The Kier Group Board proposing a final dividend of 3.48p per share. When combined with the interim dividend of 1.67p, the total dividend of 5.15p in FY24 represents an earnings cover of 4x as they progressively move to their target of 3x cover.
The final dividend will be paid on 29 November 2024 to shareholders on the register at close of business on 25 October 2024. The shares will be marked ex-dividend on 24 October 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 8 November 2024.
Other financial highlights include:
Revenue growth and improved profitability driving material deleveraging
o Revenue growth of 17% driven by strong operational delivery across divisions
o Adjusted operating profit increased 14% to £150.2m (FY23: £131.5m)
o Adjusted operating margin at 3.8%, ahead of the medium-term target of c.3.5%
o Adjusted basic EPS: 20.6p (FY23: 19.2p), up 7%
o Reported operating profit increased 27% to £103.1m (FY23: £81.5m)
o Free Cash Flow of £185.9m outperformed the prior year (FY23: £132.3m) with an operating free cash flow conversion of 144.5%
o Net cash of £167.2m, more than double the prior year-end (FY23: £64.1m)
o Average month-end net debt halved to £(116.1)m (FY23: £(232.1)m)
