Kier makes strong start to FY24

(Sharecast News) - Construction group Kier said it had made a good start to the current financial year, trading above the prior period and in line with internal expectations. Kier said at the end of October, its order book stood at roughly £10.5bn, up from £10.1bn 30 June, with 91% of full-year revenues now estimated to be secured, up from 85% in July and providing "a high degree of certainty".

The London-listed firm added that similar to the prior year, its full-year performance was expected to be second-half weighted. However, given the "resilience" in trading, order book security, and the ongoing strengthening of its balance sheet, Kier stated it remains "on track" to resume dividend payments in the 2024 financial year, commencing with an interim dividend.

Chief executive Andrew Davies said: "The current financial year has started well and, despite the ongoing inflationary pressure and supply chain challenges, it is especially pleasing that we are trading above the corresponding period last year, and in line with our expectations.

"We remain well positioned to continue benefiting from UK Government infrastructure spending commitments and we remain focused on the delivery of a sustainable net cash position with capacity to invest, in line with our medium-term value creation plan."

As of 1125 GMT, Kier shares were untraded at 106.0p.

Reporting by Iain Gilbert at Sharecast.com