Keller Group plc (“Keller” or “the Group”), the international ground engineering specialist, is today announcing its regular trading update for the six months ending 30 June 2005.
Overview
Keller Group plc (“Keller” or “the Group”), the international ground engineering specialist, is today announcing its regular trading update for the six months ending 30 June 2005, in advance of its Annual General Meeting, to be held tomorrow.
The Board expects Keller’s first half performance to be well ahead of last year’s first half. This reflects double-digit turnover growth for the Group as a 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 same period last year, principally reflecting improvements in working capital management.
Looking ahead, the Board remains confident about the Group’s prospects for the full year.
Divisional Review
Keller’s US businesses are performing strongly, in part reflecting the recent increase in activity in US commercial construction and continued strength in the housing sector. Suncoast continues to benefit from high volumes, whilst material costs remain constant and the product mix has changed in favour of its higher value-added products. All the Group’s US businesses are expected to have a good first half and, with a strong order book, the US division is well positioned for the second half of the year.
The Continental European & Overseas business is recovering well from a slow first quarter, when adverse weather conditions affected operations, particularly in Germany and Austria. The anticipated cost-reduction measures in Germany have been successfully implemented, the benefits of which will be realised in the second half of the year.
In the UK, whilst volumes at Makers were slower than anticipated at the start of 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 of Keller, 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 of last year’s first half.
“Looking ahead, the Board remains confident about the Group’s prospects for the full year.”