TIDMKLR
RNS Number : 7214E
Keller Group PLC
15 May 2013
For immediate release Date - 15 May 2013
Keller Group plc
Interim Management Statement
Keller Group plc ("Keller" or "the Group"), the international
ground engineering specialist, issues its Interim Management
Statement covering the period 1 January to 14 May 2013.
Overview
As anticipated in our full-year results announcement in March,
economic conditions across our global construction markets continue
to be varied. We remain optimistic about a progressive
strengthening of the North American construction markets, assuming
that the wider US fiscal position does not worsen. Whilst economic
uncertainty in Europe continues to hold back a recovery in its
construction markets, we have seen no further deterioration in
market conditions since the start of the year. Elsewhere, the
two-speed construction market in Australia continues, whilst in
Asia we continue to see good opportunities.
Keller has had a strong start to the year, helped by the
successful completion of a number of major projects, good contract
performance overall and relatively benign winter weather in our
markets in North America. This has resulted in both revenue and
profit in the first four months being better than the Board
expected at the time of announcing the Group's 2012 preliminary
results.
After adjusting for the exceptionally large Wheatstone project,
which was awarded in January 2012 and on which we have only
recently mobilised, order intake for the year to date has been at a
similar level to the same period last year. Accordingly, the order
book for work to be executed over the next 12 months is broadly in
line with this time last year.
Looking ahead to the rest of the year, the Board expects to see
a continuation of recent progress.
Divisional Review
North America
In the four months to the end of April, the Group's North
American foundation contracting companies have performed ahead of
budget and the same period last year, benefitting from positive
momentum in the construction market in many parts of the US and a
strong operational performance.
The integration of Geo-Foundations Contractors, Inc., the
Toronto-based specialist geotechnical contractor acquired in
January, is progressing well and management is confident that the
developing co-operation between Geo-Foundations and Hayward Baker
will deliver significant business benefits over time.
At Suncoast, the steady increase in production during 2012 has
been maintained in the first four months of this year, as the
business continues to take full advantage of growth in US
residential construction. As a result, both revenue and profit in
the year to date are well ahead of both last year and budget.
Europe, Middle East & Africa (EMEA)
Overall, despite the challenging market conditions, the
performance of the EMEA division has improved in the year to date,
benefitting from the self-help measures implemented during
2012.
Our large infrastructure projects in EMEA - most notably the
Crossrail and Victoria Station Upgrade contracts in the UK and the
Gdansk road tunnel project in Poland - are all progressing
well.
We were recently awarded our largest contract to date in Russia,
involving the preparation of a complete excavation pitfor a new
residential complex located in central Moscow. In undertaking this
contract, we will draw on our equipment and experienced workforce
from neighbouring countries, in particular Poland.
In the Middle East, we are seeing some increase in activity and
our operations in the region have generally performed better than
in the same period last year.
Asia
Our Asian business has made a good start to the year, although
market conditions in India remain somewhat challenging.
In Malaysia, where the foundation market is currently buoyant,
we have now completed our major piling and ground improvement
project for Vale at Lumur and have since been awarded another
piling contract in Kuala Lumpur, which will further strengthen our
credentials as a piling business in Malaysia. We have also
commenced our first ground anchor contract in the country, with
support from our businesses in India and Austria.
Work is underway on our first contract in Hong Kong for many
years, where we now have four rigs on site. The project involves
installing stone columns for the new Hong Kong Link Road project.
We have also been awarded our first ground improvement contract in
Indonesia, to install stone columns for a new fuel oil terminal on
Karimun Island.
Australia
The two-speed construction market in Australia continues, with
projects for the resources sector generating a significant part of
the overall demand, whereas the building and infrastructure sectors
remain very quiet.
Despite the market challenges, the performance of our Australian
business in the year to date has been ahead of last year, with
another excellent contribution from Waterway Constructions.
Work has now commenced on the Wheatstone contract, which is set
to be the Group's largest contract to date.
Financial Position
The Group's financial position remains strong. Other than the
normal seasonal increase in working capital, there has been no
significant change to our financial position since the last year
end.
Annual General Meeting and Interim Results
Keller will be holding its Annual General Meeting at 11.00 a.m.
on 23 May 2013 at the offices of Investec, 2 Gresham Street,
London, EC2V 7QP.
The Company intends to announce its interim results on Monday,
29 July 2013.
For further information, please contact:
Keller Group plc www.keller.co.uk
Justin Atkinson, Chief Executive 020 7616 7575
James Hind, Finance Director
Finsbury
Gordon Simpson, Rowley Hudson 020 7251 3801
Forward-looking Statements
This statement contains forward-looking statements which have
been made in good faith based on the information available at the
time of its approval. It is believed that the expectations
reflected in these statements are reasonable, but they may be
affected by a number of risks and uncertainties that are inherent
in any forward-looking statement which could cause actual results
to differ materially from those currently anticipated.
Notes to Editors:
Keller is the world's largest independent ground engineering
specialist, providing technically advanced and cost-effective
foundation solutions to the construction industry. With annual
revenue of GBP1.3bn, Keller has approximately 7,000 staff
world-wide.
Keller is the clear market leader in the US and Australia; it
has prime positions in most established European markets; and a
strong profile in many developing markets.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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