TIDMKLR
RNS Number : 0235N
Keller Group PLC
20 September 2019
For immediate release
20 September 2019
Keller Group plc
Trading Update
Keller Group plc ("Keller", or "the group"), the world's largest
geotechnical specialist contractor, issues an update on trading
which reiterates its existing outlook for the full year and the
assumptions that underpin it.
As stated in our interim results on 29 July 2019, full year
revenue for 2019 is still expected to be broadly flat versus 2018,
with an improvement in margin progressively driving an increase in
profit. The full year result is more dependent than usual on the
timing of expected large contract awards and the crystallisation of
a number of customer claims that are in their final stages of
negotiation.
Trading momentum in North America in the second half has started
more slowly than previously expected, and whilst momentum is now
building, inevitably there is an increased weighting towards the
fourth quarter.
Trading in EMEA remains mixed, with good progress in our key
continental European businesses being matched by challenging market
conditions in some of the more geographically peripheral
operations.
In APAC, we are on track in winning new targeted contracts in
Australia, which will ramp up during the fourth quarter, with only
one material contract on which we have bid to be decided in early
fourth quarter. We are delivering well and are slightly ahead of
plan on our Waterway restructuring programme.
The group continues to expect that net debt will reduce
year-on-year, driven by the expected improvement in profit and the
focus on cash generation, and we remain on track to meet our
year-end leverage target of net debt/EBITDA of between 1.0x and
1.5x (on a IAS 17 basis).
Keller remains strategically well positioned with ongoing
favourable market fundamentals expected to support profitable
growth in the medium term. The order book continues to be robust,
and we remain focussed on positioning the business to take full
advantage of the positive market trends of urbanisation and
infrastructure growth.
For further information, please contact:
Keller Group plc www.keller.com
Peter Hill, Chairman 020 7616 7575
Michael Speakman, Interim CEO
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
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