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 £1.5bn, 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.