Kier hardy as the fightback goes on
Construction company Kier Group is keeping its own counsel on a Sky News exclusive that it is in talks to nail down a c£150 million equity raise.
The news channel is predicting a formal announcement when Kier’s results are unveiled in April.
The financially troubled group has been steadily rebuilding its balance sheet for the last year or so and is close to selling Kier Living, its housebuilding division.
While the share price continues to fluctuate, the business as refashioned by chief executive Andrew Davies continued to win major contracts in February.
A 50-50 joint venture between Tarmac and Kier has just secured a major contract for Transport for London (TfL) to deliver and support the construction, renewal, and enhancement of highways infrastructure across the capital – including the delivery of new schemes to boost walking and cycling.
The Surface Transport Infrastructure Construction Framework runs for six years from April 2021 until March 2027 for use by TfL, London Boroughs and other authorities whose developments impact on the Transport for London Road Network.
The Tarmac Kier JV has been appointed as one of three ‘core contractors’ to share a third of the framework’s Level 0 and 1 Works consisting of construction schemes as well as design development work.
Medium complexity projects, typically of up to £25m will be undertaken under the framework by the core contractors, with high complexity projects, typically over £25m being subject to mini-competitions open to the core contractors and two other framework contractors.
Projects will include the construction of new, and renewal of existing assets including highway infrastructure, bridges, road tunnels and river assets. This also includes new projects that work towards making London’s road network healthier and more sustainable, such as the expansion of London’s growing network of Cycleways.
Kier has also been appointed by Welwyn Hatfield Borough Council to carry out fire safety works across its housing stock. It’s Specialist Services business will carry out a planned programme of works, including the replacement of 3,600 fire door sets and other passive fire safety works.