Profits on a thousand homes, built by Kier, where the land is essentially free. |
27mn at best , that is why it hasn't sold at 40 |
Where on earth do you get your thoughts of a billion pound , most development trades approx 300k an acre , so around 27 |
Looks like Kier will be going back to its Tempsford Hall estate. The technology-corridor announcement and new train station are likely to raise the value of this site by multiples. The 90 acre site could easily be a 1,000 home development of houses and low-rise apartments and since Kier bought the land for few shillings way back when, it's probably worth upwards of a billion to the firm as a small housing estate.
The site sits outside the village's conservation zone and the absurd Frankenstein Monster of a building that Kier created from the Victorian mansion house is evidence that they can build pretty much whatever they want. My guess is that this one site is potentially worth almost double the firm's current market cap. They'll have to build something first, but this billion pound gift seems like a fair reward for the govt's biggest contractor scratching a living at 3% margins. I look forward to seeing plans announced. |
£250mn bond at 9% , is £22.5mn of the financing cost of £44mn in at accounts , so where is the other £21.5mn coming from , the undrawn, as you claim RCF facilities, they are obviously being charged somewhere , please explain if you can without the rude expletives, and personal attacks , just better to tell the truth |
The east-west corridor has been obscured by the daft runway announcement. A misstep imv. Complete waste of time and effort. The London mayor is against it and whoever is in that job will probably have the same view. Reeves should've known the spotlight will focus on Heathrow instead of the rest of her little speech. She's turned it into a damp squib. Shareprice down. Irrational market totally unexcited about major construction projects.
Tempsford train station is a great opportunity for Kier though, both in the rail and road contracts and the value it'll bring to Kier's property. It might take a while for the market to react to this and maybe not until the moneys been banked. |
Good spot itsonly...
My question to Savilles would be, why hasn't it sold yet? My guess is that Kier have been holding out for the right price, knowing that the area is earmarked for development and likely to go up in value. Looks like Reeves might've actually put it on the buyers' map.
Here's the brochure:
Impressive site in 90 acres of land with potential for development, and a proposed 'new town' location. Worth keeping an eye on. |
the shareprice obvs loving this news! 🤣
At Tempsford, a village sitting at the nexus of the East Coast Main Line, A1 and East West Rail, Reeves said the government would “move quicker to deliver a mainline station, meaning journey times to London of under an hour and to Cambridge in under 30 minutes when East-West Rail is operational”.
Tempsford has been mooted by some experts as a promising site for a new town development. |
tempsford, currently in the middle of nowhere and the site of tempsford hall, kier's unsold massive former hq worth maybe £40m and soon to be worth double that because it'll have a train station on its doorstep and be in the middle of the "growth corridor":
"A new station at Tempsford– we have designed two options for a new station at Tempsford ." |
holy fvck!!!!! did anyone here look at reeves's announcement? notice anything interesting? TEMPSFORD!!!!!!!!!!!!!!! |
stdyeddy…thanks for clarifying…that does make a difference, and makes the debt situation much less of a concern. |
Incidentally, I think Rachel Reeves will be presenting a big Kier advert in about 30 minutes. Kier is the govt's biggest infrastructure contractor. |
willie, the RCF was UNDRAWN at the end date for the last set of accounts, it's not a debt. It's a 'facility' available for Kier if it needs additional working capital -- if they use it, of course it'll be debt, but they have a lot of cash now, so given that they only had average month end debt of £38m, I presume it remains unused and is just there in case the business takes on a massive project or many projects with a lot of upfront costs.
The ONLY major debt is the £250m bond and as you've shown, it has just four more years to run. That is where the bulk of the finance cost is, because it pays 9% interest. |
The Debt Investors page of their website is quite clear:
# Bond = £250M (maturity Feb 2029)
# RCF = £260.9M (maturity Mar 2027)but will reduce to 150M on 31 Jan 2025, i.e. Friday
# USPP Notes = £37.3M (Jan 2025)
So, after Friday we will only have the Bond £250M + the RCF £150M = £400M.
This is significantly less than the £548.2M the debt peaked at. It doesn’t say what the cost of the debt is, but if it’s circa 10% that’s not far off the £44M that Bathboy mentioned.
The good thing is that the maturity dates for the remaining debt are 2 and 4 years away. So there should be no concerns. I presume Kier will start to build an annual provision to repay these debts when the fall due. |
Maybe that's why Kier has reduced debt by £100m in 12 months you boring little w@nker. |
Thank you , at least someone agrees the debt exists, rather than some who don't and £44mn in servicing the debt , is something they should be concentrating on , IMO , is it that what is holding the price down , or is there still mistrust in construction etc , obviously not helped lately by Vistry |
This share will fly if they ramp the daily buy back up to a sensible level. Currently buying back 20,000 worth of shares a day. It should be 10 times that at least. I would expect more money to be allocated to buy backs at the start of March when results are announced.And yes Kier are spending a significant amount on interest on debt. But the company is so cash generative they should look to pay it back as quick as possible. That alone would push earnings north of 30p a share per year assuming no growth.What ever way you look at it, this is a very undervalued share. |
So if I can't see what's holding Kier back , then please explain, because you haven't, and what has the 250mn bond , got to do with leases, and what leases do you mean , at such figures that requires 44mn of payback in the year end accounts |
 Yes, wolly/bathboy, something is holding the shareprice back, but you are too stupid to see what it is. The finances are in good shape and the business is generating excellent levels of cash and profits. You've included 'lease interest' in the finance costs to exaggerate costs. The leases are not debt.
If you were at all honest, you'd recognise the huge positives around Kier, but you've been trolling here for years while the company has recovered and now dominates public sector construction. All brokers have Kier down as a buy with short term targets of around 210p for the share price
This little extract from the same 2024 annual report that you claim to have read is particularly relevant:
Adjusted earnings per share (‘EPS’) increased
7% to 20.6p (FY23: 19.2p) and reported EPS
increased 24% to 11.8p (FY23: 9.5p).
The Group generated £185.9m of free
cash flow in FY24 (FY23: £132.3m), with the
increase attributable to the Group’s revenue
growth converted to increased profit and
excellent cash conversion. |
Net cash , probably for the day required for the accounts, so why are Kier spending £44mn on finance costs in last year accounts and that they last February issued a 250mn bond with a maturity of 2029 , this along with other facilities, make a large pot of packaged debt , do the research , something is clearly holding the share price back |
The approx 550mn pacaged debt is still proving to be a stranglehold for Kier , they have got monthly end trading debt down to a much lower figure , but the share buyback is for the interests of the directors remuneration, better they paid down the packaged debt , costing many millions per year to service this |
more on the colville estate here -
Kier has been appointed to deliver 93 new homes in east London in the latest phase of London Borough of Hackney’s masterplan for its 925-home mixed-use renewal project, Colville Estate.
The wider Colville Estate redevelopment is one of the biggest and most ambitious regeneration programmes in the council’s history.
Built over seven phases, the regeneration will replace more than 430 existing homes that were no longer fit for purpose with:
New, affordable Council homes
Range of civic amenities
Public realm which connects the estate to the wider borough.
Following the completion of Phase 1 and Phases 2A and 2B, Kier has been appointed to lead the latest phase of the masterplan – Phase 2C.
Phase 2C will involve the delivery of 93 new mixed tenure homes across two plots, including:
52 social rent homes (funded by the Mayor of London’s Affordable Homes Programme)
19 affordable shared ownership homes
22 privately-owned homes
The 9,500 sq m development will also see Kier deliver the shell and core for a new energy centre.
This will serve the entire Colville Estate and provide capacity to support other developments in the area.
A new community centre and a communal courtyard garden will also be provided for residents, and new landscaped pedestrian routes with pocket parks. |
Historic jump in the number of firms in critical financial distress - Begbies Traynor Group hxxps://search.app/Kh7bwi7qgX25bhZ37
Construction News reports on the above, - 7000 Construction firms in financial distress - the contagion or domino effect may cause problems for more stronger financial firms? |
Kier has won another city regeneration project:
Kier has been appointed to deliver 93 new homes in east London in the latest phase of London Borough of Hackney’s masterplan for its Colville Estate. An expansive mixed-use renewal project that includes 925 homes in total, the wider Colville Estate redevelopment is one of the biggest and most ambitious regeneration programmes in the council’s history.
Being built over seven phases, the regeneration will replace over 430 existing homes that were no longer fit for purpose with new, affordable Council homes, a range of civic amenities and public realm which connects the estate to the wider borough.
Following the completion of Phase 1 and Phases 2A and 2B, Kier has been appointed to lead the latest phase of the masterplan – Phase 2C. This will involve the delivery of 93 new mixed tenure homes across two plots, including 52 social rent homes for returning residents and local residents in housing need, which are funded by the Mayor of London’s Affordable Homes Programme, 19 affordable shared ownership homes for people living or working in Hackney, as well as 22 privately-owned homes.
In addition to the 93 homes the 9,500 sq m development will also see Kier deliver the shell and core for a new energy centre which will serve the entire Colville Estate and provide capacity to support other developments in the area. A new community centre and a communal courtyard garden will also be provided for residents, in addition to new landscaped pedestrian routes with pocket parks. |
Register to chat with like-minded investors on our interactive forums.
Hot Features
Premium
