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In my opinion the shares are holding up as main shareholders are holding on. It a fine balance as soon as any of the main shareholders sell then it maybe difficult to hold the share value.
Not sure where you getting your info from but posted on construction enquirer and building websites from statement to the city, dated 1st July 2020 states, debt is running at £440m and that 2nd half debt, I.E December 2020 is expected to be around £485m,, and also states that still trying to sell K. L and a potential equity issue, which if anything like the last time they done an equity raise, it wasn't well supported and, meant the banks had to cover. AD also said, that revenue/volume of work would be hit by covid, my personal opinion is, they will come out with around £550m debt in December statement, again blaming covid, but i think the banks will be pulling the reins in. You have to ask yourselves why nobody is snapping up KL, is it they are asking too much or is more worrying for shareholders, not the golden goose, its been made out to be. Just look back at carillion, told shareholders they were on top of the situation in November /December time only to be done and dusted by January /February if my memory serves me correctly. IMHO they will wipe the slate clean, survive as a non plc company after pulling an interserve stunt. Nobody except shareholders complain, business and staff still in work, subbies get paid, maybe with a small % hit and life carries on. Interserve seem to be doing ok, with some debt wiped off and the rest repackaged as long term borrowing. Does anyone know if kier head office, tempsford hall been sold, another golden egg kier has/had, can't find if sold or just been swallowed up by the banks. Nothing said about it anymore??
Figures double checked.
Revenue = 3.5 billion, Net Debt = 310 million so it's under 10%.. they've always run with debt as many companies do. Year end debt was in the hundreds of millions when they were paying dividends. Of course it would be great to reduce it and hopefully that will happen this coming year with the 100 million of annual savings..
Think you might need to check some figures, debt i believe at nearer 20% revenue, you might be mistaken with the order book which is work possibly years in advance, also debt is possibly still rising, as kier don't seem to be able to make any profits, agreed construction is fraught with danger with complex construction contracts, and I'm not wishing Kier to be gone, but it should be a concern to shareholders, that the lack of information, and the knowledge, that interserve survived post administration, that it will be seen as a path they could follow, obviously at the detriment to shareholders.
As it has been said already there will be no RNS feeds for contract wins unless of significant importance. The construction division the size of Kier win large volumes of work every month across the whole country, their average contract size is probably around £10-12m. Happy to be corrected on this. Frameworks do not mean low margins. The art of pricing & wining works is a dark art like surveying. The stated margin you go in at is often not the same when you finish you just hope it's not less. Construction is very risky with very complicated & intricate contracts they work under & no two projects will have the same contract.
As for the supply chain moving away from Kier, nothing could be farther from the truth. There are thousands of tier 2 specialists out there chasing every project. The Construction Act & the threat of adjudication ensures most play by the rules, no-one has anything to worry about from Kier apart from the big elephant in the corner - the Interserve way out. Do not under estimate the benefit of frameworks - they're good for Kier & for their Customers.
Anyone who takes Motley Fool articles at face value is a fool indeed.
https://www.fool.co.uk/investing/2020/10/25/the-kier-share-price-is-at-a-24-year-low-heres-why-id-buy-today/
Seems Motley Fool disagree with you...
Neg neg neg.. Kier is a British company you know.. glad to see you rooting for them to fail.. nice one..
Unlikely to see a company the size of Kier issue RNS for contract wins.. check the Kier website or other periodicals for those details.
Debt less than 10% of revenue. Free cash flow £66M. Yes we will have to wait for 2021 figures to see whether the stress has all been worth it.
Imperial Tobacco can pay divis while carrying bigger debt ratio so all is not lost here at Kier. Everyone must do their own research and make their own mind up.
Probably the shorters loading up, for the run to the bottom?? , still low volumes/day traders. Good to see directors only taking their free shares, not buying!! Speaks for itself. No RNS about contract wins, except a few frameworks, which means no guaranteed work, and tight margins as as I've seen, the framework wins are mainly against smaller tier companies, who can work cheaper. I'm hearing kier struggling to find subbies, and those who are working for them are winding up the prices, to cover off future losses and waiting times for money, also for companies like a utility in Southern England, trying to feed smaller companies who have been subbies for Kier in the past/still are, are now working direct, pushing Kier down the pecking order and having the supply chain immediately in place, if Kier was to disappear, be wary thats all I'm saying, as for the share, any rise, if any will be modest IMHO and you are probably not looking at dividends for years ahead. I still think it is a carillion/interserve situation, lets see in November/December, think the answers are probably not what shareholders are looking for, GLA to you
Large buy just gone through, it appears confidence is returning.