3rd Aug 2015 06:54
LONDON (Alliance News) - Ground engineering company Keller Group PLC on Monday posted a substantial rise in pretax profit for the first half of 2015, flattered by a one-off charge it booked last year not recurring, but it said its revenue fell amid tough market conditions.
Keller said its pretax profit for the first half was GBP23.5 million, significantly higher than the GBP4.9 million it posted a year earlier, when it was hit by a GBP27.6 million one-off charge. Stripping out exceptional items, its pretax profit was up to GBP34.6 million from GBP32.5 million.
The rise in profit was driven by an improved operating margin in the half, which increased to 5.0% from 4.5% and helped to offset a 4% decline in revenue to GBP755.8 million from GBP788.2 million, thanks to a lower contribution from major projects and tough conditions in some key end markets, including Canadian oil sands.
Thanks to the profit rise, however, Keller said it will pay an interim dividend of 8.8 pence, up from 8.4 pence a year earlier.
"While conditions remain challenging in many of the markets in which we operate, the recovery in US construction, the group's largest market, remains robust and broad-based. This, together with the benefits from improvements that the group has implemented, means that the board remains confident that the group's results for the year will be in line with current market expectations," said Keller Chief Executive Alain Michaelis.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Keller