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. |
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. |
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