Norwich's Kier uncovers £40m in debts

Norwich's Kier uncovers £40m in debts

Group debt has been corrected from the previous reported level in its January half-year trading update, which also announced the immediate departure of chief executive Haydn Mursell.

In the course of preparing its 2019 interim results and finalising the 31 December 2018 net debt position, the company 'identified a number of adjustments in aggregate of £10.3m, principally relating to the Group's hedging activities, and has revised the classification of the debt in aggregate of £40.2m associated with certain developments assets held for resale at 31 December 2018, ' Kier said.

'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'.

The revision has raised net debt as of 31 December 2018 from a previously stated £130m to £180.5m.

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.

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

Trump's ex-lawyer Cohen says testimony 'could have been clearer': lawyer
During his testimony, Cohen told the committee: "I have never asked for, nor would I accept, a pardon from President Trump". Representatives for Cummings, a Democrat, did not immediately respond to a request for comment on the letter.

Dick's Sporting Goods to stop selling firearms at 125 stores
Shares in the sporting goods store fell 11.2 percent, or $4.35, in Tuesday trading to close at $34.61. The fourth quarter, including the holiday season, saw a drop of 2.2 percent in same-store sales.

Google Allo shuts down today. Here's how to save your chats
You had your messages, your Allo and Duo, your Hangouts Chat and Meet , your YouTube chat , Voice, Hangouts Classic and so on. Google has officially shuttered the service, saying on the Allo website that the service is "signing off".

Meanwhile, the company said it expects to book a £25 million charge in its interim results linked to the Broadmoor Hospital redevelopment after reaching an agreement with the client over additional costs linked to the project's delay.

Shares fell 12pc in lunchtime trade, wiping out some of the gains made since Kier's calamitous emergency rights issue at the end of past year.

Kier's board also noted that despite "the current political and economic uncertainty in the United Kingdom, and the implications for third party investment", the firm remains on track to meet its underlying FY19 expectations.

Canaccord Genuity analyst Aynsley Lammin says: 'While underlying consensus earnings may not move materially (although, we would not be surprised to see the higher end edge lower over coming weeks), clearly expectations for average net debt will move higher. By Neil Gerrard0 CommentsEmbattled UK contractor Kier today revealed it is now carrying £430m of net debt after it revised the figure upwards ahead of its interim results for the 2019 financial year.

"This combined with a further exceptional item will not be helpful for the stock's current rating or in reassuring investors that all issues relating to leverage are behind the group following the rights issue or with confidence in the numbers".

Related Articles