The Kier Group Board are declaring an interim dividend of 1.67p per share. This represents a dividend cover of 4x as we progressively move to the medium-term target. The interim dividend will be paid on 31 May 2024 to shareholders on the register at close of business on 19 April 2024. The shares will be marked ex-dividend on 18 April 2024. Kier has a Dividend Reinvestment Plan ("DRIP"), which allows shareholders to reinvest their cash dividends in their shares. The final election date for the DRIP is 9 May 2024.
Other financial highlights include:
Revenue growth and improved profitability driving material deleveraging
o Revenue growth of 23% driven by Infrastructure Services and Construction
o Adjusted operating profit increased 13% to £64.7m (HY23: £57.2m)
o Adjusted operating margin at 3.4%, in-line with the medium-term target
o Adjusted basic EPS: 8.7p (HY23: 8.5p), up 2%
o Reported profit from operations increased 15% to £44.1m (HY23: £38.3m)
o Free Cash Flow of £(7.9)m materially improved over the prior period (HY23 £(87.8)m) following a strong Q1 performance
o Net cash at period-end of £17.0m, significantly higher than prior period-end (HY23: net debt (£130.6m)
o Average month-end net debt materially reduced by £106.2m to £(136.5m)
