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Dear Kenj
The way Kier CEO said in his last update that end of month debt/debt facility used £420 again available £925, so once they sort out Kier living and other things they will have no debt. Non of business have all cash in bank it is invested in different forms and valuation is based on their net assets and net liabilities for accounts. I am talking about the running of business and currently Kier have £420 short fall/debt at the end of month which they use their credit facility. Once all mentioned in email sorted, Kier doesn’t need that facility and business itself supports the running cost. I must admit that I am not the accounts expert and just did the simple add/subtraction. I also welcome if someone put their comments.
Kier got debt of £180m and end of month debt after paying employees £425m
If Kier sells Kier living expected £140m to £160m, consider bottom line £140m
Reduce investment in Kier property as per Kier CEO strategic review £100m
Kier future proofing saving £55m
sell 20 acres of development land in Saffron Waldon to the house builder expected £20m
sell of Kier Park former Royal Mail sorting office site in Hemel Hempstead £20m
Australian road maintenance business KHSA which was not included in last results £24m
expected full year Profit after profit warning £129 and if added half year £65m
after selling Kier living and other three business, Kier living sell is at final stage will save running cost £10m to £50m but consider £10m
If I add all of them then it shows me Kier will have £434m which means it not only overcomes its debt but will have a net cash of 14m.
But the question is why this is not picked by market makers and investors who have more resources and clever brains. (no idea) Simply I am holding my shares and hope the best. It looks either Kier shares will make me retire quick or very late.
https://www.pbctoday.co.uk/news/planning-construction-news/kier-barnsley-blood-centre/62215/
Concluded below message, worse scenario debt (400-450m)
Debt 450m
sale of Kier Living 150m
sale of land 50m
reduce investment in property 100m
Kier future proofing saving 55m
sale of facilities management and environment or not investing any more 100m
Please add them and wait for September Kier statement. It could come debt free company with £10B order book with 3% margin.
Why do Kier needs another RI as they are planning to sell parts of business ie Kier living, facilities management and environment services and Kier living has already got many expression of interests. Property investment is reduced to £100m and recently sold land to Bellway Homes worth millions of pounds (not sure how much but 19.6 acres of development with planning permission of 150 dwellings). Please don't put too much attention to rumours. Please keep calm and hold your positions.
https://www.kier.co.uk/media/news-releases/kier-property-sells-development-land-to-bellway-homes-limited/
https://www.youtube.com/watch?v=OuVEjd8q7pU&feature=youtu.be
Kier has started to offload land holdings as it seeks to reduce debt and raise cash.
Two weeks ago new Kier chief Andrew Davies revealed the construction group aimed to sell its housing business and wind down its property arm while cutting 1,200 jobs.
The sell-off aims to bring down debt levels which have risen again to an average month-end level of £420m-£450m.
Bellway Homes has emerged as the first house builder to strike a deal with Kier for some of its land bank.
Kier Ventures , a subsidiary of Kier Property, has agreed to sell 20 acres of development land in Saffron Waldon to the house builder.
The site sits on the outskirts of Saffron Walden, close to a leisure and fitness centre.
Kier acquired the site in 1993 and obtained outline planning permission for the development of up to 150 dwellings in April 2019.
In a separate deal, Kier Property has also offloaded major plots to unnamed buyers at its Kier Park former Royal Mail sorting office site in Hemel Hempstead.
With a development pipeline of £1.8bn in the UK, Kier Property has projects across all asset classes. In the urban residential sector it has a pipeline of 3,900 homes.
Kier reappointed to London Construction Programme (LCP) Major Works 2019 framework with combined value of £3bn
•Framework, owned by Haringey Council, will run for five years and is available to use by local authorities and other public sector organisations within London and the Home Counties
•Kier also reappointed to £200m Hampshire Intermediate Construction for projects valued up to £4m
Kier has been successfully reappointed onto both the London Construction Programme (LCP) Major Works 2019 Framework and the Hampshire County Council Intermediate Construction Framework (ICF).
This second iteration of the LCP replaces the previous LCP Major Works 2015 Framework, which we were also on, and has a combined value of £3bn. The framework will run for five years and we have secured a place on all six Lots we bid for.
LCP is owned by Haringey Council and is available to use by local authorities and other public sector organisations within London and the Home Counties for projects ranging between £1m to over £20m.
Cliff Thomas, our Managing Director for Kier Regional Building London says: "We're thrilled to have been awarded six Lots. The framework is great for the end user, with social value commitments included in all projects, it also has a clear & simple commercial model and framework management procedure ensuring the framework is simple for all end users."
We have also been successfully reappointed to the £200m Hampshire County Council Intermediate Construction Framework (ICF) for projects valued up to £4m, beginning this month.
The framework will cover extensions, refurbishments and alterations to existing schools and other public buildings across Hampshire, Berkshire and the Isle of Wight. Wiltshire, Dorset, West Sussex and Surrey local authorities will also access the framework for ad-hoc projects.
Steve Cresswell, Managing Director of Kier Regional Building Southern says: "I am extremely proud of the team's performance during the previous period, having delivered a number of successful projects and we look forward to continuing our work with our partners to deliver much needed improvements to buildings across the region."
Kier used to have a big investment in housing market and 2-3 years ago (Kier had lots of Cash look at 2015-2016 accounts) when Kier realised slowing in housing market specially Brexit fears, Kier planned to switch over from housing to infrastructure specially highways. Kier bought a highway company but problem arises for payments as in government contracts (Frameworks) require 28 days payment compare to housing payments in 3 months. Initially Kier managed to sustain payment pressure for using cash they got, delay tactics but government minister warned that Kier can't delay payments and after that then CEO Hayden laughed a right issue but market lost confidence. I know the frame work contractors as only selected companies can bid contracts and big advantage of being in frame works. Please excuse my English.
https://kiergroup.newsweaver.com/340nvxlh7n/1gwbnvixxrp13slxqmxfg5?email=true&a=2&p=288771&t=219749
Mate keep Calm and hold your positions as it is already went down more than it suppose to be. Worth of 33 Foley street (Kier head office) is more than company worth at the moment. I believe it won't be required if Kier sells property and housing business