Trading Statement

Kier Group PLC
11 July 2007



                                                                    11 July 2007


                                 KIER GROUP PLC
                                 TRADING UPDATE
                            YEAR ENDED 30 JUNE 2007


Kier Group plc, the contracting, services, housebuilding and property group is
pleased to provide the following update to current trading in advance of meeting
with analysts today.

Kier Group plc expects to report full year profits ahead of current market
expectations and substantially more than last year's result. Cash balances
during the year have been strong ending the financial year at over £145m (30
June 2006: £111m) net of borrowings.

In Construction the level of awards has been high during the year resulting in a
healthy order book reflecting a strong market and plenty of good quality
contract awards for both the public and private sectors. Cash generation from
our construction activities has been excellent throughout the year with the
division achieving record cash balances at 30 June 2007.

Support Services continues to grow, particularly in the Building Maintenance
division where we now maintain around 185,000 public sector homes throughout the
country. Six new contracts have been awarded this year with combined annual
revenues of around £95m including Harrow on which we achieved financial close on
29 June 2007. A strong pipeline of other good opportunities remains.

In Housing we achieved 1,767 completions for the year including 162 units from
Kier Homes Northern (formerly Hugh Bourn Developments (Wragby) Limited) which
was acquired in July 2006. This represents a 16% increase over last year.
Despite a modest reduction in visitors to our sites in the last quarter of the
year our reservation levels remained healthy and by the end of the first week of
July 2007 we had secured 30% of projected unit sales for the new financial year
by way of completions, exchanged contracts and reservations.

The Property Development division continues to take advantage of the strong
development opportunities across all sectors. Our reputation for tackling
complex development sites continues to grow and we were pleased to win the
contract to renovate the new United Kingdom Supreme Court in June 2007 with
Wallis, our historic buildings refurbishment specialist, acting as principal
contractor.

Kier Group Chief Executive, John Dodds said: "Kier Group is in excellent shape;
our businesses are well placed to take advantage of their strong markets and our
healthy cash balances put us in a good position to respond quickly to
opportunities as they arise. All of this gives us a great deal of confidence for
the future."

Kier Group expects to announce its preliminary results for the year to 30 June
2007 on 13 September 2007.


                                    - ENDS -



For further information, please contact:


John Dodds, Chief Executive
Kier Group plc                                                Tel: [phone]


Deena Mattar, Finance Director
Kier Group plc                                                Tel: [phone]


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




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