TIDMKLR
RNS Number : 6443W
Keller Group PLC
16 November 2017
For immediate release 16 November 2017
Keller Group plc
Trading update
Keller Group plc ("Keller" or "the group"), the world's largest
geotechnical contractor, issues the following trading update.
For the group as a whole, both revenue and profit in the four
months since the half year are ahead of the same period last year.
Tendering activity and contract awards remain healthy and the order
book, of work to be undertaken in the next 12 months, is around 10%
higher than at the same time last year.
The group remains on course to meet the Board's expectations for
the full year, with good year-on-year growth in both revenue and
operating profit.
There have been no major changes in our markets since we
reported the group's 2017 interim results on 31 July.
In North America, the US construction market as a whole remains
solid but with continuing regional and sectoral variations.
Hurricanes Harvey and Irma resulted in lost production on some
sites in Florida and Texas for periods of up to two weeks in the
third quarter. Whilst this had an estimated negative one-off profit
impact of GBP3m, we expect the heightened focus on hurricane and
flood defences to lead to increased investment over time. Operating
profit in North America will decline in 2017 as a result of
previously noted weakness in specific regional markets, as well as
the one-off effect of the hurricanes. Looking ahead, bidding
activity remains healthy and the order book is around 10% above the
level at the same time last year. The group is expected to benefit
from the proposed US corporate tax changes, if enacted, as well as
in the medium term from any uplift in infrastructure spending in
both the US and Canada.
In EMEA, we are still seeing strong revenue and profit growth,
helped by continued excellent execution of the US$180m contract in
the Caspian region, which remains on track to be substantially
completed by the end of 2017. As a result, and as previously noted,
profit for this division in 2018 will be materially below what
should be an excellent 2017 result. Excluding this major project,
EMEA's underlying performance is expected to continue to improve
next year.
In APAC, pricing remains challenging in certain market segments.
However, the division continues to make progress in reducing its
losses as the results of restructuring and a higher workload
materialise. Our business in India is growing strongly and in
Australia we are seeing an upturn in investment from the resources
industry. We continue to expect that APAC will return to
profitability in 2018.
As outlined at our recent Capital Markets Day, we are confident
that our technical leadership, wide product portfolio, broad branch
network and operational strength will continue to drive our
business forward. We are on track for 2017 and expect the group as
a whole to make further progress in 2018.
Keller will announce its 2017 full year results on 26 February
2018.
For further information, please contact:
Keller Group plc
James Hind, Finance Director 020 7616 7575
Victoria Huxster, Head of
Investor Relations
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 GBP2.0bn, Keller has
approximately 10,000 staff world-wide.
Keller has leading market positions in North America, Europe,
Africa and Australia.
For more information, please go to
http://www.keller.com/investors.aspx and
http://www.keller.com/investors/investment-case.aspx.
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.
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).
Market Abuse Regulation Statement:
This announcement contains inside information as defined in EU
Regulation No. 596/2014 and is in accordance with the Company's
obligations under Article 17 of the Regulation.
LEI number: 549300QO4MBL43UHSN10
Classification: 3.1 (Additional regulated information)
This information is provided by RNS
The company news service from the London Stock Exchange
END
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