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Claudio Veritiero COO going with immediate effect. The question should always be why now? This name was on the AGM ballot.
Because the sale of KL has fallen through? Speculation perhaps but plausible?
Adam Walker NED - Chair of the Audit committee. Leaving in 45 days time. Why? Fianancial Reporting / Auditing difficulties? Why now?
jst008
Keeping / Selling KL would have been very much the entire thought process for the group. All the macro economics you quote existed 6 months ago and yet the decision was made. IMO KL was not throwing off the profits anywhere near what the Redrow / Persimmion / Barratts etc have been producing for years now. Perhaps KL isn’t a good house builder and therefore under different ownership it may meet a greater potential and therefore some buyer may see value in that. Lastly if it was a brilliant outfit it should have flown off the shelf by now.
Bill89
Spot on in a very concise post. The only upside to the shorters selling out is theoretically this should push the SP up and would help avoid a situation where debt covenants are breached and the BOD loose control of KIE.
A no detail, generic, non specific RNS trading update today. Very disappointing.
The COO goes with immediate effect, one year late.
They cannot announce any news on KL or Property disposals, 6 months late.
It’s a very leisurely pace for the executive and BOD, not sure how that will deliver the needed changes before cash runs out.
Waited long enough and not seen enough done to be convinced that the leadership team can administer the self help.
Clearly diverging views on what’s coming up tomorrow. Kuvari being the first big shorter to jump on Kier recently increased their position against the tide so this is their first downward move since forever! They’re not out so clearly profit taking and reducing exposure confident they can trade out the remaining 1.73% probably sub £1.
Here we go. At last Kuvari Partners report they have reduced their short position by 33% 24 hours before the AGM. 0.83% reduction from them . That’s circa 1.34 million shares.
Interestingly GLG Partners go the other way shorting another 0.09%.
@Meta. I agree with your assessment and come to the same conclusion. No credible (funded) bid/offer received therefore no RNS to report hard fact.
The rest is just fluff and corporate hyperbole to spin a positive message by way of an update.
Interesting that expressions of interest were received before the sale process. I didn’t twig that.
WTF is an expression of interest? Kicking the tyres on the jallopy by a time waster?
@ billT. It’s possible and of course it’s not without precedence. Depressing to think that BOD leadership would act without integrity and entirely out of self interest and preservation. If kier follow and accelerate the restructuring plan by selling KL and their property division to pay down debt significantly this shouldn’t materialise. At what stage of receiving a sale offer for such a material part of kier would an RNS have to be issued? If it is to report a done deal then ok. If it is when a credible offer has been received then it’s worrying as the sale process has been underway for a while and if no credible offers received by now then I can’t see why one would suddenly turn up.
@bill tucker
Don’t think the speculation here that the BOD might be tucked up with the various lenders in order to end up with a cheap debt for equity deal is realistic in this instance. Thankfully all but one past Exec Director remains in office and that position must be under threat as the former exec director in charge of kier group strategy and development with all kiers major acquisitions made on his watch. As for non executives the chairman has fallen on his sword.
The new ceo has a job to do and a reputation to build after dodging a bullet with his appointment at carillon. If he is planning on a career then his integrity in turning kier around for all stakeholders is unquestionable.
This is it the shorters have blinked. They probably don’t foresee any more significant negative news or downward pressure on SP. Probably news on KL sale due soon so need an orderly exit, they’ll probably all get out under £1.50
Smurfducker. I agree with point 1. Although I am astonished that the Veriterio as COO and an Executive Director from the old regime who arguably presided over the groups acquisitions is still in post. So as well as getting rid of competent personnel they are also keeping the less so! This and the fact that none of the non executives have gone apart from the chairman over the last 12 months is worrying. The chairman is not the only one who should take the bullet for this board, will they get re-elected at the AGM?
2. The CEO’s restructuring according to the plan must continue and at pace. I am sceptical it can be achieved as this is a behemoth of a company and one that has had very little experience of change management in the last decade so the resistance to change will be intense. Are the leadership capable of delivering the plan on time; everything out of Kier is so slow.
Disposals is a worry. The intense focus on debt by external stakeholders has been going on for over 12 months and what have Kier sold to address this in that time? A few properties and a business in Australia last year... No news on Kier Living or Kier Property divisions months after the formal announcement to sell. It’s all taking too long that I think it must be unsellable if by now no update can be announced.
3. The bad news will be dependant on failing to deliver on their own plan. Managing the news will be as always; as slowly as possible and couched in as positive language as possible with huge amount of effort in trying to sweeten the pill. Honesty and clarity would give confidence that the nettle has been grasped.
A take over by an acquisitive group (foreign especially with a weak £) is IMO a likely option down the road when inroads into debt reduction materialise and a direction of travel can be seen. The group is undervalued if it has a viable future, when its future looks secure the SP will be slow to respond ( shorters on board and Woodford as a major shareholder) that will be the point when potential suitors will investigate. For the time being Kier is on its own to sort out its own mess.
Kuvari Partners LLP increase their short position by 0.19% bringing their total position to 2.59% circa 4.2 million shares.
Very interesting as they appear to be adopting a contrarian view to the other shorters.
They must have some intel others don’t. I can’t think what. Guessing trouble with the KL sale, difficulties in reducing the debt figure, reductions in group revenues vs targets? All a bit early to speculate this far out from the Half Year....
Or is this a play against Woodford? He’s still a +/- 15% shareholder in Kier I think since cutting from 20% to 15% around the 6th June.
If Woodford is made to liquidate his position then the SP will be under pressure and there are plenty of shares available for the shorters to clear their positions and make realise some further profits.