TIDMKLR
RNS Number : 4705H
Keller Group PLC
25 March 2020
For immediate release
25 March 2020
Keller Group plc
Statement on the business impact of the coronavirus
(COVID-19)
Keller Group plc ("Keller", or "the group"), the world's largest
geotechnical specialist contractor, today provides an update in
relation to the impact of COVID-19, including measures it is taking
to actively manage the risks to its employees and operations to
support the business to withstand this period of uncertainty.
Our priority is the health and safety of our employees. Keller
employs over 10,000 people globally, across 23 business units in 40
countries and six continents. The guidance and advice we are
providing employees, follows World Health Organisation guidelines
and is supplemented by local authority guidance in the regions in
which we operate. We have also established an Executive Committee
sub-committee to regularly review and update our advice to
employees, establish business continuity planning, and to ensure
divisional oversight is effective and properly coordinated.
Our business has a diverse revenue stream, our raw materials are
generally commoditised and sourced locally to our operations, the
workforce is dispersed and flexible by nature. The major impact to
date of the COVID-19 pandemic for the group is travel and activity
restrictions invoked by national and local governments as part of
their virus containment initiatives, and in the longer term by an
expected reduction in the global macroeconomic demand.
Trading in January and February was largely unaffected by
COVID-19 and was marginally ahead of our expectations. In late
March, market conditions deteriorated swiftly which have impacted
trading, particularly in European countries within our EMEA
division due to national and regional restrictions. However, we
currently expect overall group performance in the first quarter to
be broadly in line with our expectations.
Looking forward, the situation is now becoming more challenging
in North America, where the ability to continue to operate is
subject to increasingly onerous state specific restrictions and
lockdowns, and we expect this deteriorating trend to continue. In
our APAC division, which was the first to feel the effects of the
virus at the start of the year, up until now trading has been only
moderately impacted and we continue to monitor events closely. The
benefit provided by our diversity in terms of geography and market
segment is more limited by the global nature of this pandemic.
The COVID-19 situation is rapidly evolving and the trading
outlook has become uncertain. We are putting in place a broad range
of measures to significantly reduce costs and manage our liquidity
through this period of uncertainty. Measures include operating cost
reductions, cancellation of discretionary projects, capital
expenditure freeze, and an even greater focus on working capital
management. We are not limited to these actions and we will
continue to review all options available to us that will preserve
the strength of the group's balance sheet, as we navigate our way
through this unprecedented time, including the Board's
recommendation of the final 2019 dividend.
In terms of financing and liquidity, as reported at our full
year results on 3 March 2020, at 31 December 2019, our net debt was
GBP213m, on a bank covenant IAS 17 basis, equating to net debt to
EBITDA ratio of 1.2x compared to our covenant limit of 3.0x. The
group has substantial borrowing facilities available to it. At 31
December 2019 the group had undrawn committed and uncommitted
borrowing facilities totalling GBP247m, comprising GBP183m of the
unutilised portion of the group's GBP375m revolving credit
facility, which expires in November 2024 and has an option to
extend by one further year, GBP22m of other undrawn committed
borrowing facilities and undrawn uncommitted borrowing facilities
of GBP42m. At that time cash and cash equivalents were GBP99m. As
at the end of February 2020, the group had undrawn committed and
uncommitted borrowing facilities totalling GBP230m, comprising
GBP167m of the unutilised portion of revolving credit facility,
GBP32m of other undrawn committed borrowing facilities and undrawn
uncommitted borrowing facilities of GBP31m with cash and cash
equivalents of GBP76m. Our liquidity position will remain under
constant review during this uncertain time.
Given the evolving nature of the COVID-19 pandemic, it is too
early to provide earnings guidance in relation to the remainder of
the current financial year. We will continue to monitor external
events, manage the situation closely and update the market as
appropriate.
For further information, please contact:
Keller Group plc 020 7616 7575
www.keller.com
Michael Speakman, Chief Executive Officer
Mark Hooper, Interim Chief Financial Officer
Caroline Crampton, Head of Investor Relations
Finsbury
Gordon Simpson 020 7251 3801
James Kavanagh
Notes to editors:
Keller is the world's largest geotechnical specialist contractor
providing a wide portfolio of advanced foundation and ground
improvement techniques used across the entire construction sector.
With around 10,000 staff and operations across six continents,
Keller tackles an unrivalled 7,000 projects every year, generating
annual revenues of more than GBP2bn.
Cautionary statements:
This document contains certain 'forward looking statements' with
respect to Keller's financial condition, results of operations and
business and certain of Keller's plans and objectives with respect
to these items.
Forward looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects',
'believes', 'intends', 'plans', 'potential', 'reasonably possible',
'targets', 'goal' or 'estimates'. By their very nature
forward-looking statements are inherently unpredictable,
speculative and involve risk and uncertainty because they relate to
events and depend on circumstances that will occur in the
future.
There are a number of factors that could cause actual results
and developments to differ materially from those expressed or
implied by these forward-looking statements. These factors include,
but are not limited to, changes in the economies and markets in
which the group operates; changes in the regulatory and competition
frameworks in which the group operates; the impact of legal or
other proceedings against or which affect the group; and changes in
interest and exchange rates. For a more detailed description of
these risks, uncertainties and other factors, please see the Risk
Management approach and Principal Risks section of the Strategic
Report in the Annual Report and Accounts.
All written or verbal forward looking statements, made in this
document or made subsequently, which are attributable to Keller or
any other member of the group or persons acting on their behalf are
expressly qualified in their entirety by the factors referred to
above. Keller does not intend to update these forward looking
statements.
Nothing in this document should be regarded as a profits
forecast.
This document is not an offer to sell, exchange or transfer any
securities of Keller Group plc or any of its subsidiaries and is
not soliciting an offer to purchase, exchange or transfer such
securities in any jurisdiction. Securities may not be offered, sold
or transferred in the United States absent registration or an
applicable exemption from the registration requirements of the US
Securities Act of 1933 (as amended).
LEI: 549300QO4MBL43UHSN10
Announcement classification: 2.2 Inside information. The person
responsible for making this announcement is Kerry Porritt, Group
Company Secretary and Legal Advisor
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
UPDFZLLLBXLEBBB
(END) Dow Jones Newswires
March 25, 2020 03:00 ET (07:00 GMT)
Keller (LSE:KLR)
Historical Stock Chart
Von Jun 2024 bis Jul 2024
Keller (LSE:KLR)
Historical Stock Chart
Von Jul 2023 bis Jul 2024