TIDMKIE
RNS Number : 9566H
Kier Group PLC
30 March 2020
30 March 2020
Kier Group plc
COVID-19 Update
Kier Group plc ("Kier" or the "Group"), a leading construction
and infrastructure services group, today provides an update in
light of COVID-19.
During this unprecedented time, the Group has continued to focus
on promoting a safe working environment for our employees,
suppliers and customers. We have put in place extensive continuity
and mitigation plans to ensure that we can operate safely and in
line with the Government's latest guidance. For example, we
introduced a 24-hour pause across our sites and workplaces to
ensure that the Site Operating Procedures issued by the
Construction Leadership Council on 24 March 2020 and endorsed by
Public Health England have been implemented. If sites or workplaces
are not able to operate to this standard, we will either implement
modifications to their layout or working practices or close
them.
Current trading
Although COVID-19 has created uncertainty, Kier operates across
sectors which are vital to the country. The Group maintains the
UK's highways, delivers vital maintenance to peoples' homes,
provides facilities management services to the NHS, builds schools
and hospitals, delivers critical national infrastructure and
provides key maintenance and repair services to the water, gas,
power, telecoms and rail sectors. Many of these services have
Government support and we retain key worker status for a number of
our employees who are carrying out these activities. For the year
ended 30 June 2019, c.73% of our core Construction and
Infrastructure Services activities related to work for Government
departments or quasi-governmental entities (for example, HS2 or
Network Rail) and a further c.13% related to the provision of
services to regulated entities (for example, in the utilities
sector). There has been no material change to these figures during
the current financial year.
Trading from 1 January 2020 to date has been in line with the
Board's expectations. Approximately 80% of our sites or workplaces
continue to operate (subject to the pause referred to above),
although we recognise that this may change. We continue to receive
support from our major customers, including Highways England, the
Ministry of Justice and various utilities providers. In line with a
number of other companies in the sector, we will pause work on our
Kier Living house-building sites.
In light of COVID-19, the process to dispose of Kier Living and
the evaluation of the options for our Property business have both
been paused.
COVID-19 mitigating actions
We entered this period of uncertainty with a clear strategy,
including a cost saving programme and a focus on debt reduction. In
response to COVID-19, we have implemented a number of additional
measures to enable the Group to continue operating as efficiently
as possible. These include c.6,500 employees, including the
Executive Committee, and the Board taking a reduction of between
7.5% and 25% in their base salaries or fees for a three-month
period beginning on 1 April 2020 and bringing forward the closure
of our head office at Tempsford Hall to 30 April 2020. We recognise
that the situation is changing rapidly and will continue to review
our plans to mitigate the effects of the pandemic.
Our cost saving programme remains on track to deliver at least
GBP65m of savings for the financial year ending 30 June 2021.
We welcome the measures announced by the Government to assist UK
companies during this challenging period and we continue to explore
their availability to the Group. We continue to have a close
dialogue and work together with all our key stakeholders, including
the Government and our customers, suppliers and lenders.
Net debt
The Group continues to closely manage its net debt, which
remains in line with management's expectations. The Group has total
facilities of c.GBP910m, including c.GBP700m of facilities which
are due for renewal during 2022. For the six-month period ended 31
December 2019, average month-end net debt was GBP395m.
- ENDS -
For further information, please contact:
+44 (0)1767 355
Kier press office 096
Richard Mountain / Nick Hasell, +44 (0)203 727
FTI Consulting 1340
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 2019 and the Company's
results announcement for the six months ended 31 December 2019 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.
About Kier
Kier is a leading UK construction and infrastructure services
group. The services we offer to our clients fit in to two core
market propositions: Construction and Infrastructure Services.
We provide specialist design and build capabilities and the
knowledge, skills and intellectual capital of our people ensure we
are able to project manage and integrate all aspects of a
project.
We take pride in bringing specialist knowledge, sector-leading
experience and fresh thinking to create workable solutions for our
clients across the country.
Together, we have the scale and breadth of skills of a major
company, while retaining a local focus and pride that comes from
never being far from our clients, through a network of offices
spanning across England, Wales, Scotland and Northern Ireland.
For further information and to subscribe to our news alerts,
please visit: www.kier.co.uk
Follow us on Twitter: @kiergroup
Connect with us on LinkedIn: Kier Group
.
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END
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