Sparks

Kier Group has reported FY24 results, including adjusted EPS of 20.6p and adjusted operating profit of £150.2m, both broadly in line with consensus.  Revenue was up 17% year on year, with adjusted operating margin 10bp lower at 3.8%.  The proposed final dividend of 3.48p gives a total for the year of 5.15p, ahead of consensus at 4.9p.  Net cash at year end was £167.2m, more than double the prior year (FY23: £64.1m). Management indicated that current trading is in line with the board’s expectations.  Kier Group’s order book increased 7% y-o-y to £10.8bn, with management stating this ‘provides significant visibility over FY25 and beyond’ as ‘c 90% of the group’s revenue for FY25 is already secured’. Management is confident in ‘sustaining strong cash generation evidenced over the last two years to further deleverage, increase dividends and deliver the evolved long-term sustainable growth plan’.  Kier Group’s stock is up 35% year to date.