AGM Statement

Kier Group PLC
26 November 2007


                                                                26 November 2007


                                 KIER GROUP plc


                                 AGM STATEMENT


Kier Group plc, the major construction, support services, housebuilding and
property development group, held its Annual General Meeting at the Group's head
office at Sandy, Bedfordshire on Saturday, 24 November 2007 at 11.00am.


Commenting to shareholders on the excellent performance achieved by Kier Group
plc in its financial year to 30 June 2007, John Dodds, Chief Executive went on
to say that the Group has made a strong start to the new financial year. He made
reference to the recent Interim Management Statement issued on 29 October 2007
to which there is no material change and stated that the Group is well on track
to achieve further growth this year.


Chairman, Peter Warry, announced his intention to step down as non-executive
Chairman and a director of the Company with effect from 31 December 2007. He
will be succeeded by Phil White, the Senior Independent Director.


Trading update


During the meeting, John Dodds, made the following comments:


"The Group has made a strong start to the new financial year with first quarter
trading in-line with our expectations putting us on track to achieve our full
year target. Our cash balances have remained strong throughout the period with
September month end balances higher than those at 30 June 2007 driven largely by
an excellent cash performance in the Construction division.


"Our integrated business model is providing insulation against the weaker demand
we are currently experiencing in the housing market as we continue to benefit
from strong markets particularly in our largest division, Construction, and in
our fastest growing division, Support Services.


"Our Construction businesses have had a very promising start to the new
financial year with a record level of revenue achieved by Kier Regional in the
first quarter. Order books are at healthy levels, supported by a strong pipeline
of opportunities, forming a sound foundation for further profitable growth in
this year.


"In Support Services we have good visibility of revenues over the next five to
ten years through our Building Maintenance division where we operate a number of
large, long-term local authority outsourcing contracts. We continue to pursue
opportunities for Building Maintenance contracts and there is a healthy bid list
of projects. We recently achieved preferred bidder status on the repairs and
maintenance contract in Stoke which is expected to commence operations early in
the New Year and will provide annual revenues of £40m for 10 to 15 years.


"The Homes division has made a satisfactory start to the year despite negative
buyer sentiment and uncertainties in the mortgage lending market. Our order book
is broadly the same level as this time last year and around 60% of our full year
targeted unit sales are secured by way of completions, exchanged contracts and
reservations. Our housing businesses are achieving rates of reservations that
should enable us to show a modest increase over the number of last year's unit
sales.

"In Property the occupier market has remained sound in the first quarter of the
year despite investment uncertainties and we have already secured the majority
of the transactions required to achieve the full year targeted profit. We are
continuing to explore opportunities to acquire further stock in order to expand
the business.


"As set out in our statement of 29 October 2007 the Group's financial
performance to date is in line with our expectations; cash is very strong; and
we have healthy order books, particularly in Construction and Support Services.
All of this puts us firmly on track to achieve good growth this year.


Board changes


During the meeting, Peter Warry announced his intention to step down as
non-executive Chairman and a director of the Company with effect from 31
December 2007.


The Board has elected Phil White to succeed Peter as non-executive Chairman.
Phil joined Kier as a non-executive director in July 2006 and has been Senior
Independent Director since 1 July 2007. He served as Chief Executive of National
Express for nearly 10 years transforming it into one of the UK's leading
transportation groups. He is currently Chairman of Lookers Plc and ACIS Limited.


Chief Executive, John Dodds, commented


"I should like to thank Peter, on behalf of the board and the Group, for his
contribution during his 10 years with the business and particularly the last
three years during which he served as Chairman. He has guided us through a
period of significant growth and change during that time and he has our very
best wishes for the future.

"I am very pleased to welcome Phil White as our new Chairman. Phil has extensive
experience of both listed and private companies and will play a key role in
guiding the Group through the next stages of its growth and development.


                                    - ENDS -



For further information, please contact:


Kier Group plc                                                 Tel: [phone]
John Dodds, Chief Executive
Deena Mattar, Finance Director


Madano Partnership                                            Tel: [phone]
Caroline Sturdy/Matthew Moth




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