REG-Keller Group PLC: Trading Update

KellerAnnouncement

23/05/2018 07:05

For immediate
release                                                                                                 
                                                                                                                                                                                                                                                                                                           23
May 2018

Keller Group plc

Trading update

Keller Group plc (“Keller” or “the Group”), the world’s largest
geotechnical solutions provider, issues a trading update ahead of its Annual
General Meeting to be held at 11.00am today.

The Group has had a positive start to the year, with like for like revenue
growth, and modest profit growth, in the first four months of 2018, despite
the adverse impact of poor weather across both North America and Europe and
the wind down of the Caspian project.

Tendering activity and contract awards remain healthy and the order book of
work to be undertaken in the next 12 months, excluding the Caspian project and
acquisitions, is 4% higher than at the same time last year.

There have been no major changes in our markets since we reported the
Group’s 2017 full year results on 26 February and the Group remains well
positioned to address the global market trends of urbanization and
infrastructure growth.

In North America, the first two months of the year were impacted by poor
weather, but trading has improved notably in the last two months.  The US
construction market as a whole remains solid and continues to grow steadily,
although Suncoast is having to contend with rising steel prices.  The
integration of Moretrench has started well and confirms Keller’s position as
the most capable geotechnical solutions provider on the East Coast, leaving it
very well positioned for the expected long term renewal of infrastructure in
the region. 

In EMEA, despite the poor weather across most of Europe in the first quarter,
our core European businesses are performing in line with expectations.  The
Middle East is having a quieter year following the completion of its two major
projects and the Brazilian market remains challenging.  The Group’s very
large Caspian project is now complete and we have largely demobilised.
Excluding this project, we continue to expect further progress in EMEA in
2018.

In APAC, the actions taken to restructure the business are delivering
results.  Revenue growth is encouraging, particularly in Australia as a
result of a healthy level of infrastructure work and the continued upturn in
investment from the resources industry.  Although pricing remains challenging
in certain market segments, we continue to expect that APAC will return to
profitability in 2018.

Our Group order book of over £1bn gives us confidence that our strategic
initiatives, technical leadership, wide product portfolio, broad local branch
network and operational strength will continue to drive the business
forward.  The Group continues to make good progress against the target of
£50m gross benefits from strategic initiatives.

The Group has positive momentum in all its divisions and remains on course to
meet the Board's expectations for the full year.

Keller will announce its interim results on 30 July 2018.

For further information, please contact:

 Keller Group plc                                                           www.keller.com  
 James Hind, Finance Director Victoria Huxster, Head of Investor Relations  020 7616 7575   
 Finsbury                                                                                   
 Gordon Simpson James Kavanagh                                              020 7251 3801   
                                                                                            

Notes to Editors:

Keller is the world’s largest geotechnical solutions provider, providing
technically advanced geotechnical solutions to the construction industry. With
annual revenue of over £2.0bn, Keller has more than 10,000 employees
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.

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:         2.2 Inside information



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