Kier Group PLC (KIE) - Debt Update

[IanTHughes]

Oh dear me!

https://www.investegate.co.uk/kier-grou ... 00114235S/

The Group has revised its net debt position as at 31 December 2018 to £180.5m (from c.£130m) and, accordingly, has re-calculated its average month-end net debt for the six months ended 31 December 2018 as being c.£430m (from c.£370m).

In the course of preparing its FY19 interim results and finalising the 31 December 2018 net debt position, the Company identified a number of adjustments (in aggregate: £10.3m), principally relating to the Group's hedging activities, and has revised the classification of the debt (in aggregate: £40.2m) associated with certain Developments assets held for resale at 31 December 2018. The Group originally consolidated this debt balance within assets held for resale on its balance sheet; following the re-classification, the debt has been included within the Group's net debt position.

Down 13% in early trading


Ian

[monabri]

I'd already pencilled in a 50% cut in the dividend prior to this - I wonder if I need to revise downwards?

The annual dividend for Kie is ~£50m so when they discover accounting errors of this magnitude (relative to the size of the business) one fears for the dividend.

[IanTHughes]

I'd already pencilled in a 50% cut in the dividend prior to this - I wonder if I need to revise downwards?

The annual dividend for Kie is ~£50m so when they discover accounting errors of this magnitude (relative to the size of the business) one fears for the dividend.

I had pencilled in the same but now I would not be surprised if the upcoming interim is cancelled entirely. The Interim Results are due on the 20 March, it should be an interesting read.


Ian

[monabri]

I also wonder whether the Exec. bonus scheme would have been triggered? - a question I hope the analysts attending this morning's phone in would be asking and clawback provisions- along with what are the plans to replace Mr Dew ( finance director)?

[Crazbe7]

Now even less confidence in their commercial/finance systems.

Reflects very badly on the board. Losing even more credibility following the rushed rights issue. I had anticipated a period of growth, not more right downs.

This sector didn't need any more knocks. Largest UK contractor Balfour Beatty report on Wednesday - assume improved cash generation and reduction in debt will be at the forefront of the results.

Crazbe7

[Arborbridge]

Another one I sold off "by chance". After Carillion, I decided to sell both KIE and IRV as being probably tarred with the same brush. Such a shame since they had historical both been quite successful investments - and then they weren't!

Arb.