Kier confirmed for new Glasgow prison
Kier has signed a £683.8m contract by the Scottish government to build a replacement for Scotland’s largest prison, the 143-year-old HMP Barlinnie. |
This lease cost of 9mn is this on offices or machinery , |
![](https://images.advfn.com/static/default-user.png) From the horse's mouth, so to speak:
Order book The order book as at 31 December 2024 was c.£11bn, a c.2% increase on the year-end position (30 June 2024: £10.8bn) and c.3% above the prior year comparative (31 December 2023: £10.7bn). The Group has secured revenue of over 95% for FY25, providing a high degree of visibility. Long-term framework positions are excluded from the order book and represent an additional opportunity. Bidding discipline and risk management embedded across the business continue to drive the high quality and profitable order book.
Recent awards include: INFRASTRUCTURE SERVICES: o Natural Resources, Nuclear & Networks: appointed by Yorkshire Water to their £850m AMP8 (2025-2030) Complex Non-Infrastructure Works Framework to support their investment in water processing and waste networks.
CONSTRUCTION: o Awarded place on the 4 year £500m NHS Shared Business Services Decarbonisation of Estates framework to support the NHS reduce the carbon footprint of its estate. o Awarded a £240m contract by the Ministry of Defence under the Defence Estate Optimisation Portfolio to design and build new accommodation at Keogh Barracks. o Kier Places: awarded a place on the £814m Facilities Management framework by Pagabo to provide a range of services to various public sector organisations including, education, healthcare and local authorities.
We continue to believe that as a strategic supplier to key areas of the new Government's priorities, including transport, education, healthcare, justice, defence and nuclear, there are significant medium term growth opportunities for the Group. Alongside these we should also further benefit from the very substantial investment plans being announced in regulated industries, notably water.
Net cash / debt De-leveraging continues to be in line with the Board's expectations reflecting a maintained focus on operational delivery and cash management with average month-end net debt of c.£(38)m (HY24: £(136.5)m).
Kier is expected to report a net cash position as at 31 December 2024 which will be above the prior year comparative period (HY24: £17m).
Share buyback The Group has clear, disciplined capital allocation priorities, which are continuously reviewed by the Board with the objective of maximising shareholder value. The Group has demonstrated strong cash generation over the last few years, which has resulted in the substantial de-gearing of the balance sheet and facilitated a resumption of dividend payments during FY24. The Group's current trading reflects a continuation of these positive trends, and having reviewed the Group's ongoing capital requirements the Board has approved an initial share buyback of £20m.
Capital allocation As noted above, and consistent with our capital allocation priorities, we are announcing a share buyback programme alongside our dividend policy reflecting our aim to maximise shareholder returns.
The Group's capital allocation priorities, which remain largely unchanged, are:
· Capex - ongoing investment to support the business. · Ordinary Dividend - targeting a dividend cover of circa 3x earnings through the cycle. · Investment in Property - disciplined investment in the Property segment. ROCE target of 15% with up to £225m of capital deployed. · Mergers and acquisitions - the Group will consider value accretive acquisitions in core markets.
If the Group has any remaining unallocated capital the Group has committed to returning this excess capital to shareholders.
· Incremental Shareholder returns - initial share buyback programme of £20m commencing immediately
The Group's capital allocation is underpinned by its commitment to maintain a strong balance sheet with an average month-end net cash position |
Why do you want to know?
And btw, the RCF stands for Revolving Credit Facility. It isn't a debt unless Kier uses it. At the last reporting period, NONE of the RCF was being used. Kier's only debt is the corporate bond (most very large companies issue bonds) so you are overstating Kier's loans by about 100%. As a business with a £4bn turnover, doubtless there are some other finance costs. Banks don't handle money for free. You've been told several times that £9m in lease costs are included, but you seem to be ignoring this, and just asking the same false question.
So what's you interest wolly/bathboy? Why do you have an urgent need to know after many years of posting negatively on here? |
Thank you blueclyde for some sensible response, but you don't explain how the other 21.5mn of interest cost , is being achieved, it must be on the RCF , which some have claimed is not drawn down .The 250mn costing 22.5mn at 9% is known , the other monies were probably earlier taken, at at a lesser interest rate ,so as per the accounts it was 550mn total debt , including the RCF , so this 300mn figure, is where the other 21.5mn of interest cost is coming from, |
Let's take a step back. So there is 44 million being spent in the last set of results on interest. The company had a debt problem hence why the share price was hammered. The company is now probably generating 150 million cash alone per year. It should repay all debt within a couple of years. Last results were 118 million profit before tax. If going forward the debt repayments start getting cut that goes straight to the bottom line as profits. That alone before any earnings growth takes you to 30p a share earnings. That's how you double your money here imo. Debt is only a problem if you can't repay it and they clearly can here. |
See you cannot answer or don't want to , paid ramper , why the expletives, |
Definitely no desperate, and still waiting for the answer to my question of the 44mn of interest payments on loans , only 22.5mn for the 250mn bond at 9%, so I ask the experts where is the other ,21.5mn coming from , bet I don't get an answer again , or it will be expletives and personal attacks, but no explanation from the experts |
desperate wally-bathboy, desperate. innuendo won't work here, we know you too well. we've alreayd had the trading update and it was hugely positive. |
If Peel Hunt are meant to be buying shares , it's not going well for them in a rising market , can they see a downside coming?? Maybe the interim results are not going to be the best , and they will purchase to help support the share price, like Vistry did . Could be the reason, they haven't gone for it, in a big way so far |
up on the rising tide. still a good day tho. now on the cusp of a quarterly break-out with a buy signal on the chart too. interims in less than five weeks. |
Kier bags another very big contract:
KIER SEALS HMP GLASGOW SUPER PRISON JOB AT £684M The Scottish Government has signed a £684m contract with Kier to build a new super-prison to replace Scotland’s most notorious prison, HMP Barlinnie. |
No mention about construction sum only full development/building cost. |
Why don't you ask Peel Hunt? Maybe they've put the decimal point in the wrong place on their buy orders 😁. |
Not true. The buy back is automated at a certain percentage each day. Has has already been mentioned current buyback will take 1000 days to execute. They should be buying 10x as much every day. With the next year's revenues already locked in they should be buying back at least £50 million worth of stock a year whilst the PE is on a single digit. |
Good point Itis… Peel Hunt aren’t just a transactional buying organisation, they are paid to use their market knowledge and experience to get the company the ‘best bang for their buck’.They obviously think the market will fall on the tariff issue, so have adjusted their buying profile accordingly. |
obvs the sharebuyback is just at idle for the moment. we don't know what brief was given to peel hunt. i'm seeing it as insurance agnst any wild changes in the shareprice. look at the wider picture. the US has just started a "tariff war". cld cause market turbulence. if kier drops in price peel hunt will probably step up buying.
a lot of negativity in the market right now. the media is doing its level best to talk us into a recession even with record employment, big wage increases, rising house prices, falling interest rates, record tax raising and huge tax spend mostly going back into the economy. poor sentiment depresses shareprices. some facts coming in the interim results and the next dividend annoucnement on the 11th march. that should give us a push upwards. |
Yes the buy back makes no sense at the current volume simply because they are making that much cash you would expect them to allocate more cash to the buy back at the start of March. You would have thought they would be at this price buying back as much as possible. |
I've been a small long term holder, watching through thick and thin, and just over break even. So nothing special. The share buy back seemed an odd call to me. A bit premature. Then I've checked how many they are buying back per day. It will take 4 years (1,000 trading days) on current progress to hit the £20m target so they are hardly rushing! Seems a pointless venture to me. Perhaps Peel wanted something to do. |
I notice you were down on this 2 years ago at 68p.frankly I would be pleased with a 100% plus increase.
Lots of company’s are purchasing land at the present time.you only need to look at the RNS’s also a lot of private money purchasing these .
How do I know?My son sells and buys these plots at significant profits for both buyer and seller.Appears you are well off the mark. |
Will be interesting if savills alter the price , or if such a bargain at 40mn, why hasn't it sold , maybe we should club together and purchase at 40mn and sell at 70mn lol , just because a station is going to be built , suddenly doesn't change the economics of house building, and I would be surprised, if a housebuilder would purchase for their landbank , in the current climate, do Kier definitely still own ?? |
The land with permission for homes worth somewhere north of £70m before any building.
Not every acre can be built upon ,as space required for roads recreation etc.
There is a chance this could be quite an upmarket development so may get more. Also I have assumed housing only not flats.And there are likely to be some.
A new main line rail station would really increase the market value further. |
Profits on a thousand homes, built by Kier, where the land is essentially free. |