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13 May 2008 06:00
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For immediate release Tuesday, 13 MayΒ 2008Β
Keller Group plc
InterimΒ Management Statement
AGM Statement
Ahead of its Annual General Meeting to be held at 11.00 a.m. today,Β Keller Group plc ("Keller" or "the Group"), the international ground engineering specialist, announces its first Interim Management Statement, as required by the UK Listing Authority's Disclosure and Transparency Rules.
Overview
Trading inΒ the firstΒ fourΒ months of 2008Β hasΒ remained strong, withΒ revenue,Β operatingΒ profitΒ andΒ orders all ahead ofΒ the comparable period last yearΒ and in line with the Board's expectations.
Divisional Review
US
With theΒ private non-residentialΒ and public infrastructure sectors ofΒ theΒ USΒ constructionΒ market, which generate the majority of ourΒ USΒ business,Β holding up well, ourΒ USΒ foundation contractingΒ businesses haveΒ continued to beΒ busy. RevenueΒ and ordersΒ in the period have been good andΒ profitΒ isΒ in line with last year.Β Β The integration of HJ, the Florida-based continuous flight auger piling specialist acquired in October 2007, is progressing well.
Suncoast, with its exposure to the residential sector,Β is having a difficult first half,Β albeit no worse thanΒ expected. Β However, whileΒ revenueΒ andΒ particularlyΒ profit are significantlyΒ down against the same period last year, the business remains profitable.
ContinentalΒ Europe,Β Middle EastΒ &Β AsiaΒ (CEMEA)
CEMEA continues toΒ show good growth,Β with revenue andΒ operatingΒ margin bothΒ wellΒ ahead of this time last year. In particular, theΒ Middle EastΒ andΒ Eastern EuropeΒ businessesΒ have performedΒ exceptionally,Β as they continue to add capacity and extend their product offering to meet high levels of demand. Β TheΒ other regions in this divisionΒ haveΒ alsoΒ made a positive start to the year.
Australia
Last year's very strong performance fromΒ AustraliaΒ hasΒ continued into 2008. All four of our businesses are reportingΒ record sales withΒ good margins,Β inΒ strongΒ market conditionsΒ whichΒ areΒ showing no signs of abating.
UK
TheΒ UKΒ result has been impacted by the weakening housing market. However, the order book is good, helped by the award in March ofΒ theΒ contract for the foundations for the Olympic Main Stadium, whereΒ ourΒ workΒ began at the end of April.
Financial Position
The Group's financial position remains strong, there having been no significant changes to this position since the publication of the Annual Report and Accounts for the year ended 31 December 2007. Since the preliminary results, we have initiated our share buyback programme and have so far purchased 250,000 shares at a cost of Β£1.7Β million. All of these shares are held in treasury.
OutlookΒ
The robustness of Keller's business model underpins the Board's confidence in theΒ Group's prospects. Our broad client base and exposure to diverse geographic marketsΒ protect against cycles in individual markets and will help to mitigate the impact of the widely-expected downturn in theΒ USΒ commercial sector.
In theΒ shorterΒ term,Β demandΒ for our productsΒ in most of our marketsΒ remains good,Β our operationsΒ areΒ performingΒ wellΒ and all four of our geographic regions currently have higher order books than atΒ thisΒ time last year. Β This strong start to the yearΒ supportsΒ a favourable outlook for the Group for the half year toΒ 30 June 2008.
Notice of Interim Results
Keller intends to announce its interim results onΒ Monday, 28 July 2008.
For further information, please contact:
|
Keller Group plc |
www.keller.co.uk |
|
Justin Atkinson, Chief Executive |
020Β 7616 7575 |
|
James Hind, Finance Director |
|
|
SmithfieldΒ |
020 7390 4600 |
|
Reg Hoare/Will Henderson |
|
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