CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved. CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your deposits, so please consider our Risk Disclosure Notice and ensure that you fully understand the risks involved.

Kier share price slides after recording £245 million full-year loss

The construction group’s performance continues to worsen, raising concerns among investors and the wider industry that it could end up on the scrapheap like ex-rival Carillion.

Kier Group saw its share price tumble more than 7% to 116p early on Thursday after recording a £245 million full-year loss.

The construction group has had a tough 12 months of trading, as concerns mount over the strength of its balance sheet as the business embarking on an expensive restructuring plan.

But despite a disappointing performance, the company is capable of surviving, with the business boasting a strong order book, reflecting the strength of its underlying business.

Kier Living sale will help restore group’s ‘financial health’

In a bid to rescue the business, Kier completed a £250 million rights issue in December last year to strengthen its balance sheet.

Since then, the company has put a new management team in place and simplified the overall structure of the group around its regional building, highways, utilities and infrastructure businesses.

The group continues to progress with its sale of home building unit, Kier Living, and exploring options to accelerate the release of capital from its property business.

‘The re-shaping of the Group is designed to reduce its overall indebtedness during FY2020 and to restore Kier to robust financial health,’ Kier Group CEO Andrew Davies said.

Practise trading Kier and other UK stocks with an IG demo account

Kier suspends dividend

The construction group’s accelerated cost-cutting plan will see it reduce its headcount by circa 1,200 employees by the end of 2020, with the business looking to generate annual cost savings of around £55 million from 2021.

As part of its cost cutting measures, Kier also told shareholders that it will suspend its dividend for 2019 and 2020.

‘Kier experienced a difficult year, resulting in a disappointing financial performance,’ Davies said. ‘However, we are building firm foundations for the future: we have a new management team in place, we have defined our strategic priorities and we are taking decisive actions to deliver them.’


The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG Bank S.A. accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer.

Act on share opportunities today

Go long or short on thousands of international stocks with CFDs.

  • Get full exposure for a comparatively small deposit
  • Trade on spreads from just 0.1%
  • Get greater order book visibility with direct market access

See opportunity on a stock?

Try a risk-free trade in your demo account, and see whether you’re on to something.

  • Log in to your demo
  • Take your position
  • See whether your hunch pays off

See opportunity on a stock?

Don’t miss your chance – upgrade to a live account to take advantage.

  • Trade a huge range of popular stocks
  • Analyse and deal seamlessly on fast, intuitive charts
  • See and react to breaking news in-platform

See opportunity on a stock?

Don’t miss your chance. Log in to take your position.

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
liveprices.javascriptrequired
liveprices.javascriptrequired
liveprices.javascriptrequired

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.