22nd Jun 2006 07:01
Keller Group PLC22 June 2006 For immediate release Thursday, 22 June 2006 Keller Group plc AGM Statement and Half-Year Trading Update Overview Keller Group plc ("Keller" or "the Group"), the international ground engineeringspecialist, is today announcing its half year trading update, for the six monthsending 30 June 2006, in advance of its Annual General Meeting, to be held at11.00 a.m. today. As announced on 2 May 2006, the results for the first quarter of 2006 wereexceptionally good, with strong sales growth and significantly higher marginsthan in the same period last year. This outperformance has continued throughoutthe second quarter. In addition, the second quarter results will be flattered by the receipt of anumber of claim settlements in the US totalling about £5m, all of which relateto jobs undertaken in prior years. As a consequence, the Group's first halfresults will be even better than previously anticipated. Order intake has also continued to be strong; the current order book isequivalent to six months' budgeted sales, which compares to less than fivemonths' a year ago. In light of the very strong performance in the year to date and the record orderbook, the Board now believes that the Group's results for the year as a wholewill be ahead of current market expectations. The unusually high claims income,together with the benign winter weather conditions in the US, mean that that thefull year results are likely to be more first-half weighted than in previousyears, with just over half the full year's profit falling in the first half. Divisional Review USAll four US businesses have continued the excellent performance seen in thesecond half of 2005, assisted by unusually mild weather conditions in Januaryand February. Also, as noted above, the first half will be flattered by a numberof large claim settlements. The first-half US result has also been boosted by Donaldson, the New Englandbusiness acquired in September 2005. Donaldson has now been successfullyintegrated and will make an impressive first-half contribution, once againdemonstrating Keller's ability to deliver value through successful acquisitions. Whilst evidence of a cooling in the US housing market abounds, this has not asyet impacted on the performance of Suncoast, which has continued to grow itsbusiness, particularly in its newer markets along the West Coast. Continental Europe & OverseasThe Continental European & Overseas business has had an excellent first half,helped by good performances in France, Austria and Poland and continued strongsales growth in Spain, albeit with some weakening of Keller-Terra's initialexcellent margins. The results are expected to be further underpinned byimproving market conditions and margins in Germany. Overseas, Keller has benefited from continuing high levels of investment in theMiddle East, whilst the Group's business in the Far East has had a solid firsthalf. UK & AustraliaIn the UK, Keller's foundation support division has had a confident first halfand the geotechnical division is starting to see increased levels of activity.Phi, the Group's recent UK acquisition completed in April 2006, has made apositive start. Keller's other UK business, Makers, will return an improvedresult compared with the second half of last year.Keller's Australian business has continued to trade well in strong marketconditions. Keller intends to announce its interim results on Monday, 21 August 2006. Commenting on the half-year trading update, Justin Atkinson, Chief Executive ofKeller, said: "The first half has been another period of excellent organic growth in all ourmain markets. This, together with our recent acquisitions of Donaldson in the USand Phi in the UK and our record order book, give me additional confidence thatKeller will now deliver another year of strong growth." For further information, please contact: Keller Group plcJustin Atkinson, Chief Executive 020 7616 7575James Hind, Finance Director Smithfield 020 7390 4600Reg Hoare/Rupert Trefgarne This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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