Kier Share Discussion Threads

[stdyeddy] 15/5/2023 15:13

The Russian war in Ukraine could be entering its final phase -- there's practically no news coming out from Ukraine's frontline, tons of weapons have been poured in on the Ukrainian side, and the Russian conscript army will, I hope, be thinking about running away as soon as there's any chance that they might get caught and held to account for their atrocities. I reckon big things are afoot right now. Depending on how this ends for the Russian regime, this will almost certainly be a massive boost for depressed shares like Kier.

It could, of course, get worse. And Russia's regime might shift even further to the right, rather than become a progressive one. But in terms of the big picture, now that the pandemic is over, it's just Europe's biggest war in 70 years that's holding us back.

Small picture; the UK is looking like it might avoid recession. That will at least keep Kier's recovery on track. But ideally, if Russia is able to rejoin the global and European economic world, inflation will fall rapidly. I'm sure we are all watching with interest.

[bathboy2] 15/5/2023 10:34

Or it is really 70mn job , but kier doing for 35mn , interesting in a year or so time

[stdyeddy] 15/5/2023 08:57

Our favourite construction firm has won a very nice university build. A smaller project cost than is being reported elsewhere, but maybe that's just a sign that inflation is coming down. 😊



Kier wins £35m Derby Uni business school job

The planned 100,000 sq ft business school will include a 233-seat auditorium, a stock market financial trading room and an extended reality suite.

The new building is projected to be the study base for more than 6,000 students by 2030 and will provide a link between local businesses and the wider community.

[bathboy2] 15/5/2023 06:51

The most interesting news , is how is kier funding all of these projects and extra staff , if in all probability with borrowed money ,say 4%, then clearly the sums won't add up , as they are not producing the margins , to cover this off , with legacy debt being and needing to be refinanced , over the next 2 years , it is a bottomless pit IMO

[playnicely] 13/5/2023 11:09

A big education sector contract for Kier just announced.

The University of Derby has appointed Kier as main contractor for the construction its new £70m business school.

hxxps://www.theconstructionindex.co.uk/news/view/kier-picked-for-70m-derby-business-school

[stdyeddy] 11/5/2023 15:38

Actual news from Kier (rather than amateur bs from doomsters).



Kier has been appointed as one of the Ministry of Defence’s (MoD) delivery partners for its Defence Estate Optimisation (DEO) Portfolio. The MoD has adopted an alliancing approach to the delivery of a significant number of projects within its £5.1bn investment portfolio which will enable the design and build of a wide range of buildings and infrastructure.

Kier has been appointed to deliver one major project and one regional package:

Major project – RAF Cranwell in Lincolnshire
Regional package – Army South of England

Within DEO, this Strategic Alliance Programme will drive collaboration across core themes including social and environmental sustainability and digitisation. The alliancing approach will embrace and enable Modern Methods of Construction (MMC) and Design for Manufacture and Assembly (DfMA).

[stutes] 11/5/2023 13:39

Is this a harbinger of a drop in contracts/tenders in the short to medium term?

[stutes] 11/5/2023 13:27

In my opinion K should look at reducing debt, BoE could well hike rates to match US rates, 5%? 6 yrs of nil dividend and higher cost of financing.

The sector's biggest client is bulking at paying for inflation in some tenders and postponing them. It looks as if K is facing two external factors that could mean another of nil dividend and restructuring?

[stdyeddy] 11/5/2023 09:01

A big framework win being reported today for our favourite construction firm and six others. Kier is already building the new submarine base for the Royal Navy. Looks like a lot more defence work is on the way, which is unsurprising, given these troubled times.


A landmark contract for defence has been signed, signalling the start of a new delivery alliance for the Ministry of Defence and seven major contractors.

The selected partners will deliver the £5.1bn defence estate optimisation programme. They are: Galliford Try, ISG, Graham, Kier, Laing O’Rourke, Lendlease Construction and Morgan Sindall.

[brenman] 11/5/2023 08:02

Strong job numbers in the US reported yesterday. Recession looking like a toss up. UK might avoid it. Talk is cheap though. Best to just keep an eye on the numbers.

[brenman] 11/5/2023 07:53

Costain AGM today. They are trading in line with expectations, despite losing a job to upgrade a central reservation last week. Turns out they, like Kier are doing ok. Kier is the bigger business though.

[stutes] 11/5/2023 07:09

City of London is expecting another rate hike today - 12th in a straight row. Each hike reduces the profitability of firms carrying debt on their balance sheet.

In my opinion the BoE is engineering a recession.

[stutes] 10/5/2023 15:22

HMG's buying power means it's in their interest to control the volume of work and therefore for firms to submit keen bids.
I think HMG will create a recession as it is in their interest - lower inflation, better value for taxpayers money, .

[stutes] 09/5/2023 08:10

It looks as if inflation will force HMG to pull more projects - recession helps HMG to get more for its £.

[stdyeddy] 05/5/2023 12:19

Kier continues to be the top contract winning construction business over the rolling last 12 months.



In the rolling 12-month league rankings, the pecking order remained the same as last month with Kier well ahead of Balfour Beatty closely followed by Bouygues.

[bathboy2] 05/5/2023 04:11

Maybe check your figures , not easy to fully cross reference, as different accounting timescales. Morgan Sindell , 3.6bn , Kier 3.3bn , annual turnover .Kier maybe has a larger order book , but that can be cleverly adjusted , as kier could be booking hoped/projected framework numbers , but nothing secured .So to say that Morgan Sindell is a smaller firm, is misleading, also they are cash rich and pay a dividend, no recovery play required

[itisonlymoney] 04/5/2023 11:35

mgns is a smaller business on a much bigger p/e than kier. kier is a recovery play. as soon as it shows good cash generation it'll go up in multiples. kier is valued at a fraction of mgns p/e. two mnths til yr end!

[stutes] 04/5/2023 09:57

BoE likely to hike base rate to hedge against capital flight to higher rates abroad; knock-on effect firms with debt likely to pay more in interest.

CN reports 28 construction firms entered administration in April, shows how banks and market conditions are squeezing some firms.

Morgan Sindall provided trading update today - it pays a dividend. What has K got to attract investors to switch from MS- in comparison- debt and nil?dividend.

[bathboy2] 04/5/2023 09:42

Do your homework, packaged debt is stated in kiers accounts , due for re-financing between 2023 and 2025 , not a secret , just some refuse to acknowledge, as it doesn't suit their agenda, obviously finance costs will be a lot higher than previous

[itisonlymoney] 04/5/2023 07:56

sameold, same old bullsht from you. share volume is normal. you're grossly overstating the debt which is nil net debt and avg of below £200m by now which is less thn two yrs gross earnings. ordnry shareholders arent in this. no one likes the sector atm. but kier is coming good. evry rprt is better than the previous.

[bathboy2] 03/5/2023 17:44

I believe they are trying to pump the share , when they make massive inroads to their debt , which is around 500mn+ , it would be sensible. If They attempt too early, it will backfire badly , whichever way the everyday shareholder is being played , desperate people do desperate things, never be afraid to miss out , the risk is large in construction, especially in the next few years

[stutes] 03/5/2023 17:03

bathboy2
Some in the City were reported as , hoping for a resumption of the dividend.

[bathboy2] 03/5/2023 11:50

Stutes , a small restructure of a small part of kier , will be hardly noticeable, in the bigger picture, and you mention affecting a dividend, this isn't, unless i missed something, even a reality, this year , and possibly for a few more yet,

[stdyeddy] 02/5/2023 21:32

I'll give you the 'contradiction' part. However, as far as Kier is concerned, Pengelly's retirement is an opportunity to rationalise the senior management structure AND save costs. They're unlikely to emphasise the cost-saving aspect during the transition period since, one; it's a bit rude and unnecessary to talk about it while Pengelly is still there, and two; they won't want to unsettle the people around him while they're all wondering whether they still have jobs. It's a small adjustment as I see it and will be cash positive. It'll have no practical impact on anything. It's just a bloke retiring, happy with his pension pot, to spend time in his garden, or on holiday or being a consultant in the industry, or whatever...