Launch of £20m share buyback programme

Kier Group plc ("Kier", the "Company", or the "Group"), a leading infrastructure services, construction and property group, announces that it will commence a share buyback programme to purchase ordinary shares of 1 pence each in the capital of the Company ("Ordinary Shares") up to a maximum consideration of £20 million (the "Buyback Programme").

On 12 September 2024, Kier published its full year results for 2024, in which the Group announced significant progress against its financial targets, including the deleveraging of its balance sheet, driven through strong cash generation and conversion. These positive trends have continued and in its half year trading update, published separately today, the Group announced an evolved capital allocation policy, which will give consideration to incremental shareholder returns, when appropriate. 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 purpose of the Buyback Programme is to return capital to shareholders. The Company will hold as treasury shares any Ordinary Shares repurchased in accordance with the provisions of the Companies Act 2006.

The Company has entered into a non-discretionary agreement with Peel Hunt LLP ("Peel Hunt") to conduct the Buyback Programme on its behalf and carry out on-market purchases of Ordinary Shares (the "Agreement"). The Buyback Programme will commence today, 21 January 2025, and will end on the date on which the total purchase price of all Ordinary Shares purchased by Peel Hunt pursuant to the Buyback Programme is equal to, or as close as possible to (but not exceeding), £20 million. Peel Hunt will make trading decisions in relation to the Buyback Programme independently of, and without further instruction from, the Company. Under the Agreement, the Company has issued an irrevocable non-discretionary instruction to Peel Hunt to manage the Buyback Programme in order that purchases of Ordinary Shares can continue during closed periods, and if and when the Company comes into possession of inside information. While the Company has launched the Buyback Programme, there is no certainty on the volume of Ordinary Shares that may be purchased or any certainty on the pace and quantum of purchases.

The maximum number of Ordinary Shares that may be repurchased under the Buyback Programme is 45,270,364 Ordinary Shares, representing approximately 10 per cent. of the Company's issued ordinary share capital in issue as at 19 September 2024 (being the last practicable date prior to the publication of the notice of the 2024 AGM).

The Company will announce all transactions in Ordinary Shares pursuant to the Buyback Programme by no later than 7.30 a.m. on the business day following the calendar day on which such transaction occurred.

At the time of this announcement, the Company's share capital comprises 452,875,390 Ordinary Shares with voting rights.