Kier Group PLC INFRASTRUCTURE AND REGIONAL BUILDING UPDATE (4619C)
January 22 2018 - 1:00AM
UK Regulatory
TIDMKIE
RNS Number : 4619C
Kier Group PLC
22 January 2018
22 January 2018
KIER GROUP PLC
INFRASTRUCTURE AND REGIONAL BUILDING UPDATE
Kier, a leading property, residential, construction and services
group, provides the following updates relating to its
infrastructure and regional building businesses.
-- HS2 and Highways England smart motorway joint ventures transfer from Carillion;
-- GBP140m additional infrastructure contracts awarded; and
-- GBP160m Public Health England contract award.
Infrastructure
Further to the announcement of 15 January and after discussions
with the Government and their clients, Kier confirms the
following:
-- On HS2, Kier and Eiffage are now 50/50 joint venture partners
delivering two of the seven civil engineering packages, lots C2 and
C3. All 51 Carillion employees, including apprentices, working on
the CEK HS2 joint venture have been offered the opportunity to join
Kier/Eiffage with continuous service to the client being
maintained; and
-- Kier has assumed full responsibility for the Highways England
smart motorway schemes on which it had been working in joint
venture with Carillion. All employees currently working on the
schemes have been offered the opportunity to join Kier. In total
c.150 employees will be making the transition to Kier in the next
week including seven apprentices. Engagement with the existing
supply chain on this project has also taken place, again ensuring
continuity of skills, resources and suppliers.
The above contracts are all performing well, operationally and
financially.
In addition, following the acquisition of McNicholas in July
2017, a number of contract extensions have been awarded to this
business, totalling GBP140m. These include:
-- A five-year GBP31m 'Gas to the West' network distribution
operation for SGN Natural Gas in Northern Ireland, which secures
the Group's place as the principal contractor to three gas
distributors in Northern Ireland;
-- A GBP40m contract extension to 2022 to the Phoenix Natural
Gas contract in Northern Ireland, and;
-- A one-year GBP30m contract extension to 2020 for the Network
Rail CP5 High Voltage and Electrification and Plant framework.
Regional Building
In regional building, the Group has been awarded a GBP160m
Public Health England contract for a new 17,000m(2) bioscience
facility in Harlow, Essex. This is the largest lot of four in a new
Public Health England development which will create a leading
science campus and headquarters. The new building comprises
specialist bioscience laboratories, an energy centre and associated
support facilities. Work on the development is scheduled to
commence in February 2018.
Haydn Mursell, chief executive of Kier, said: "We have been
working collaboratively with our clients and are pleased to have
reached agreement with Government concerning these joint ventures.
We have been able to take action quickly and reassure the project
teams that they continue to play an important role in the delivery
of these contracts. The McNicholas acquisition is performing well,
providing a highly complementary addition to our utilities services
business, and the Public Health England award reflects our growing
presence in the bioscience market."
The Group will announce its trading update for the half year
ended 31 December 2017 on 25 January 2018.
- E N D S -
For further information, please contact:
Louise Turner-Smith, Kier +44 (0) 07976
Investor Relations 790012
Kier press office +44 (0)1767 355903
Richard Mountain / Nick +44 (0) 20 3727
Hasell, FTI Consulting 1340
This information is provided by RNS
The company news service from the London Stock Exchange
END
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