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Steve, I dont think that is likely. A year ago it was reported that Terrafirma were the only remaining bidder for KL. It has been recently reported, though not confirmed, that they have renewed their interest. I dont think they would have a appetite for the whole Kier group, due to its divers operations. Below in an interview with Guy Hands last week that gives an insight into the person, if interested.
I agree that the trading update in January will be interesting and I will be very much hoping for better news on debt.
All the best
https://soundcloud.com/reuters/the-exchange-guy-hands-on
no trading update until Jan, which is a shame. But at least they are getting their downstream payment timing better. Forming a good foundation for the future.
https://www.constructionenquirer.com/2020/12/17/mcnicholas-rejoins-prompt-payment-code/
Regrettably shorts have been increasing since the results. Should be illegal in my opinion.
I did my "year out" with French Kier and then joined as a graduate just as Brian Beazer bought them out. I left after a year to chase the money but have only worked for 3 construction companies since. Kier have reinvented themselves a few times over the last 30 years but they are a good company with a laudable set of values. I believe in them operationally, and know a couple of the reinforcements that were appointed at the end of last year. However it seems that they may not be in control of their own destiny and will now need some flexibility from their lenders and the Shorters to * off.
It was encouraging to see the team walk away form a few contract negotiations where they failed to agree a figure but the level debt they have ,does need servicing and sacrificing turnover may not be an option open in the future.
I have invested here, on the basis that they were a good company with good staff but chose to ignore the the red lights on the balance sheet as I dont understand them. Much fool me!
Like another poster here I fear the wifes wrath. She knows nothing about it but will be suspicious when the "large cod" on a Friday becomes half a fish finger.
I see Blackrock are increasing their position. I had missed that.
BlackRock Investment Management (UK) Limited 0.71% 31 Jul 2020
BlackRock Investment Management (UK) Limited 0.62% 30 Jul 2020
BlackRock Investment Management (UK) Limited 0.56% 27 Jul 2020
W. I find you posts very useful, in so much as they remind me that I am overexposed here at the moment. However I think the update that the Bod gave was fair enough and clear. They don't know exactly what the plan is but are keeping options open. There are few companies than see ahead with confidence at the moment. At least Kier have work.
IMO I can't see any great interest in KL currently. The last interested party was a private equity firm and the risks of acquisition now are higher.
I am hoping that, with the positive progress on cost reduction and the forward order book, the banks cut Kier some slack and, over the next couple of years, Kier
trade their way out if their current situation. Hopefully the sale of KL can happen when the market has a more certain future.
GUY hands and Terra Firma were the last published interested party in KL. They would have been offering bottom dollar. It seems the sale is on hold until value can be achieved. In the meantime its wings are clipped and being focused on cash generation/collection.
All other measures to reduce debt are a slow burn. Very good news on the further reduction of operating costs. There may still be a short term need for cash. Placement, not RI may be the only way. It may also be the only way to get out of the current trading range.
There does seem to be some shenanigans going on. The Woodford 14% was their last issued notification. That is no longer valid the management of that fund has been taken over by other managers. Including Schroeders.
On December 31st Aberdeen Standard took over one of the funds(See link). This was immediately apparent by the TR1 issued on the 2nd Jan where Aberdeen Standards Kier holding increased by approx 4%. They apparently sold these during Jan with the reduction confirmed in the TR1 issued on the 20/01.
https://citywire.co.uk/funds-insider/news/woodford-hands-over-last-fund-to-aberdeen-standard/a1307287
Where the other 10% have ended up, we cant be sure ,although Blackrock were involved in selling off the "liquid" stocks.
There is a tie up between Schroeders and JP Morgan which may have something to do with their recent notifications.
I am pretty sure that this tight range and bizarre trading ,at times , is a hangover from Woodford coupled with agreements for the funds that were short being able to close in a managed controlled way.Until that is finished we wont see a true valuation.
I believe in the company, that I know quite well, but the sickner is that the cash could have been doing better elsewhere. But that is always the case with me anyway.
Rizzy , thanks for both your posts. A very good summary. I would also like to see the number of trades for less than 100 shares, stop. Only then will i feel more comfortable that the " water will be able to find its true level". As someone said.
Thanks for the link. That does seem to indicate that when the Holdings notification was issued regarding the increase from 14-18% it was not a sign of confidence, as some of us thought, but an outcome of the off market activites.
not sure. Ask is showing as 7 but cant get any quantity. Have to send to broker. Not much help, apologies.