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

Head of Facilities Management

Redbridge London Borough Council
£89,037 - £92,538
Our borough is beginning a huge transformation. With ambitious regeneration plans, a need for new infrastructure, Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Community Protection, Licensing and Regulatory Services

Redbridge London Borough Council
£competitive
This is your chance to be part of a new management team with a mandate for change and a shared sense of purpose. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Head of Capital Delivery

Redbridge London Borough Council
£99,963 - £103,893
Momentum is building in Redbridge. An invigorated sense of direction and potential is setting ambitious plans for the future. Redbridge, London (Greater)
Recuriter: Redbridge London Borough Council

Corporate Director Health and Adult Services

North Yorkshire Council
£141,233 to £164,272 plus relocation support
People living longer, healthier, independent lives Northallerton, North Yorkshire / Countywide
Recuriter: North Yorkshire Council

Data Technician Level 3 Accessible Apprenticeship

Essex County Council
Up to £14567.00 per annum + Pension
Data Technician Level 3 Accessible ApprenticeshipPermanent, Full Time£14,567 per annum rising to £23,557 per annum on the second year Location
Recuriter: Essex County Council
Linkedin Banner