LONDON (ShareCast) - (Sharecast News) - Kier Group updated the market on its net debt, trading and strategic initiatives following the close of its 2019 financial year on Thursday, reporting that as at 30 June, its net debt totalled £167m.
The London-listed construction, services and property group said average month-end net debt for the 2019 financial year was £422m, which was at the lower end of its previous guidance of between £420m and £450m.

It reported average payment days to its supply chain partners of 41 for the second half of the year, which was a "significant" reduction from 57 days for the first half, while maintaining decent liquidity headroom.

"Trading in the group's infrastructure services and buildings divisions has remained resilient," the board said in its statement.

"However, the group's turnover for the 2019 financial year is anticipated to be approximately £100m lower than for the 2018 financial year, principally as a result of property and land-led transactions which did not complete in June 2019, which will have an impact on the group's profitability broadly in line with its historic gross margins."

Kier said it was continuing to make progress against the strategic initiatives it announced on 17 June.

It said it had received "significant" interest in its house building division Kier Living, and had started the sale process for this business.

Kier said it would publish the results for its 2019 financial year on 19 September.

At the same time on Thursday, Kier Group also announced that Simon Kesterton would be appointed to its board of directors as chief financial officer-designate with effect from 26 August, and would assume the full CFO role from 19 September.

Bev Dew, the company's finance director, would stand down from the board immediately following the announcement of its results for the 2019 financial year, and was expected to remain on garden leave for the remainder of his notice period to May 2020.

From 2013 to 31 July 2019, Kesterton was group finance director at RPC Group.

Prior to that, he was CFO for Europe and also chief strategic officer at IAC Group, where he worked from 2006 to 2012.

During the early part of his career, Simon Kesterton undertook a number of finance roles at Collins & Aikman and British Federal.

"Simon has a broad range of finance experience across a number of sectors," said Kier Group chief executive officer Andrew Davies.

"In particular, he has played a key role in implementing programmes which focus on the disposal of non-core assets, the reduction of overheads and cost control.

"I would like to welcome Simon to Kier and I look forward to working with him."

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