For immediate release Thursday, 21 June 2007
Keller Group plc
AGM Statement and Half-Year Trading Update
Notice of Interim Results
Keller Group plc ("Keller" or "the Group"), the international ground
engineering specialist, is today announcing its half-year trading update for
the six months ending 30 June 2007, in advance of its Annual General Meeting,
to be held at 11.00 a.m. today.
Overview
Trading in the first five months of 2007 has been excellent, with continued
strong sales and an improvement in margins over the comparable period last
year. In light of this, the Board now expects that the Group's results for the
half year ending 30 June 2007 will be ahead of last year's very strong
first-half.
The order book is at an all-time high, buoyed by the recent award of some major
contracts which have been announced separately this morning, and many of our
markets continue to offer promising opportunities.
Divisional Review
US
Our US businesses have continued the very good performance seen in 2006, helped
by continued strength in the commercial and public infrastructure sectors of
the US market.
This pleasing performance has been consistent across all four foundation
contracting businesses with Anderson, the most recent of the US businesses to
join Keller, making an impressive first-time contribution.
As expected, given the severe decline in the residential sector which currently
shows no sign of abating, Suncoast's first-half trading is not as strong as
last year. However, management has taken full advantage of buoyant demand for
its high-rise products, whilst continuing to deliver operational improvements,
thus in part limiting the impact of the residential downturn.
Continental Europe & Overseas
The Continental European & Overseas business is having an excellent first half.
As expected, margins in Spain have recovered and our businesses in Eastern
Europe continue to thrive. After a slow start, Germany is having a better
second quarter.
High levels of construction spending and our increased strategic focus in the
Middle East are benefiting our business in this region. We expect to be
extremely busy here for the remainder of the year with current work in Bahrain
and Dubai and, as announced separately today, a recently awarded c.US$30m (£
15m) contract for the Al Raha Beach development in Abu Dhabi and three
contracts with a total value of c.US$80m (£40m) for the new Saudi Kayan
petrochemical complex in Saudi Arabia*.
UK & Australia
After a quiet first quarter in the UK, both sales and orders have picked up in
recent months and KGE's foundation support division in particular is on a sound
footing for the remainder of the year. Systems Geotechnique, the specialist
drilling and grouting contractor acquired in April, has made a promising start
in its first three months under Keller's ownership. Makers' performance,
however, has been below expectations.
In Australia, where we have continued to trade extremely well, our leading
market position is helping our businesses to take full advantage of good
opportunities, particularly in the infrastructure sector.
* Saudi Kayan contracts awarded to Keller's 65%-owned Saudi subsidiary.
Notice of Interim Results
Keller intends to announce its interim results on Monday, 20 August 2007.
Commenting on the half-year trading update, Justin Atkinson, Chief Executive of
Keller, said:
"Trading in the first five months of 2007 has been excellent and the Board now
expects that the Group's results for the half year ending 30 June 2007 will be
ahead of last year's very strong first-half.
"A good contribution from our recent acquisitions and an improvement in margins
over the comparable period last year are both contributing to this progress and
an all-time high order book creates a strong platform as we move into the
second half of the year."
For further information, please contact:
Keller Group plc www.keller.co.uk
Justin Atkinson, Chief Executive 020 7616 7575
James Hind, Finance Director
Smithfield 020 7390 4600
Reg Hoare/Rupert Trefgarne
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Uses the information solely in relation to the management of their personal funds and not as a trader to the public or for the investment of corporate funds;
Does not distribute, republish or otherwise provide any information or derived works to any third party in any manner or use or process information or derived works for any commercial purposes.
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