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

Occupational Therapist - Adult Social Care

Essex County Council
£38487 - £51834 per annum
Register your interest here to be notified of upcoming Occupational Therapist opportunities within Essex County Council's Adult Social Care services. England, Essex, Chelmsford
Recuriter: Essex County Council

Nursery Assistant

Durham County Council
Grade 4, £26,427 - £27,709 pro rata to hours worked.
Are you passionate about delivering exceptional childcare services? If so, this role is for you! We are seeking 2 dedicated and enthusiastic Nursery Stanley
Recuriter: Durham County Council

Lunchtime Supervisory Assistant

Durham County Council
£25,614 pro rata
Required from 2 November 2026 to work 6.25 hours per week 11.45am-1pm during term time. The Headteacher and Governors of Ropery Walk Primary School w Seaham
Recuriter: Durham County Council

Cleaner

Durham County Council
£25,614 pro rata
Required to work 9.25 hours per week, Mon-Wed 15
Recuriter: Durham County Council

Social Work Assistant

Durham County Council
Grade 6 - £29,071 - £32,046 pa.
The Learning Disabilities East Team provides an effective and efficient Assessment and Care Management service for adults aged 18 and over with learni Durham
Recuriter: Durham County Council
Linkedin Banner