Kier ponders cash raising as Covid-19 hits revenues

Infrastructure company Kier said it was considering a cash raising to shield its balance sheet from the impact of the coronavirus pandemic.

The company on Wednesday said lower revenues had led to a lower-level of working capital inflow, with net debt for the year now forecast at £440m.

Kier put Living housebuilding business up for sale last June in order to cut debt.

“As a result of Covid-19, over the next 12-18 months, further actions will be taken, including: continuing to implement a range of self-help measures, driving a further increase in the group's operating cashflows, continuing the process to sell Living and a potential equity issue,” the company said in a trading update.

It has also agreed covenant waivers with its banks to ensure financial facilities remain available and had an order book of £7.6bn.