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.

Skills Pipelines: What local government needs to know image

Skills Pipelines: What local government needs to know

Councils and mayors are to be handed a central role in developing skills pipelines for local industries, as the Government unveils what it calls a ‘fundamental change’ to the education system aimed at tackling youth unemployment. Here's what council leaders and officers need to know.
SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

Camden Learning
Competitive
Camden Learning is a pioneering schools-led partnership bringing together 57 schools. Camden, London (Greater)
Recuriter: Camden Learning

Key Worker - Young Carers

Essex County Council
£25959.0000 - £28621.0000 per annum
Key Worker - Young CarersFixed Term, Full Time£25,959 to £28,621 per annumLocation
Recuriter: Essex County Council

Teaching Assistant

Durham County Council
£26,427 pro rata
Temporary from October 26 to August 27. Villa Real School is an all age 2 to 19 years Special School with pupils with SLD, PMLD and Autism. The Gove Consett
Recuriter: Durham County Council

Care Facilitator

Durham County Council
Grade 6 - £29,071 - £32,046
We are looking to appoint a temporary Care Facilitator to be responsible for negotiating and arranging appropriate packages of care for individual ser Spennymoor
Recuriter: Durham County Council

Senior Practitioner Access to Records

Durham County Council
Grade 12 - £45,529 - £49,817
Are you an experienced social worker looking to make a difference in a different way? Do you want to use your professional expertise, judgement and u Spennymoor
Recuriter: Durham County Council
Linkedin Banner