Kier Share Discussion Threads

[sharetradergray] 03/6/2019 09:11

Why cant the accounts be signed off with a small amount of debt they were trying to be net cash they cant be too far away! Business can have debt and get there accounts signed off so im not really sure what your saying

[kinwah] 03/6/2019 09:03

No-one is going to bid for Kier. The balance sheet at the end of December 2018 showed negative net tangible assets and without growth in revenue the cashflow is negative. The ceo has to stabilize the business and maintain the confidence of customers and subcontractors. He can make a few disposals on the fringes and run down the housing landbank but the shareprice around 165p seems to be agreeing with me that Kier needs to raise more equity. Reading the statement regarding the net monthly debt figure being adversely affected by the likely 30th June 2019 figure, the cash is currently haemorrhaging out of the business. The auditors won't be happy to sign the accounts off as a going concern without the balance sheet somehow being strengthened and liquidity improved.

[porsche1945] 03/6/2019 09:02

Minerve, hows it going with this then??

[bookbroker] 03/6/2019 08:54

Incredible that this has lost over 90% of its value since 2014! Not quite a CLLN., but alarmingly close!

[minerve 2] 03/6/2019 08:53

Kitchen sinking - as to be expected.

[bookbroker] 03/6/2019 08:51

This time, that is a generalisation, it is how the companies are operated, and how they account for the projects and potential delays to completion. What they are not doing is incorporating a level of risk regarding all eventualities, and are tendering a far too competitive bid process. With the problems now apparent in pretty much every civil engineering project concerning timing and cost over-runs, the companies involved have finally woken up to the fact that the risk should be taken equally by both sides, contractor and submitter. Otherwise why should any company take on the role of delivering the goods, at this rate there will be too few operators left to fulfil these projects!

[blueball] 03/6/2019 08:44

Probably worth about 50 p.

[kinwah] 03/6/2019 08:39

The best strategic move for Kier could be to buy Amey which Ferrovial are desperate to sell. Potentially it could bring in more cash than the purchase price and merging the companies could allow substantial cost savings in overheads. I don't know how the CMA would react as there would be a reduction in competition in certain areas but it would be better for customers to have one stronger united company than two struggling with debt and legacy issues.

[sharetradergray] 03/6/2019 08:39

My Guess is that Kier will get a bid for a buy out likely candidates Bovis homes who tried to go for G Try the other week.

Woodford and SLA will not accept circa £2.00 a share and likely this will start the rebound. Kier made £160 million gross profit last year, 25M less this FY still makes the group generate £135M, big issue here is thats less than 3% ROCE basied on the groups current turnover.

This could still be a recovery share there making money, companies can have some debt, debt is being used like a dirty word here they just need to manage margins and increase there ROCE.

[this_time_its_different] 03/6/2019 08:29

never buy construction shares, galliford try, kier group, balfour betty, they are just as bad as each other. Quickest way to lose your shirt with these lot, worth a punt only if the shares are below £1 I guess.

[brexitplus] 03/6/2019 08:14

“Legacy issues” sounds worrying. No wonder the FD is going. Big clear out coming. Currently lost over 50% of the rights issue price which was only 38% taken up.

[escapetohome] 03/6/2019 08:03

Con struction - get out of the industry.

[sharetradergray] 03/6/2019 07:56

TRADING UPDATE:

Today Kier Group has issued an announcement to its investors. This covers three topics: our latest trading commentary and updates on the Future Proofing Kier (FPK) programme and the Strategic Review which I launched in April.

Trading update

In the first half of the current financial year, the Group saw a reduction in revenue in some of its key market sectors. Today, we have confirmed that this trend has continued in the second half with volume pressure within the Highways, Utilities and Housing Maintenance businesses.

In addition, whilst continuing to perform well with growth in its order book during this financial year, the Buildings business’ revenue for this financial year is expected to be lower than previously forecast.

As a result, we now expect that Group revenue for this year will be broadly in line with last year and revised guidance is being provided today to our investors on revenue, operating profit and net debt for this financial year.

Future Proofing Kier (FPK) programme

Since joining in April, I have undertaken reviews of each of our business streams and have audited the FPK programme into which we need to inject new pace and focus, as highlighted in my recent employee video. You will recall FPK is designed to help us to reduce our cost base and become more efficient. This acceleration of action will result in additional cost being incurred in this financial year which we have also today updated our investors on. However, importantly, acceleration of the programme will enable us to gain the benefit in future years.

Strategic Review

On 15 April 2019, I announced a Strategic Review of the Group focused on simplifying the Group, improving our cashflow and reducing net debt. This review is making progress and today I have confirmed the conclusions of that review will be announced on 30 July 2019.

Today’s announcement, which is classed in the eyes of our investors as a profit warning, is disappointing. We have quite simply not delivered what the market expects of us. We have today reset those market expectations.

It is important the Group moves forward and learns from the legacy issues which have contributed to today’s announcement. I believe we are taking the necessary actions to restore our credibility with our investors and, very importantly, our clients. We remain a profitable company, with many good businesses.

But there is a lot of work to do in the coming months and, as set out in my recent video, this will require focus and some difficult decisions across the Group. I shall keep you updated as we move forward. I look forward to your support.

[brexitplus] 03/6/2019 07:56

rock and a hard place. All depends on the strategic review. I don’t envy the CEO and whoever will be the new FD.

[edmondj] 03/6/2019 07:50

Kudos to Kuvari Partners (again) then, for recently increasing their short.

[kinwah] 03/6/2019 07:45

What is clear is that Kier needs to keep growing to remain cash generative so that it takes advantage of customer pre-payments, squeezing subcontractors etc. A slowdown in growth means cash flows out of the business. The shorters will love today's announcement. My guess is the shares could hit 180p or even lower today on fears of another rights issue or placing to avoid breaching bank covenants. I can't see the strategic review enthusiastically endorsing disposals as they won't bring in enough cash. Winding down businesses is also likely to be cash negative in the short term. Everything points to the need to issue more shares but at what price?

[brexitplus] 03/6/2019 07:09

Update on trading, Future Proofing Kier programme and strategic review


Kier Group plc ("Kier" or the "Group") today provides an update on its current trading and outlook for the 2019 financial year ("FY2019"), its Future Proofing Kier programme and the timing of the strategic review announced on 15 April 2019.

Current trading and outlook

As highlighted in Kier's FY2019 interim results, the Group continues to experience volume pressures within its Highways, Utilities and Housing Maintenance businesses. In addition, whilst continuing to perform well with double digit growth in its orderbook during FY2019, the Buildings business' revenue growth for FY2019 will be lower than previously forecast.

As a result, Kier now expects that FY2019 revenue will be broadly in line with the Group's reported revenue for the 2018 financial year and currently expects that the Group's underlying operating profit for FY2019 will be c. £25 million lower than previous expectations and that the Group is likely to report a net debt position as at 30 June 2019, which would have an adverse impact on its FY2019 average month-end net debt position.


Against the background of the revised guidance in respect of FY2019, Kier will provide updated guidance for FY2020 with its FY2019 preliminary results announcement on 19 September 2019.

Future Proofing Kier programme

The net costs associated with the FPK programme for FY2019 are now expected to be c. £15 million higher than previously forecast. In part, this reflects an acceleration of the programme following the appointment of Andrew Davies as Chief Executive. These net costs are in addition to the £25 million reduction in operating profit identified above. Kier will provide a further update on the FPK programme when it announces the conclusions of the strategic review.

Strategic review

On 15 April 2019, Kier announced that Andrew Davies would lead a strategic review of the Group to consider ways of further simplifying it, the allocation of capital resources across the Group and additional steps to improve cash generation and reduce leverage. Kier confirms that the conclusions of this review will be announced on 30 July 2019.

[eriktherock] 02/6/2019 21:45

They'll have to exit the new CEO to avoid the technical analysis

[minerve 2] 02/6/2019 20:49

"Technically it's still a short to zero."

I will bear that in mind.

😂

[ltcm1] 02/6/2019 19:35

Galliford Try are apparently losing money on their big project and roadbuilding arm, so quite likely the same thing is happening here.

[eriktherock] 02/6/2019 16:46

Kier Construction is progressively changing the prevailing culture away from being absolutely 'task driven' towards a team/individual more aware and caring culture. I have no doubt that, in the medium term, profitability will improve as individuals are recognized as significant in the growth or contraction of the Business.
Technically it's still a short to zero.

[jonwig] 02/6/2019 14:10

What is it like to work for Kier Group? Reviews: