Annual Financial Report

Keller Group plc
19 March 2015

Keller Group plc ("the Company") - Annual Report 2014

In accordance with Listing Rule 9.6.1, copies of the following documents have
been submitted to the National Storage Mechanism:

  * Annual Report and Accounts for the year ended 31 December 2014 (the `Annual
    Report 2014')
   
  * The notice of annual general meeting 2015
   
  * Form of proxy for the annual general meeting
   
These documents will shortly be available for inspection at the National
Storage Mechanism at www.hemscott.com/nsm.do.

The Annual Report 2014 is also available on the Company's website at 
www.keller.co.uk. Hard copies of all the documents have been sent to
shareholders.

The annual general meeting will be held at 11.00am on Thursday 14 May 2015 at
the offices of Investec, 2 Gresham Street, London, EC2V 7QP.

In accordance with DTR 6.3.5, this announcement contains information in the
attached Appendix of the principal risk factors, the directors' responsibility
statement and a note to the accounts on related party transactions. This
information has been extracted in full unedited text from the Annual Report
2014.  References to page numbers and notes in the Appendix refer to those in
the Annual Report 2014.  A condensed set of financial statements was appended
to Keller Group plc's preliminary results announcement issued on 2 March 2015.

For further information please contact:

Kerry Porritt
Company Secretary


                                   Appendix                                    

                   Unedited extract from Annual Report 2014                    

Principal risks and uncertainties

Risk              Description          Controls and         KPIs               
                                       mitigation                              
                                                                               
Market cycles     Whilst our business  Strategy of          (A) Revenue growth 
                  will always be       geographic           compared with      
The Group's broad subject to economic  diversification:     market growth      
base helps to     cycles, market risk                                          
mitigate against  is reduced by the      * operations in    Definition and     
the risk of       diversity of our         over 40          method of          
downturn in our   markets, both in         countries        calculation        
markets           terms of geography                                           
                  and market segment.    * Broad customer   Year-on-year sales 
                                           base.            growth (including  
                  It is also partially                      acquisitions) in   
                  offset by              * Services used    local currency     
                  opportunities for        across all       compared with      
                  consolidation in our     industry         growth in the total
                  highly fragmented        segments:        regional           
                  markets. Typically,      infrastructure,  construction       
                  even where we are        industrial,      market.            
                  the clear leader, we     commercial,                         
                  still have a             residential and                     
                  relatively small         environmental.                      
                  share of the market.                                         
                  Our ability to                                               
                  exploit these                                                
                  opportunities                                                
                  through bolt-on                                              
                  acquisitions is                                              
                  reflected in our                                             
                  track record of                                              
                  growing sales, and                                           
                  doing                                                        
                  so profitably,                                               
                  across market                                                
                  cycles.                                                      
                                                                               
Tendering and     It is in the nature    * Risk Management  (B) Operating      
management        of our business that     Framework        margin             
of contracts      we continually           defines Minimum                     
                  assess and manage        Standards in the Definition and     
Project risk is   technical, and other     control of       method of          
managed           operational, risks.      project risk.    calculation        
throughout the                                                                 
life of a project                        * Risk-based       Operating profit   
from the                                   tender approval  before exceptional 
tendering stage                            process, with    items expressed as 
to completion                              clear            a percentage of    
                                           delegations of   revenue.           
                                           authority.                          
                                                                               
                                         * Independent                         
                                           review of                           
                                           tenders.                            
                                                                               
                                         * Training for                        
                                           staff in the                        
                                           typical risk                        
                                           issues they may                     
                                           face when                           
                                           tendering for                       
                                           jobs,                               
                                           negotiating                         
                                           contracts and                       
                                           executing work.                     
                                                                               
                                         * Legal review of                     
                                           unusual or                          
                                           onerous contract                    
                                           terms.                              
                                                                               
                                         * Project staff                       
                                           selected on the                     
                                           basis of their                      
                                           skills,                             
                                           experience.                         
                                                                               
                                         * Establishment of                    
                                           `centres of                         
                                           excellence'.                        
                                                                               
                                         * Periodic reviews                    
                                           of poorly                           
                                           performing                          
                                           contracts to                        
                                           establish                           
                                           lessons learned                     
                                           with the results                    
                                           communicated to                     
                                           all relevant                        
                                           staff.                              
                                                                               
Expansion         We recognise the       * Moving into new  (C) Return on net  
                  risks associated         geographic       operating assets   
Our long-term     with acquisitions        markets often                       
growth track      and expanding into       involves         Definition and     
record is built   new regions and aim      following        method of          
on a combination  to manage these to       customers with   calculation        
of organic growth acceptable               whom we have                        
and acquisitions  levels.                  previously       Operating profit   
                                           worked.          before exceptional 
                  These include                             items expressed as 
                  various country        * We deploy        a percentage of    
                  risks, including the     trusted and      average net        
                  challenges of            experienced      operating assets   
                  operating within         personnel to     (including goodwill
                  different business       establish and    acquired through   
                  and safety cultures.     grow our         acquisitions).     
                                           business in new                     
                  When considering an      regions.         `Net operating     
                  acquisition, we try                       assets' excludes   
                  to get to know a       * Robust operating net debt, tax      
                  target company,          rules, including balances, deferred 
                  often working in         our Think Safe   consideration and  
                  joint venture, to        framework and    net defined benefit
                  understand the           Code of Conduct, pension            
                  operational and          apply wherever   liabilities.       
                  cultural differences     in the world we                     
                  and potential            are working.                        
                  synergies.                                                   
                                         * Cross-border                        
                                           support and                         
                                           sharing of                          
                                           expertise                           
                                           support the                         
                                           transfer of                         
                                           technologies.                       
                                                                               
                                         * Acquisition                         
                                           targets are                         
                                           usually well                        
                                           known to Keller.                    
                                                                               
                                         * We have thorough                    
                                           due diligence                       
                                           processes,                          
                                           mostly                              
                                           undertaken by                       
                                           our own                             
                                           management.                         
                                                                               
                                         * Individual                          
                                           integration                         
                                           plans reflect                       
                                           the unique                          
                                           character of                        
                                           each                                
                                           acquisition.                        
                                                                               
Safety            Keller is made up of   * Think Safe       (D) Accident       
                  businesses of            initiative       Frequency Rate     
The construction  varying sizes            rolled out       (`AFR')            
industry poses    operating around the     across Group in                     
significant       world, often in          2010 - a refresh Definition and     
safety            challenging              of policies and  method of          
challenges, but   environments.            guidance due to  calculation        
we do not view                             take place in                       
injuries as being It is essential          2015             Accident frequency 
inevitable        that, as we continue                      per 100,000 man    
                  to grow and move       * Group HSE        hours.             
                  into new regions, we     Committee                           
                  can be sure that our     monitors safety  Lost time injuries 
                  approach to safety       programmes, sets are calculated as  
                  is equally rigorous,     targets for      any incident over  
                  no matter                improvements and one day.           
                  whereabouts in the       ensures lessons                     
                  world, or on which       learned across                      
                  projects, we are         the Group where                     
                  working.                 appropriate.                        
                                                                               
                                         * Group HSE                           
                                           Director                            
                                           continues to                        
                                           drive                               
                                           improvement in                      
                                           safety standards                    
                                           and attitudes                       
                                           supported by                        
                                           regional HSE                        
                                           representatives                     
                                           in the                              
                                           divisions.                          
                                                                               
                                         * All divisions                       
                                           complete                            
                                           thorough self                       
                                           assessments                         
                                           annually of                         
                                           their safety                        
                                           performance and                     
                                           culture, which                      
                                           are used as a                       
                                           basis for                           
                                           developing                          
                                           safety                              
                                           improvement                         
                                           plans.                              
                                                                               
People            The risk of losing,  We aim to be a       (E) Staff turnover 
                  or not being         responsible employer rate               
The accumulation  able to attract,     for whom our                            
of knowledge and  good people          employees are proud  Definition and     
experience is     is key.              to work.             method of          
essential to                                                calculation        
helping our       We pride ourselves   We provide excellent                    
customers to find in having some of    training and         Managerial,        
the best          the best             development          professional and   
solutions         professional and     opportunities;       technical staff    
                  skilled people in    experience on        leaving in the     
                  the industry, who    challenging and      period, other than 
                  are motivated by our high-profile         through redundancy 
                  culture and the      projects;            or normal          
                  opportunities for    opportunities for    retirement,        
                  career growth.       international career expressed as a     
                                       growth; and good     percentage of      
                                       engagement and       employees in this  
                                       two-way              category.          
                                       communications.                         
                                                                               
                                       We aim to treat our                     
                                       employees with                          
                                       fairness, dignity                       
                                       and respect.                            

Responsibility statement of the Directors in respect of the annual report and
the financial statements

We confirm that to the best of our knowledge:

  * the financial statements, prepared in accordance with the applicable set of
    accounting standards, give a true and fair view of the assets, liabilities,
    financial position and profit or loss of the Company and the undertakings
    included in the consolidation
    as a whole; and
   
  * the Directors' report, including content contained by reference, includes a
    fair review of the development and performance of the business and the
    position of the Company and the undertakings included in the consolidation
    taken as a whole, together with a description of the principal risks and
    uncertainties that they face.
   
The Board confirms that the Annual Report and Accounts, taken as a whole, is
fair, balanced and understandable and provides the information necessary for
shareholders to assess the performance, strategy and business model of the
Company.

26 Related party transactions

Transactions between the parent, its subsidiaries and joint operations, which
are related parties, have been eliminated on consolidation.

The remuneration of the Directors, who are the key management personnel and
related parties of the Group, is set out in note 6 (extract below).

                                                 2014               2013
                                                   £m                 £m
                                                                        
Short-term employee benefits                      2.0                3.4
                                                                        
Post-employment benefits                          0.1                0.1
                                                                        
Share-based payments                              0.9                1.0
                                                                        
                                                  3.0                4.5