Kier Group Live Discussion

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stutes 17 Jan 2020

IC magazine Report briefly on K’s trading update, has a sell recommendation on the shares.

Thunderjack 17 Jan 2020

The trading update let everyone know that, for a change, no disasters have befallen Kier and it will publish results that are in line with its forecasts, and also that its eager to share the results (which I'm seeing as a good sign) so they're bringing them forward a couple of weeks.

stutes 17 Jan 2020

Why did K bring forward its update? Why bring its update forward - LSE rules preventing K fro.m completing asset sales, administration/liquidation error?

Thunderjack 16 Jan 2020

Wrong way around; the Kier Living debt was taken over by the Kier parent group. Nothing has been inflated. That's not even Davies's style; he wrote down more than three hundred million in the end of year accounts. The book value of the division is £163m. Estimates for the sale price are around £150m at the moment. But the sale value is not the most critical value here. The whole point in selling KL is to reduce the size of the group and thereby reduce its working capital needs. Plus over 500 people are removed from the Kier payroll. Re assets sales; no, the update isn't silent. It says it's progressing them. Kier has made lots of asset sales throughout the year including its Australian roads business and property in the UK. The KL sale will probably be the next big asset to go. Bidders are in play. When it happens, the share price will go ballistic because it'll be a clear signal that the group is emerging from its cash-poor position and it'll demonstrate Davies's ability to put his plans into action. Not that there's much doubt of that. Virtually the entire Kier board team has been replaced under Davies's management.

stutes 16 Jan 2020

Debt for Equity swap The recent report of debt for equity swap between K and Kier Living made me think whether the low debt and equity base relating to Kier Living boosted its reported margin? If it did - KL may be worth less than what some experts have valued the unit?

stutes 16 Jan 2020

Today's update The update is silent on the timing of asset sales?

Thunderjack 15 Jan 2020

Also, the sale of Kier Living (the residential arm of Kier) looks imminent. The KL division has had its loan capital transferred back to the Kier parent company and its ownership structure formalised in terms of defined shares which value the business at £163m. Also there is widespread press reporting on KL's recent winning of a huge residential development and the fact that work is expected to start this month. The Cardiff development is a high value area; 270 houses approved for building. A great start to the year for 2020 for KL and a guarantee for any KL buyer that the business hits the ground running this year for new production.

Thunderjack 15 Jan 2020

New figures on construction enquirer show Kier going up 2 places on both monthly and year-to-date construction-only work won. So no, temp removal from the prompt payment register did not affect (Kier is now back on the prompt payment code register). [link] The Builders Conference data shows Kier doing even better than that.

Thunderjack 15 Jan 2020

Announced 14.1.2020: Kier has won the massive £150m Crawley Town Centre Regeneration Scheme. Work on the Crawley regeneration scheme is already underway with 91 apartments, set over nine storeys currently being completed on the site of a former two-storey car park next to the current Town Hall. The project, which will be completed in December 2021 involves the demolition of the existing Town Hall and the construction of a nine-storey building that will house the 41,000 sq. ft. Town Hall as well as 77,000 sq. ft. of commercial office space. Once the new building is open, the remainder of the current Town Hall will be demolished to make way for the final phase of redevelopment, a 10-storey block featuring 182 apartments with ground floor commercial space opening on to a new public square. [link]

Thunderjack 15 Jan 2020

[link] From The Construction Index: These are the top three pure-play construction contractors in the Builders’ Conference league table for 2019. It has Lendlease at the head of its table due largely to a £4bn long-term redevelopment around Euston station in London for HS2. Its role there is co-developer, however, rather than main contractor.

Thunderjack 15 Jan 2020

Reposting due to spammer. I've reposted the spamming abuse. It turns out that Kier is winning a massive amount of work compared to its rivals. Kier signed a new construction contract on every single working day of 2019, on average, according to market data gathered by the Builders Conference. During 2019 Kier signed up as contractor on 256 different construction projects; during 253 working days in 2019. The total value of the work won by Kier in 2019 was just over £3bn or £3,012.5m to be precise, according to the Builders Conference. By contrast, Balfour Beatty won less than £2bn of new construction business in 2019; it signed 55 contracts with a total value of £1,976.4m, according to the Builders Conference categorisation system, although it won a further £500m-worth of work in a £1bn joint venture with Vinci for HS2. Morgan Sindall signed 182 contracts with a total value of £1,961.8m. Info comes from this article in the construction index: [link]

Thunderjack 15 Jan 2020

Reposting due to spammer. I've reported the spamming abuse.

Thunderjack 15 Jan 2020

Also, the sale of Kier Living (the residential arm of Kier) looks imminent. The KL division has had its loan capital transferred back to the Kier parent company and its ownership structure formalised in terms of defined shares which value the business at £163m. Also there is widespread press reporting on KL's recent winning of a huge residential development and the fact that work is expected to start this month. The Cardiff development is a high value area; 270 houses approved for building. A great start to the year for 2020 for KL and a guarantee for any KL buyer that the business hits the ground running this year for new production.

Thunderjack 15 Jan 2020

New figures on construction enquirer show Kier going up 2 places on both monthly and year-to-date construction-only work won. So no, temp removal from promt payment did not affect (Kier is back on the prompt payment code register). [link] The Builders Conference data shows Kier doing even better than that.

stutes 15 Jan 2020

Turnover rankings [link] Did the temporary removal of K from HMG’s prompt paying register affect K securing new work in the last quarter of 2019 and/or its restructuring plans/asset sales?

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