Trading Update

Kier Group PLC
17 July 2000


                        Kier Group plc
                        Trading Update
                     Year to 30 June 2000

Kier  Group Plc, the contracting, house-building and  services
Group,  will  today  be  meeting with investors  and  will  be
providing  the following update to current trading in  advance
of  its announcement of the results for the year ended 30 June
2000, presently scheduled for 20 September 2000.

Commenting, Colin Busby, Chairman, said:

'I  am pleased to confirm that the year to June 2000 has  been
another highly successful year, continuing the strong trend of
profit  improvement.  For the last eight years  now,  in  both
good  times  and  bad, we have been able to  increase  pre-tax
profits and earnings per ordinary share.

'In  construction,  our  markets are providing  us  with  many
opportunities  which  have  resulted  in  further  growth   in
turnover and market share.  The construction awards in May and
June  2000 totalled in excess of £200m.  Within International,
I  am  very  encouraged by the efforts of the  new  management
team.   Furthermore, our strategy announced in 1999 to  double
the construction operating margins by 2001 remains on target.

'Our  house-building division has had another  excellent  year
building  on the success of the past few years.  The focus  on
achieving  value  rather  than  volume  continues.   This  has
resulted  in slightly fewer completions, which has  been  more
than  offset by higher average selling prices resulting in  an
overall increase in turnover.  Our forward order book  at  the
year  end  was  52%  ahead  of  last  year,  representing  the
strongest forward sales position ever achieved by the Group.

'The  services side of our business has had another good year.
Our  intention to grow this part of the Group at a faster rate
received  a  major boost with the recent awards of  Neath  and
Port Talbot Hospital and Pembroke Dock C.P. School, both under
the Government's Private Finance Initiative; and in June 2000,
under  the  Government's  'best  value'  programme,  we   were
selected  by the London Borough of Islington as their  partner
for  a  major  outsourcing contract.  These events  boost  the
Group's services order book to over £350m.

'Overall,  2000  has  proved  to  be  yet  another   year   of
significant achievement for the Group.

'Our markets remain stable and there is a lot of confidence in
all  of our businesses that progress will continue in 2001 and
beyond.'


Enquiries:

Colin Busby         - Chairman  01767 640111
Duncan Brand        - Group Finance Director  01767 640111
Caroline Sturdy     - Bell Pottinger Financial  0207 353 9203