TIDMKLR
RNS Number : 0660Z
Keller Group PLC
24 May 2016
For immediate release Tuesday 24 May, 2016
Keller Group plc
Annual General Meeting and trading update
Keller Group plc ("Keller" or "the Group"), the international
ground engineering specialist, issues a trading update, covering
the period from 1 January 2016 to 23 May 2016, ahead of its Annual
General Meeting to be held at 11.00am today.
Trading
There has been no significant change in market trends since we
reported the Group's 2015 results on 29 February. For the Group as
a whole, both revenue and profit in the four months to the end of
April are slightly above last year. We have seen good performances
from our North American and EMEA Divisions although this has been
offset by a disappointing performance in APAC.
Tendering activity and contract awards are generally healthy. At
the end of April, the Group order book of work to be undertaken
over the next 12 months, including acquisitions, was 15% higher
year over year.
Looking ahead, the Group remains on course to meet the Board's
expectations for the full year.
Divisional Review
North America
In North America, which accounts for around half of the Group's
revenue, the total US construction market continues to grow
steadily, with both private and public expenditure on construction
in the first quarter of 2016 up on the comparable period in 2015.
The Group's US business has had a good start to the year,
particularly Hayward Baker, our largest and most broadly-based
business, and Suncoast. Bidding activity across the US remains
robust.
Keller Canada continues to operate in a difficult market
although results will improve in the seasonally better second half
as the business starts work on a number of large jobs.
Europe, Middle East and Africa (EMEA)
In Europe, conditions in our larger construction markets remain
stable whilst in the Middle East, despite construction activity
levels remaining healthy, we have seen some projects delayed as a
result of the relatively low oil price.
The Group's most significant European businesses (the UK,
Germany, Poland and Austria) have all had a good start to the year.
Between them, these businesses account for over half of the
Division's revenue.
Elsewhere, trading has been mixed although we are continuing to
make good progress on the major contract in the Caspian region.
APAC
The Group's main markets in the Asia Pacific ("APAC") Division
are Australia, Singapore and Malaysia. These markets are all very
challenging with volumes well down on the levels of recent
years.
Whilst trading in India has been solid, elsewhere in Asia and in
Australia, the Group has suffered from reduced revenue in the first
few months of the year. This reflects both the depressed market
conditions and delays in the start dates of certain large projects.
As a result, we expect APAC to record a loss in the first half of
2016.
We continue to reduce our cost base to re-size our business
units for current and anticipated work levels. With an order book
well ahead of last year, the second half will see a significant
increase in the Division's revenue and a return to
profitability.
Financial Position
Apart from the GBP62m property acquisition announced on 13 May,
there has been no material change in the financial position of the
Group since the announcement on 29 February 2016 of the results for
the year ended 31 December 2015.
Board changes
As announced on 23 March, Peter Hill will be appointed
Non-Executive Director and Chairman designate of Keller with effect
from the close of today's Annual General Meeting. Roy Franklin will
retire as Chairman and from the Board on 26 July 2016 at which time
Peter Hill will be appointed Chairman.
Summary
Alain Michaelis, CEO of Keller, said, "We have seen a solid
start to 2016 despite a number of difficult markets. The order book
is strong and we anticipate making continued progress in the
remainder of the year. Accordingly, the Group remains on course to
meet the Board's expectations for the full year."
Keller will announce its interim results on 1 August 2016.
For further information, please contact:
Keller Group plc www.keller.co.uk
James Hind, Finance Director 020 7616 7575
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 around GBP1.6bn, Keller has approximately 10,000 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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