REG - Keller Group PLC - Trading Update

KellerAnnouncement

14/11/2024 07:00

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RNS Number : 1507M  Keller Group PLC  14 November 2024

 

14 November 2024

Keller Group plc

 

Trading Update

 

Full year outlook remains in line with expectations

 

Keller Group plc ('Keller' or 'the Group'), the world's largest geotechnical
specialist contractor, issues a trading update for the period ended 31 October
2024.

 

We have continued to sustain the material step-up in operational and financial
performance delivered in 2023 and in the first half of 2024. The Group remains
on track to deliver a full year performance in line with expectations, with
continued robust delivery buoyed by some historical items and contractual
claims, with a modest weighting towards the first half of 2024 as previously
cited. Whilst the current macroeconomic environment presents both
opportunities and challenges across our markets, the overall performance of
the Group, together with our continuing record order book and the groupwide
focus on improving project execution, gives us confidence for the short and
medium term.

 

In North America Foundations, we continued to sustain the improvement in
underlying contract performance, execution and commercial discipline whilst
continuing to benefit from the buoyant market conditions experienced in 2024.
At Suncoast, profitability has tempered as expected, reflecting the reversion
of pricing to more normalised levels and lower residential trading volumes.

 

In the Europe and Middle East Division, the macroeconomic environment remained
a challenge across Europe. As a result activity levels remained weak in the
European residential and commercial sectors and profitability continued to be
impacted by the competitive pricing environment. The performance of the
challenging projects we have previously cited within the division have
continued to improve following management actions, albeit one of them remains
loss making in the period.

 

In the Asia-Pacific Division, performance continued to be robust driven by the
strong turnaround of Austral. Keller Australia and India continued to perform
well, whilst in ASEAN, the market remained slow.

 

Reflecting the Group's continuing strong performance overall and continued
focus on cash generation, we expect the year-end net debt/EBITDA leverage
ratio to be below our target range of 0.5x - 1.5x (H1 2024: 0.3x).

 

Commenting on the trading update, Michael Speakman, CEO of Keller Group plc,
said:

 

"Keller has continued to sustain the material step-up in operational and
financial performance delivered in 2023 and remains on track to deliver a
full-year performance in line with expectations for 2024. Our performance
reflects the continuing strength of the Group's presence in the key North
American market and the groupwide focus on improving project execution and
delivery. The Group's record order book and geographically diverse portfolio
provides both visibility and resilience in the current mixed economic
conditions, underpinning our confidence as we close the year."

 

The Group will announce its full year results for 2024 on 4 March 2025.

 

 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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