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. |
Peel Hunt on the two days reported so far have bought roughly £20,000 per day at that rate it'll take them just over 3 & half years to spend the 20 mil ....think they need to try harder LOL |
I look at Lloyds Banking share price and their buyback and think with all the billions spent why isn't Lbg trading north of £1? Buyback imo only rewards the City and the management via bonus schemes. |
nice to see this go blue at the close. big infrastructure news week next week apparently. the talk around heathrow expansion is a taste of whats to come. people have forgotten that the government was talking about trebling the number of projects this yr. |
What price are the buying shares back at ?? Also not a 'Vistry' situation in the wings !? , as they report good results and then had to dial back on them ?? , see still trepidation on the share price. |
Share buy back makes Kier more attractive to U.S investors. |
Why is K's financial results weighted more towards the second half? |
You make a good case. My view is £20m is surplus cash and is better in shareholders' pocket rather than an a buyback that fails to boost share price in the medium to long term (Lloyds bank). |
it's the circumstances stutes. i prefer the share buyback here because kier management is getting wise to the stockmarket. they've obviously been getting advice from people who understand how the stockmarket works. part of davies and kesterton's bonuses depend on kier hitting shareprice targets. they've tried to get the market interested in the shares in capital market days and results presentations and they always fail because there's a lack of confidence and understanding out in the market.
there's no way for instance that the share price should've got to 130p the other day. that's an insane valuation for this business. the brokers can put out all the analyst notes they want but money talks. this way everyone knows that there's a floor under the share price now. if they don't know it, they will soon see it. peel hunt will buy anytime the price drops and this'll give stability to the share price £20m will go a long way. you can buy small amounts in a share that only trades 1m a day to give it a little push upwards or at least prevent "stop hunting" by the market makers. it changes the balance from, likely to go down, to likely to go up.
this kind of wise move from kier just adds to the attraction of the fundamentals; the business generated another £120m in cash in the last 12 months and net cash is growing, even while kier pays out dividends. revenue is up a little and frm the cash figure, it looks like kier has continued to make at least 3% margin. that's £120m operating profit. divi this yr will likely be £40m. that's nearly 7% on this shareprice. the interim divi will be a third of the total and will send the share price much higher. the sharebuyback will make sure the share price is in the right place to begin with so that we actually see the benefit. that's why it's different to lloyds and that's why i'm glad their doing it. this way we get share price growth AND dividends. |
Would you prefer an increase in the dividend or a buyback that on paper improves eps/dps but goes unrecognised in the sp?
Look at Lloyds |
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