REG - Keller Group PLC - AGM Trading Update

KellerAnnouncement

17/05/2023 07:17

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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 (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 c£3bn.

 

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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