Kier continues to battle with high debts

Aaron Morby 2 months ago
Share

Kier continues to battle to reduce its mountain of debt despite reporting better trading over the last six months.

Andrew Davies says Kier is continuing to consider a potential equity raise
Andrew Davies says Kier is continuing to consider a potential equity raise

Chief executive Andrew Davies said that average monthly net debt had remained around the same £436m level reported last July in a trading update this morning for the first half of its financial year.

He added that this still gave the business sufficient liquidity headroom as the group generated positive adjusted operating cash flow.

Kier said it continued to make progress with the sale of its housing arm Kier Living , which was put on the block over 18 months ago.

Private equity tycoon Guy Hands is rumoured to be among the bidders trying to buy Kier Living, which suffered a pre-tax loss of more than £89m last year.

Kier is hoping to receive around £100m for the business helping to reduce debt.

The group, which has a market capitalisation of just £122m, also said it continued to consider a potential equity raise.

Davies said Kier expected to deliver at least £105m in cost savings by the end of the financial year as it continued to look for additional cost-saving measures.

“The group continues to win high-quality work in our chosen markets resulting in a strong order book which is slightly above year-end levels, despite the difficult trading environment due to the pandemic,” said Kier’s statement.

“The projects awarded consist of those which have been bid and delivered under our increased transparency, governance and controls.”

Kier has secured places on long-term frameworks worth up to £11bn, across a number of sectors including, health, education and justice. In addition, several existing frameworks were extended by 12 months.

In the last few weeks, it secured an 8-year maintenance contract worth £200m with Transport for London.

 

Latest news

Construction plant shortages start to bite

Smaller excavator delivery dates being pushed to 2022
3 days ago

Bechtel’s £100m HS2 legal claim over contract award fails

American giant has procurement complaint dismissed
3 days ago

Six win £650m NHS Scotland framework

BAM and McLaughlin & Harvey secure places for first time on Scottish hospital framework
3 days ago

MBO at £80m turnover McTaggart Construction

Eight-strong management team buy Scottish housing contractor
3 days ago

Engie bags £200m low carbon campus in Birmingham

Construction to start this summer on student complex
3 days ago

Elland Steel ownership shifts to employee trust

Family of Halifax steelwork contractor sell to workforce trust
3 days ago

Amey raids Ringway Jacobs for highways chief

Andy Denman joins Amey in May to lead local authority highways growth plan
3 days ago

Commercial jobs spur February new orders rebound

Optimism levels among buyers hit five year high despite supply challenges
3 days ago

ISG tops February contracts league with mega-shed job

Big logistics projects boost ISG, TSL Projects and Winvic
4 days ago

Galliford Try returns to profit and resumes dividends

Business achieves 1.6% operating margin in improved first-half year
4 days ago

Vistry sets aside £20.9m for cladding retrofits

House builder reports strong second half in 2020 and start of this year
4 days ago

Robertson starts work on £22.4m robot centre

National Robotarium in Edinburgh to open in spring 2022
4 days ago

Willmott Dixon wins £16m Notts leisure centre

Bingham town leisure centre project includes a swimming pool, adjacent community pool and workspace
4 days ago

First eight freeports to lead regional regeneration drive

Chancellor unveils free trade zones in East Midlands, Felixstowe, Humber, Liverpool, Plymouth, Solent, Thames and Teesside
4 days ago

Bristol Beacon refurb cost doubles to £107m

Council agrees extra investment after Willmott Dixon discovers major structural issues
4 days ago

Corporation tax to increase to 25% in 2023

Chancellor also unveils "super deduction" scheme to boost construction investment
4 days ago

Groundworks firm moves to employee ownership

Brother and sister owners sell Fitfield to 60 strong staff trust
4 days ago

Persimmon doubles size of construction quality hit squad

House builder to boost team of build quality inspectors to 60
5 days ago

HS2 shortlists quartet for £540m signalling contract

Alstom, Hitachi, Siemens and Thales in race for phase one contract
5 days ago

Osborne forms JV for zero carbon housing retrofits

Partner Passivhaus specialist Bow Tie Construction to offer innovative carbon reduction techniques
5 days ago

Leeds to spend £100m on council home energy retrofits

Five-year programme to install heat pumps, district heating, wall insulation and solar panels
5 days ago

Utility contractor Falco sold to staff

London contractor becomes the latest to be sold to Employee Ownership Trust
5 days ago

Keltbray lands first major roads package

Specialist bags £14.1m bridges deal from Costain/Jacobs as it targets highways sector
5 days ago

Lee Marley Brickwork launches Scottish scaffolding division

Industry veteran Billy Dolan to lead latest brickwork and scaffolding offering

Interserve resurrects Tilbury Douglas name in rebrand

New Tilbury Douglas branded business targets £500m revenue this year
5 days ago

Taylor Wimpey pledges £125m for cladding and fire safety retrofits

Pre-tax profit slumps two-thirds to £264m as margin halved to just over 10%
6 days ago

Fusion21 names line-up for £1.1bn FM framework

Successful firms include BAM, Bouygues, Galliford Try and Eric Wright
6 days ago

Major pharma HQ in London’s King’s Cross approved

Work could start on 220,000 sq ft research facility before the end of 2021
6 days ago

Union fears over plan to house site workers on cruise ships

2,000 builders could live on ships during construction of London Resort in Kent
6 days ago

Another ISG director joins Structure Tone

Justin Fahy joins former ISG colleagues as Commercial Director at fit-out specialist
6 days ago

Contractor services