|Yet in the same paper their Tempus column headlines as "A reliable pick that looks up to the task" and concludes with:
"As ever with such businesses, the key is the forward visibility of work. In construction and services this year’s revenues are already secured, along with 70 per cent of next year’s.
The shares suffered the inevitable post-referendum dip. This column recommended them at £12.89 in September. They gained another 50p to £15.03 on the halfway figures. They sell on 14 times earnings, though this does not necessarily reflect the value of those property assets, and should have further to go.
My advice Buy
Kier has set itself ambitious targets but has the benefit of two good acquisitions and a healthy order book."|
|Brexit doubt is threat to big projects, Kier warns - HTTP://www.thetimes.co.uk/edition/business/brexit-doubt-is-threat-to-big-projects-kier-warns-3q3zv9q7c
Uncertainties over Brexit and the return of inflation could mean delays on big infrastructure projects, the head of one of Britain’s biggest building and construction operators has warned.
Haydn Mursell, chief executive of Kier, warned that the flow of business, from building tower blocks and power stations to roads and rail lines, could be affected by the looming uncertainty. “I think Brexit has created a distraction for government,” he said. “As a consequence, the focus on deployment of capital for large infrastructure jobs will not be as high as it would have been.”
At the same time, large private developers were having to consider future work in the light of rising inflation. “Brexit has introduced uncertainty over labour availability,” Mr Mursell said. “Labour inflation will creep up over the next two years. Large capital value projects will be slower to market because they will cost more.”...|
|‘Buy’ Kier Group (target price £16)
Kier (KIE) is a property, residential, construction and services company.
‘Kier already pays an attractive yield, but it is the dividend growth potential that stands out,’ writes Peel Hunt analyst Andrew Nussey.
‘Kier’s exposure to more resilient growth markets (eg, infrastructure at 40% FY17E EBITA) is yet to be fully understood. However, we are particularly excited by the potential to invest the predictable and attractive cash flows from services (52% FY17 EBITA) and construction (24% EBITA) into the complementary property (12% EBITA) and residential (12% EBITA) activities.
‘Our “base case” analysis indicates the potential to deliver 165p of earnings in 2020, implying a potential organic CAGR [compound annual growth rate] of 12% (8% CAGR in dividend as cover rebuilds to 2x). Despite the recent share price performance, there is still scope for re-rating as well as earning upside for continued strong execution.’|
|That's me stopped out. Will sit on sidelines now as all momentum gone despite yesterday's RNS|
|Yes quite LOL|
|Let's hope they don't put out too much decent news in the future then......|
|Oh well - nice while the rise lasted but normal service now resumed|
|Every little helps:-
For release on Tuesday 20 December 2016
KIER GROUP PLC
Kier awarded new Highways England contract worth cGBP140m and negotiations underway to finalise new Areas 6 and 8 contracts
Kier Group plc ("Kier"), the leading property, residential, construction and services group, confirms that it has been awarded a 15-year contract, valued at cGBP140m, for repair and maintenance services on Area 13 of the Highways England network.
The new Area 13 contract, which commences on 1 April 2017, will see Kier provide routine and cyclic maintenance, defect repairs, emergency incident response, traffic management and severe weather services. Kier is currently the incumbent operator on Area 13, which covers Cumbria and north Lancashire, and this award builds on its excellent track record in the region, which includes repairs to the flood damaged A591 in December 2015.
In addition, final negotiations are underway to secure a two-year contract to provide maintenance services on Areas 6 and 8, covering East Anglia and the East of England. This new two-year contract is expected to commence on 1 April 2017.
These awards will further build on Kier's market leading position in the strategic highways maintenance sector.
Kier Group's Chief Executive, Haydn Mursell, commented: "We are pleased to have secured the Area 13 contract and look forward to the completion of the negotiations around Areas 6 and 8. These awards reflect Kier's ability to tailor its services to Highways England's evolving delivery model, as well as maintain the Group's leadership in the growing UK highways management and maintenance market. We look forward to working with the Highways England team."|
|Shauney £13.50 seems resistance level if kie can break that then there could be more upside|
|Kier gets a kick from consulting firm sale
Construction and property group Kier (KIE) has taken further steps to enhance its operations after the sale of a consulting subsidiary.
Peel Hunt analyst Andrew Nussey retained his ‘buy’ recommendation and increased the target share price from £14 to £16 following the sale of Mouchel Consulting for £75 million in cash.
‘This is another positive step taken by management to enhance the quality and positioning of Kier’s operations,’ he said.
‘We remain confident in the outlook and the potential for increased infrastructure investment leaves the group well positioned relative to sector peers. The shares have performed well post-Brexit but we sense the defensive growth attractions remain undervalued.
‘Shares trade on 11.4 times our revised June 2018 earnings per share forecast and yield 5.2%. Demonstrable progress, strengthening balance sheet – with opportunities for organic growth investment – and improving earnings visibility leads us to upgrade our medium-term target price to £16.00.’|
|Yes, net debt was £99m at 30/6/16 (down from £174m at 31/12/15) so will be good to see some of the £40m net proceeds to be used to further pay down the debt.
Disposal of Mouchel Consulting to WSP Global - HTTP://www.investegate.co.uk/kier-group-plc/rns/disposal-of-mouchel-consulting-to-wsp-global/201610120700163163M/
"The disposal is expected to result in an immediate profit of approximately £40m, subject to post-completion adjustments. The net disposal proceeds will be retained by Kier for future investment purposes and to further reduce debt, supporting Kier's Vision 2020 target of net debt to EBITDA ratio of less than 1x which was achieved ahead of schedule in 2016."|
|Nice profit of £40M from selling Mouchel Consulting to WSP for £75M cash.
Takes a big chunk off the debt.|
|Kier streamlining strengthens investment case - HTTP://citywire.co.uk/money/the-expert-view-henderson-diageo-and-kier/a954682?ref=citywire-money-picture-galleries-list#i=4
Construction group Kier (KIE) has worked on streamlining and investment, refining its investment case along the way. Jefferies analyst Sam Cullen retained his ‘buy’ recommendation and increased the target price from £14.30 to £15.90. The shares rose 4p to £13.17 yesterday.
‘As Kier continues to refine its investment case it remains our preferred play in the UK construction space. A once complex story is being streamlined to offer a vertically integrated play, with exposure to the investment, build and maintenance phase of UK infrastructure and building assets,’ he said.
‘With the outlook for full-year 2017 solid, and medium term growth underpinned by fundamentals we retain our “buy” rating.’
He added that recent results show ‘Kier continues to make progress, articulating a complex story well’.|
|Ex a 43p divi today so share price liitle changed in real terms. Hinckley Point contract signed which should be positive news.|
|Chart looking good now. We look to have broken out of the longer term downward channel|
|Kier downgraded on share price strength - HTTP://citywire.co.uk/money/the-expert-view-centrica-sky-and-hammerson/a952362?ref=citywire-money-picture-galleries-list#i=4
Kier Group (KIE) has been downgraded after strong share price growth as it is set to benefit from government investment in infrastructure.
Numis analyst Howard Seymour downgraded the stock from ‘buy’ to ‘add’ with a target price of £14.07. The shares jumped 2.5% to £13.12 yesterday.
‘Kier has once again demonstrated a strong performance in its full-year figures, and we would particularly highlight the strong organic growth, profit outperformance versus peers and materially better net debt profile as key attributes of the results,’ he said.
‘Self-driven initiatives should enable double-digit profit before tax and earnings per share growth to 2020, but we also believe that the strong scope for increased infrastructure investment and greater government focus on the affordable housing market put Kier in a prime position and should at least underpin upper quartile profit and share price performance.’
He said the downgrade was based on ‘recent share price strength’ but the group is ‘one of our favoured plays in the sector’.|
|Yes......I've also topped up in the ISAs at 1293. I like the look of a big gross dividend and the xd buying that looks likely to follow it.|
|Looks fully valued I would buy lower down|
|43p XD next week.
Very cheap at 1300p this morning so I topped up.|
|Agree they look very good.
Margins up.EPS up to 106.75 from 96p.Divi up, debt down to £90m from 141m
116m exceptionals mostly related to their acquisition of Mouchel.They expect double digit growth per year to 2020.|
|Very good numbers today and a very useful increase in the dividend. Also a very positive management statement re prospects out to 2020. I was disappointed with the 2015 results but things look much more encouraging one year on. We could well see the share price make further progress from here.|
|Profits banked :)|
|Today's announcement looks very positive to me. The share price has been in a three year downward trending channel which may be about to be broken. One to keep an eye on but dyor.|
Kier awarded three major Construction frameworks totalling over £5bn
Kier Group plc ("Kier"), the leading property, residential, construction and services group, today announces the following new framework awards for its Construction division. All of the frameworks have been secured since the Group's trading update on 4 July and they provide a long-term pipeline of potential contract awards.|