19th Jan 2021 11:06
(Alliance News) - Kier Group PLC said Tuesday it performed "well" in the first half, ended December 31, and expects its half-year results to be "slightly above" internal expectations.
On top of that, Kier said it continues to make progress with the divestment of Kier Living and remains focussed on improving cash flows through a "disciplined approach to appropriate capital allocation".
"In addition, the group is continuing to consider a potential equity raise," Kier added.
Shares in the construction, services and property firm were 12% higher in London on Tuesday mid-morning at 84.00 pence each.
Kier said it continues to win new business, boasting the rates "reflect the bidding discipline and risk management introduced under the group's Performance Excellence programme."
As at December 31, Kier had been awarded places on long-term frameworks worth up to GBP11 billion, across a number of sectors including, health, education and justice. In addition, Kier noted, several existing frameworks were extended by 12 months.
In the first few weeks of 2021, Kier has also been awarded an 8-year maintenance contract worth about GBP200 million with Transport for London.
"There was an improvement in site productivity through the period despite Covid-19 restrictions," Kier said.
The company added: "The group anticipates that a reduction in adjusting items in the period will generate a statutory result materially better than the corresponding period last year."
Kier also said it now expects to deliver at least GBP105 million of annualised cost savings by the end of financial 2021, through self-help measures.
The firm expects to generate positive adjusted operating cash flow at the half year end.
Kier also noted it is "well prepared" for the national lockdown in the UK introduced in early January 2021.
"The group continues to win high quality work in our chosen markets resulting in a strong order book which is slightly above year-end levels, despite the difficult trading environment due to the pandemic. The projects awarded consist of those which have been bid and delivered under our increased transparency, governance and controls," Kier said.
It added: "This order book, combined with our project management expertise, longstanding customer relationships and recent government announcements of increased spending on national infrastructure, gives us confidence in the outlook for the group."
By Paul McGowan; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Kier