Kier Group plc is a leading British construction, services and property group headquartered in Tempsford, Bedfordshire. Kier Group is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. As of September 2022, Kier Group had a market capitalization of £209 million.
Quick Answer
Kier Group plc is a publicly traded company listed on the London Stock Exchange. It does not have a single owner but rather many shareholders who own stakes in the company. The largest shareholders in Kier Group as of September 2022 are:
- Aberforth Partners – 29.5% stake
- BlackRock Inc. – 4.99% stake
- Hargreave Hale Ltd – 4.96% stake
- Columbia Threadneedle Investments – 4.01% stake
These top 4 shareholders collectively own around 43.5% of Kier Group. The remaining 56.5% is owned by institutional and retail investors via public stock holdings.
Kier Group has a long and rich history dating back to 1928 when it was founded by JM Kier & Co Limited. Over the decades, Kier has grown to become one of the leading construction and services businesses in the UK through organic growth and acquisitions.
Today, Kier employs over 9,000 people and provides a range of construction, infrastructure, property and other specialized services. The company works with both public and private sector clients on projects ranging from building schools, hospitals and highways to maintaining and operating utility networks.
As a publicly listed company on the London Stock Exchange, Kier Group has many shareholders who collectively own the business. But who are the major stakeholders in Kier Group today?
History of Ownership
Kier Group became a publicly traded company in 1996 when it had its Initial Public Offering (IPO) on the London Stock Exchange. This opened up the ownership of the company to public shareholders.
Prior to the IPO, Kier Group was owned by the Kier family along with management. The Kier family retained a 23% stake in the business after the IPO.
Over the decades, as Kier grew larger through acquisitions, the Kier family stake was diluted. By the early 2010s, the family owned less than 5% of the company.
In recent years, Kier faced some financial difficulties which led to restructuring and capital raises. This further diluted the original owners. Today, the Kier family has a negligible ownership interest in the group.
Major Acquisitions
Some of the major acquisitions by Kier over the past decades that grew the company but diluted original ownership include:
- Acquisition of Twigg Plant Ltd in 1989
- Acquisition of Englemere Construction in 1991
- Acquisition of Midland Expressway Ltd in 1992
- Acquisition of Tay Homes in 1997
- Acquisition of May Gurney in 2013 for £221 million
Financial Difficulties
In 2018, Kier faced significant financial problems due to cost overruns on some construction projects. This led to profit warnings, write-downs and restructuring efforts.
To shore up the balance sheet, Kier had to raise new capital from shareholders through a rights issue and placement. This raised £250 million but further diluted original shareholders.
Current Major Shareholders
As of September 30, 2023, here are the major shareholders in Kier Group plc according to stock exchange filings:
Shareholder | Ownership Stake |
---|---|
Aberforth Partners | 29.5% |
BlackRock Inc. | 4.99% |
Hargreave Hale Ltd | 4.96% |
Columbia Threadneedle Investments | 4.01% |
Aberforth Partners is an investment management firm based in Edinburgh. They first invested in Kier in 2017 and increased their stake over the years to become the largest shareholder.
The other major shareholders are leading global asset managers like BlackRock and Columbia Threadneedle Investments who invest on behalf of their clients.
In total, the top 4 shareholders own approximately 43.5% of the equity of Kier Group as of September 2023.
Breakdown of Shareholdings
In addition to the top shareholders, here is a breakdown of the shareholder categories in Kier Group as of September 2022:
- Institutional investors – 62.3% of shares
- Retail investors – 14.9% of shares
- Employee share schemes – 6.6% of shares
- Treasury shares – 4.6% of shares
- Directors’ share interests – 0.3% of shares
This shows that the vast majority of the ownership is held by financial institutions who invest on behalf of their clients and funds. Retail investors also hold a significant minority stake.
Management and Board of Directors
While shareholders collectively own Kier Group, the business is managed on a day-to-day basis by the executive management team led by CEO Andrew Davies.
The Board of Directors is responsible for overseeing management and representing shareholder interests. As of September 2023, the following are the key directors on the Kier Board:
- Matthew Lester – Non-Executive Chairman
- Andrew Davies – Chief Executive Officer
- Simon Kesterton – Chief Financial Officer
- Claudio Veritiero – Non-Executive Director
- Amanda Mellor – Non-Executive Director
Most of the directors only have a nominal ownership stake in Kier Group, except for CEO Andrew Davies who owns approximately 0.2% of the shares outstanding.
Trading on London Stock Exchange
As a public limited company, the shares of Kier Group trade openly on the London Stock Exchange which allows shareholders to buy and sell with ease.
Kier Group is a constituent of the FTSE 250 index, which tracks the performance of mid-cap companies on the exchange.
Here are some key stats on Kier’s stock trading activity:
- Ticker symbol: KIE
- Market cap: £209 million (as of Sept 2023)
- Average daily trading volume: 550,000 shares
- 52 week range: 43p to 123p per share
The share price and trading volume reflect investor sentiment and speculation around the company’s financial performance and growth prospects.
History of Dividend Payments
As shareholders of Kier Group, investors are entitled to receive dividend payments if and when declared by the company’s Board of Directors.
Here is a quick history of Kier Group’s dividend payments to shareholders:
- FY 2018 – 12.0 pence per share dividend paid
- FY 2019 – Cancelled dividend to conserve cash
- FY 2020 – 4.9 pence per share dividend paid
- FY 2021 – 4.9 pence per share dividend paid
- FY 2022 – 7.5 pence per share dividend paid
The suspension and reduction of dividends in recent years reflects the financial difficulties faced by the company. The restoring of dividend payments indicates a return to stable financial health.
Conclusion
In summary, Kier Group plc is a publicly-traded corporation with dispersed ownership by many shareholders. The largest current shareholders are Aberforth Partners, BlackRock and other institutional investors who collectively own about 43% of the equity.
The Kier family owned a controlling stake historically but this has diminished over time due to acquisitions, capital raises and public listings. Ownership is now fragmented across institutional and retail investors.
While shareholders own the company on paper, Kier’s management led by CEO Andrew Davies runs day-to-day operations. The Board of Directors represents shareholder interests and oversees management’s performance.
As a public company listed on the London Stock Exchange, the ownership and management structure of Kier Group is designed to serve a broad base of investors rather than a single controlling entity. The business is guided by creating shareholder value over the long-term.