15
May 2024
Keller Group
plc
AGM Trading
Update
A very strong start to the
year and a material increase to full year
expectations
Keller Group plc ('Keller' or 'the
Group'), the world's largest geotechnical specialist contractor,
issues a trading update for the first four months of the year (the
'period') ahead of its Annual General Meeting to be held at 10.00am
today.
The strong momentum cited at the
Group's full year results in March 2024 continued through the
period, with overall performance materially ahead of prior year.
This momentum, combined with a strong order book and recent
contract wins, gives us good visibility and enhanced confidence in
performance for the remainder of the year. Accordingly, we now
anticipate full year performance to be materially ahead of the
Board's original expectations.
In North America, trading continued
to be strong, driven by ongoing infrastructure spend and the
sustained improvement in the operational performance of the
foundations business. Suncoast also performed well and is ahead of
prior year, despite the expected softening of market conditions in
the residential segment, although its momentum is still anticipated
to moderate during the rest of the year.
In the Europe and Middle East
Division, weak demand persisted in the residential and commercial
sectors across Europe, whilst the infrastructure sector remained
more resilient. In the Nordic region, performance of the
challenging projects in the prior year is improving as a result of
management actions, although one project remained loss-making in
the period.
In APAC, Austral traded profitably
and in line with plan, with no contract losses following the
turnaround of the business in the second half of 2023. Keller
Australia had a strong start to the year, albeit, as anticipated,
trading in the period was lower than the prior year. In ASEAN,
continued market softness persisted, with low levels of activity,
whilst Keller India performed well.
The Group's strong cash performance
continued in the period and we expect the Group's net debt/EBITDA
leverage ratio to be at the bottom end of the 0.5x - 1.5x range at
the half year (H1 2023: 1.2x).
The Group will announce Interim
Results on 6 August 2024.
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For
further information, please contact:
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Keller Group plc
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www.keller.com
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Michael Speakman,
Chief Executive Officer
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020 7616 7575
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David Burke, Chief Financial Officer
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Caroline Crampton, Head of Investor
Relations
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FTI
Consulting
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Nick Hasell
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020 3727 1340
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Matthew O'Keeffe
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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 9,500 staff and
operations across five continents, Keller tackles an unrivalled
5,500 projects every year, generating annual revenue of
c.£3bn.
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 Principal risks and uncertainties 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 number: 549300QO4MBL43UHSN10
Classification: 3.1 Additional regulated
information