Keller Regulatory News (KLR)

For immediate release Friday, 16 May 2014 Keller Group plc Interim Management Statement Keller Group plc ("Keller" or "the Group"), the international groundengineering specialist, today issues this Interim Management Statement,covering the period from 1 January 2014 to 15 May 2014. Overview of Markets There has been no significant change in market trends since we last reported inMarch. The total US construction market continues to improve, with private expenditureon construction significantly up on 2013, partly off-set by the continuingdecline in public construction expenditure. In Canada, the lull in activitylevels for major project awards in the oil sands market segment persists, whiledemand in the commercial, residential and infrastructure segments remainssteady. Challenging conditions endure in most of our European markets and, within theMiddle East, competition remains intense. Elsewhere, we continue to see good opportunities in Asia and Africa, and someearly signs of activity levels improving in the infrastructure and commercialsegments in Australia. Trading Overall trading for the Group in the four months to the end of April was inline with expectations in March. Although EMEA was behind, this was counteredby a strong performance from our businesses in the US, with Asia and Australiaon track. Year-to-date contract awards are up on this time last year and thevalue of the like-for-like order book at the end of April, for work to beexecuted over the next 12 months, is around 10% ahead of the same time lastyear. Accordingly, the Group's results for the full year remain in line with currentmarket expectations. Financial Position There has been no material change in the financial position of the Group sincethe announcement on 3 March 2014 of the full-year results for the year ended 31December 2013. Divisional Review North America The improving US construction market has contributed to a strong performance inthe period, despite the particularly harsh winter. Our US foundation contracting businesses have particularly benefitted from thisimproved market; and Suncoast continues to take advantage of the recovery inthe residential market. The integration of our 2013 acquisitions in Canada, Keller Canada andGeo-Foundations, continues to progress to plan. Europe, Middle East and Africa (EMEA) Conditions in our European construction markets remain difficult and we arecontinuing to focus on cost controls, business improvements and riskmanagement. In particular, we have seen a disappointing first few months acrossSouthern Europe and the Middle East has been quiet. In South Africa, Franki Africa has made a good start under Keller withintegration progressing well. Asia Our businesses in Malaysia and Singapore had a solid beginning to the year.Whilst the trading environment remains challenging in India, Keller India haswon some good work over the period and we expect an improved result in 2014. Australia Keller Australia's performance benefitted from the piling contract for theon-shore LNG processing plant at Wheatstone, in Western Australia, whichcontinues to make good progress. Excluding Wheatstone, the Group's largest evercontract, the Australian order book is significantly up on last year. Summary Justin Atkinson, CEO of Keller, said, "2014 continues to be another year ofprogress for Keller with a particularly strong performance from our US businessto date". Keller will publish a pre-close period trading statement on 27 June 2014 andannounce its preliminary half year results on 4 August 2014. For further information, please contact: Keller Group plc www.keller.co.uk Justin Atkinson, Chief Executive 020 7616 7575 James Hind, Finance Director Finsbury Gordon Simpson 020 7251 3801 Rowley Hudson Cautionary Statement This announcement contains forward looking statements which are made in goodfaith based on the information available at the time of its approval. It isbelieved that the expectations reflected in these statements are reasonable butthey may be affected by a number of risks and uncertainties that are inherentin any forward looking statement which could cause actual results to differmaterially from those currently anticipated. Nothing in this document shouldbe regarded as a profits forecast. Notes to Editors Keller is the world's largest independent ground engineering specialist,providing technically advanced and cost-effective foundation solutions to theconstruction industry. With annual revenue of £1.5bn, Keller has approximately9,000 staff world-wide. Keller is the clear market leader in North America, Australia and SouthernAfrica; it has prime positions in most established European markets; and astrong profile in many developing markets.