25th Mar 2020 10:07
(Alliance News) - Geotechnical contractor Keller Group PLC on Wednesday said trading conditions slumped "swiftly" recently, but still expects a first-quarter performance in line with expectations.
Trading in January and February was "largely unaffected" by the Covid-19 outbreak but market conditions deteriorated in late-March.
Keller added: "Particularly in European countries within our EMEA division due to national and regional restrictions. However, we currently expect overall group performance in the first quarter to be broadly in line with our expectations.
"Looking forward, the situation is now becoming more challenging in North America, where the ability to continue to operate is subject to increasingly onerous state specific restrictions and lockdowns, and we expect this deteriorating trend to continue."
Its Asia Pacific unit has only been "moderately impacted" so far.
Keller said: "The Covid-19 situation is rapidly evolving and the trading outlook has become uncertain. We are putting in place a broad range of measures to significantly reduce costs and manage our liquidity through this period of uncertainty. Measures include operating cost reductions, cancellation of discretionary projects, capital expenditure freeze, and an even greater focus on working capital management."
At the end of February, the company had undrawn committed and uncommitted borrowing facilities totalling GBP230 million.
Keller added: "Our liquidity position will remain under constant review during this uncertain time.
"Given the evolving nature of the Covid-19 pandemic, it is too early to provide earnings guidance in relation to the remainder of the current financial year. We will continue to monitor external events, manage the situation closely and update the market as appropriate."
Shares in the company were 12% higher at 526.00 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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