Kier Share Discussion Threads

[nomdeplume] 21/5/2019 17:00

BrexitplusI didn't say that there was anything wrong with the workers. I was pointing out that the video was directed at the work force. The new CEO quite reasonably wants to make it clear that some tough decisions have to be taken. He is not going to say that everything is rosy but there is nothing in the video to suggest that everything is a disaster, as implied by some on this thread.

[brexitplus] 21/5/2019 15:14

Nom

It’s nothing to do with the workers and all to do with the awful board and senior management, particularly the dreadful FD. They got Kier into trouble.

The CEO is correct - the company is in a mess and it is the workers who will suffer.

[latics2] 21/5/2019 10:15

oops sorry!!

[minerve 2] 21/5/2019 10:10

ltcm1

Don't forget the video was aimed at employees.

Stress and fear in the industry and supply chain absorbed most of the rights issue money into the supply chain. The stress should be easing - albeit will not have disappeared -and so some of the rights issue funds should pop out of working capital to pay off debt. I wouldn't expect them to be expanding their balance sheet for the foreseeable future and a net cash position has been projected in the near future.

I think the CEO is going to close divisions and/or make redundancies and he needs to sell this to the employees. He will not get their support if he promotes a general feeling that things aren't too bad.

I noticed construction of offices in London is doing quite well, just like residential build in the regions. Brexit fear is hitting some sectors but obviously not others.

[nomdeplume] 21/5/2019 10:05

Itcm1You must have watched a different video. The one I saw was a rallying cry to workers to get their fingers out.

[brexitplus] 21/5/2019 09:51

Itcm1

Totally agree.

[ltcm1] 21/5/2019 09:22

Looking again at the CE presentation it would hardly be surprising if these shares tracked say another 20% lower in the run up to the announcement in July of the action to be taking following the strategic review.

The Boss sounds almost desperate in his need to get some cash flowing, he also admits debt is too high despite the latest sticking plaster just a few months ago. Then he admitted the different sectors are not working with each other.

Kier looks a good potential recovery stock but if they don't get the cash flowing fast then the shares could go super low. It could get a lot worse before it gets better is what I'm saying.

Not difficult to see that if the housing market grinds to a halt in the next few months Kier could find themselves really stuck.

Thoughts???

[brexitplus] 20/5/2019 19:57

The flagship fund run by one of Britain's best-known investors Neil Woodford has been downgraded due to underperformance and "persistent redemptions".

Ratings agency Morningstar said it was downgrading Mr Woodford's flagship equity income fund to neutral, its second lowest rating, amid concerns about his "relentless willingness to push the portfolio to its liquidity limit".

A neutral rating indicates that analysts do not expect the fund to deliver striking returns. The downgrade comes a year after the agency cut the fund from silver to bronze.

[ltcm1] 20/5/2019 17:19

OK Minerve, mea culpa, I did write that line about capital to get a response from you!

You are correct I have no clue as to whether Kier need fresh capital again.

I can read a basic set of accounts but when you are talking about an organisation with a £4.5BN turnover I know it would be way too complex. All I know is these companies are very good at hiding stuff when they want to!

But as has been said on here previously so much of it is going to be work in progress and it doesn't always translate into profit at the end due to all these contractual disputes. Also they are historic, building costs are constantly changing and then if one thing goes wrong there are a load of knock on costs.

Just looking at the housing division, if they are going to build 1500 more units next year then I think you are looking at an extra £200m required. But it could be more because Kier operate a part exchange scheme too.

[brexitplus] 20/5/2019 16:42

Itcm1

Yes, very downbeat. I agree about more capital. As I have said previously, this is a very competitive sector where margins are wafer thin, except in the housebuilding sector if you can get a roundabout put in!!!

Getting cash in is never going to be easy, and, as previously noted Kier, delayed payment to suppliers to help with this. My brother in law who is currently project directing a large scheme, is currently in deep negotiations with contractors who are "trying it on" for 100s of thousands of £ within and outside the contract. He says its a nightmare.

Good luck to Kier, but it is going to be a very slow process.

[minerve 2] 20/5/2019 16:21

"It all points to them needing more capital sadly."

That is a very easy and obvious comment to make which makes you look intelligent and well-informed and nobody will criticise you if you get it wrong.

Of course, there is a risk, that is why the share price is where it is. It would be more rewarding for you to make an opinion if you had actually taken the time to review current working capital commitments etc..

Obviously, it seems that the detailed study of such is a rarity on ADVFN nowadays.

[ltcm1] 20/5/2019 16:09

Thanks Gray.

A most downbeat broadcast. Sounds like Kier could have an existential fight on their hands and some massive action will have to be taken.

It all points to them needing more capital sadly.

[minerve 2] 20/5/2019 16:07

brexit

I don't know if it occurred to you but that video was addressing employees. The adjective 'stark' therefore is made with reference to them, which most likely means redundancies through structural change and efficiency programs.

Fund raising may or may not happen but your inferences are a mistake. And yes we know Kier has problems, that is why the share price is cheap! Duh!

[kinwah] 20/5/2019 16:01

Citywire are today reporting that Morningstar are criticising Woodford's Equity Income Fund for pushing the portfolio to its liquidity limit. At some point Woodford will run out of cash for buying Kier shares.

[brexitplus] 20/5/2019 15:49

CEO Update.

Good presentation. All very basic and shows how far from the right way to have run Kier the company has strayed.

Finances obviously very important. Could be another fund raising to reduce debt, if anyone is interested.

“There may be hard times ahead” - his key word was ‘stark.’

[sharetradergray] 20/5/2019 15:29

CEO UPDATE

[sharetradergray] 20/5/2019 15:13

keep averaging down guys!

[brexitplus] 20/5/2019 14:20

Derby development- update. Work COULD start in Jan 2020.

“A new planning application has indicated when work could start on major improvements to one of Derby's busiest junctions.

Kier Living is due to make improvements to the Kingsway/A38 roundabout as part of its Manor Kingsway development which is being built opposite the area's retail park.

Part of the work, it has been revealed, includes widening the A5111 northbound entry to Kingsway Island from two to three lanes.

At peak times, dozens of drivers on that stretch of the road are delayed for long periods before getting onto the A38.

But documents reveal improvements could be made as soon as the start of next year.

The planning application, submitted to Derby City Council by MacDonald Planning Consultancy on behalf of Kier Living, says work could start in January next year, although it could also happen later.”

[gairich] 20/5/2019 13:39

Been out of bur since last September:-) x

[gairich] 20/5/2019 12:50

Here's how you could make yourself feel better, go on one of the message boards where there has been a large drop in the share price, tell them guy's how clever you are because you don't have a position there and tell them you are really wealthy that should make you feel better. There's no way they could know you are a dunderheed who lives on a council estate in glasgow.

[minerve 2] 20/5/2019 12:37

He has lost nothing and neither have I.

[ltcm1] 20/5/2019 12:33

I think what is boring Minerve is the constant fall in the Kier share price, it is most dull and repetitive.

How much has WOODFORD lost here???!!!

[gairich] 20/5/2019 11:43

Have a deep fried mars bar and calm down dunderheed "ha ha ha"

[minerve 2] 20/5/2019 11:26

So why don't you go and find a house builder that is free of your imaginary encumbrances and go and invest there? May I suggest CSP.

Stop boring us to death here. :)