19th Nov 2013 09:16
LONDON (Alliance News) - Engineering firm Keller Group PLC Tuesday said trading in the four months to the end of October has continued the improving trend established in the first half of the year. It said it expects its full year results to be slightly above the top end of current market expectations
In an interim management statement, the FTSE250 company said the value of its like-for-like order book for work to be completed over the next 12 months is now slightly above the same period last year.
Despite this, revenue has been broadly flat with mixed trading across its international businesses.
In Asia, revenue in the last four months "lagged" behind the corresponding period in 2012, reflecting a slowdown in the Indian market and the absence of a major project in Malaysia to replace the GBP30 million Vale contract.
Last year, the group was awarded a contract by Brazilian mining company Vale SA to build the foundations for a major iron-ore distribution facility in Lumut, Malaysia.
However, Keller said operating profit for the full year is expected to be close to last year's level, helped by a strong finish on a number of projects and a good start on the Sengkang hospital project in Singapore, which together have helped to offset a weaker result in India.
In Europe, Middle East and Africa, construction markets have been mixed but overall revenue for the full year is expected to be ahead of 2012, while in North America the business has continued to perform well.
Keller said - given the better-than-expected improvement in the overall margin in the period to the end of October, driven largely by business efficiencies and strong contract outcomes - it expects its results for the full year to be slightly above the top end of current market expectations.
Keller will issue a pre-close statement in respect of the year ending December 31 on December 19.
The stock was trading at 1,048.00 pence Tuesday morning, up 43.28 pence or 4.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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