Kier more than halves debts to below £200m

Aaron Morby 4 months ago
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Kier has more than halved its net debt from around £436m to below £200m following the sale of Kier Living and its £241m cash raise last year.

Kier chief Andrew Davies says business is trading in line with expectations
Kier chief Andrew Davies says business is trading in line with expectations

Together these raised £351m helping the business to fund working capital and bring average net debt down to more manageable levels.

In a half year trading statement this morning, Andrew Davies, chief executive officer, said the business was making steady progress with its order book up by 4% to around £8bn.

This was driven by a £1bn haul of highways work, including  the design and build of the A66 Northern-Trans-Pennine schemes.

The business also booked a £66m Thames Water improvement project at Mogden Sewage Treatment Works and was appointed to design and build £93m worth of new clinical buildings at Luton and Dunstable hospital

Davies  said: “The performance of the group over the last six months reflects our significantly enhanced resilience and strengthened financial position.

“The first half of the year has started well and we continue to trade in line with our expectations.

“The increased order book gives us the confidence in the achievement of our medium-term value creation plan and the continued success of the group, which with financial and operational flexibility, is well placed to pursue its strategic objectives within its chosen markets.”

He said the business was on track to meet its target in the medium term of £4-£4.5bn revenue, with adjusted operating margin of around 3.5%

Davies did not comment on reports that it has been in talks to buy rival Tilbury Douglas.

 

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