Kier Group - Re: KIE Stream Log - No. The business has more...

No. The business has more than enough cash; Kier is using only half of its available credit line; its paying suppliers almost twice as quickly as it was six months ago; and its retaining £60m+ in dividend cash that it would have paid out to shareholders. In terms of 'downsizing' it's only a reduction of about 10% of turnover. Kier Living (the residential housebuilding division) turned over about £400m out of the firm's total £4.5bn turnover last yr. The most amazing thing about all of this is that Kier Living is for sale at around £160m (with four or five 'very engaged buyers') but the total market cap of the whole £4.5bn business as it stands today is about £180m. Kier is hugely undervalued; the major part (the construction firm) is effectively valued at about £25m for a business which is the second largest regional construction business, turns over £4bn+ (yes, billions) with underlying annual profits of £100m+, and has been growing organically this year through winning more contract work by value than any other construction firm. Workforce has grown by over 10% by my reckoning. Last yr was 18,000, this year over 20,000.