16th Jan 2020 11:08
(Alliance News) - Kier Group PLC on Thursday said trading in the last two months of 2019 was in line with board expectations, with the firm winning new contracts and closely managing its debt.
Shares in the construction and infrastructure services firm were up 2.4% at 79.34 pence in London on Thursday morning.
Kier gave a trading update at its annual general meeting on November 15. Between then and December 31, the firm has traded as the board expected and been awarded new contracts across its markets.
This included being appointed, in November, to all 20 lots of the GBP8 billion four-year Procure Partnerships Framework. The framework was established nationwide in the UK as a way to give flexibility to public sector bodies in procuring contractor partners and choosing a procurement option.
Kier said it has also managed its debt, with average month-end debt for the six months ended December 31 being in line with the board's expectations.
The company also stated that it intends to bring forward its results announcement date for the first half of its financial year, which ended December 31, to March 5 from March 19.
In addition, Kier has made progress on its efforts to close offices, outsource functions, and reduce its headcount. The firm expects to have reduced its headcount by around 1,200 by the end of June 2020 and generated cost savings of GBP60 million at a minimum in its financial year ending June 2021. Kier is also looking into additional "cost optimisation opportunities".
Kier said it has made progress in disposing of its housebuilding business, Kier Living, and evaluating options for its Property business.
As disclosed on December 16, Kier appointed a new chair, Matthew Lester - chief financial officer of Royal Mail PLC from 2010 to 2017 - to replace outgoing chair Phillip Cox. Lester's appointment was effective from January 1.
Chief Executive Andre Davies said: "The work to re-shape the group continues through the careful execution of our strategic priorities and efforts to significantly reduce the group's cost base. The group is performing in line with our expectations and we continue to win work from our customers."
By Anna Farley; [email protected]
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