Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Profits are up, debt is down. Well on track with objective aims. What a relief!
I'm disappointed with these results but I feel I (we) need to lower our expectations. The company is operating inline with its piers which is the main thing. What is disappointing really is that after the KL sale and capital raise there's still £195M debt.
We long-suffering shareholders need to take the long view and try and enjoy a boring ride. IMO. Good luck all.
I've been in Kier for several years, buying and selling at lower levels than today. IMO SP offers one of the best buying opportunities in the sector and generally in the FTSE 250 where this stock is clearly heading. Hold tight folks, the journey has been bumpy but the destination is insight.
The offer for new shares should be taken up. The company's financial structure, given the offer, is fully subscribed will result in a debt-free with free cash flow for one of the U.K's main construction players. Even with the number of shares increasing the market cap for Kier makes it a compelling buy sub £ 2.50 - £ 3.00, IMO.
Encouraging to see a solid foundation is being formed for the management team to steer KIER to a solid and progressive future.
You point out the salient point of the deal - Cash is King - and Kier has secured a totally transparent deal that will benefit the company's bottom line and future prospects.
Unless the market makers in the shares have been wrong-footed, today's closing price bodes well for the expectation that positive news will be announced next week? A good start to the weekend.
Steve,
The very fact that there is an overspend on Hs2 implies possible variation orders carried out by contractors which itself feeds into the bottom line. The construction sector per se is not defunct and can be profitable for well-run companies, including Balfour whose SP has been flying high recently, just like Kiers. There are opportunities in the sector and Kier offers as good, if not better ?, than it's piers.
The SP was decimated over the fears of a Carilion fallout. As time has gone on any such concerns are no longer real. KIE has since streamlined its operations and introduced efficiency measures that will reflect the bottom line. KL is also an asset that is about to be contributing to the bottom line. IMO this is a compelling buy and personally, I've just topped up with a few more. Good luck all.
Baz, an excellent summary of where we are/going.
E.U. workers undoubtedly have contributed massively to infra. projects. A significant majority remain here who have settled and continue to contribute together with homegrown talent. I don't believe this situation is a major tailwind for KIE, just something the industry needs to grapple with.
The announcement of a potential KL sale together with debt consolidation leads to a strong financial footing for the future prospects for KIE who will be able to rival any of its piers. IMO!
You need to look through the fog! I read the announcement as a positive. The sale of KL and rationalization of the debt in a structured way that doesn't harm existing shareholder value ( lessons learned from an earlier attempt! ) with the result KIE in a financially sound state taking advantage of its
current and potential order book, lots of positives.
The SP took a hammering over the last two years or so as the main concern was a Carrillion style bankruptcy, this is no longer even a concern. The true value has now been recognized and the SP has a lot of catching up. IMO.
A steady SP rise through the week and a late flurry at the close of play yesterday. Do the Market Makers have a sniff of the long-awaited sale of KL?
In the last 3 days projects awarded amount to £350 M. I'm not sure why such announcements hardly move the SP?, but one thing for sure this stock is at bargain-basement levels. Good luck KIE with KL sale etc, etc. etc....!
The sky article surely was based on some factual information? Yes, SP should respond well, as and when it happens.
The update was positive. Two-way trading yesterday with notable large buys late in the trading session. I'm more than happy in retaining my remaining stake only regret I panicked a few weeks ago and sold some sub 50p - ouch!! Good luck everyone, this company in the construction sector has as bright if not brighter prospects than its piers. IMO
Article on sky news, very positive.
Interesting how in the last 5 minutes of trade today the SP managed to reverse a negative 2% to end + 1% on the day when the KL reported a loss of £84M. If I had to guess we could see a higher opening tomorrow?
We all need to sit tight and wait for these results. These should reflect income payments from newly awarded projects including HS2 amongst others and should these prove to be profitable we could well see a rerating to the upside? IMO