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(Alliance News) - Keller Group PLC on Tuesday maintained its payout as profit was boosted by reduced costs in 2020.
The geotechnical contractor reported revenue decline of 10% in 2020 to GBP2.06 billion, but said pretax profit rose to GBP63.8 million from GBP51.6 million year-on-year. Underlying pretax profit was up 19% to GBP96.9 million.
Keller explained that its revenue was hurt by coronavirus and its exit from non-core business activities.
Profit growth, meanwhile, was driven by a reduction in operating costs to GBP1.98 billion from GBP2.23 billion year-on-year. Underlying operating margin increased to 5.3% from 4.5% in 2019.
"Despite the pandemic, 2020 has been a strong year for Keller, operationally, financially and strategically," said Chief Executive Michael Speakman.
"Notwithstanding the strong momentum at the end of 2020, our expectations for a reduced trading performance in 2021 are unchanged. As previously indicated, we saw a softening in the order intake during the second half of 2020 and into 2021 with overall trading in the early part of the year relatively subdued," added Speakman.
Keller declared a dividend of 35.9 pence a share, unchanged year-on-year.
The stock was trading 6.8% lower in London on Tuesday at 788.90p a share.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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