15 May 2024

Keller Group plc

AGM Trading Update

A very strong start to the year and a material increase to full year expectations

Keller Group plc ('Keller' or 'the Group'), the world's largest geotechnical specialist contractor, issues a trading update for the first four months of the year (the 'period') ahead of its Annual General Meeting to be held at 10.00am today.

The strong momentum cited at the Group's full year results in March 2024 continued through the period, with overall performance materially ahead of prior year. This momentum, combined with a strong order book and recent contract wins, gives us good visibility and enhanced confidence in performance for the remainder of the year. Accordingly, we now anticipate full year performance to be materially ahead of the Board's original expectations.

In North America, trading continued to be strong, driven by ongoing infrastructure spend and the sustained improvement in the operational performance of the foundations business. Suncoast also performed well and is ahead of prior year, despite the expected softening of market conditions in the residential segment, although its momentum is still anticipated to moderate during the rest of the year. 

In the Europe and Middle East Division, weak demand persisted in the residential and commercial sectors across Europe, whilst the infrastructure sector remained more resilient. In the Nordic region, performance of the challenging projects in the prior year is improving as a result of management actions, although one project remained loss-making in the period.

In APAC, Austral traded profitably and in line with plan, with no contract losses following the turnaround of the business in the second half of 2023. Keller Australia had a strong start to the year, albeit, as anticipated, trading in the period was lower than the prior year. In ASEAN, continued market softness persisted, with low levels of activity, whilst Keller India performed well.

The Group's strong cash performance continued in the period and we expect the Group's net debt/EBITDA leverage ratio to be at the bottom end of the 0.5x - 1.5x range at the half year (H1 2023: 1.2x).

The Group will announce Interim Results on 6 August 2024.

Notes to editors:

Keller is the world's largest geotechnical specialist contractor providing a wide portfolio of advanced foundation and ground improvement techniques used across the entire construction sector. With around 9,500 staff and operations across five continents, Keller tackles an unrivalled 5,500 projects every year, generating annual revenue of c.£3bn.

Cautionary statements:

This document contains certain 'forward-looking statements' with respect to Keller's financial condition, results of operations and business and certain of Keller's plans and objectives with respect to these items. 

Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their very nature forward looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the Group operates; changes in the regulatory and competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; and changes in interest and exchange rates. For a more detailed description of these risks, uncertainties and other factors, please see the Principal risks and uncertainties section of the Strategic report in the Annual Report and Accounts. All written or verbal forward looking-statements, made in this document or made subsequently, which are attributable to Keller or any other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Keller does not intend to update these forward-looking statements. Nothing in this document should be regarded as a profits forecast. This document is not an offer to sell, exchange or transfer any securities of Keller Group plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended). 

LEI number: 549300QO4MBL43UHSN10 Classification: 3.1 Additional regulated information