Property services group Kier Group (LON:KIE) saw shares edge up on Tuesday morning, after reporting results on track to meet expectations despite its construction group suffering the effects of bad weather.
Year-end net debt is expected to between £170 million and £190 million, in line with previous forecasts, with average month-end net debt of about £375 million after its construction business was hit by the poor weather in February and March.
The group also announced a cost-savings plan that will include the sale of non-core assets, which began last month, which will improve productivity, operating margins and cash generation.
Which assets it expected to sell were unclear, but it said the benefits would be realised from 2020 onwards.
The construction and services order books increased to more than £10 billion, providing a 90 percent secured revenue position in these businesses for 2019, Kier added.
“The strength of the Construction and Services order books, together with the long-term Property and Residential pipelines, provides a robust platform to deliver our Vision 2020 targets,” Kier said.
Shares in Kier are currently trading up 1.18 percent at 946.00 (0854GMT).
