Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Kier Group shares stable. Where next amid challenging outlook?

The troubled construction services and property group have seen shares stabilised since falling more than 40% amid the Covid-19 crisis, with the business eager to cut costs to cope with market uncertainty.

Kier Group shares are stable but have been wallowing around 82p levels since April, with the company benefitting from its core construction and infrastructure businesses continuing to operate amid the Covid-19 crisis.

The company is responsible for maintaining the UK’s highways, schools hospitals and key repairs to the water, gas, power, telecoms and rail sectors, with its employees retaining their key worker status to continue carrying out these activities.

In a trading update, Kier said that its overall performance remains in line with expectations, with around 80% of its sites and workplaces running as normal.

However, its homebuilder business has been impacted, with work paused at its Kier Living sites until recently, with the UK government opting to begin reopening the economy by easing lockdown restrictions in May.

Kier closed at 1.8% higher at 82p share on Wednesday.

Kier ramps up cost-cutting measures

To mitigate the impact of the Covid-19 crisis, the company has expanded its cost saving programme and focused its attention on reducing its debt pile.

As it stands, the company’s net debt is in line with management’s expectations, with average month-end net debt at £396 million for the six months to 31 December 2019. Kier also said that it remains on track to deliver cost savings of at least £65 million for the financial year ending on 30 June 2021.

In order to deliver on its cost savings, around 6500 employees, including its executive committee and board of directors will all take a reduction of 7.5% - 25% of their base salaries between April and June.

However, the process to dispose of Kier Living and the evaluation of the options for its property business have both been paused until further notice.

Analysts remain optimistic about Kier Group

In the latest broker round-up in April, analysts from Peel Hunt and Liberum Capital reiterated their ‘buy’ rating for Kier.

Liberum Capital even upgraded its target price for the stock to 120p per share, implying a potential upside for the construction services and property group of 46%.

Whether the company is able to see its share price make those gains will depend heavily on the impact of the Covid-19 pandemic, with investors eager for and update on its performance when Kier unveils its full-year results in June.

How much does it cost to buy UK shares with IG?

There are three ways to ‘buy’ UK shares with IG: spread betting, trading CFDs or buying physical shares. The cost will depend on which method you choose. The table below illustrates how the costs to get exposure to £10,000 of Lloyds stock, which is equivalent to 16,000 shares (quoted at 62.5p a share).

Remember, spread bets and CFDs are derivatives, which come with higher risk and reward than investing.

Cost to get exposure to Lloyds stock

Spread betting CFD trading Share dealing
Action Buy £160 per point Buy 16,000 share CFDs Buy 16,000 shares
Capital required to open £2000 £2000 £10,000
Total fees £20.88 £20.88 £16

Ready to start trading shares? Open a live account or practise on a demo.

Note: Amounts do not include overnight funding charges and taxes. Spread bets are not subject to tax. CFDs are free from stamp duty, but subject to capital gains tax. Share dealing is subject to both stamp duty and capital gains tax.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research 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 and quarterly summary.

Act on share opportunities today

Go long or short on thousands of international stocks with spread bets and 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 advantage while conditions prevail.

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.

Plan your trading week

Get the week’s market-moving news sent directly to your inbox every Sunday. The Week Ahead gives you a full calendar of upcoming economic events, as well as commentary from our expert analysts on the key markets 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 spread betting and CFDs.

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