Kier’s share price soared by more than 6 per cent this morning after the construction, property and support services giant announced a buyback scheme.
The value of a share in the Salford-headquartered firm rose from 138.4p at 5pm on Monday, 20 January, to 147.2p just after 8am on Tuesday.
It followed the firm’s announcement at 7am that it planned to purchase up to £20m of ordinary shares in itself to return capital to investors.
The statement came on the back of “significant progress” against financial targets in the 12 months to June 2024.
Kier revealed in September that a three-year operational plan had “deleveraged the business markedly”. It posted revenue of £3.9bn alongside a pre-tax profit of £68.1m for the year to last June.
The CN100-ranked contractor today said it was trading “in line with the board’s expectations” for the first half of its 2024/25 financial year.
Kier said its order book stood at about £11bn at the end of December, 3 per cent up on a year earlier.
It has also secured more than 95 per cent of its targeted revenue for the current financial year, with places on long-term frameworks.
“Bidding discipline and risk management embedded across the business continue to drive the high-quality and profitable order book,” said the update.
Kier added: “The board believes the group has a strong, stable and flexible balance sheet, capable of supporting growth opportunities and, consistent with its capital allocation framework, considers it is appropriate and in the best interests of shareholders to commence the buyback programme.
“The company has entered into a non-discretionary agreement with Peel Hunt to conduct the buyback programme on its behalf and carry out on-market purchases of ordinary shares.”
Kier Construction this month won a deal to design and build accommodation at a British Army base in Hampshire.
