Kier Group increases debt position after accounting error

Kier in shock debt restatement

Kier in shock debt restatement

The company said that during the preparation of its FY19 interim results it identified a number of "adjustments", with £10.3m worth related to hedging activities and £40.2m due to the revised classification of the debt associated with certain development assets held for resale.

Kier Group said yesterday that its net debt stood at £180.5 million at the end of its half-year on December 31.

The average month-end debt position for the six months ended December 31 was also increased to about £430 million from £370 million.

Kier Group has announced that its debt at the end of previous year was higher than previously stated, due to hedging activities and a reclassification of debt associated with assets held for resale.

Kier, which builds and maintains highways, railway tunnels and houses, has said there is growing pessimism among bankers, who have cut their exposure to the industry after the high profile collapse of rival Carillion, affecting a rights issue past year.

Chairman Philip Cox is acting as executive chairman working with finance director Bev Dew and chief operating officer Claudio Veritiero until a new chief executive is appointed.

Kier said it had now reviewed the operational progress and cost recovery programme of the project, as it prepared to hand over the first phase.

Iranian lawyer gets 7 years for defending women who refused headscarves
This report did not provide further details or clarify whether the judge was referring to a separate case. She has been given the long prison term and the sentence of lashes as a result.

Despite the rights issue flopping, with just 37.6 per cent of the new shares taken up by existing investors, it was underwritten by Kier's bankers, who stumped up the rest, enabling the firm to shed the majority of its debt pile.

Shares in Kier fell by as much as 18 per cent yesterday before closing 59¾p, or 12 per cent, down at 437½p, valuing the company at about £810 million.

"The group continues to forecast a net cash position at 30 June 2019 and remains focused on reducing its average month-end net debt".

"Whilst the board notes the current political and economic uncertainty in the United Kingdom, and the implications for third party investment, the group remains on course to meet its underlying FY19 expectations, with the full-year results being weighted towards the second-half of the financial year, as expected".

Kier also said it would take a £25mln provision related to its long-running contract to redevelop Broadmoor Hospital after reviewing the operational progress and cost recovery programme of the project, which is almost two years behind schedule.

The company's FY19 interim results will be released on 20 March 2019.

Recommended News

  • Wellington City Council delays e-scooter trial

    Wellington City Council delays e-scooter trial

    Bolt said that the scooters will provide riders with access to a safe, equitable and eco-friendly transportation alternative. Wave has assured AT its scooters had no reports of brake locking, or any other known issues, Ellison said.
    Harden to play Sunday after X-rays negative

    Harden to play Sunday after X-rays negative

    Luka Doncic had 19 points and a career-high 15 rebounds for the Mavericks , and fellow rookie Brunson finished with 18 points. ET - watch on fuboTV with the NBA League Pass extension ). "He's great", Harden said of Doncic, via the Sporting News .
    Embiid returning to action after eight-game absence

    Embiid returning to action after eight-game absence

    Bojan Bogdanovic the way for the Pacers with 18 points, while Darren Collison added 14 and Doug McDermott 10. Blake Griffin's 28 points, six rebounds and five assists led the Pistons past the Bulls 131-108.
  • 49ers to acquire pass rusher Dee Ford in trade with Chiefs

    49ers to acquire pass rusher Dee Ford in trade with Chiefs

    He will need to get a new multi-year contract finalized with San Francisco for the deal to be completed, reports Rapoport. After the Chiefs moved to a 4-3 scheme heading into the 2019 season, Ford was always a likely trade candidate.
    Alex Nation and Richie Strahan clash over their 'brutal' breakup

    Alex Nation and Richie Strahan clash over their 'brutal' breakup

    'So you're honestly sitting there saying you were ideal in our relationship?' Alex fires back. Less than a year later she began a relationship with her footy mate Maegan Luxa.
    Unvaccinated Kids Are Now Banned From Schools In Italy

    Unvaccinated Kids Are Now Banned From Schools In Italy

    These include vaccinations for chickenpox, polio, measles, mumps, and rubella. "By now, everyone has had time to catch up". The goal of the law, according to a government website , is to fight the gradual decline in Italy's vaccination rates.
  • Speculation: 'Facebook Coin' Could Bring $19 Billion In Revenue

    Speculation: 'Facebook Coin' Could Bring $19 Billion In Revenue

    Nonetheless, it was outlined that Facebook will have to bear most of the interchange costs between fiat and the virtual credits. Publishers would be willing to "re-establish themselves as partners" if Facebook uses the crypto for micropayments.
    Former Wisconsin Quarterback Alex Hornibrook Announces Transfer to Florida State

    Former Wisconsin Quarterback Alex Hornibrook Announces Transfer to Florida State

    Right now, it's a two horse race between Hornibrook and Blackman for the QB1 job in the wake of the Deondre Francois debacle. In 2017, he helped Wisconsin reach the Orange Bowl as he threw for 2,644 yards and 25 touchdowns with 15 interceptions.
    South Africa beats France to win Vancouver Sevens title

    South Africa beats France to win Vancouver Sevens title

    The top four teams at the end of the season will earn automatic qualification for the 2020 Tokyo Olympics. Fiji finished third after defeating U.S. 24-14 in the bronze medal match.
  • NASA Says First Person On Mars Likely a Woman

    NASA Says First Person On Mars Likely a Woman

    Almost 50 years have passed since NASA collected samples of the Moon during the Apollo missions of the late 1960s and 1970s. The water molecules recorded by LAMP likely accumulated over time on the surface of the Moon instead of "raining" down.
    Young mom killed by rock tossed from highway overpass: cops

    Young mom killed by rock tossed from highway overpass: cops

    Rodriguez said he began "shaking" her to rouse her as the couple's daughter implored him to call 911, he told the station. Two days after her death, Rodriguez remembered Flores for her joy of life, her perpetual smile and as a great mother.
    LEAKED: Apex Legends character images

    LEAKED: Apex Legends character images

    The leak points to a badge that players can use in-game which gives players some way to show off their newly purchased goods. Have a tip for us? Adam Bankhurst is a news writer who kept saying "Prepare for Titanfall " while writing this article.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.