REG - Keller Group PLC - AGM Trading Update

KellerAnnouncement

18/05/2022 07:00

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RNS Number : 8400L  Keller Group PLC  18 May 2022

 

 

18 May 2022

 

Keller Group plc

 

AGM Trading Update - full year expectations unchanged

 

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 ahead of its Annual General Meeting to be held at 9.30am today.

 

The Board's expectations for the full year remain unchanged, despite a
challenging environment, supported by our record and growing order book of
£1.4bn, and a foreign exchange tailwind. The Group has had a mixed start to
the year, whilst revenues are in line with our expectations and we have
successfully passed on a significant portion of cost increases in the form of
higher prices, overall Group performance has been affected by materials
shortages and the residual effect of inflation. We expect our full year
performance to have the customary second half weighting, and to reflect our
usual increase in trading momentum as the year progresses.

 

In North America, whilst performance in our Foundations businesses has been
impacted by materials shortages, the inflationary environment, and other
operational challenges impacting project performance, all the other business
units have performed well. Disrupted supply chains are causing some localised
materials shortages, affecting spot pricing and more importantly materials
availability. Suncoast is trading as expected with demand for single family
homes remaining robust. RECON continues to integrate well into the division
and the large energy facility project in the Gulf Coast is progressing
favourably.

 

We continue to make strategic progress and have completed the bolt-on
acquisition of GKM Consultants Inc, a small geo-structural measurements and
monitoring business based in Quebec, Canada. GKM will integrate into our
Speciality Services business in our North America Division and will help
accelerate our growth in this specialist segment.

 

In Europe, the division is trading in line with our expectations despite
several deferred project starts, the residual operational effects of COVID-19,
supply shortages, and the increased macroeconomic uncertainty in the region.
As part of our continuing strategic review of our asset portfolio, we have
successfully exited two of our more peripheral geographies as we continue to
refine the focus of the division.

 

AMEA, which was the most impacted by COVID-19 of all our businesses in 2021,
has had a strong start to the year and is trading in line with expectations.
Following the lifting of COVID-19 related government restrictions in most
parts of Australia, trading activity has begun to recover with good momentum
building. Austral is successfully executing on a number of projects in its
pipeline and India is also performing well. Whilst the ASEAN business has felt
the residual effects of COVID-19 with lower market demand, we expect trading
activity to pick up in the second half. The business environment in the Middle
East and Africa remains challenging, however, actions we have taken have
significantly improved profitability in the period.

 

Safety is always our first priority. Last month we held our inaugural Global
Safety Week to recognise our colleagues' efforts in this critical area and the
good progress that is being made. On our journey to net zero we have made good
progress implementing plans in every business unit to reduce Scope 2 (indirect
emissions).

 

Outlook

 

Whilst we have had a mixed start to the year and the environment continues to
be challenging, full year expectations remain unchanged, supported by our
record and growing order book of £1.4bn, and a foreign exchange tailwind. We
expect net debt/EBITDA leverage ratio to remain within the 0.5x-1.5x target
range (2021: 0.8x).

 

At today's Annual General Meeting approval is being sought for the 2021 final
dividend of 23.3p per share (2020: 23.3p per share) to be paid on 1 July 2022
to shareholders on the register as at the close of business on 6 June 2022,
resulting in a maintained dividend for the full year of 35.9p per share. As we
advance through 2022 the Board will review the progression of our dividend.

 

The Group's interim results for the half year ending 26 June 2022 will be
announced on 2 August 2022.

 

 

For further information, please contact:

 

Keller Group
plc
www.keller.com (http://www.keller.com)

Michael Speakman, Chief Executive
Officer                                  020
7616 7575

David Burke, Chief Financial
Officer

Caroline Crampton, Head of Investor Relations

 
 

 

FTI Consulting

Nick
Hasell
           020 3727 1340

Matthew O'Keeffe

 

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 more than £2bn.

 

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 regulated
information

 

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