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.
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For
further information, please contact:
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Keller Group plc
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www.keller.com
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Michael Speakman,
Chief Executive Officer
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020 7616 7575
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David Burke, Chief Financial Officer
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Caroline Crampton, Head of Investor
Relations
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FTI
Consulting
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Nick Hasell
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020 3727 1340
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Matthew O'Keeffe
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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