22nd Jun 2005 06:00
For immediate release Wednesday, 22 June 2005 Keller Group plc AGM Statement and Half-Year Trading Update OverviewKeller Group plc ("Keller" or "the Group"), the international groundengineering specialist, is today announcing its regular trading update for thesix months ending 30 June 2005, in advance of its Annual General Meeting, to beheld tomorrow.The Board expects Keller's first half performance to be well ahead of lastyear's first half. This reflects double-digit turnover growth for the Group asa whole and a very strong trading performance in the US .The current order book remains strong, representing over four months' sales.Operating cash flow is expected to be significantly better than in the sameperiod last year, principally reflecting improvements in working capitalmanagement .Looking ahead, the Board remains confident about the Group's prospects for thefull year.Divisional ReviewKeller's US businesses are performing strongly, in part reflecting the recentincrease in activity in US commercial construction and continued strength inthe housing sector. Suncoast continues to benefit from high volumes, whilstmaterial costs remain constant and the product mix has changed in favour of itshigher value-added products. All the Group's US businesses are expected to havea good first half and, with a strong order book, the US division is wellpositioned for the second half of the year.The Continental European & Overseas business is recovering well from a slowfirst quarter, when adverse weather conditions affected operations,particularly in Germany and Austria. The anticipated cost-reduction measures inGermany have been successfully implemented, the benefits of which will berealised in the second half of the year.In the UK, whilst volumes at Makers were slower than anticipated at the startof the year, the business has traded profitably.Keller intends to announce its interim results on 22 August 2005.Commenting on the half-year trading update, Justin Atkinson, Chief Executive ofKeller, said:"We are currently experiencing very favourable market conditions in the US and,overall, the Board expects Keller's first half performance to be well ahead oflast year's first half."Looking ahead, the Board remains confident about the Group's prospects for thefull year. "For further information, please contact:Keller Group plc Justin Atkinson, Chief Executive 020 8341 6424 James Hind, Finance Director Smithfield 020 7390 4600 Reg Hoare/Rupert Trefgarne Keller is today exhibiting at the Growth Company Investor Show to be held at the Barbican Exhibition Halls, Golden Lane, London, EC2Y 8DS. For further information, visit www.growthcompany.co.uk/show ENDKELLER GROUP PLCRelated Shares:
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