- 95% of FY25 revenue secured
- £20 million buyback from today
- Marshalls update disappoints
Shares in FTSE 250 infrastructure group Kier (KIE) gained after their recent setback as the company revealed it had ‘traded well’ in the six months to December and was launching a small buyback programme.
The stock price gained 7p or 5% to 145p, continuing its rebound from the 130p level of a week ago.
GOOD VISIBILITY
While it didn’t give any details on its first-half revenue, the firm said its order book had increased to £11 billion with over 95% of full-year turnover already secured, ‘providing a high degree of visibility’, which went down well with investors.
Moreover, a disciplined approach to bidding and risk management ‘continues to drive the high-quality and profitable order book,’ the company said.
Recent awards include an £850 million contract from Yorkshire Water for water processing and waste networks under AMP8, which runs from 2025 to 2030; a £240 million contract from the Ministry of Defence to design and build a new barracks; and a place on the four-year, £500 million NHS programme to lower its carbon footprint across its estate.
The group continues to reduce its gearing, ‘reflecting a maintained focus on operational delivery and cash management’, and expects to report a higher net cash position as at 31 December than it did a year ago.
Consistent with this better financial position, the firm said it would begin a £20 million share buyback today which is equivalent to around 4% of its current market cap.
NEW LOW FOR MARSHALLS
In contrast to Kier, building materials group Marshalls (MSLH) reported a drop in revenue for the year to December due to lower demand from housebuilders, sending its shares down 19p or 7.5% to a new 12-month low of 236p.
Turnover fell around 8% to £619 million due mainly to weaker demand for landscaping products in the new-build and RMI (repair, maintenance and improvement) markets, although as the year progressed the rate of decrease slowed, which is something.
Building products revenue improved in the second half but was still down 3% for the year, while roofing revenue increased by 4% with 15% growth in the final quarter due to higher demand for solar products and a return to growth at the Marley tiles business.
