Kier has put the proceeds of the £75M sale of Mouchel Consulting to WSP Global into its property and residential divisions to take advantage of the current market.
In a trading update ahead of its annual general meeting tomorrow (18 November), the group said it is on course to meet its financial expectations for the current financial year, despite Brexit. 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.
The group said that the government’s approval of Hinkley Point C was welcome and contract wins including a place on a framework worth up to £750M at Gatwick Airport meant it is on track to achieve its targeted revenue. However, its two Hong Kong contracts remain “challenging”, although it is hoping to close these next year.
A statement said: “We are encouraged by the recent government announcements relating to Hinkley Point C and Heathrow airport, which reflect the UK government’s commitment to further investment in infrastructure, a key sector for Kier. With our broad offering and presence in sectors receiving government focus, the group is well-positioned for the future and looks forward to the government’s Autumn Statement on 23 November.”