Kier share price trades higher after half-year results

The UK construction services and property group saw its share price soar on Thursday morning after it delivered an encouraging set of half-year results.

Kier Group shares soared more than 19% on Thursday morning after it delivered an encouraging set of half-year results that showed its turnaround strategy is bearing fruit. However, the company did still suffer a £41 million loss over the period.

‘I am pleased to report that many of the actions we outlined at the beginning of the year have been executed successfully,’ Kier Group CEO Andrew Davies said.

‘We have a new executive management team in place; we are continuing to embed Performance Excellence; and our cost reduction programme is expected to deliver benefits of at least £65m by 30 June 2021.’

Kier is trading at 121p a share as of 11:35 (GMT) on Thursday.

Looking to trade Kier and other UK stocks? Open a live or demo account with IG today.

Cost cutting boosts profit at Kier

Cutting costs at the construction services and property group is essential for its survival, with the company getting rid of 420 jobs over its first six months of trading and a further 50 are forecast to go over the summer months.

Kier said its cost cutting programme is expected to save it around £65 million from lower overheads by June 2021.

Its results also showed that its cost reduction efforts have boosted its underlying profit, with it remaining flat despite revenue declining to £1.82 billion, down from £1.98 billion over the same period last year. In fact, the company’s underlying pre-tax margin grew from 1.5% to 1.7% over the period.

You can go long or short Kier with IG using derivatives like CFDs.

Kier Living sale ‘progressing’

Another key component in the company’s turnaround strategy and its efforts to strengthen its balance sheet is the sale of its residential unit, Kier Living.

In its half-year results, the company said that it is ‘progressing’ with the disposal of the unit but noted that it wrote down the value of the business by £59.8 million over the trading period.

The company’s relatively positive set of results will give investors hope for the future, with analysts from Liberum Capital and Peel Hunt both reiterating their ‘buy’ ratings for Kier in March.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices

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


Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

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.