Last checked at 
(Alliance News) - Keller Group PLC on Thursday confirmed its interim chief executive officer as permanent, alongside announcing a strategy re-focus and plans for extra shareholder returns.
Keller has made Interim CEO Michael Speakman, who was formerly chief financial officer, permanent CEO with immediate effect.
Chair Peter Hill commented: "I am delighted to announce Mike's appointment as CEO. The board and management is fully supportive of his appointment and we are all motivated in making Keller the high quality business it deserves to be."
Keller also noted Senior Independent Director Paul Withers will step down from the board at May's annual general meeting. He will be replaced in the role of senior independent director by Non-Executive Director Kate Rock.
The specialist geotechnical contractor, based in London, said it has reviewed its strategy, and has decided to concentrate on "selected" markets and "large, attractive" projects.
"Our objective is for Keller to become a more focused, higher quality business with industry leading margins, achieving both sustainable operational delivery and cash generation," said the company.
"This enhancement and greater focus of Keller's strategy will result in the group rationalising its geographic presence and exiting certain non-core services. We will concentrate our resources on those markets and activities where customers value our skills and expertise to achieve mutual benefits including an appropriate level of financial return," Keller added.
It will be withdrawing from South America, where conditions are "challenging", and is also to review its Franki Africa business.
Meanwhile, on top of its normal 5% annual dividend increase, Keller said it will return a non-recurring extra payment of 2.3 pence per share for 2019 and 4.4p for 2020. This means a total return of 40p for 2019 and 44p for 2020.
On the trading front, Keller said the Asia Pacific segment will return to profit in 2019 following a "successful" restructuring. North America will also achieve a "materially improved" financial performance by 2022 following a restructuring.
CEO Speakman commented: "The board expects the group's performance for 2019 to be in line with market expectations. I am delighted that following the focused restructuring actions delivered by local management in APAC, the division will return to full year profit in 2019. We are also on track to deliver our net debt to earnings before interest, tax, depreciation, and amortisation target of at or below 1.5x.
"The newly enhanced strategy provides greater clarity and creates exciting opportunities to grow shareholder value significantly in the coming years. The board's decision to return excess capital to shareholders in the form of supplementary dividends for the financial years 2019 and 2020 evidences the board's confidence in the group's prospects."
Shares in the company were 2.0% higher on Thursday morning at a price of 652.00p each.
By George Collard; georgecollard@alliancenews.com
Copyright 2019 Alliance News Limited. All Rights Reserved.
