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Https://www.constructionenquirer.com/2023/12/12/kier-wins-more-public-work-than-any-other-company/
No real reliance on tin-pot clients who are at risk of default on contracts, this surely adds significant weight to the forward order book.
Galliford Try, similar sized to Kier (construction only, excluding civils/property etc) announced a forward order book of £3.5b. Kier today announced it's forward order book (all sectors) of over £10b
The foundations are in, they just now need to see it through.
https://www.constructionenquirer.com/2023/01/09/kier-crowned-2022-contracts-league-champion/
Second place was over £1b lower!
https://www.constructionenquirer.com/2022/09/09/kier-tops-contracts-league-for-wins-in-august/
And for the rolling 12 months in 1st place with more than double that of 2nd.
£60m project for a new to Kier developer in Tottenham Court Road. Shows the market has faith in them, won this over the usual suspects McAlpine & Skanska.
One of a few now at the £50-60m price band. Not so large the risks are dangerous but big enough for now.
https://www.constructionenquirer.com/2022/01/28/kier-launches-recruitment-drive-for-over-1200-staff/
Confidence returning, hopefully the shake down over the last few years will have turned Kier into leaner machine.
https://www.constructionenquirer.com/2022/01/19/kier-signs-deal-for-169m-luton-hospital-revamp/
Come on share price, up, up....
Twice in the last 3 months
https://www.constructionenquirer.com/2021/12/10/kier-tops-november-contracts-league-2/
What else do you need?
...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.
https://www.constructionenquirer.com/2021/11/30/26-firms-win-7bn-school-building-framework-spots/
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.