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

Digi-go Driver

Essex County Council
Up to £25959.00 per annum
Digi-go DriverPermanent, Full Time£25,959 per annumLocation
Recuriter: Essex County Council

Highways and Traffic Engineer

Hull City Council
£46,579 - £49,817
You will work as part of the Design and Commissioning team Kingston upon Hull, East Riding of Yorkshire
Recuriter: Hull City Council

Highways Group Manager

Pembrokeshire County Council
Grade 12 - £57,386 - £59,639
This is a senior leadership role requiring a visible, innovative and collaborative leader Pembrokeshire (Sir Benfro)
Recuriter: Pembrokeshire County Council

Head of Health Determinants Research Collaboration

Torfaen and Blaenau Gwent Councils
£69,151 - £73,937
Across Torfaen and Blaenau Gwent in South Wales, our councils are doing something genuinely different Pontypool & Ebbw Vale
Recuriter: Torfaen and Blaenau Gwent Councils

Lawyer

Mansfield District Council
£35,570 - £45,529 per annum (career graded post)
You will join a friendly and supportive legal team, where everyone works together Mansfield, Nottinghamshire
Recuriter: Mansfield District Council
Linkedin Banner