13th Jul 2021 10:57
(Alliance News) - Kier Group PLC on Tuesday said it expects annual results to beat internal expectations, with the construction company landing new deals and achieving cost savings.
Kier noted the revenue consensus range for the year ended June 30 is between GBP4.0 billion and GBP4.5 billion, so at best, the market expects a 29% increase from GBP3.5 billion in financial 2020.
"Trading since the announcement of our half year results continued to be resilient and consequently the group's full year results are anticipated to be moderately ahead of the board's expectations. This reflects strong operational performance and the confidence we outlined in our half year results in April 2021," the company said.
"These results reflect the numerous cost savings realised in response to the reduced volumes caused by Covid-19 during the financial year. Infrastructure services and construction group, Kier, expects to deliver a full year 2021 adjusted operating profit margin of approximately 3%."
The company noted its recent contract wins included a GBP50 million early works contract for the UK's upcoming HS2 train line and a GBP1 billion pact with the UK Ministry of Justice's New Prisons Programme.
"The group's proven track record of delivery and focus on selected markets, coupled with its strong order book and strengthened balance sheet, gives the Board confidence in our strategy and the continued success of the group," the company added.
Shares in Kier were down 1.4% at 127.95 pence each in London on Tuesday morning.
By Amrit Sahota; [email protected]
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