Kier remains on course to deliver double digit profit growth in the current year, the group said this morning.
In a trading update for the six months ended 31 December 2017, chief executive Haydn Mursell said the group has traded in line with management’s expectations in the period and has concluded its two-year portfolio simplification programme.
He also expects the group’s net debt to EBITDA to be less than 1x at June 30 and for the Group’s year-end and average net debt position to reduce over the period to 2020.
The group’s net debt position for the six months ended 31 December 2017 will be in the range of £230m-£240m (31 December 2016: £179m), including the £24m cost and acquired debt of McNicholas, with an average month-end net debt position for the period of c.£350m (31 December 2016: £300m).
The combined Construction and Services order books remain “strong” at c.£9.5bn, with 100% of forecast revenue for the 2018 financial year secured, providing good visibility. In addition, Kier’s Highways business is currently in negotiation with Highways England for three-year extensions to its Area 3 and 9 contracts, with a final decision expected by the end of March 2018.
Haydn Mursell said: “Our first half performance continues to demonstrate the strength and stability of the business and the benefits of our client focused strategy. We have leading market positions in infrastructure services, building and development which provide the platform to support further growth and position the Group well for the future. The Group remains on course to deliver double digit profit growth in the current year and to achieve its Vision 2020 targets.”
Kier will announce its full results on March 15.