Kier Group plc, the property, residential, construction and services group, remains on course to meet expectations for the current financial year, despite increased economic uncertainty in the UK following the EU referendum, according to its trading update for the period 1 July 2016 to date.

The Group's average net debt position for the six month period to 31 December 2016 is expected to be in line with the prior year at £300m (2016: £280m). Kier said this position reflects the proceeds from the disposal of Mouchel Consulting and an investment of £100m since 1 July 2016 in the Property and Residential divisions, in order to take advantage of opportunities in the current market.

On 12 October 2016, the Group completed the disposal of Mouchel Consulting to WSP Global Inc for a total cash consideration of £75m. The net disposal proceeds have been invested in the Property and Residential divisions.

In the Group’s construction division, performance is in line with expectations and the current order book represents 100% of targeted revenue for the current financial year. Key successes since 1 July 2016 include securing positions on the four-year £4bn Department of Health ProCure22 framework, two five-year construction frameworks worth up to £750m at Gatwick Airport and a two-year £500m University of Cambridge framework.

In the infrastructure business, the UK Government's approval of Hinkley Point C nuclear power station was welcomed, with Kier already undertaking work at the site. Internationally, two Hong Kong contracts are described as remaining challenging; however, they are expected to reach completion during the first quarter of 2017 and work is underway to close the final accounts.

The update says:

“We are encouraged by the recent Government announcements relating to Hinkley Point C and Heathrow airport, which reflect the UK Government's commitment to further investment in infrastructure, a key sector for Kier. “

In Kier’s Services division, including the Group’s long-established water business which provides services to a large number of water companies throughout the UK, the order book represents 100% of targeted revenue for the current financial year and margin performance remains in line with expectations.

The Group remains on course to meet expectations for the current financial year and deliver on its Vision 2020 targets.