TIDMKLR
RNS Number : 7392S
Keller Group PLC
18 November 2021
1 8 November 2021
Keller Group plc
Trading Update
Full year outlook in line with market expectations
Keller Group plc ('Keller' or 'the Group'), the world's largest
geotechnical specialist contractor, today issues an update on the
Group's trading for the period ended 31 October 2021.
Trading Update
Since our half year results announcement on 3 August 2021,
trading has largely continued as anticipated as the world
progressively recovers from the direct impact of the pandemic and
the Group's overall performance for 2021 is expected to be in line
with market expectations, underpinned by the order book that
remains at a record level of cGBP1.2bn.
In North America, the recovery of trading post COVID-19 is most
advanced, albeit the speed of recovery is being impacted by
confidence, inflation and resource availability issues which we are
seeing to various degrees across our US businesses. The impact of
steel pricing at Suncoast, the Group's post-tension business, has
continued as expected and demand in the residential sector
currently remains robust. We have made good progress integrating
RECON Services, the geotechnical environmental remediation and
industrial services company based in Texas, which we acquired in
July 2021. The recent Presidential Executive Order, which becomes
effective in January 2022, mandating COVID-19 vaccination for any
employee associated with Federally-funded projects adds a further
industry-wide challenge to managing our resources in the US, where
we are unable to mandate vaccinations ourselves, especially in
states where vaccination take up has been low.
Trading across Europe is in line with our expectations, with
markets emerging more tentatively from the impact of the pandemic
as previously highlighted. Despite the increased cost and reduced
availability of raw materials and qualified labour in certain
markets, we have seen a general trend of improved trading. Our
project performance on HS2 in the UK continues to progress
well.
The recovery of trading in AMEA (Asia-Pacific, Middle East and
Africa) post COVID-19 remains the most challenging, especially in
the Australia and Middle East and Africa businesses with countries
still relying on lockdowns and restrictions in advance of
vaccination programmes. In Mozambique, the LNG project remains
suspended due to terrorist activity in the region. We have however
recently signed a settlement agreement with the client that will
largely reverse the contract loss incurred to date and protect the
Group in the event that the contract does not resume in the short
to medium term.
Strategic Progress
We have continued to execute our strategy to increase market
share in our chosen markets with three, small bolt-on acquisitions
in the period:
-- Our joint venture in Finland, KFS Finland Oy, acquired
NordPile, a driven and drilling piling contractor, in September.
This acquisition reinforces KFS's position as the largest
geotechnical specialist contractor in the region offering the
widest range of solutions.
-- In October, Keller North America acquired Subterranean
(Manitoba), a geotechnical contractor specialising in driven and
cast-in-place pile foundations, based in Manitoba, Canada.
-- In November, Keller North America also acquired Voges
Drilling, a geotechnical foundation company, focussed on drilled
shafts in the San Antonio and Austin markets in Texas.
We will integrate these businesses into the local Keller
businesses in the coming months and, in line with our strategy,
reinforce Keller's market position in the respective local markets.
We expect the year end net debt/EBITDA leverage to be in the bottom
half of our 0.5x-1.5x range, driven by a continued strong cash
performance.
Michael Speakman, CEO, said : "Keller is performing well in the
current environment, despite various challenges, and we continue to
have a strong order book and to make good progress on our strategic
initiatives. Overall, our outlook for the full year remains in line
with market expectations."
The Group will announce its full year results for 2021 on 8
March 2022.
For further information, please contact:
Keller Group plc www.keller.com
020 7616 7575
Michael Speakman, Chief Executive
Officer
David Burke, Chief Financial Officer
Caroline Crampton, Group Head of
Investor Relations
FTI Consulting
Nick Hasell / Matthew O'Keeffe 020 3727 1340
Notes to editors:
Keller is the world's largest geotechnical specialist contractor
providing a wide portfolio of advanced foundation and ground
improvement techniques used across the entire construction
sector. With around 9,000 staff and operations across five
continents, Keller tackles an unrivalled 6,000 projects every year,
generating annual revenue of more than GBP2bn.
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. For a more detailed description of
these risks, uncertainties and other factors, please see the Risk
Management approach and Principal Risks section of the Strategic
Report in the Annual Report and Accounts. 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).
LEI: 549300QO4MBL43UHSN10
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