Last checked at 20 Sep 2019 07:00
For immediate release
20 September 2019
Keller Group plc
Trading Update
Keller Group plc ("Keller", or "the group"), the world's largest geotechnical specialist contractor, issues an update on trading which reiterates its existing outlook for the full year and the assumptions that underpin it.
As stated in our interim results on 29 July 2019, full year revenue for 2019 is still expected to be broadly flat versus 2018, with an improvement in margin progressively driving an increase in profit. The full year result is more dependent than usual on the timing of expected large contract awards and the crystallisation of a number of customer claims that are in their final stages of negotiation.
Trading momentum in North America in the second half has started more slowly than previously expected, and whilst momentum is now building, inevitably there is an increased weighting towards the fourth quarter.
Trading in EMEA remains mixed, with good progress in our key continental European businesses being matched by challenging market conditions in some of the more geographically peripheral operations.
In APAC, we are on track in winning new targeted contracts in Australia, which will ramp up during the fourth quarter, with only one material contract on which we have bid to be decided in early fourth quarter. We are delivering well and are slightly ahead of plan on our Waterway restructuring programme.
The group continues to expect that net debt will reduce year-on-year, driven by the expected improvement in profit and the focus on cash generation, and we remain on track to meet our year-end leverage target of net debt/EBITDA of between 1.0x and 1.5x (on a IAS 17 basis).
Keller remains strategically well positioned with ongoing favourable market fundamentals expected to support profitable growth in the medium term. The order book continues to be robust, and we remain focussed on positioning the business to take full advantage of the positive market trends of urbanisation and infrastructure growth.
For further information, please contact:
Keller Group plc www.keller.com
Peter Hill, Chairman 020 7616 7575
Michael Speakman, Interim CEO
Caroline Crampton, Head of Investor Relations
Finsbury
Gordon Simpson 020 7251 3801
James Kavanagh
Notes to editors:
Keller is the world's largest geotechnical specialist contractor providing a wide portfolio of advanced foundation and ground improvement techniques used across the entire construction sector. With around 10,000 staff and operations across six continents, Keller tackles an unrivalled 7,000 projects every year, generating annual revenues of more than £2bn.
Cautionary statements:
This document contains certain 'forward looking statements' with respect to Keller's financial condition, results of operations and business and certain of Keller's plans and objectives with respect to these items.
Forward looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their very nature forward- looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.
There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the group operates; changes in the regulatory and competition frameworks in which the group operates; the impact of legal or other proceedings against or which affect the group; and changes in interest and exchange rates. For a more detailed description of these risks, uncertainties and other factors, please see the Risk Management approach and Principal Risks section of the Strategic Report in the Annual Report and Accounts.
All written or verbal forward looking statements, made in this document or made subsequently, which are attributable to Keller or any other member of the group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Keller does not intend to update these forward looking statements.
Nothing in this document should be regarded as a profits forecast.
This document is not an offer to sell, exchange or transfer any securities of Keller Group plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended).
LEI: 549300QO4MBL43UHSN10
Announcement classification: 2.2 Inside information
The person responsible for making this announcement is Kerry Porritt, Group Company Secretary and Legal Advisor