Kier Group boss says Brexit has not hit business but has created uncertainty

Caitlin Morrison
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Kier was behind the refurbishment of the roof at King's Cross Station (Source: Kier Group)

Construction and property firm Kier Group today said trading is continuing in line with expectations - and the UK's vote to leave the EU has not had any adverse effect on business to day.

Shares in the group were up by 1.52 per cent in early trading, to 1066p.

The company said that, while the EU referendum result had "created some uncertainty", Kier's board "believes the group's breadth of activities and strong order books provide both visibility and resilience".

Buying May Gurney in 2013 and last year's acquisition of Mouchel has "significantly increased the level of visible, long-term earnings" from Kier's construction and services division, the firm said, and the property division has a "healthy" pipeline of projects totalling more than £1bn.

Meanwhile, Kier's net debt position of less than £140m at 30 June 2016 is ahead of the forecast range of £150m - £170m.

"Current trading is positive and the group will continue its disciplined approach to winning work and risk management," the company said.

"In summary, and as shown following the successful integration of Mouchel, the group has a track record of driving efficiencies through the business as well as managing risk effectively. The group's excellent cash performance, combined with our new fixed-rate facilities, provide a robust platform for the year ahead."

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