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

Quality and Review Support Assistant

Durham County Council
Grade 4 £26,427 - £27,709 (Pro rata)
Applications are invited for the above post within the Quality and Review Team. WHAT IS INVOLVED? You will provide administrative, clerical and typ Spennymoor
Recuriter: Durham County Council

Business Services Senior Co-ordinator

Durham County Council
Grade 7 £31,015 - £34,811
An exciting opportunity has arisen within Business Services for two Business Services Senior Co-ordinators on a temporary basis for 12 months.   We ar Peterlee
Recuriter: Durham County Council

Enhanced Teaching Assistant

Durham County Council
£29,071 - £32,046 pro rata
The Head Teacher and Governing Body of Tudhoe Moor Nursery School wish to appoint a confident, enthusiastic and highly motivated person to join our Ea Spennymoor
Recuriter: Durham County Council

Business Services Senior Co-ordinator

Durham County Council
Grade 7 £31,015 - £34,811
Are you an experienced administrator who enjoys supporting people, leading a team and making sure services run smoothly? A fantastic opportunity has Durham
Recuriter: Durham County Council

Instrument Repair and Maintenance Technician

Durham County Council
Grade 6 - £29,071 - £32,046 pro rata, per annum
An exciting opportunity has arisen at Durham Music Service for an Instrument Repair and Maintenance Technician (Grade 6) on a 0.2 FTE fixed-term contr Durham
Recuriter: Durham County Council
Linkedin Banner