KLR Keller Group Plc

 
TIDMKLR 
 
For immediate release Friday, 16 May 2014 
 
                               Keller Group plc 
 
                         Interim Management Statement 
 
Keller Group plc ("Keller" or "the Group"), the international ground 
engineering specialist, today issues this Interim Management Statement, 
covering the period from 1 January 2014 to 15 May 2014. 
 
Overview of Markets 
 
There has been no significant change in market trends since we last reported in 
March. 
 
The total US construction market continues to improve, with private expenditure 
on construction significantly up on 2013, partly off-set by the continuing 
decline in public construction expenditure. In Canada, the lull in activity 
levels for major project awards in the oil sands market segment persists, while 
demand in the commercial, residential and infrastructure segments remains 
steady. 
 
Challenging conditions endure in most of our European markets and, within the 
Middle East, competition remains intense. 
 
Elsewhere, we continue to see good opportunities in Asia and Africa, and some 
early signs of activity levels improving in the infrastructure and commercial 
segments in Australia. 
 
Trading 
 
Overall trading for the Group in the four months to the end of April was in 
line with expectations in March. Although EMEA was behind, this was countered 
by a strong performance from our businesses in the US, with Asia and Australia 
on track. Year-to-date contract awards are up on this time last year and the 
value of the like-for-like order book at the end of April, for work to be 
executed over the next 12 months, is around 10% ahead of the same time last 
year. 
 
Accordingly, the Group's results for the full year remain in line with current 
market expectations. 
 
Financial Position 
 
There has been no material change in the financial position of the Group since 
the announcement on 3 March 2014 of the full-year results for the year ended 31 
December 2013. 
 
Divisional Review 
 
North America 
 
The improving US construction market has contributed to a strong performance in 
the period, despite the particularly harsh winter. 
 
Our US foundation contracting businesses have particularly benefitted from this 
improved market; and Suncoast continues to take advantage of the recovery in 
the residential market. 
 
The integration of our 2013 acquisitions in Canada, Keller Canada and 
Geo-Foundations, continues to progress to plan. 
 
Europe, Middle East and Africa (EMEA) 
 
Conditions in our European construction markets remain difficult and we are 
continuing to focus on cost controls, business improvements and risk 
management. In particular, we have seen a disappointing first few months across 
Southern Europe and the Middle East has been quiet. 
 
In South Africa, Franki Africa has made a good start under Keller with 
integration progressing well. 
 
Asia 
 
Our businesses in Malaysia and Singapore had a solid beginning to the year. 
Whilst the trading environment remains challenging in India, Keller India has 
won some good work over the period and we expect an improved result in 2014. 
 
Australia 
 
Keller Australia's performance benefitted from the piling contract for the 
on-shore LNG processing plant at Wheatstone, in Western Australia, which 
continues to make good progress. Excluding Wheatstone, the Group's largest ever 
contract, the Australian order book is significantly up on last year. 
 
Summary 
 
Justin Atkinson, CEO of Keller, said, "2014 continues to be another year of 
progress for Keller with a particularly strong performance from our US business 
to date". 
 
Keller will publish a pre-close period trading statement on 27 June 2014 and 
announce its preliminary half year results on 4 August 2014. 
 
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 020 7251 3801 
 
Rowley Hudson 
 
Cautionary Statement 
 
This announcement contains forward looking statements which are 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.  Nothing in this document should 
be regarded as a profits forecast. 
 
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 GBP1.5bn, Keller has approximately 
9,000 staff world-wide. 
 
Keller is the clear market leader in North America, Australia and Southern 
Africa; it has prime positions in most established European markets; and a 
strong profile in many developing markets. 
 
 
 
END 
 

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