Kier, a UK-based infrastructure services, construction, and property group, has provided a trading update for the period from 1 July 2024 to date, indicating its performance is in line with the board's expectations.
The update indicates that the company has commenced the financial year (FY25) positively and the company's financial performance is anticipated to be second-half weighted, similar to the previous year.
The order book for Kier now stands at approximately £10.9bn ($13.87bn), a slight increase from £10.8bn as of 30 June 2024.
Approximately 95% of the group's revenue for FY25 is now estimated to be secured, which marks an improvement from the previously announced 90%. This provides Kier with a high level of revenue certainty for the year ahead.
The company attributes its robust order book to disciplined bidding and effective risk management strategies that are embedded across the business.
The group has recently been appointed to several significant frameworks and projects.
In its Infrastructure Services division, the company has been selected by Wessex Water as part of a five-year framework worth up to £3.7bn for Wessex Water's Asset Management Period 8. The contract includes the construction of new assets and works on existing assets across various sectors.
In the Construction division, Kier has been awarded two education projects with a combined value of around £30m and a major £100m infrastructure project at Royal Naval Air Station (RNAS) Culdrose by the UK's Defence Infrastructure Organisation.
The RNAS Culdrose project is set for completion in 2028.
Additionally, Kier Places secured a place on Riverside Group's four-year framework to deliver a fire safety and retrofit programme valued at up to £300m.
The company has maintained its emphasis on operational delivery and cash management, with expectations to continue deleveraging and achieve a significant improvement over the previous period.
Kier CEO Andrew Davies said: "The current financial year has started well and we are trading in line with our expectations. We are well-positioned to benefit from UK government infrastructure spending plans into areas where Kier offers market-leading services.
"These strong structural drivers and further investments will allow us to further generate shareholder returns."
