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LONDON (Alliance News) - Geotechnical contractor firm Keller PLC boosted its 2018 dividend Monday amid a confident 2019 outlook following a "deeply unsatisfactory" year in which profit fell despite rising revenue.
Shares in Keller were 7.7% higher at 597.59 pence on Monday.
In 2018, pretax profit narrowed sharply to GBP8.4 million from GBP110.6 million the year prior. This was despite revenue rising 7.2% to GBP2.22 billion from GBP2.07 billion the year before.
Profit was hurt by exceptional costs during 2018 jumping to GBP72.1 million from a GBP11.9 million gain in 2017. This was primarily due to GBP30.1 million in goodwill impairments and a further GBP30.1 million associated with restructuring costs.
Despite this, underlying pretax profit - excluding exceptional costs - still narrowed 18% to GBP80.5 million from GBP98.7 million the year prior. Underlying operating profit fell 11% to GBP96.6 million from GBP108.7 million the year before.
"2018 results were deeply unsatisfactory with an 11% profit decline, as a result of which we have acted firmly in restructuring four of our business units," Keller Chief Executive Officer Alain Michaelis said.
"In addition we have continued to build the capability of the group, with the successful acquisition and integration of Moretrench in the US a notable highlight," Michaelis added.
In March, Keller acquired US peer Moretrench Inc for USD90.0 million in cash which provided it with a "greatly enhanced presence on the US east coast."
Keller trimmed its final dividend per share 2.4% to 23.9 pence from 24.5p the year prior. For the full year, however, it still advanced 5.0% to 35.9p from 34.2p the year before which it described as "demonstrating its confidence in the prospects for the group."
Michaelis emphasised, however, that: "The internal improvement measures, coupled with a stable market outlook, a healthy order book and Keller's leading position in the industry, give us confidence in the outlook for 2019."
