...Kier awarded the most lots on the recent £7bn DfE framework schools and further education building programme over the next four years. Awarded 14 out of a total of 22 lots. A lot is where the country is divided into regions & then again according to project value banding. The smaller the value the more regions there are. They are included on the two biggest value bands in the north & south of the country for projects valued at over £12m.
picked a couple of decent sized projects in the last week. A £34m eye infirmary in Sunderland & a £32m council resi flats in Bournemouth. These are exactly the right size of contract they should be going for. OK share price do your stuff.
Steve, you need to understand balance sheets better. Their revolving credit facility is over £500m (£475+£71)what do you mean by "Wake" debt? This is effectively an over draft facility agreed for a period of time which expires in 2025. As at last year end they had dipped into this by £242m which is significantly better than the previous year which was £504m Every company will arrange an RCF. The cost of having this facility, interest is included in their numbers.
I refer to Morgan Sindall last full year accounts "During October 2020, the Group secured a new £150m committed revolving credit facility, replacing the previous £150m facility which was due to expire in early 2022. The new facility initially extends until late 2023 and includes two further one-year extension options, with the agreement of the lending bank"
KL sold at the price the market was told & was expecting. Right issue exceeded expectations. The markets do not like surprises or companies not doing what they say they will do. So far Kier are still on the same path to recovery, not fully there yet but there is light at the end of the tunnel. Their Customer base has faith in them, they topped the monthly contracts won league last month, the government has faith in them, the banks have faith in them. Forget material prices, everyone is in the same boat, you should worry about the local house extension builder having to pay £6 for a 2.4m length of CLS not the major contractors. The share price will go up & it will go down, what happens over a longer period is how to judge their performance.
Not hugely significant on it own, but all these news articles are telling the same tale. The ship is heading now in the right direction. The other significant part of this story is that the market is also prepared to enter a contract with Kier. Having the best value tender is one part but the Customer also needs to accept.
Each of these companies met their demise very differently to each other, no comparison can be drawn between them or with Kier really. A "a shrinking ever tightening margin marketplace", on what basis do you make these claims? Yes prices have gone up as well as labour. But well managed & run companies plan for these events & make preparations early. The majority of Kiers contracts are 12-18 months long, so any pain is minimal. Longer contracts & larger civils projects will probably have indices that are controlled by market forces. The indices goes up, the rates go up. New contracts currently being tendered will have a larger fixed price element to cover these rises. Everyone is affected, Kier are not unique but they have just had a full tree shake down of all their operations so should be in a better position to deal with it. As for the dividend, has Kier not paid a dividend in the last say 2 years when they said they would? Have they said when they expect to start paying a dividend? Until they fail on the projected date you cannot pass comment, even Steve72 will not make them pay one earlier just because you want one.
Steve, please find another board as you are doing what's left of your credibility no good at all. Your £498m includes lease liabilities, which is normal within any company. Exclude these you have borrowings at £362m. The other 'add-ons' are also perfectly normal. Show me any other company that does not have a borrowing facility. These borrowings of £362m are due after one year & are included in the overall Nett Cash/Debt calculation. The clue is in the title, "Overall" Nett "Cash or Debt" calculation. Accounting for this borrowing Kiers Overall Nett position is £3m positive, from a negative of £310m last year. If they did not include it they would be even more cash positive. But they have to & they have.
Lets hope they like it. Seen many times before, results in line with expectations; turnover up, profit up, dividends up, order book up - and yet the markets say no and the price goes down a notch or two. Then on the flip side with with apparent reason the price takes off mid year. Anyone got a crystal ball?
Steve, maybe for smaller contractors but this has been on the radar for a while. It's only news now because you can't buy cement in Wickes. Any contract being entered into will have forward fixed price element included in the sum. Unavailability of materials is different & there are often contract clauses that buys you time in these instances. Larger projects hitting the ground now will have had their major packages already procured. The supply chain in turn would have ordered the materials from the suppliers by now as well.