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The SP is completely out of sync with the value of the business, unless projects are being carried out at a loss and or there is a skeleton lurking in the cupboard - something is amiss, but still IMO there is real unrecognized value in KIE. A statement from KIE would not go amiss.
Excellent news, the article says it all, however the current KIE SP has discounted this positive news surrounding whats actually going on in the sector by 100 %. Hopefully this will soon change?
Very impressive performance by KIE, again! Unless KIE are winning unprofitable contracts, which I assume is not the case as KIE came second recently £10m behind the winning contractor at £40m. So we can assume these impressive wins have the right profit margins which will feed in to the bottom line. Another compelling reason to hold and add more KIE shares. IMO.
I'm completely perplexed as to why the SP is only 1 tenth of the suggested fair value. We all know the story, excellent order book, Government contracts, long and short term ' guaranteed ' projects, KLetc, etc..etc.....!!!!!
So why is the SP at levels of a company about to go into liquidation?
There are 92 pages of projects won dating from the most recent - very impressive and highlights how potentially oversold the SP is.
Not certain if the ruling announced earlier has something to do with the uplift in SP? along with another £160m contract win the SP really did need this kind of support, more to come IMO!
You certainly have a point! That would explain the debt increase from £395 to £440m????? AD has lost any respect I might of had. There needs to be a statement from KIE to explain the market concerns and that of us poor long suffering shareholders.
Yes , totally agree any potential RI with an update. I'm severely disappointed though with the management team and foremost AD. The shareholders of KIE have been left out in the cold. Most of us who are still holders are nursing big losses, so if there is an agenda ( RI or otherwise ) which is for the benefit of KIE and therefore its shareholders why not post details via RNS statement and bring us long suffering shareholders out of the cold!?
The SP is acting as if there are no underlining assets which have any meaningful value. The existing order book - work in excess of £ 7 billion - not to mention KL! Okay so there are debts of £440m big deal, its a managable figure. Why can't KIE make a statement which stops this situation getting even worse? Come on Mr Davies.
Yes, point taken and all valid points, thats assuming you/we are comparing a like for like comparison - my gut reaction is NOT!
A lot of guess work going on all round we need Mr Davies to tell his poor shareholding followers what is going on - please!!
In recent days the Government has announced the extension of the ' Buy to Help ' scheme - and Planning Approvals to be fast tracked - very positive for KL
So given the turbulence and extremely low value of the SP amid speculation of a RI, even if these rumors were correct, the current valuation must be already at a point where any dilution of shares and with the resultant cash raising would justify a bounce in SP???
KIE continues to win substantial new projects together with the continuation of its existing contracts and notably the progress with the commencement of works on HS2. We can reasonably assume all these projects are managed efficiently and this will be very soon reflected on the balance sheet once interim application of payments start flowing in and of course the booming housing market makes KL even more profitable and desirable, hang on in there fellow investors there is light clearly at the end of the tunnel.
The value of the business is not even priced at break up value. KIE needs to make a definitive statement about its viability and financial arrangements with its bankers.
Totally agree. The current market capitalization at current SP levels makes KIE a bargain buy and most certainly an attractive target for a take over. A correction is overdue even without any positive news flow, but should there be any good news announced the SP will respond.
The SP at these lower values offer a compelling ' buy '! - this was not lost on some canny investors today!
Stamp duty on new purchases to be suspended for 6 months.
Kier has just completed a major reorganization and relocation of main offices. KIE have in the past month or so started some major projects including HS2, the first stage payments will soon be invoiced which will reflect on the balance sheet. Boris has promised the country multi billion pound projects which again will undoubtedly benefit KIE. We investors need simply to hang on in there, top up at these lower levels if possible, its case of 'when not if' that the belief in KIE will reward us investors.
The debt of £440m should be viewed in the context of the prevailing virus impact and the relocation of head office and staff and all the disruption and costs associated together with the reorganization and new management policies. So all the heavy lifting has been done and all KIE needs to do is make a decent profit from the £7billion plus order book. SP at current levels is compelling I would say.
An excellent read, but net debt of £440m due to Covid, does this level of debt overshadow the otherwise excellent update?
We all know the fundamentals are sound and improving going forward. With these horrible dips now and again we should just sit tight and ride it out. IMHO.