11th Feb 2015 13:54
LONDON (Alliance News) - FTSE 250-listed ground engineering contractor Keller Group PLC Wednesday said that it has reached an agreement with other parties involved to settle an ongoing litigation, a settlement deal which it said is not expected to exceed GBP60 million.
The litigation is regarding a dispute arising on a project that its UK subsidiary, Keller Ltd, completed in 2008. In July last year, Keller booked a GBP30 million exceptional charge relating to the dispute, but said Wednesday, that it has now reached an agreement to settle with the other parties involved in the litigation.
"The final cost to Keller is dependent on a number of remedial actions to be undertaken as part of the settlement agreement but is not expected to exceed GBP60 million," the company said in a statement. Keller said that figure is before taking into account any insurance recoveries to be agreed.
"The full terms of the settlement agreement are confidential between the parties," it added.
Keller said it is expected to book a further exceptional charge of between GBP20 million and GBP30 million in its 2014 full year results.
"This amount is stated before taking account of future recoveries under applicable insurances
which are yet to be agreed," the company said.
Keller shares were trading 1.2% lower Wednesday afternoon at 906.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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