Latest news with #KierGroup
Reuters
3 hours ago
- Business
- Reuters
UK's Kier names insider Togwell as next CEO after Andrew Davies decides to step down
July 22 (Reuters) - Britain's Kier Group (KIE.L), opens new tab said on Tuesday that its CEO Andrew Davies would be stepping down after more than six years in the role, and named insider Stuart Togwell as his successor. Shares in the infrastructure and construction group, which have fallen almost 50% during Davies' tenure, dropped 5.6% in early trade. Togwell, the head of Kier's construction business, will assume the company's top role with effect from November 1, 2025. Togwell joined the company in 2019 and took up the role of heading the construction business in December 2022. Davies was appointed as CEO in 2019, and he undertook a strategic review to cut debt and boost operations by selling its housebuilding unit and cutting over 1,000 jobs. "Although some investors may be disappointed by (Davies') departure, they will likely welcome (Togwell's) appointment, given his deep industry experience and impressive track record at Kier," Peel Hunt analyst Andrew Nussey said in a note. Kier Group said it expects annual revenue and profit to be higher than last year. ($1 = 0.7423 pounds)
Bloomberg
06-07-2025
- Business
- Bloomberg
UK Builders Find Support in Labour's Plan to Upgrade Roads and Railways
British infrastructure firms stand to benefit from the Labour government's spending plans for roads, railways and energy projects, with strong order books expected to feed into improving outlooks during the upcoming earnings season. Companies including Balfour Beatty Plc, Costain Group Plc, Morgan Sindall Group Plc and Kier Group Plc are lined up to win orders after Chancellor of the Exchequer Rachel Reeves announced £113 billion ($154 billion) of funding for public infrastructure across the UK last month. That includes £39 billion to build affordable homes, £14 billion for the Sizewell C nuclear project in Suffolk and £15 billion for new transport infrastructure across the north and midlands.
Yahoo
05-04-2025
- Business
- Yahoo
Should You Think About Buying Kier Group plc (LON:KIE) Now?
Kier Group plc (LON:KIE), is not the largest company out there, but it received a lot of attention from a substantial price movement on the LSE over the last few months, increasing to UK£1.55 at one point, and dropping to the lows of UK£1.17. Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price. A question to answer is whether Kier Group's current trading price of UK£1.17 reflective of the actual value of the small-cap? Or is it currently undervalued, providing us with the opportunity to buy? Let's take a look at Kier Group's outlook and value based on the most recent financial data to see if there are any catalysts for a price change. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. According to our price multiple model, which makes a comparison between the company's price-to-earnings ratio and the industry average, the stock price seems to be justfied. In this instance, we've used the price-to-earnings (PE) ratio given that there is not enough information to reliably forecast the stock's cash flows. We find that Kier Group's ratio of 10.17x is trading slightly below its industry peers' ratio of 10.72x, which means if you buy Kier Group today, you'd be paying a decent price for it. And if you believe that Kier Group should be trading at this level in the long run, then there's not much of an upside to gain over and above other industry peers. Although, there may be an opportunity to buy in the future. This is because Kier Group's beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. Check out our latest analysis for Kier Group Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 55% over the next couple of years, the future seems bright for Kier Group. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in KIE's positive outlook, with shares trading around industry price multiples. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at KIE? Will you have enough conviction to buy should the price fluctuate below the industry PE ratio? Are you a potential investor? If you've been keeping an eye on KIE, now may not be the most optimal time to buy, given it is trading around industry price multiples. However, the optimistic forecast is encouraging for KIE, which means it's worth diving deeper into other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. If you'd like to know more about Kier Group as a business, it's important to be aware of any risks it's facing. For example - Kier Group has 1 warning sign we think you should be aware of. If you are no longer interested in Kier Group, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
12-03-2025
- Business
- Yahoo
Kier Group First Half 2025 Earnings: EPS: UK£0.046 (vs UK£0.046 in 1H 2024)
Revenue: UK£1.97b (up 6.0% from 1H 2024). Net income: UK£20.4m (up 4.1% from 1H 2024). Profit margin: 1.0% (in line with 1H 2024). EPS: UK£0.046 (in line with 1H 2024). All figures shown in the chart above are for the trailing 12 month (TTM) period Looking ahead, revenue is forecast to grow 4.3% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Construction industry in the United Kingdom. Performance of the British Construction industry. The company's shares are down 14% from a week ago. You should learn about the 2 warning signs we've spotted with Kier Group. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
21-02-2025
- Business
- Yahoo
Kier Group plc (LON:KIE) Delivered A Weaker ROE Than Its Industry
One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. We'll use ROE to examine Kier Group plc (LON:KIE), by way of a worked example. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. Simply put, it is used to assess the profitability of a company in relation to its equity capital. View our latest analysis for Kier Group The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Kier Group is: 9.9% = UK£51m ÷ UK£520m (Based on the trailing twelve months to June 2024). The 'return' refers to a company's earnings over the last year. One way to conceptualize this is that for each £1 of shareholders' capital it has, the company made £0.10 in profit. Arguably the easiest way to assess company's ROE is to compare it with the average in its industry. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. As is clear from the image below, Kier Group has a lower ROE than the average (16%) in the Construction industry. That certainly isn't ideal. That being said, a low ROE is not always a bad thing, especially if the company has low leverage as this still leaves room for improvement if the company were to take on more debt. A high debt company having a low ROE is a different story altogether and a risky investment in our books. You can see the 2 risks we have identified for Kier Group by visiting our risks dashboard for free on our platform here. Companies usually need to invest money to grow their profits. That cash can come from retained earnings, issuing new shares (equity), or debt. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the use of debt will improve the returns, but will not change the equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking. Kier Group does use a high amount of debt to increase returns. It has a debt to equity ratio of 2.70. The combination of a rather low ROE and significant use of debt is not particularly appealing. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it. Return on equity is useful for comparing the quality of different businesses. A company that can achieve a high return on equity without debt could be considered a high quality business. If two companies have around the same level of debt to equity, and one has a higher ROE, I'd generally prefer the one with higher ROE. Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. Profit growth rates, versus the expectations reflected in the price of the stock, are a particularly important to consider. So you might want to check this FREE visualization of analyst forecasts for the company. But note: Kier Group may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
