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(Alliance News) - Keller Group PLC on Tuesday reported a 41% jump in interim profit as the geotechnical construction firm performed better than expected in the period.
Shares in Keller were up 7.6% at 937.46 pence in London on Tuesday.
The London-based firm's pretax profit for the six months ended June 27 climbed 41% to GBP29.2 million from GBP20.8 million in 2020, despite foreign exchange headwinds and Covid-19 compressing contract margins. Pretax profit rose 57% on a constant currency basis.
First half revenue dropped 5% to GBP984.1 million from GBP1.04 billion due to foreign exchange translation, but remained flat on a constant currency basis.
Operating costs fell 5.8% to GBP951.2 million, while earnings before interest, tax, depreciation and amortisation rose 1.2% to GBP78.4 million from GBP77.5 million.
Keller noted a record order book at the end of the half year, up 11% at GBP1.2 billion.
It now expects a full-year performance "materially ahead" of previous internal forecasts, with business confidence and trading momentum tipped to increase as the year progresses.
"The first half of this year saw the greatest impact of the Covid-19 pandemic on the business and now we have passed this anticipated inflection point, as evidenced by our record order book, our confidence for the remainder of the year has increased," said Chief Executive Michael Speakman.
"The group has weathered the challenges of the last twelve months well, and our materially improved expectation for the full year provides a great foundation to build from as we embark on delivering the next phase of our strategy."
Keller declared an unchanged dividend of 12.6p for the half year, noting that it has only increased or maintained its payout level in the 27 years since listing in London.
Its net debt narrowed by 22% to GBP180.8 million at the end of half from GBP232.4 million a year ago. Keller attributed the narrowing to its "strong cash performance".
By Josie O'Brien; josieobrien@alliancenews.com
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