3rd Jul 2006 15:12
Kier Group PLC03 July 2006 3 July 2006 KIER GROUP PLC TRADING UPDATE YEAR ENDED 30 JUNE 2006 Kier Group plc, the contracting, services, housebuilding and property group ispleased to provide the following update to current trading in advance of a sitevisit with analysts and institutional investors tomorrow. Kier Group plc expects to report full year profits well ahead of last year andat the higher end of market expectations. Cash generation during the year has been very strong despite the 'special'contribution of £31.5m made by the Group by the end of June 2006 to its pensionscheme. The Group's strong cash position largely reflects excellent cashgeneration in the Construction division. In Regional construction the value of awards for the year has been at thehighest level ever resulting in a record order book brought forward into the newfinancial year. Approximately half of our awards are now from the public sector,particularly education, and a high proportion of the total awards have beennegotiated or partnered. Support Services has made excellent progress this year, particularly in theBuilding Maintenance division where our local authority outsourcing contractsare performing well. We continue to see further opportunities emerging fromthis market and we are well placed to take advantage of these as they arise. In Housing we have seen a changed pattern to the timing of unit sales with agreater bias towards the second half of this financial year than last. Overallwe achieved 1,522 completions for the year representing a 25% increase over lastyear. Reservation levels remained strong in the period from March to the middleof June and, although we have experienced some seasonal slowing of the markettowards the end of June, we enter the new financial year with a substantialbrought forward order book containing more than a quarter of next years'projected unit completions. Our Property business continues to benefit from a strong property market andfrom opportunities across all sectors including mixed-use and regenerationschemes. As our reputation for tackling complex development sites continues togrow we are increasingly being approached by clients for solutions to suchsites. Our PFI business continues to grow with financial close reached on two furtherschools projects and a health project during the year. The Group is in good shape. All of our markets are healthy and there isconfidence in all of our businesses that progress will continue into the newfinancial year and beyond. Kier Group expects to announce its Preliminary results for the year to 30 June2006 on 14 September 2006. - ENDS - For further information, please contact: John Dodds, Chief ExecutiveKier Group plc Tel: 01767 640111 Deena 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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