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

Transport and Major Work Manager

Slough Borough Council
£54,556 to £60,085 per year Inclusive of Local Weighting Allowance of £1096
Drive the future of transport and infrastructure in Slough Slough, Berkshire
Recuriter: Slough Borough Council

Support Services Officer - Bereavement

Durham County Council
Grade 5 £26,403 - £28,598 (Pay award pending)
A rewarding opportunity has arisen to join our Bereavement Services team as a Support Services Officer, providing vital support to members of the publ Durham
Recuriter: Durham County Council

Lecturer in Foundation Learning (Maths, English and Digital)

Durham County Council
Grade 9
Durham County Council
Recuriter: Durham County Council

Sessional Learning Delivery Assistant

Durham County Council
Grade 7
Durham County Council
Recuriter: Durham County Council

Residential Workers - Maple House

Durham County Council
Grade 7 £30,024 - £33,699
Residential Workers 2x Full Time 37 Hour Post 1x Part Time 18.5 Post Salary
Recuriter: Durham County Council
Linkedin Banner