Kier Share Discussion Threads

[stdyeddy] 15/9/2023 10:22

Nice to see you again John. wolly posts as 'bathboy' on here at the moment -- still spewing lies in every post.

[johnbuythedips] 15/9/2023 10:17

Where's that sicko Wally? Good luck holders. North of a quid again soon.

[stdyeddy] 15/9/2023 10:16

I see two of our little trolls have finally started squeaking after being stunned into silence by yesterday's results. Their lies and innuendo are swept away by facts reported by Kier.

Today the market continues to re-rate our favourite construction firm with another big rise in the share price

Kier's HS2 work, btw, is on the central section and whatever happens to the rest of the project, that part will be built and paid for. Elsewhere, the average size of a Kier project is just £16m; the business is nicely derisked in terms of project issues.

Kier generated £130m in cash in the year just gone and will likely reduce debt by another £100m in the next 12 months. For a company with a £3.4bn turnover, £130m in debt is nothing and could be practically zero, two years from now.

Right now, I'm looking fwd to the share price breaking through £1. There seems to be little to stop it with the wind in its sails -- or to put it another way, with a £10bn order book with 85% of it confirmed and a lot more opportunity waiting in the wings, not to mention RAAC rebuilding.

[stutes] 15/9/2023 10:04

The results look very good.
I note debt has gone up and that is after US bond and the note repaid; bank loans or dacility down £40m. The cash position is boosted by £60m seasonal prepayment.
I think base rate at say 6% and K margin of 3.9% could leave K with the need to retain more of its profit or another rights issue?

[deanmatlazin] 15/9/2023 09:43

i can see the instituions are snapping the shares at cheap price. We will get RNS soon

[hamhamham1] 15/9/2023 09:41

A billion market cap is a pretty reasonable targrt over next couple of years.

[hamhamham1] 15/9/2023 09:40

Nice rise... again ;)

[deanmatlazin] 15/9/2023 09:24

100p next stop before it double up by next year.

[marksp2011] 15/9/2023 06:56

My guess is a 1.5p divi in 2024 and 100m in debt reduction. This still needs another 2-3 years to be on the front foot

[bathboy2] 15/9/2023 05:23

Month end debt up again , finance on debt up massively, debt still over 500mn , and like i said the other day , hand forced on a dividend, clearly not ready, still no bumper times here ,good day for the markets yesterday, and a bit of euphoria on results day for kier, i expect the share price to back off a bit in the next few weeks , in the economic cycle , we are yet at the bottom, i expect that to be in the next few months, possibly early next year , before the upturn, equities are predicted a very strong forecast going forward, and a lot of foreign money entering the markets. Position monies well and the outlook is good

[zicopele] 15/9/2023 01:03

Probably down by the end of the week. HS2 under pressure again.

[1dasty] 14/9/2023 22:55

For what it is worth, I thought a decent solid safe update. it surprises me this share price is lower now than 18 months or so ago. Feels a completely different company in a completely different place now, and for the better. I guess it needs another steady boring year to convince the doubters and improve the share price I suspect £1 is possible this year but not much more. But doubling by 2025 wouldn't surprise me. It does not feel like a 50p share any more. The evidence points to greater potential for up than down. A few interim positive rns from time to time would help, but kier does not seem to do 'news' unless it strictly has to. I'll hold what I have for now, as I think gfrd remains the slightly better construction bet, with a 10% dividend this autumn!

[stdyeddy] 14/9/2023 16:43

Here's the results presentation that Davies and Kesterton talked through with analysts this morning:



Slide 13 is interesting -- it shows debt reduction. Kier paid down over £50m in the year just gone. Looking at the the projection for this current year, the debt block has no forecast figure on it, but Kesterton let slip during the presentation that it would be £100m lower in a year's time when he was asked about the effect of interest rates on costs. The graphic implies this and they have said that debt reduction will be the main use of cash generation for the immediate future.

Also, an unexpected angle on inflation was raised by one of the analysts who said that inflation actually benefitted Kier on cost plus contracts since it increased the revenue. Davies pointed out that while that was true, the more relevant effect was the delay to projects through price negotiation.

Another interesting topic raised was RAAC. An analyst wanted to know if Kier was seeing work come through on this yet. Davies wouldn't be drawn on this other than to say that Kier worked with government clients to present options and solutions.
The obvious conclusion to his positioning of Kier as an adviser and solutions provider is that RAAC will produce plenty of rebuilding or new building work for Kier.

[stdyeddy] 14/9/2023 16:29

It's looking like a strong finish going into the close and I think volume will easily hit 5 million shares post-close.

[itisonlymoney] 14/9/2023 16:15

two directors have just bought in with their own money, about £50k between them. rns earlier this afternoon. more to follow i wld guess now that the closed period is over.

[hamhamham1] 14/9/2023 16:01

Not helping. Read all your posts on ADVFN, they are all about doom and gloom for Kier.

[stdyeddy] 14/9/2023 15:59

The trolls have been stunned into silence. In six months the final dominoes will fall -- debt will come down much further AND the first dividend since 2019 will be announced.

[stdyeddy] 14/9/2023 14:06

and from Morning Star:



Kier intends to resume dividends as annual profit surges

(Alliance News) - Kier Group PLC on Thursday announced it planned to resume dividend payments in current financial year 2024, as it reported a jump in annual profit for financial 2023.

The infrastructure services, construction and property said the payout resumption will start with an interim dividend.

The company reported that pretax profit in the year ended June 30 leaped to GBP51.9 million from GBP15.9 million a year prior.

Revenue rose 7.5% to GBP3.38 billion from GBP3.14 billion.

The company boasted about a "strong" order book and improved financial year-end cash position, which skyrocketed to GBP64.1 million from GBP2.9 million annually as at June 30, with "confidence in sustaining this momentum going forward".

Looking ahead, the company said that financial year 2024 started well, with trading coming in line with expectations.

"The group is well positioned to continue benefiting from UK government infrastructure spending commitments and we are confident in sustaining the strong cash generation evidenced this year," said Chief Executive Andrew Davies.

Kier shares rose 6.1% to 92.31 pence each on Thursday morning in London.

[stdyeddy] 14/9/2023 14:01

More press reporting on today's results:

Kier prepares for first dividend payment in half a decade as turnover and profit grows



Kier shareholders will receive their first dividend in five years next March when the contractor announces details of the payment in its interim results.

[itisonlymoney] 14/9/2023 13:56

imho? i hear opinions are like arssholes. everybodys got one. even some arssholes have them.

[not helping] 14/9/2023 12:20

hamham -- what are you on about. I'm not anti-Kier at all. Some people around here demonstrate an astonishing ignorance about corporate financial management, ratio analysis, governance, and far more besides. Personally, I'd rather get a DV flow from a recovered business which has a strong (fundamentals) financial position (i.e. debt largely gone). It's just a view. The exec management here are also exposed to a conflict of interest given their rather generous share incentive packages. And those who think Kier has recovered 100% from its travails need to spend more time getting to understand the sector (IMHO).

[itisonlymoney] 14/9/2023 11:27

Kier has reported a sharp increase in profit and cash. The company made a £51.9m pre-tax profit in the year to 30 June 2023, a 226 per cent increase on the £15.9m made the year before. Its adjusted profit before tax stood at £104.8m

[itisonlymoney] 14/9/2023 11:18

they will be announcing the interim divi in six months. thats hardly rushing it. kier will have paid down debt by another £50m at that point.

you can't take away from the fact that kier has completely recovered from being a distressed business to regaining its position as the uk's largest regional builder, financially sound with a £10bn order book, most of it already committed, making a 3.9% margin (more than its peers). the shares will now be rerated.

[hamhamham1] 14/9/2023 10:53

Not Helping. Every single one of your posts have been anti-Kier, you obviously got a problem with them, it's clear for all to see.

[stdyeddy] 14/9/2023 10:07

Shareprice is up 6% after two hours trading; volume is strong at two million shares already.