- Kier Group said Monday it remained on track to meet its underlying 2019 expectations, with results likely to be weighted towards the second-half of the financial year as the company revised upward its net debt position by more than a third.

'Whilst the Board notes the current political and economic uncertainty in the UK, and the implications for third party investment, the Group remains on course to meet its underlying FY19 expectations, with the full-year results being weighted towards the second-half of the financial year, as expected,' the company said.

The Group had revised its net debt position as at 31 December 2018 to £180.5m from £130m and, accordingly, re-calculated its average month-end net debt for the six months ended 31 December 2018 as being £430m, up from £370m previously.

In the course of preparing its 2019 interim results and finalising the 31 December 2018 net debt position, the company 'identified a number of adjustments in aggregate of £10.3m, principally relating to the Group's hedging activities, and has revised the classification of the debt in aggregate of £40.2m associated with certain developments assets held for resale at 31 December 2018,' Kier said.

'The Group originally consolidated this debt balance within assets held for resale on its balance sheet; following the re-classification, the debt has been included within the Group's net debt position.'

Of the £40.2m net debt, £9.8m related to assets which had been sold since 1 January 2019, £14.1m related to sales which were subject to binding sale agreements and expected to complete by 30 April 2019 and the balance of £16.3m relates to assets which were either being marketed for sale by 30 June 2019 or are under offer.

The first phase of the operational progress and cost recovery programme of the Broadmoor Hospital redevelopment project was expected to be handed over shortly and the remaining work on the project, which accounted for less than 10% of its value, would commence shortly thereafter, the company said.

This comes as the group recently agreed a process with the client concerning the group's entitlement to the additional costs associated with the project's delay.

'Following its most recent review, the Board has concluded that a non-underlying provision of £25m would be included in the Group's FY19 interim results in respect of future recoveries from the client and other third parties,' the company added.

At 9:56am: [LON:KIE] Kier Group PLC share price was -80.2p at 417p

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