4th Mar 2025 10:21
(Alliance News) - Keller Group PLC on Tuesday said its yearly earnings beat expectations, and it announced a new share buyback.
Shares in Keller jumped 15% to 1,478.00 pence, the best FTSE 250 performer.
The geotechnical contractor said pretax profit jumped 46% in 2024 to GBP183.9 million from GBP125.6 million in 2023. Revenue improved 0.7% to GBP2.99 billion from GBP2.97 billion. At constant currency, the revenue rise was 4%, the FTSE 250 listing said.
"2024 was another outstanding year for Keller, ahead of expectations, delivering improved performance across all key metrics - profits, earnings, margin, return on capital, cash conversion and debt reduction. This performance builds on the positive momentum developed in recent years as a result of the disciplined execution of our strategy," Chief Executive Officer Michael Speakman said.
"Since the strategy was first launched in 2019, we have rationalised the geographic and product portfolio of the group and more recently focused on improving the project execution across the business.
"The result is a more consistent performance, improved operating margins and higher levels of cash flow have allowed the group to grow earnings and de-lever the balance sheet considerably, and given us the platform to increase the dividend and announce our intention to launch a multi-year share buyback programme, part of an ongoing commitment to return capital to shareholders."
The London-based firm announced a "multi-year share buyback programme", with a first portion of GBP25 million in the first quarter of 2025.
Keller lifted its final dividend by 5.8% to 33.1 pence from 31.3p. It brings the total dividend for the year to 49.7p, a rise of 10% from 45.2p.
Looking ahead, Keller said: "Our record year-end order book of GBP1.6 billion across our diverse revenue streams underpins our expectations for growth in the next phase of implementation of the group's strategy. Whilst we remain mindful of the uncertain geopolitical and macroeconomic environment in the short-term, we anticipate further progress in 2025 and a return to our typical second half weighting.
"We have ensured that Keller is set up to be resilient over the medium and longer term and well positioned to capture growth opportunities both organically and through selective M&A. We are strongly encouraged by the sustained improvement in the group's performance that provides the platform to continue to enhance shareholder value."
By Eric Cunha, Alliance News news editor
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