Keller Group PLC Trading Update (9942M)
20 Oktober 2016 - 8:00AM
UK Regulatory
TIDMKLR
RNS Number : 9942M
Keller Group PLC
20 October 2016
For immediate release 20 October 2016
Keller Group plc
Trading Update
Keller Group plc ("Keller"), the world's largest geotechnical
contractor, today issues an update on trading for the third quarter
of 2016 and its outlook for the full year.
Trading results in the third quarter have continued the trends
of the first half. The Group's two largest divisions, North America
and EMEA, have again delivered steady results. In particular,
trading in our core markets of the US and Europe, which between
them account for around 70% of the Group's revenue, remained strong
with expectations for the full year unchanged from when we
announced the Group's half year results on 1 August 2016. Elsewhere
in these divisions, the quarter's results were somewhat
disappointing, notably in Canada and sub-Saharan Africa, where
market conditions remain depressed and we have undertaken further
restructuring.
In APAC, the continuation of the very difficult market
conditions in our main markets has meant that the division incurred
further operating losses in the third quarter. We continue to
experience some contract softness and the pricing environment
remains challenging. The recovery in this division is likely to be
more gradual and protracted than previously thought. The division
is therefore now expected to record a loss for the second half,
albeit with an improving trend in its performance.
As a result, the Board now expects the Group's full year 2016
underlying results to be around 15% below current market estimates,
mainly due to underperformance in APAC. In addition, the second
half results will include an exceptional restructuring charge in
connection with further downsizing actions. This is expected to be
around GBP10m, much of which will be non-cash.
More positively, the third quarter has seen good order intake.
As a result, the like-for-like order book for work to be undertaken
over the next 12 months, including the recently announced GBP60m
contract in Egypt, is at an all-time high and 15% above this time
last year.
Looking further ahead, the strength of the order book and
steadily growing construction markets in the US and Europe,
together with the management actions we have taken, means that the
Group continues to be well placed for 2017.
Keller will announce its full year results on 27 February
2017.
For further information, please contact:
Keller Group plc
James Hind, Finance Director 020 7616 7575
Finsbury
Gordon Simpson/Theo Hildebrand 020 7251 3801
Notes to Editors:
Keller is the world's largest geotechnical contractor, providing
technically advanced geotechnical solutions to the construction
industry. With annual revenue of around GBP1.8bn, Keller has
approximately 10,000 staff world-wide.
Keller is the clear market leader in the US, Canada, Australia
and South 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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