Kier shares fall again as investors react to reports it will sell housing maintenance arm to cut debt
Shares in troubled outsourcer Kier Group were down four per cent this morning on yesterday’s news it is to sell off its housing maintenance business in a bid to cut hundreds of millions of pounds worth of debt.
The construction firm, whose chief executive left last week after sustained pressure from high-profile shareholder Neil Woodford, declined to comment on numerous reports on Sunday it was selling off the business, which could make £20m-£30m.
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The deal, if agreed, would be part of a previously announced plan to shore up the balance sheet of the construction and building services provider by selling non-core assets.
Kier chief executive Haydn Mursell’s departure last week compounded an already bad situation for the outsourcer, whose share price has more-than-halved in the last year.
Kier issued a share issue that was met with little enthusiasm in December, with investors taking up just 38 per cent of the new shares as banks struggled to offload the rest.
The botched issue sent Kier’s shares plummeting as investors fear another Carillion collapse a year after the outsourcer fell to its knees.
"The board believes that, following the completion of the recent rights issue, now is the right time for a new leader to take Kier forward to the next stage of its development,” Cox said.
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“The board would like to thank Haydn for his contribution during eight years on the Board, firstly as finance director and then as chief executive. On behalf of the Board, I would like to wish him every success in the future.”
It came as Kier said it remains on track to meet full year expectations in a trading update last week.