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Kier (nod to MarkSP)
Phil 2
Posted: 07 March 2024 07:33:00(UTC)
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I think it was Mark who raised Kier as an interesting and continuing recovery play some time ago. Not being one to believe anyone or anything I read on a forum I checked them out and opened with a £1k punt then topped up to £5k, a few months back. That <£5k is now worth £6,500 undoubtedly one of my biggest % winners of 2024 so far!

Thought KIE deserved its own thread on the day it announced results. No idea how the market will react but they are now in a net cash position and still improving steadily, with a full order book with the first dividend for a while as well.

https://www.lse.co.uk/rn...23-h77y7pquzgdci0u.html

HY24 Highlights

· Revenue growth and improved profitability driving material deleveraging

o Revenue growth of 23% driven by Infrastructure Services and Construction

o Adjusted operating profit increased 13% to £64.7m (HY23: £57.2m)

o Adjusted operating margin at 3.4%, in-line with the medium-term target

o Adjusted basic EPS: 8.7p (HY23: 8.5p), up 2%

o Reported profit from operations increased 15% to £44.1m (HY23: £38.3m)

o Free Cash Flow of £(7.9)m materially improved over the prior period (HY23 £(87.8)m) following a strong Q1 performance

o Net cash at period-end of £17.0m, significantly higher than prior period-end (HY23: net debt (£130.6m)

o Average month-end net debt materially reduced by £106.2m to £(136.5m)

· Resumption of dividends, with an interim dividend declared of 1.67p per share

· High quality order book, increased 6% to £10.7bn (FY23: £10.1bn) providing significant visibility

o 97% of expected FY24 revenue secured

· Acquisition of Buckingham Group's rail assets fully integrated into the business and performing ahead of expectations as at the time of the transaction

· Successful refinancing post period-end providing long-term debt facilities and a strengthened maturity profile

· Sustainability strategy on track to deliver ESG targets

Andrew Davies, Chief Executive, said:

"The past two and a half years have seen the Group achieve significant operational and financial progress and I am delighted that today marks a return to paying dividends. The first half has seen the Group deliver strong volume and profit growth, increased orders and material deleveraging. This is testament to the hard work and commitment of our people who have enhanced our resilience and strengthened our financial position in line with the objectives set out in our medium-term value creation plan. Our order book remains strong at £10.7bn and provides us with good, multi-year revenue visibility. The contracts within our order book reflect the bidding discipline and risk management now embedded in the business. I am also particularly pleased to report that the Group significantly improved upon its year-end net cash position with significantly lower average month-end net debt and has confidence in sustaining this momentum going forward.

The second half of the financial year has started well, and we are trading in-line with expectations. The Group is well positioned to continue benefiting from UK Government infrastructure spending commitments and we are confident in sustaining the strong cash generation achieved over the last 18 months, allowing us to continue to significantly deleverage the Group. We remain committed to delivering our medium-term value creation plan which will benefit all stakeholders."
4 users thanked Phil 2 for this post.
Peanuts on 07/03/2024(UTC), Strauss on 07/03/2024(UTC), MarkSp on 23/03/2024(UTC), Deepak Agarwal on 24/03/2024(UTC)
Chris Ould
Posted: 07 March 2024 09:25:08(UTC)
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Good to see it recovering...construction & materials beginning to see some light?
Currently hold CRH / SRC / GLEE / BOOT
1 user thanked Chris Ould for this post.
Phil 2 on 07/03/2024(UTC)
cliff aner
Posted: 08 March 2024 11:59:08(UTC)
#3

Joined: 24/02/2011(UTC)
Posts: 45

Yes ,many thanks Mark,I am 75% up on a 3k investment.
Deepak Agarwal
Posted: 22 March 2024 09:10:26(UTC)
#4

Joined: 04/05/2019(UTC)
Posts: 2

Any idea what going on with this as not seen in negative news. Share has fallen almost 7% over the last week.
Phil 2
Posted: 22 March 2024 12:52:59(UTC)
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Deepak Agarwal;300335 wrote:
Any idea what going on with this as not seen in negative news. Share has fallen almost 7% over the last week.


I haven’t seen anything untoward anywhere so I assume it’s taking a breather after - or as part of - its sharp recent rises. Ie profit taking and all that? I top sliced some a week or so ago.
1 user thanked Phil 2 for this post.
Deepak Agarwal on 24/03/2024(UTC)
MarkSp
Posted: 23 March 2024 05:12:52(UTC)
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Deepak Agarwal;300335 wrote:
Any idea what going on with this as not seen in negative news. Share has fallen almost 7% over the last week.


Nothing. It has doubled in the tax year so not a shock that it is a bit soft at the end of the tax year Construction News is showing a steady flow of contract wins and no whispers of contract issues

It is back in the 250 index which will help a bit.


3 users thanked MarkSp for this post.
Phil 2 on 23/03/2024(UTC), Deepak Agarwal on 24/03/2024(UTC), cliff aner on 03/04/2024(UTC)
Coste
Posted: 24 June 2024 18:10:48(UTC)
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Thanks also to Mark, I am well up on my purchases of Kier.

Its been hovering around the 140p mark for a while, does anyone have any views on where they see this heading for the remainder of this year
1 user thanked Coste for this post.
Phil 2 on 25/06/2024(UTC)
Newbie
Posted: 24 June 2024 19:02:53(UTC)
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Keeping as they are - taking sniper shots on significant downturns to top up.
OTOH reduced my other heavy hitter - AT. (ashtead technology) and having gone down rebuilding again.
I treat these as trading stocks
2 users thanked Newbie for this post.
Coste on 24/06/2024(UTC), Phil 2 on 25/06/2024(UTC)
MarkSp
Posted: 25 June 2024 04:35:09(UTC)
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The contract flow continues

Main issue here is the election which will put a void in contract wins but it is fundamentally sound and the management team are very solid. Positive cash position and I am expecting a 3-4p divi.

I have 200 as my target. For this calendar year

I have added a few at 139 but am currently buying ITV as the industry insiders tell me that the ad market is good and strengthening and the studios business is doing better as the pipeline void from the writers strike is working through.

I am also buying Holywood bowl again. This always falls back in the summer.

So, kier price is behind the business performance
ITV is going to have a cracking set of results in July
Bowl is in a regular soft period

My thoughts for what they are worth
3 users thanked MarkSp for this post.
Phil 2 on 25/06/2024(UTC), Sheerman on 25/06/2024(UTC), Coste on 25/06/2024(UTC)
MarkSp
Posted: 05 July 2024 10:34:00(UTC)
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Lively day
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Phil 2 on 05/07/2024(UTC)
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