Keller Share News (KLR)

(Alliance News) - Keller Group PLC said Tuesday that trading for the second quarter to date has been resilient, following a first quarter that beat expectations despite the Covid-19 hit in late March.

As a result, the London-based company said it will declare a dividend for 2020, at the same level as the payout declared in 2019.

The geotechnical specialist contractor said the impact of Covid-19, while less significant, has been varied across Keller's geographical markets.

In North America, the majority of the group's sites have remained open, while in Europe, the Middle East & Africa, restriction levels are more varied from country to country, with an earlier and more significant impact overall.

Meanwhile, in the Asia-Pacific, India and Singapore have experienced countrywide lockdowns, whereas Australia has remained largely operational throughout.

More recently, Asia Pacific and EMEA markets are starting to emerge more decisively from lockdown restrictions, whereas North America is still just regionally viable.

Keller said its order book remains steady at around GBP1.00 billion, with recent project wins including a USD90 million to-year contract for the Hampton Roads Bridge Tunnel Expansion Project in Virginia, US.

In the second quarter to date, the company experienced an increase in the level of contract deferrals and cancellations, as well as increased pricing pressure in North America.

Looking ahead, Keller has decided that it would be "prudent and appropriate" to maintain its full year dividend at the level declared the year before, which was 35.9 pence.

"Whilst the performance for the year to date has been ahead of our expectations and the current order book remains steady at GBP1 billion, we are cognisant of the potential impact of an economic slowdown on construction markets as well as the volume and quality of our order book as we look ahead to the important fourth quarter and beyond. It therefore remains too early to provide earnings guidance for the current financial year," the group stated.

Shares in Keller were up 9.8% at 691.67 pence on Tuesday in London.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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