Skip to content

Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% 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. 69% 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.

Kier share price: what’s the outlook after profit warning sends stock plummeting?

Investors sent the construction company’s share price tumbling last week after the business warned that profits will likely come in below expectations.

Kier Group Source: Bloomberg

Kier Group saw its share price plunge more than 40% last week after the company issued a profit warning to investors.

The news led to concern from shareholders, who were quick to make a comparison between Kier and its late rival Carillion, with the latter collapsing last year.

Future of HS2 and Crossrail unclear

The construction company’s profit warning leaves the future of large-scale infrastructure projects like HS2 and Crossrail into question, with Kier responsible for delivering both after admitting that its full-year profits are expected to come in well below forecasts. In fact, Kier downgraded its full-year profit forecast to £129 million, down from £169 million.

The news sent the company’s share price down by as much as 41% to 163p a share last week – the lowest it’s been since February 1999 – with the stock trading at 159p a share as of 12:10 GMT on Monday.

Emergency rights issue fails

To avoid collapsing like its rival Carillion, the construction and services company launched an emergency rights issue in December last year, with the company looking to raise around £264 million.

However, the fundraising attempt was not welcomed with open arms by investors, with only 38% of the shares taken up, leaving financial institutions to pick up the slack.

Things have only got worse for Kier, with short sellers beginning to catch wind of the ailing company, as several hedge funds bet against the business being able to make it back from the brink.

‘Kier is in a dark place,’ Senior investment manager at Brewin Dolphin John Moore told The Guardian.

‘At the turn of the year the business set out its financials, trading performance and future plans as part of its unsuccessful rights issue, only to now say that this information was largely wrong.’

‘It has broken trust with investors, which does not bode well,’ he added.

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.

See your opportunity?

Seize it now. Trade over 17,000+ markets on our award-winning platform, with low spreads on indices, shares, commodities and more.

Find your market

Live prices on most popular markets

  • Equities
  • Indices
  • Forex
  • Commodities


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

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…

<h3>How much does trading cost?</h3>
<h3>Find out about IG</h3>
<h3>Plan your trading</h3>

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.