TIDMKLR
RNS Number : 9103Z
Keller Group PLC
17 January 2024
17 January 2024
Keller Group plc
Post Close Trading Update
2023 underlying operating profit expected to be significantly
ahead of market expectations(1)
Keller Group plc ('Keller' or 'the Group'), the world's largest
geotechnical specialist contractor, issues a post close trading
update for the year ended 31 December 2023.
The positive trading momentum and strong operational performance
seen in the first nine of months of the year continued in the
fourth quarter, with a particularly strong end to the year.
Accordingly, we now expect to report an underlying operating profit
for the year significantly ahead of current market expectations(1)
. The underlying operating profit margin for the year is expected
to be significantly ahead of recent years.
In North America, management actions to improve performance in
the foundations business in the second half of 2022 generated a
material and sustainable improvement in operational performance,
with a resultant uplift in operating margin. In addition, the
division benefited from better than expected pricing resilience at
Suncoast, which is now unwinding and the contribution from three
large projects in the foundations business that were particularly
well executed and delivered materially higher than normal levels of
contract profitability. These two material, non-recurring benefits
are considered one-off in nature and are not expected to repeat in
2024.
In Europe, the macro-economic environment remained a challenge
in the second half, with weak demand and competitive pricing
impacting profitability. In addition, some challenging projects in
the Nordic region created a further drag on margins in the year. As
a result of these combined issues, the division will deliver a full
year performance below our original expectations and we are taking
appropriate corrective actions to drive an improved performance in
2024.
In Asia-Pacific, Middle East and Africa (AMEA), Keller Australia
is expected to report a record performance for the year, following
very high levels of demand and improved operational execution.
Austral returned to a sustainable profit in the second half, albeit
insufficient to offset the loss experienced in the first half of
the year. At NEOM, we continue to take a measured and disciplined
approach to the opportunities provided by the project. Whilst we
remain in constructive discussions with the client in respect of
future work on The Line, we do not have a current works order and
have redeployed resources in the short term. However, we have
recently been awarded a work package worth c.USD$80m in respect of
Trojena, the winter resort development at NEOM, for which we are
currently preparing to mobilise to site with work expected to be
completed by the end of 2024.
As a result of the significant increase in underlying operating
profits in North America, the Group's underlying effective tax rate
in 2023 is expected to be c.25%, versus our previous guidance of
c.22%.
The strong earnings performance, together with the continued
focus on working capital management, is expected to result in the
Group's cash generation for the year being a considerable
improvement on the prior year and ahead of our previous
expectations. We expect the year-end net debt/EBITDA leverage ratio
to be c.0.6x, at the lower end of our target range of 0.5x - 1.5x
(2022: 1.2x).
Commenting, Michael Speakman, CEO of Keller, said:
"We are very encouraged by the Group's strong progress in 2023.
The combination of management actions to improve operational
performance in project execution, commercial agility in the face of
a dynamic market, and the one-off benefits in North America will
result in Keller delivering a record performance in 2023 that has
significantly exceeded our original expectations. The fundamental
strengths of the business, together with the continued positive
outlook and our strong order book, give us confidence in further
progress in 2024."
The Group will announce its full year results for 2023 on 5
March 2024.
(1) Analyst consensus underlying operating profit for 2023:
GBP150m.
For further information, please contact:
Keller Group plc www.keller.com
020
7616
Michael Speakman, Chief Executive Officer 7575
David Burke, Chief Financial Officer
Caroline Crampton, Head of Investor Relations
FTI Consulting
020
3727
Nick Hasell 1340
Matthew O'Keeffe
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 five continents,
Keller tackles an unrivalled 6,000 projects every year, generating
annual revenue of cGBP3bn.
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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
TSTUNSWRSSUAAAR
(END) Dow Jones Newswires
January 17, 2024 02:00 ET (07:00 GMT)
Keller (LSE:KLR)
Graphique Historique de l'Action
De Mar 2025 à Mar 2025
Keller (LSE:KLR)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025
