16th May 2019 10:16
LONDON (Alliance News) - Keller Group PLC on Thursday backed its full-year expectations, supported by generally stable market conditions, but warned on lower interim results.
In its annual general meeting statement, the geotechnical contractor said it has experienced "modest trading" in the year to date and continues to expect profits to have a second half bias.
The company's order book is currently around GBP1.00 billion, slightly lower than at the same point last year due to a restructuring of the business in the Asia Pacific region. The order book grew in both North America and Europe the Middle East and Africa.
In North America, the adverse steel cost impact experienced in 2018 is now reversing, the company said and margins have returned to "more normal" levels.
In EMEA, the firm's European businesses are collectively performing in line with the company's expectations. The Middle East is having a "much quieter year to date" following the completion of major projects and the slow development of new projects.
Finally in Asia, Keller's expectations of a return to profitability in the second half remain on track.
"Overall trading performance in the first four months of 2019 has been lower than anticipated but is on an improving trend. This, together with the final completion of our Caspian project in the first half of last year, means that our results for the first half of 2019 will be materially lower compared to the first half of 2018," the company said.
"We continue to expect a much stronger second half, and for full year revenue to be broadly flat on 2018, with an improvement in margin driving a recovery in profit."
In 2018, Keller posted pretax profit of GBP8.4 million and revenue of GBP2.22 billion.
Keller will publish it interim results for the six month to June 30 on July 29.
Keller shares were flat at 707.00 pence each.
Related Shares:
Keller