黑洞社区

Kier is privately hoping to wrap up the sale of its housing business by Christmas with at least three bids on the table to buy it, 黑洞社区 understands.

The firm has not publicly said when it wants to complete the sale by but it is believed to be working to an end of year deadline.

Analysts expect the disposal, announced in June, to raise between 拢100m and 拢150m 鈥� although broker Peel Hunt suggested it could fetch as much as 拢180m 鈥� with Kier last week saying in its annual results the sale was 鈥減rogressing well鈥�.

Chief executive Andrew Davies (pictured) declined to say how many firms were running the rule over the business after the first round of bidding but added: 鈥淲e鈥檙e hoping [for a sale] sooner rather than later [but] it takes two to tango.鈥�

Getting rid of the housing business, which last year saw the number of homes it built drop 6% to just over 1,900 homes, is the key to Davies鈥檚 plan to turn the business into a company focusing on building and infrastructure services work.

黑洞社区 understands bidders still left in the race include an MBO while interest from a housing association remains, attracted by the firm鈥檚 affordable housing operation.

鈥淚nternally, they have an ambition to complete the deal by the end of December,鈥� one source said. 鈥淭hey haven鈥檛 signed [a deal] to the point where a purchaser is carrying out due diligence.鈥�

The sale of the 550-strong business has been complicated by the value of its landbank which, in last week鈥檚 results, Kier said it had written down from 拢60m to just 拢10m.

And the firm鈥檚 joint venture agreements, such as those with government agency Homes England, mean it needs to consult with those partners ahead of any deal.

鈥淭hey have to an agreement with those housing associations because they [the HAs] won鈥檛 want any old Tom, Dick or Harry partnering with them.鈥�

Kier declined to break down the revenue of its housebuilding operation in its latest results, instead bracketing it in its developments and housing business, which includes its property, housing maintenance and environmental services business.

This business had revenues of 拢940m and a 拢56m operating profit although the division racked up exceptional items of nearly 拢125m.

As well as housing, the firm is pulling out of property, FM and environmental services although Davies added: 鈥淚鈥檓 still expecting a 拢4bn-plus business [after the disposals].鈥�

At 拢341m, the scale of the exceptional items in last week鈥檚 results caught the market by surprise and Davies admitted: 鈥淚t鈥檚 not a good set of results. The big number is the exceptionals [but] they really do relate to legacy issues under which we鈥檙e drawing a big thick line.鈥�

The exceptional items meant Kier nosedived into the red in the year to June racking up a 拢245m pre-tax loss on turnover flat at 拢4.5bn.