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

Head of Education

Knowsley Metropolitan Borough Council
£87,117- £93,978
Knowsley Council is an award-winning Local Authority, named Local Authority of the Year in the Municipal Journal Awards 2024. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Service Managers – Children's Social Care

Knowsley Metropolitan Borough Council
£61,863 - £67,592
Knowsley Council is an award-winning Local Authority, named Local Authority of the Year in the Municipal Journal Awards 2024. Knowsley (Metropolitan borough), Merseyside
Recuriter: Knowsley Metropolitan Borough Council

Head of Commercial Services

Trafford Council
£77,339 - £83,714
Few boroughs have a story quite like Trafford’s. Trafford, Greater Manchester
Recuriter: Trafford Council

Head of Greater Manchester Shared Services

Trafford Council
£77,339 - £83,714
Few boroughs have a story quite like Trafford’s. Trafford, Greater Manchester
Recuriter: Trafford Council

Director of People and Organisational Culture

Sheffield City Council
£Competitive
Sheffield is a place like no other. Sheffield, South Yorkshire
Recuriter: Sheffield City Council
Linkedin Banner