Kier Share Discussion Threads

[gettingrichslow] 20/3/2019 16:20

ElCap, try reading the posts a bit more carefully you donut! I've been warning others not to invest in this basket case for months. How do you get through a day when you can't even read or write properly??

[minerve 2] 20/3/2019 16:12

chopp1

Some of the adverse movements in working capital were a reason for the rights issue in the first place! Some will remain, some will reverse. A 5% swing in the wrong direction is expected to return to neutral by year end with £180M of the rights issue eventually appearing as a reduction on the net balance.

On the positive side some of these new criteria set by the government and local government will exclude some competition and put forward Kier as a leading contender.

£1Bn worth of contracts secured since 1st December can't be ignored.

[elcapital2018] 20/3/2019 15:48

youu losing again GRS?

[gettingrichslow] 20/3/2019 15:40

In freefall now. Over 11%.

[chopp1] 20/3/2019 15:36

In fact the decrease in trade payables was only £48m of the £230m movement in wc balances.

[zicopele] 20/3/2019 14:59

The market is objective. This company was £11 and not too long ago.

That money was swallowed by its obligations.

Bad times ahead.

[gettingrichslow] 20/3/2019 14:15

Zico is merely being objective. Sky News Business were far more negative just now. This company is in big trouble in a troubled sector.

[latics2] 20/3/2019 13:59

I wonder if Zico is a dsgruntled ex employee ? He always has a negative comment to make.

[chopp1] 20/3/2019 13:55

It isn’t just creditors that caused the adverse wc performance. Debtors, WIP and long term contract balances were also negative.

[porsche1945] 20/3/2019 13:53

Another " Woodford Winner " circling the pan. Makes the brexit sxxtshow look well run.

[minerve 2] 20/3/2019 13:25

Zico

You are being a little disingenuous with that comment.

[brexitplus] 20/3/2019 13:17

Zidovudine

GKN slowed payments to suppliers in 2017 to improve their accounts. Found when accounts were looked at by Melrose.

[zicopele] 20/3/2019 13:03

That is easy to answer. Kier do not pay on time. That money was desperately needed to pay subcontractors.

[chopp1] 20/3/2019 12:26

There are some really worrying things in these results particularly coming out of the cash flow statement. Adverse movement in total working Capital is £230m which is why the net debt has hardly moved since June 2018. Basically that is the rights issue funds gone! They needto urgently get a grip on their working capital management if they are forecasting a net debt position of zero by the end of June. Sounds pie in the sky to me!

[gettingrichslow] 20/3/2019 11:10

"nothing here shows the need to sell at this point"
Err...right, okaaaay, someone has become a bit deluded methinks!!

"once the Circus Of The Morons (Brexit) comes quickly to a conclusion"
Err...right, okaaaay, does anyone really believe Brexit will come to a conclusion quickly??

This is the talk of a seriously deluded person. Good example of emotional attachment to a stock where the heart starts ruling the head...

[zicopele] 20/3/2019 11:07

The WIP contains a ball of overstated valuations.

They could write down another £200m and not even address the true extent of the issue.

[marksp2011] 20/3/2019 11:05

Min

yep. Poor results but I think they will have taken the opportunity to bring out the dead

time to change the FD. lets get one that everyone can trust

[minerve 2] 20/3/2019 10:03

Well, nothing really that wasn't expected.

There certainly is an increased honesty about the accounts which is exposing a few skeletons in the cupboard. It is disappointing that they were there in the first place but if you follow the outsourcing sector you would be an idiot not to assume that.

What is important is who is driving this new honesty? Is it the executive chairman or is it new freedom for the FD? I think there are too many questions hanging over the FD and I hope the new CEO seeks to replace him as soon as possible.

As far as investors are concerned nothing here shows the need to sell at this point. It is a recovery stock and it will take more than 6 months to work through. I hope the £2bn worth of contracts signed are worthy of doing the work and it will better for us all once the Circus Of The Morons (Brexit) comes quickly to a conclusion.

[danny baker] 20/3/2019 09:11

Results look disappointing to me. Just think how bad the balance sheet would have looked without the rights issue. KIE shares are illiquid and volatile. I recently traded them out a few days before their short term peak but my blood pressure can't cope with the constant share price monitoring needed. That said if they drop below 420p from here I'll buy some more for a bounce. If ever there was a share for trading rather than holding it's KIE.

[brexitplus] 20/3/2019 09:10

From Construction Enquirer

“Kier racked up a pre-tax loss of £35.5m in the second half of 2018 after it was hit by problem contracts and mounting debts.
The losses compared to a pre-tax profit of £34.3m in the same period in 2017 as revenue stayed flat at £2,064m.

Kier was hit by a £25m provision on its problem Broadmoor Hospital job and £26m on a disputed waste collection contract which has been cut short.

Integrating the McNicholas business also cost £5.4m .

The Future Proofing Kier restructuring programme launched by former chief executive Haydn Mursell cost another £10m during the period.

It is expected to be “earnings and cash flow neutral” this year befoe delivering £20m of savings in 2020.

Kier also flagged-up “volume pressures” at its highways, utilities and housing maintenance markets.

The building division was a bright spot with an underlying operating profit increase of 74% to £30.8m (H1 FY18: £17.7m) as underlying operating margins rose to 3.4% from 2.1%.

Group net debt at the end of the year was £180.5m despite a £250m rights issue in December.

A large chunk of that was used to pay subcontractors and Kier said use of its supply chain finance facility has increased to an average during the period of £196m from £176m.

Group average payment terms were 55 days.

[zicopele] 20/3/2019 08:55

What does Bev think of Brexit now?

[edmondj] 20/3/2019 08:33

Results didn't seem too bad to me, given the context, though I was steeled the market could turn down because they appear to be cautioning somewhat on the revenue front - not what you want to see for a business on a circa 2% operating margin.

(No position personally.)

[ygor705] 20/3/2019 08:15

Diabolical results from a diabolical management. Serious questions of corporate governance and mismanagement to be addressed here.

[mj19] 20/3/2019 08:14

Kier Group announced 1H results: "The Group's underlying revenue, including its share of revenue from joint ventures, for the period was £2.2B, an increase of 2% compared to the equivalent period in FY18. (...) Underlying earnings per share from continuing operations (EPS) was 30.8p (H1 FY18: 40.9p). (...) An interim dividend of 4.9p (1H FY18: 23.0p), amounting to £8M, will be paid on 17 May 2019."