Mark Whitehead 03 December 2018

Kier sees shares plummet by 33% after £264m rights issue

Construction giant Kier is the latest outsourcing company to raise fears after its share price bombed 33% on Friday.

It followed the announcement by the company - which lists local government among its major sectors - of plans to raise £264m to reduce its debt.

Chief executive, Haydn Mursell, said the cash injection had 'completely de-risked' the firm.

He told Building magazine that suppliers should 'look at us and see that we’re now a much stronger business. We’ve removed the shadow created by our debt position.'

The latest uncertainty follows the collapse of construction company Carillion early this year with debts of £1.5bn, leaving many local authorities to find other providers.

Last month the Government ordered outsourcing companies to draw up 'living wills' setting out how services would continue to be provided if they collapsed amid concerns over the weakness of several major firms including Capita and Interserve.

The firm’s lenders include Santander which is understood to have lost £200m on Carillion following its collapse.

SIGN UP
For your free daily news bulletin
Highways jobs

Community Development Officer - WMF2526e

Westmorland and Furness Council
£38,220 - £39,152
The successful candidate for this role will have proven experience in community development Penrith, Cumbria
Recuriter: Westmorland and Furness Council

Chief Planning Officer

Swindon Borough Council
Up to £97,974 per annum
We’ll give you the opportunity to be our spatial storyteller, weaving together narratives of land, people, history and future. Swindon, Wiltshire
Recuriter: Swindon Borough Council

Cleaner

North Yorkshire Council
£12.65 per hour
Working for NYC as a Cleaner, you will be responsible for the cleaning duties Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Cleaner

North Yorkshire Council
£12.65 per hour
Working for NYC as a Cleaner, you will be responsible for the cleaning duties Kirkbymoorside, York
Recuriter: North Yorkshire Council

Technology Support Engineer

North Yorkshire Council
£25,989 - £29,064 per annum
If you have a keen interest in providing quality customer support, problem solving IT? Harrogate, North Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner