Kier Group reiterated previous guidance in a trading update on Thursday, saying it was on track to deliver double digit profit growth for the six months to December 2017.
The group confirmed that it had concluded its two-year portfolio simplification programme, in line with previous guidance.
An increase in investment in Property and Residential led to an increase in average net debt during the period, the group said, but the capital employed in these divisions is now at the target level for the purposes of Vision 2020 targets.
“We therefore expect net debt to EBITDA to be less than 1x at 30 June 2018 and for the Group’s year-end and average net debt position to reduce over the period to 2020”, Kier Group confirmed.
The group’s combined Construction and Services order books remain strong at £9.5 billion, with 100 percent of forecast revenue for the 2018 financial year secured, providing good visibility.
Haydn Mursell, chief executive, said: “Our first half performance continues to demonstrate the strength and stability of the business and the benefits of our client focused strategy. We have leading market positions in infrastructure services, building and development which provide the platform to support further growth and position the Group well for the future. The Group remains on course to deliver double digit profit growth in the current year and to achieve its Vision 2020 targets.”
Kier Group (LON:KIE) shares are currently trading up nearly 9.97 percent on the news at 1053.00 (0848GMT).
