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Place North West | Kier returns to profit
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Place North West | Kier predicts £4bn revenue this year
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Dan Whelan
The construction group made a £9m pre-tax profit for the six months ended 31 December 2020 and is planning a £240m equity raise to tackle its high debt levels, according to a stock market filing.
Kier, which is behind the £200m mixed-use Pall Mall scheme in Liverpool, has returned to profit in the second half of 2020 after reporting a £225m loss for the 12 months ended 30 June 2020.
The company is now embarking on a strategy to whittle down its £353m debt pile, which will be aided by the recent disposal of its housebuilding division Kier Living.
Headquartered on Fountain Street in Manchester, the group sold Kier Living to Foster BidCo, a company owned by financier and investor Guy Hands, for £110m last week.
Government contractor Kier has sold off its housebuilding arm to private equity baron Guy Hands in a cash deal worth £110million.
The construction company announced the deal on Friday, saying it had agreed to sell its Keir Living business to a newly formed company called Foster BidCo owned by the billionaire investor.
Hands, the founder and boss of private equity firm Terra Firma who s been living in Guernsey for tax reasons since 2009, said he was delighted to buy the business, which has significant growth potential .
Deal: Private equity baron Guy Hands said Kier Living had significant growth potential
Private equity firms are infamous for making drastic cuts at the companies they buy and loading them with debt before selling them on for more money.
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