Kier secures South West Water contract extension worth £140 million

Kier Group PLC on Friday said it has signed a £140 million contract extension with South West Water Ltd, a subsidiary of Pennon Group PLC.

Pennon is an Exeter, England-based water utility company. Kier is a Manchester-based infrastructure services, construction and property investment firm.

South West Water, which serves Cornwall, Devon, Somerset, Dorset and the Isles of Scilly, has extended Kier’s contract for the next two years, until March 2028.

The extension to Kier’s role in the network services alliance is worth about £140 million, the company said. It is the sole contractor appointed under the framework, which covers maintenance of the South West Water network.

‘The appointment marks the continuation of a long-standing relationship of more than two decades between Kier and South West Water and supports the delivery of front-line network activity,’ Kier noted.

‘As part of the extension, Kier will continue to deliver repair and maintenance, leakage activity, network reliability schemes, metering and developer services. The agreement also supports local supply chains and skills development across the region.’

Kier shares were up 3.8% to 207.80 pence on Friday morning in London. Pennon traded 1.5% higher at 483.20 pence.

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