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.

Devolution and putting place first image

Devolution and putting place first

The real lesson of Andy Burnham's Makerfield success, argues Dr Jonathan Carr-West, is that place – not personality – is the key to Britain's future.
SIGN UP
For your free daily news bulletin
Highways jobs

Head of Parking Services

London Borough of Merton
£93,102 - £101,565
Merton is London’s best-kept secret Merton, London (Greater)
Recuriter: London Borough of Merton

Head of Fleet and Depot Services

London Borough of Merton
£86,283 - £93,102
Merton is London’s best-kept secret Merton, London (Greater)
Recuriter: London Borough of Merton

Head of Parking Services

London Borough of Merton
£93,102 - £101,565 per annum inclusive
Merton is London’s best-kept secret Merton, London (Greater)
Recuriter: London Borough of Merton

Head of Fleet and Depot Services

London Borough of Merton
£86,283 - £93,102 per annum inclusive
Merton is London’s best-kept secret Merton, London (Greater)
Recuriter: London Borough of Merton

Director of Transformation

Brent Council
£150,000
Brent is brimming with ambition and opportunity. Brent, London (Greater)
Recuriter: Brent Council
Linkedin Banner