Kier increases 2013 full year dividend by 3%

DividendMax Ltd.

Kier increases 2013 full year dividend by 3%

Underlying pre-tax profits of £63.4m (2012: £70.0m) and underlying EPS* of 136.2p (2012: 156.8p) in line with expectations

Full-year dividend up 3% to 68p (2012: 66p)

Solid cash performance, with net cash at £60m (2012: £129m) after investment of approximately £77m during the year and average month-end net debt of £4m (2012: average month-end net cash of £95m)

Resilient Construction margins of 2.3% (2012: 2.5%) and Services margins* of 4.4% (2012: 4.5%)

All of the Construction division's targeted revenue and 95% of the Services division's targeted revenue for 2014 is secure and probable, with order books maintained at more than £4bn (£5.9bn including May Gurney)

Mixed-tenure housing and property development pipeline in excess of £1.5bn; the latter achieved a 15% return on capital in the year

Commenting on the results, Kier Group plc chief executive, Paul Sheffield, said:

"I am pleased to report that Kier Group plc has performed well and delivered profits in line with our expectations. The modest decline in revenue and profit reflects the tough trading conditions the industry has faced during the year, but I am delighted to see that the divisional trading results remain robust. Margins in Construction and Services were resilient and our Property division again made a strong contribution.

"The acquisition of May Gurney in July 2013 creates a support services business with revenues in excess of £1bn and provides an excellent platform for growth. The integration and interaction with key clients are both proceeding well and the combination of the two businesses will deliver significant synergies.

"After nearly five years of recessionary pressure, we are seeing positive signs of improvement in all our principal businesses, which gives rise to cautious optimism that the economy is recovering. As a result, we have increased the full year dividend by 3% to 68p, reflecting our confidence in the future performance of the business."


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