Kier Share Discussion Threads

[montyhedge] 04/12/2018 08:12

Looks like the underwriters could be left with stock if they keep falling.

[brexitplus] 04/12/2018 07:29

From Building

“Contractor217;s stock fell 10% yesterday, following last Friday’s slump

Kier’s shares have lost around 40% of their value since the contractor’s shock rights issue announcement last Friday.

The £264m deal was announced late on Friday afternoon, prompting shares in the indebted group to plunge by a third from 752p to close at 505p.

And yesterday Kier’s stock fell still further, down 10% to close last night at 455p.

The group’s chief executive Haydn Mursell (pictured) told Building last week that he expected the shares to right themselves once the new stock began trading just before Christmas.

The share price fall was a “mathematical adjustment”, he said and once the dust had settled added that he expected trading to between 550p and 615p.

Kevin Cammack, an analyst with Cenkos, said Kier had “bitten the bullet” over its debt situation.

He added: “People either didn’t believe it could get the debt down with things like the Future Proofing project [the cost-cutting initiative announced over the summer] or were impatient with the pace of it. It just wasn’t aggressive enough in terms of both scale and timing.

“At a stroke [the rights issue] probably gets a balance sheet composition that is deemed satisfactory for all stakeholders, although obviously that comes at a hefty price for ordinary shareholders, both in capital and income terms.”

Kier is set to slash this year’s payout to shareholders, possibly from 69p to no more than 25p a share as a result of the rights issue.”

[gettingrichslow] 03/12/2018 23:56

400p soon.

[zicopele] 03/12/2018 23:42

I agree. McNicholas won some big contracts in the year before its sale.

It is likely these chickens are now coming home to roost.

Never buy a construction company is the moral of the story. Nobody told the Kier guys that.

They bought two of them...both dogs.

[zicopele] 03/12/2018 23:26

May Gurney dressed itself up to be sold and bought loads of work before the sale.

Small schemes often have big risks.

McNicholas purchase probably going the same way.

[minerve] 03/12/2018 23:15

Thanks zico.

"Kier is now working on 500 projects with an average size of £7m-£8m" - FT

Would you like to update us on the other 496 projects? :)

[zicopele] 03/12/2018 22:18

Meanwhile we all wait for the inevitable fall tomorrow.

Rumour has it that some of the big players in the infrastructure side of the business have left the company recently.

Infrastructure is carrying a lot of very old WIP on the disastrous May Gurney rail side of the business and the Liverpool Gateway job which lost tens of millions.

Throw that in with the very poor Isle of Scilly scheme and highways work in Cornwall and that explains circa £100m of losses.

[minerve] 03/12/2018 21:21

Elcapital2018 3 Dec '18 - 21:15 - 1265 of 1265 (Filtered)

Bye bye dunderhead. I don't believe you were involved in anything serious back in the OFEX days.

[minerve] 03/12/2018 21:10

Elcapital2018

I think you are making yourself look like an idiot. But I guess you are no different from many on ADVFN. LOL

Now, have you got something productive to add about Kier or are you just going to come out with simpleton comments like getting? I'm giving you a chance not to be an ape. Take it whilst it is still there! ;)

[gettingrichslow] 03/12/2018 21:06

Minny, remember when you thought I was still in shorts because I only joined this site in March 2018? Then it transpired I'd been investing for 14 years longer than you? A person isn't defined by when they joined ADVFN! ElCap has clearly got a deeper understanding of the markets than you have - remind us of your recent run? Bovis, Kier, Capita, AA, Rolls, Provident, Taylor W? Any more dogs to declare??

[minerve] 03/12/2018 20:52

Elcapital2018

Investment bank, corporate finance, pretty much the same function for a float.

Good for you on your corporate finance thingy majig. Now run along little boy, haven't got time to mess with brokers.

[minerve] 03/12/2018 20:19

Elcapital2018

I don't think you personally floated companies on OFEX. That would be more the process for an investment bank. You mean your brokerage was involved.

I founded a company that listed on the LSE. Made more money than any broker I know. They all used to come crawling to me, taking me out for meals, for a piece of the action, especially when I was shifting large volume to tracker funds.

[minerve] 03/12/2018 20:09

With respect to goodwill, Carillion took the preverbial. Taking the discretion of impairments to the extreme, in that, on some of their acquisitions, there weren't any, even though the acquired assets were producing less income and therefore were worth less. Kier is amortising its intangibles.

[minerve] 03/12/2018 19:56

"The market will be flooded with ex rights shares which underwriters desperately want to offload."

Yes, and there will be plenty of shorters who need to get their hands on them.

Listen, this stock is cheap for a reason. If you want safe, go elsewhere. If the kitchen is too hot for you, go elsewhere. Nobody is asking anyone to buy.

I made most of my wealth starting in the OFEX days. This is child's play compared to then.

[elcapital2018] 03/12/2018 19:50

is that a serious question??

[marksp2011] 03/12/2018 19:47

Zico

Why would they have underwritten it?