chairman is ongoing.
Andrew Davies, Chief Executive, said:
"We continue to build the foundations for the future of the
Group through the execution of our strategic priorities. Our core
businesses are performing in line with our expectations and we
continue to win work from a number of our major clients, whilst
significantly reducing the Group's overheads and costs."
Further information
Please contact:
Kier Press Office +44 (0)1767 355 096
Richard Mountain/Nick Hasell, FTI Consulting +44 (0)20 3727 1340
AGM
The Company withdraws resolution number 9 set out in the Notice
of Annual General Meeting dated 4 October 2019 (the "Notice")
relating to Mr. Veritiero's re-election as a director.
The remaining resolutions set out in the Notice will be put to
shareholders at the AGM. The withdrawal of resolution 9 does not
affect the validity of the proxy form circulated to shareholders
for use in connection with the AGM or any proxy votes already
submitted.
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END
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