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

Social Worker - Children with Disabilities Team, Mid Essex

Essex County Council
£38487.0000 - £51834.0000 per annum
Social Worker - Children with Disabilities Team, Mid EssexFixed Term, Full Time£38,487 to £51,834 per annumLocation
Recuriter: Essex County Council

Team Manager - Family Solutions Service, Mid Essex

Essex County Council
£55832.0000 - £69241.0000 per annum
Team Manager - Family Solutions Service, Mid EssexPermanent, Full Time£55,892 to £69,241 per annumLocation
Recuriter: Essex County Council

Social Worker - Family Finding, Adoption

Essex County Council
£36124.0000 - £51834.0000 per annum
Social Worker - Family Finding, AdoptionPermanent, Full Time£36,124 to £51,834 per annumLocation
Recuriter: Essex County Council

Business Finance Manager (Commercial Focus)

North Yorkshire Council
£51,356 - £55,539 per annum
North Yorkshire Council is seeking a high-calibre, commercially astute finance leader to oversee the financial function Northallerton, North Yorkshire
Recuriter: North Yorkshire Council

Nursery Assistant

Durham County Council
Grade 4 £25,583 - £26,824
Join us in making a difference in the lives of children and their families!    Are you passionate about delivering exceptional childcare services? We Stanley
Recuriter: Durham County Council
Linkedin Banner