Keller Group PLC AGM Trading Update (6402Z)
17 May 2023 - 4:00PM
UK Regulatory
TIDMKLR
RNS Number : 6402Z
Keller Group PLC
17 May 2023
17 May 2023
Keller Group plc
AGM Trading Update - Strong start to the year, confident in
achieving full year expectations
Keller Group plc ('Keller' or 'the Group'), the world's largest
geotechnical specialist contractor, issues a trading update for the
first four months of the year ('period') ahead of its Annual
General Meeting to be held at 11.00am today.
Trading in the first four months of the year has been strong and
better than expected, both in terms of profit and cash. In North
America, our focus continues to be on restoring the underlying
operating margin. This has continued to improve as a result of good
operational performance in the foundations business driven by
actions we have taken, coupled with the easing of inflationary and
supply chain pressures. At Suncoast, trading performance was strong
and better than expected, despite the anticipated slowdown in the
residential sector. Performance in Europe is in line with our
expectations. In Asia-Pacific, Middle East and Africa (AMEA), we
have made management changes at Austral and are resolving the
operational issues, whilst at NEOM, we are in advanced discussions
with the client in respect of the award of the second works
order.
Following the period-end, our North American Division was
awarded a significant groundworks contract, worth approximately
USD145m, for an assembly plant in South Carolina that will build
Scout electric vehicles. Works will start in H2 2023 and take
around 12 months.
The increased momentum across our business cited at our full
year results in March 2023 has continued in the period. This,
combined with a strong order book and recent contract wins, gives
us good visibility and confidence through the remainder of the year
and we continue to anticipate a full year performance at least in
line with the Board's expectations.
The cash performance in the first four months has been
considerably better than the prior year period. At the half year,
given the timing of payments relating to tax, dividends and
interest, we expect the net debt/EBITDA leverage ratio to be at the
upper end of the 0.5x - 1.5x range, while at the year end we now
expect the leverage ratio to be lower than prior year.
The Group will announce its Interim Results on 1 August
2023.
For further information, please contact:
Keller Group plc www.keller.com
Michael Speakman, Chief Executive Officer
David Burke, Chief Financial Officer
Caroline Crampton, Head of Investor Relations 020 7616 7575
FTI Consulting
Nick Hasell
Matthew O'Keeffe 020 3727 1340
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 five continents,
Keller tackles an unrivalled 6,000 projects every year, generating
annual revenue of cGBP3bn.
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 Principal risks and
uncertainties 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 number: 549300QO4MBL43UHSN10 Classification: 3.1 Additional
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