Could Kier Group make or break your wealth in 2019?
Could Kier Group make or break your wealth in 2019? Its share price dropped more than 60% over the course of the year chiefly because of the hammer blow announcement in late November that it was launching a rights issue to prop up the balance sheet. Since then, news flow has been more stable, allowing the construction specialist to pull out of the dive that saw it sink to 16-year lows last month. A low, low forward P/E ratio of 5.8 times suggests that Kier has plenty of scope to keep charging in the weeks and months ahead. But I’m afraid that not even that rock-bottom valuation is enough to encourage me to buy. The freshly-rejigged boardroom — chief executive Haydn Mursell was given the heave-ho in recent days too — said that it remains “confident that the group will meet its [fiscal 2019] expectations.” It’s quite possible, however, that forecasts will keep being chopped down by the City (the number crunchers are now predicting a 22% bottom-line fall in the year to June 2019).