Kier Share Discussion Threads

[bathboy2] 19/7/2022 14:43

What is the construction restructuring?? And the fire cladding claims, no numbers to this snippet of information, slipped in

[bathboy2] 19/7/2022 14:39

As noted , kier is making provision for fire cladding claims and ongoing restructuring of construction. Didn't think , this was even on the table

[bathboy2] 19/7/2022 14:29

Stdy, do you or have you worked for a labour government, on the economic side (as they did such a wonderful job ).you must be dizzy with all the spin your giving kier , keep going because it's laughable. How many years is Kier's order book , is it 10 .

[stdyeddy] 19/7/2022 13:55

Evidently it's going to need a few analysts to pore over the update and Davies will need to give a few press interviews so that people can put meat on the bones of this update. The core story though is that Kier is winning contracts hand over fist, the management team are maintaining their margin through an established inflation strategy AND the business has net cash at year end, indicating that it is generating cash and reducing debt. And all of this is being achieved in an inflationary environment where other businesses are struggling. That is quite an achievement.

[stdyeddy] 19/7/2022 13:40

Slowly, the news is getting out there:



KIER ORDER BOOK CLOSE TO £10BN AS INFRASTRUCTURE DEALS ROLL IN

The construction and property giant said in a trading update that it expected to reveal the strong pipeline of work in its results for the 12 months to the end of June.

Kier had secured orders of £7.7bn on 30 June 2021 but believes this has grown by around a quarter in the past year.

“The year-end order book is expected to be in excess of £9.7bn, a significant increase of circa 26% against the prior year, reflecting a significant number of contract wins across all divisions,” said the update.

“Long-term framework positions, as well as the pipeline and fees from the Property Development division, are excluded from the order book and represent an additional opportunity.”

[stutes] 19/7/2022 13:28

hxxps://www.constructionenquirer.com/2022/01/28/kier-launches-recruitment-drive-for-over-1200-staff/

Only last January K wanted to recruit 1200 yet now K is restructuring the construction unit and has over 80% of 2023 revenue secured.

[hamhamham1] 19/7/2022 13:26

Boring, and solid is fine by me.
Like you say, wait for others to catch up.
Sit on hands :)

[brenman] 19/7/2022 12:43

Plenty of press comment about the new Glasgow prison though. £100m for that job. Shedload of new contracts being awarded to Kier, confirmed in the update too. looking like turnover will be above the upper range. if management can keep to that 3.5% margin there'll be some very healthy cashflow into Kier. Doesn't look like a businsss in trouble any longer. Definitely worth a much higher shareprice imo. The market will catch on in time.

[brenman] 19/7/2022 12:36

Quite a muted reaction to the update. so far the good news is very underappreciated. The trade journals haven't even reported on Kier's update yet. Looks like the kier marketing dept and their PR advisors need to pull their socks up.

[wallywoo] 19/7/2022 12:33

Lol, this rubbish is up 2%, with still 99.5% of investors in massive losses and the ramping team declare victory!!!


Trading update was not awful but nothing new with that, awaiting the real figures.


As far as period end net cash, just look at Costain, mkt cap £90m period end net cash £117m.


It's a long long long way from paying a dividend and lots of bad news can appear before that happens.


Expect the share price to languish at these levels for a long time.

Meanwhile my hbr investment is up 18 percent in 2 weeks, with the remainder up 12 percent in that time (up 8% on my dlg investment yesterday - see thread if you don'tbelieve me). All highly liquid dividend shares (compared with low liquidity, low volatility, no dividends Kier). Such a victory for you!!!

[bathboy2] 19/7/2022 12:03

Stdy is in to comedy , just read his posts ,

[bathboy2] 19/7/2022 12:01

The return on investment on infrastructure projects, is not to the company doing the work , its the area, most large construction companies work on less than 5% margins , across the board , government led infrastructure, will normally only lead to 1-2% margin,

[zicopele] 19/7/2022 11:57

May finish down on the day as the nothingness of the update sinks in.

Meanwhile Steddy says 100p tomorrow. He never fails to deliver on the comedy.

[hamhamham1] 19/7/2022 11:45

This and Capita are kinda similar.
Got a bit bloated, ran up debt, gov focused.
Both have tackled their issues.
I think both are good turnarounds, time will tell.

[stutes] 19/7/2022 11:30

Trading update mentions K taking a provision for fire cladding and restructuring construction business.

[hamhamham1] 19/7/2022 10:41

What is the return on investment for infrastructure?

Research conducted over the past 25 years has established beyond a doubt that public infrastructure investment generates high returns. A recent summary of that research finds that the rate of return on public investment is between 15 and 45 percent, higher than rates of return on private sector investments.

[stdyeddy] 19/7/2022 10:35

If you're leaving the country barfboy/wolly, I'm sure there will be no shortage of people willing to help you pack your meagre belongings. Btw, I bet you've only got short trousers.

[bathboy2] 19/7/2022 10:31

At least something mildly sensible , the current government will have to spend by 2024 an election year and if labour got in it would definitely be spend , spend ,spend , but the country would be totally bankrupt at the end of their term , I would definitely leave the country before that , whilst taking my trousers full of cash, lol

[bathboy2] 19/7/2022 10:27

The real trolls are the ones painting positives, and random share prices , and then slagging everyone else who goes against them , it is hilarious. I see the markets really liked the RNS , and the share is now falling back after the flurry of buys by small investors. This is still below the price of the last cash raise ,

[hamhamham1] 19/7/2022 10:22

Big imfrast4ucture projects are long term and a lot signed up for.
Schools and hospitals, etc all need returning, the work has to be done.
And if there was a change of gov in 2yrs, labour would spend, spend, spend.

[stdyeddy] 19/7/2022 10:04

So far it's good. Govt has the 'levelling up' agenda to keep its infrastructure spending up in the regions (Kier's home turf) especially during a recession. When recessions hit, govt spending becomes the only game in town. Look at any of the Kier sectors -- MoJ, a huge prison rebuilding programme has just been launched and Kier is the lead supplier in the sector; hospitals -- after the biggest public health emergency in a century, there's a huge push to build hospital capacity and again, Kier is the lead supplier in the sector. Flood defences and ports; if you've heard about a little thing like global warming, you'll realise that sea level is rising around our islands and Kier is a lead supplier in this sector... Take a look at the many presentations that Kier has put out recently and you'll get a good idea of the strength of the business.

[marksp2011] 19/7/2022 09:57

Recession leads to Govt infrastructure spending and input cist reductionBad for Kier or not?

[stdyeddy] 19/7/2022 09:56

And no barfboy, Davies has explicitly stated that the order book is up 26% with 85% secured projects and this of course does not include future work through frameworks and nor does it include Kier Property projects. As for 'packaged debt' -- Kier has corporate bond debt AND cash on hand. Overall there is no net debt at year end and the business is cash positive. Working capital is financed through monthly debt but this is reducing all the time and at the rate at which Kier is accruing profits now, my guess is that Kier will be using its own cash for all working capital in 12 months from now.

[hamhamham1] 19/7/2022 09:52

This will hit 80p today and will be over a quid in a couple of months IMO.
But hey, it's where it is in a few years that I really care about, the rest is just noise. Mostly from those invested.

[stdyeddy] 19/7/2022 09:50

sicko, I can only assume it's personal with you -- which fits with my speculation that you're a sacked former kier low-level manager. The actual facts are that supplier payment days were reduced from 34 to 33 days. That's FASTER payment to suppliers. If you didn't experience that in your security hut, then maybe Kier has figured out who you are and that you're constantly libelling them on this site and then deleting your posts and leaving a full stop instead.