Kier Group has told shareholders today that it “remains on course” to meet expectations for the current financial year, despite “increased economic uncertainty in the UK following the EU referendum”.
Announcing its trading update covering the period from 1 July 2016 to date, the property, residential, construction and services group said full year results will be “second-half weighted in line with the prior year” as it plans to use the proceeds of its £75 million sale of Mouchel Consulting last month to “take advantage of opportunities” in the property and residential markets.
The group’s average net debt position for the six month period to 31 December 2016 is expected to be in line with the prior year at £300m (2016: £280m), reflecting the proceeds from the disposal of Mouchel Consulting and an investment of £100m since 1 July 2016 in the Property and Residential divisions.
The group said it expects investment in the property division will top £175m in the current financial year, having invested more than £60 million in new schemes, principally in the north of England and Scotland, since July.
Kier said deals secured in that period included a 50 per cent equity stake in a fully-occupied 90,000 sq ft office building in Bothwell Street, Glasgow.
In residential property, Kier said demand has been strong “for all forms of housing”, with private sales and reservations “exceeding” the equivalent period last year.
In construction, Kier said the division is performing in line with expectations with the current order book representing 100 per cent of targeted revenue for the current financial year.
Source: Scottish Construction Now