(Alliance News) - Kier Group PLC on Thursday said trading in the first half of its financial 2024 continued to be above the prior period and in line with the board expectations.

The Manchester, England-based infrastructure services, construction and property firm said improved trading in the six months that ended December 31 was driven strong volume growth, particularly in Construction.

It also expects performance to be weighted to the second half of its financial year ending June 30, similarly to a year earlier.

Kier said its order book at December 31 was around GBP10.7 billion, up from GBP10.1 billion on June 30 last year and also up from GBP10.1 billion on December 31, 2022.

It said it secured revenue of 92% for its financial 2024, providing a "high degree" of visibility. It noted long-term framework positions are excluded from the order book and represent an additional opportunity, while bidding discipline and risk management embedded across the business continue to drive the high quality and profitable order book.

Kier expects to report a "modest" net cash position as of December 31, compared to net debt of GBP131 million a year earlier.

It also expects to resume dividend payments in the current financial year, beginning with an interim dividend to be announced with its half-year results on March 7. It said this was due to "continued resilience in trading, order book security and ongoing strengthening of the balance sheet".

"Kier has made a good start to the year, in line with our expectations. I am particularly pleased with the progress we are making on reducing debt, which has resulted in the group materially deleveraging its balance sheet in the first half. We have achieved this through disciplined growth as well as our unstinting focus on operational excellence, cash management and cash generation," said Chief Executive Officer Andrew Davies.

"Kier remains well positioned to continue benefiting from UK government infrastructure spending commitments and this gives the board every confidence in delivering our medium-term value creation plan."

Shares in Kier were up 4.7% to 117.50 pence each in London on Thursday later morning.

By Greg Rosenvinge, Alliance News senior reporter

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