27th Nov 2006 07:02
Kier Group PLC27 November 2006 KIER GROUP plc AGM STATEMENT Kier Group plc, the major construction, support services, housebuilding andproperty group, held its Annual General Meeting at the Group's head office atSandy, Bedfordshire on Saturday, 25 November 2006 at 11.00am. Commenting to shareholders on the performance achieved by Kier Group plc in itsfinancial year to 30 June 2006, John Dodds, Chief Executive, went on to say thatthe Group has made a promising start to the new financial year and that demandremains strong in all of its markets. He made the following comments: "Kier's record of increasing profits continued in 2006 with strong earnings pershare growth supported by good cash generation in the Construction and SupportServices businesses. "Our Construction businesses have had a good start to the new financial yearwith a record level of revenue achieved by Kier Regional in the first quarter.Order books are at healthy levels, supported by a strong pipeline ofopportunities, forming a sound foundation for further growth in revenue thisyear. Cash continues its impressive performance with month end balancesexceeding those at 30 June 2006. "We continue to pursue opportunities for Building Maintenance contracts in ourSupport Services business where there is a healthy bid list of projects. We arepreferred bidder on the repairs and maintenance contract in Harlow which isexpected to commence operations early in the New Year and will provide annualrevenues of £17m for 7 to 10 years. The Housebuilding division has also had a promising start to the year.Reservations are ahead of this time last year with no current signs of interestrate increases affecting our markets. Our combined unit completions and forwardorder book are 22% ahead of last year (15% on a like for like basis excludingthe recently acquired Hugh Bourn Homes business). This secures over 65% of ourprojected unit sales for the current year with a higher proportion of affordablehousing unit sales this year than last year. Whilst we anticipate growth in thecurrent financial year, as previously stated, we expect unit sales to be biasedtowards the second half of the year. This is expected to dampen thehousebuilding division's operating margin for the six months to 31 December2006. "In Property the market for high quality sites with blue chip tenants in goodlocations remains strong and we are in the process of securing a number of salesfor the full year. We have recently been selected as preferred bidder to developthe GQ2 site next to The Sage in Gateshead. This 5.5 acre mixed-use developmentwill include 24,000sq ft of restaurants, cafes and bars, a cinema, 55,000sq ftof retail premises, a hotel and approximately 320 homes and apartments. "Kier Project Investment continues to make progress on its portfolio ofinvestments achieving financial close on a new headquarters building inGravesend for Kent Police. "With our key businesses continuing to move forward and prospects good in all ofour markets, we expect the Group to continue to progress during 2006/7. - ENDS - For more information, please contact: John Dodds, Chief ExecutiveDeena Mattar, Finance DirectorKier Group plc Tel: 01767 640111 Caroline SturdyMadano Partnership Tel: 020 7593 4000 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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