14th Oct 2005 07:01
Keller Group PLC14 October 2005 For immediate release Friday, 14 October 2005 Keller Group plc Trading Update and Acquisition Keller Group plc ("Keller" or "the Group"), the international ground engineeringspecialist, is today providing a trading update for the year ending 31 December2005 and announcing the completion of an acquisition in the US. Trading Update Since reporting strong interim results, all four US businesses have continued toexceed our expectations in the first three months of the second half which,together with a continuing strong order book, leads the Board to believe that2005 will be an outstanding year for Keller, with results above current marketexpectations. It is now expected that Group turnover for the full year will bearound £700m, with a record operating margin. The current year has seen very strong market conditions in the US together withan excellent performance on a number of contracts. Whilst it is too early togauge the trading outlook for next year, it is unlikely that this year'sexceptional trading result will be repeated in 2006. Nevertheless, the Boardbelieves that 2006 will be another good year for Keller. US Acquisition The Group has acquired the business and assets of G. Donaldson ConstructionCompany Inc. ("Donaldson") of Cumberland, Rhode Island. Donaldson is a groundengineering contractor, which specialises in deep foundation and earth supportservices, serving the New England construction market. The total consideration for Donaldson comprises an initial amount of $10.5m(£6.0m), including the assumption of debt, together with an earn-out based onfuture profits. Donaldson is expected to report annual sales of around $40m(£22.7m) in 2005. Hayward Baker's Boston office will be integrated with the Donaldson operation,which will be managed as a division of Hayward Baker. The acquisition represents an excellent strategic fit with our existing USbusinesses and will enable us to grow our product mix in the New England market,where historically the Group has been under-represented. Once again, this demonstrates Keller's ability to source and delivercomplementary, bolt-on acquisitions which enhance shareholder value. Togetherwith the development of our existing businesses, this reflects our strategy ofdelivering continued long-term growth within our core competence of specialistground engineering. Keller intends to release a pre-close statement on 5 January 2006. Commenting on the acquisition and current trading, Justin Atkinson, ChiefExecutive of Keller, said: "We are pleased to have completed the purchase of Donaldson, which represents anexcellent strategic fit with our existing US businesses and will enable us togrow our product mix in the New England market. "2005 will be an outstanding year for Keller, reflecting very strong marketconditions in the US together with an excellent performance on a number ofcontracts. The Board believes that 2006 will be another good year for Keller." For further information, please contact: Keller Group plcJustin Atkinson, Chief Executive 020 8341 6424James 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:
Keller