Kier Share Discussion Threads

[wallywoo] 14/3/2021 11:53

Says the man who bgt last February 20 at 125, saying the share price would be over 200 by summer 20. Real idiot!

[johnbuythedips] 14/3/2021 11:20

Fallen from 1500 to 80p and you enter a short position at 50p. I think that says it all! Idiot.

[wallywoo] 14/3/2021 09:27

Some silly comments coming on here, again;

1) the level of indebtedness is not a problem; it's the sole reason the share price has fallen from 1500 to 80p (with a large dilution RI).

2) profitability; there's no evidence this is improving. Kier lost over 100p per share for the last 2 years. It's very doubtful they will generate even £1 of cash this year.

3) Interserve made a big play of managing the contracts it took on. The board vetted every one. Still shareholders lost everything. Margins will always be small, they need 10 percent but will only receive less than 3. The level of which is manipulated since they never manage to generate any cash.

4) again silly comments that Kier don't need a equity raise. They have told the press they need £150m raise and the market that they're considering one.. If that was not true they would deny it! Wake up!! This level is very large, Costain raised less (30 percent of market cap). Their share price was 75, they raised at 60, then the share price fell to 30p. That would be the best case scenario for Kier. Because of the size and 2.5 years after the first one, I would be very sceptical they can pull it off

[hamhamham1] 14/3/2021 09:06

I see no problem with having these as a part of my broad portfolio.
Am happy holder here.
As with many other recovery shares, patience is the hardest thing.

This is not a zombie company, it has huge order books and just needs to get on top of costs and tackle some of the debt, if existing turnover levels start to produce say £50-80m in profits then the market cap will rise and the debt levels will look normal relative to the size of the business.

[kierculpa] 13/3/2021 21:25

"Btw, Kier has walked away from a few projects over the last year.......so I think that the new regime is doing what they said they'd do; make the business more profitable."The most important piece of information i've read on here this year.

[418249] 13/3/2021 19:53

Kier level of borrowing is not an issue, they have enough resources in place to trade out of this without diluting the share price.
I have 12,000 shares @ 77.9 and I would not sell them now for 100. Kiers order book is massive, compared to other companies with this size of debt Kier is street ahead because its orders are technically all Gov backed.
Its the king of Schools, highways, TFL etc etc etc.
There are a lot of people taking the share down saying it will hit 20/30 they have no idea what they are taking about. Worst case if they did a share offer it would only have a the maximum 20% discount so that will never happen.
My opinion and that is I believe Kier will hit 120 this year. All will be revealed soon but Ive heard good thing are coming soon.

[itisonlymoney] 13/3/2021 19:40

Banks don't 'demand rights issues'. You are making things up, as usual. The more revealing thing is KIE's comparatively low cost of borrowing, which suggests that there is no big concern from lenders. Some of the distressed major businesses are paying 12% on new borrowing. Kier's is about 4%.

[imastu pidgitaswell] 13/3/2021 19:05

Clay,

Thoughts as per previous posts - I have debt down not as £310 million but more than double that and as per yesterday (or whenever) I think unfortunately the banks will demand a rights issue as well as the sale of Kier Living before renewing the facilities in July next year. The banks have their own risk to manage.



As always none of us know - but we will have a better idea next month.

[claymagnet] 13/3/2021 14:38

Cheers both.

I don't know if equity rise categorically means rights issue or equity buy in, couldn't it mean selling off assets to raise brass and bringing in a staff share scheme?

I'm guna open the red. Have a good evening all.

[stdyeddy] 13/3/2021 14:17

Welcome to advfn clay. Your first properly argued opinion. I agree. But I think Hands and Goldman Sachs (maybe) have made an equity buy-in offer to Davies and he's mulling it over with the major holders to see if they're willing to take a 20% or more (who knows, maybe 50%) dilution for the sake of putting another £40-100m in cash into the business. I don't see why anyone would agree to that. Debt is cheap. More sensible for Kier to trade its way out of debt. The dividend is cancelled for the foreseeable and costs have been cut. We're at the beginning of a boom in building. Kier is the market leader - we will see plenty of revenue and profit coming in over the next two years.

Btw, Kier has walked away from a few projects over the last year (a bypass project in the north-east, Burnley college recently, Marylebone initially, though the underbidder then dropped out), so I think that the new regime is doing what they said they'd do; make the business more profitable.

[wallywoo] 13/3/2021 14:11

No RI or equity raise? Really.


The company have stated they are planning one, how many clues do you need? Do you know how rare it is for a company to say they are planning a equity raise months before? Anyone who buys this rubbish thinking that is a idiot.


Kier have -£480m net assets (which does not include JV debt of around £200m), even if they sold everything they would still be left with a large debt. Without a RI they are sunk.


The key question is, will they get enough support to pull one off?

[claymagnet] 13/3/2021 13:57

The more I think about it the more I think they won't be a RI. Debt is almost like a naughty word. If they sell KL for 110m + 100m cost cutting + their office at 40m + any profits that is a hell of a chunk off the debt. And that's just year 1. AD casually says, yep, we have debt but working it off over next 3 years and no, there will be no rights issue. How many people will pile in on just the fact there is no RI? Imatsu wally and zico I know you guys will say debt is ten times more than the window dressing. However all companies will window dress, all companies have trade debt. I personally owe out 30k this month on suppliers, I don't see it as debt as I've more than that coming in from work we have done. The tax deferral is a government deal it's not them saying they can't pay. I took the 50k bounce back loan as we had no idea the impact covid would have long term. Security installation work has not been affected so it's just sat there but it almost felt irresponsible to not take up offered help in an unprecedented situation. I'd be very surprised if they have not paid the tax. Someone has pointed out before how other companies have much more debt and no revenue on the horizon to pay it off. By dragging everything out, I think it will increase the magnitude of the rise on good news. share price seems far more resilient than it was in the 70s. I'm 50% out and if the opertunity comes I'll be back in. Again standard disclaimers not ramping not trying to get you to sell or buy just my young opinion on how things... feel.

[hamhamham1] 13/3/2021 12:27

A happy customer...






And another just begun...


Every few weeks projects are completing and new business is being won.

[wallywoo] 13/3/2021 12:23

They are still trying to rent it; I remember a £40m figure to buy. But who knows now. No one wants office accommodation now!

hxxps://search.savills.com/property-detail/gb0405l52751

Must be costing to keep it empty. May be they will hand it over to the lenders, they own all of Kier anyhow!!

Also gives a good reason for them to send the share price artificially high. Kier get the RI sorted and the lenders get some money back!! Smoke and mirrors!!

[zicopele] 13/3/2021 07:09

How much is Tempsford Hall for sale?

[easy45] 12/3/2021 22:16

It's no investment package, 2 x bidders for Kier living sooner its gone the better it's just waiting AD approval, no signs of issues inside of Kier quarterly update 23rd all looking positive.

[johnbuythedips] 12/3/2021 16:37

Masturpig is a Hampton Wick. Good luck all longs. Holding up well.

[brenman] 12/3/2021 16:13

88p again. Higher lows. Price going one way.

[ontheforks] 12/3/2021 16:13

Terra firma has been mentioned not sure how I feel about that hopefully it's investment build up and resell at a profit or strip assets and bin the lads only time will tell but on the bright side wally Woodford has fu###d up with his shorts hahaha

[imastu pidgitaswell] 12/3/2021 15:40

Oh ffs - stdy's acolytes and their own inadequacies are not my problem.

I answered it already - middle paragraph:

[brenman] 12/3/2021 15:36

stupidgit avoiding the question and abusing the posters. soon he'll be complaining that people are be rude to him! where is eddy?