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(Sharecast News) - Construction and infrastructure group Kier said on Thursday that trading was in line with expectations for the current financial year, supported by new contract wins across defence, healthcare, water and energy, while strong cash generation continued to strengthen its balance sheet.
In an update ahead of its annual general meeting, the company said it had made a positive start to the financial year ending June 2027, remaining on track to meet the enhanced medium-term financial targets announced in September.
Recent contract awards include a £600m programme of works at Devonport Royal Dockyard in Plymouth, secured through its KierBAM joint venture with Babcock, and around £100m of water contracts with Thames Water, Yorkshire Water and Severn Trent.
Kier has also been appointed to a healthcare project forming part of the wider £3.5bn UK Health Security Campus development in Harlow, alongside a major contract to deliver the Sizewell Link Road.
The order book stood at £11.7bn at the end of September, down slightly from £11.9bn in June, but the company said it expected the order book to increase by December as recently secured contracts were added.
Kier also highlighted further progress towards its target of more than £200m in average monthly net cash by the end of FY29, supported by consistently strong cash generation.
Chief executive Stuart Togwell said: "We have made a positive start to FY27, trading in line with our expectations."
He added: "Recent new contract wins underpin visibility for the remainder of FY27 and beyond, while consistently strong cash generation continues to strengthen the balance sheet."
Kier said its focus remained on delivering its financial targets through disciplined execution and converting opportunities in its targeted growth markets into secured work.
The stock was 2.1% lower at 323.2p by 1332 GMT.
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