RNS Number:6656S
Kier Group PLC
01 December 2003

1 December 2003


                                 KIER GROUP plc

                                 AGM STATEMENT


Kier Group plc, the major construction, support services, housebuilding and
property group, held its Annual General Meeting at the Group's head office at
Sandy, Bedfordshire on Saturday, 29 November 2003 at 11.00am.

John Dodds, Chief Executive, commented on the strong performance achieved by the
Group in its financial year to 30 June 2003 and went on to say that the Group
had made a good start to the new financial year with performance to date in line
with market expectations and order books in Construction & Services and Homes &
Property at healthy levels.

He made the following comments:

Kier's record of profits growth has continued for 11 years; the strong
performance in 2003 being supported by excellent cash generation, strengthening
of the balance sheet and, once again, a 40% return on shareholders' funds.
Growth was achieved across all business segments underpinned by the mechanics of
our business model with investment in our asset based businesses driven by the
cash generated by the Construction businesses.

The construction market continues to be underpinned by Government spending,
particularly in the health and education sectors. Within Regional Construction,
orders to date are at healthy levels and enquiries are plentiful indicating
further growth in turnover this year. In National Construction, the plan to
reduce risk through being more selective has, as expected, resulted in a smaller
order book. A number of good opportunities are being pursued in the Support
Services division.

The programme to improve the Construction & Services margin continues. Kier
Partnership Homes, which incurred significant losses last year, is now on budget
and Regional Construction has continued its strong profit and cash performance.
The two contracts within National Construction, on which we reported losses last
year, are coming to an end; the retail project in Bournemouth is now complete
and the head quarters for TAG McLaren in Woking will be completed before
Christmas 2003. The international business continues to trade well and will make
a good contribution to Construction profits again this year. Support Services
continues to trade in line with expectations with the #640m contract for
Sheffield City Council performing well.

In Housebuilding demand for our products has been maintained in all of our
markets. Our unit completions and current forward order book, together, are 10%
ahead of last year, securing over 70% of our projected unit sales for the
current year. The economic fundamentals continue to be favourable; interest
rates and unemployment remain low and the delays in planning continue to ensure
that the demand for housing outstrips supply. We anticipate further modest
increases in interest rates over the coming year but do not believe that demand
will dampen significantly.

In Property a number of sales have taken place since 1st July 2003 securing our
half-year targets. Good progress is being made on the office development at
Whitehall and a number of opportunities are being progressed with approximately
400,000sq ft of pre-let office space expected to be agreed during the first half
of this financial year.

Kier's businesses are in good shape and all of our markets are sound. We believe
that prospects are good for further growth this year and beyond.



Enquiries to:

John Dodds, Chief Executive
Kier Group plc                  Tel:  01767 640111

Caroline Sturdy/Bella Jowett
Bell Pottinger Financial        Tel:  020 7861 3232




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