For immediate
release
23
May 2018
Keller Group
plc
Trading update
Keller Group plc (“Keller” or “the Group”), the world’s largest
geotechnical solutions provider, issues a trading update ahead of
its Annual General Meeting to be held at 11.00am today.
The Group has had a positive start to the year, with like for
like revenue growth, and modest profit growth, in the first four
months of 2018, despite the adverse impact of poor weather across
both North America and
Europe and the wind down of the
Caspian project.
Tendering activity and contract awards remain healthy and the
order book of work to be undertaken in the next 12 months,
excluding the Caspian project and
acquisitions, is 4% higher than at the same time last year.
There have been no major changes in our markets since we
reported the Group’s 2017 full year results on 26 February and the
Group remains well positioned to address the global market trends
of urbanization and infrastructure growth.
In North America, the first two
months of the year were impacted by poor weather, but trading has
improved notably in the last two months. The US construction
market as a whole remains solid and continues to grow steadily,
although Suncoast is having to contend with rising steel
prices. The integration of Moretrench has started well and
confirms Keller’s position as the most capable geotechnical
solutions provider on the East Coast, leaving it very well
positioned for the expected long term renewal of infrastructure in
the region.
In EMEA, despite the poor weather across most of Europe in the first quarter, our core European
businesses are performing in line with expectations. The
Middle East is having a quieter
year following the completion of its two major projects and the
Brazilian market remains challenging. The Group’s very large
Caspian project is now complete
and we have largely demobilised. Excluding this project, we
continue to expect further progress in EMEA in 2018.
In APAC, the actions taken to restructure the business are
delivering results. Revenue growth is encouraging,
particularly in Australia as a
result of a healthy level of infrastructure work and the continued
upturn in investment from the resources industry. Although
pricing remains challenging in certain market segments, we continue
to expect that APAC will return to profitability in 2018.
Our Group order book of over £1bn gives us confidence that our
strategic initiatives, technical leadership, wide product
portfolio, broad local branch network and operational strength will
continue to drive the business forward. The Group continues
to make good progress against the target of £50m gross benefits
from strategic initiatives.
The Group has positive momentum in all its divisions and remains
on course to meet the Board's expectations for the full year.
Keller will announce its interim results on 30 July 2018.
For further information, please
contact:
Keller Group
plc |
www.keller.com |
James
Hind, Finance Director
Victoria Huxster, Head of Investor Relations |
020 7616
7575 |
Finsbury |
Gordon Simpson
James Kavanagh |
020 7251
3801 |
|
|
Notes to Editors:
Keller is the world’s largest geotechnical solutions provider,
providing technically advanced geotechnical solutions to the
construction industry. With annual revenue of over £2.0bn, Keller
has more than 10,000 employees world-wide.
Keller is the clear market leader in the US, Canada, Australia and South
Africa; it has prime positions in most established European
markets and a strong profile in many developing markets.
For more information, please go to
http://www.keller.com/investors.aspx and
http://www.keller.com/investors/investment-case.aspx.
Cautionary statements:
This document contains certain 'forward looking statements' with
respect to Keller’s financial condition, results of operations and
business and certain of Keller’s plans and objectives with respect
to these items.
Forward looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects',
'believes', 'intends', 'plans', 'potential', 'reasonably possible',
'targets', 'goal' or 'estimates'. By their very nature
forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the
future.
There are a number of factors that could cause actual results
and developments to differ materially from those expressed or
implied by these forward-looking statements. These factors include,
but are not limited to, changes in the economies and markets in
which the group operates; changes in the regulatory and competition
frameworks in which the group operates; the impact of legal or
other proceedings against or which affect the group; and changes in
interest and exchange rates.
All written or verbal forward looking statements, made in this
document or made subsequently, which are attributable to Keller or
any other member of the group or persons acting on their behalf are
expressly qualified in their entirety by the factors referred to
above. Keller does not intend to update these forward looking
statements.
Nothing in this document should be regarded as a profits
forecast.
This document is not an offer to sell, exchange or transfer any
securities of Keller Group plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United
States absent registration or an applicable exemption from
the registration requirements of the US Securities Act of 1933 (as
amended).
Market Abuse Regulation Statement:
This announcement contains inside information as defined in EU
Regulation No. 596/2014 and is in accordance with the Company’s
obligations under Article 17 of the Regulation.
LEI number:
549300QO4MBL43UHSN10
Classification:
2.2 Inside information