Keller announced in July 2014 that an exceptional charge of £30 million was to be taken as at the 2014 half year in respect of a dispute arising on a project that Keller Limited, Keller’s UK subsidiary, completed in 2008. Keller today announces that it has reached an agreement to settle with the other parties involved in the litigation.
The final cost to Keller is dependent on a number of remedial actions to be undertaken as part of the settlement agreement but is not expected to exceed £60 million, before taking account of any yet to be agreed insurance recoveries. The full terms of the settlement agreement are confidential between the parties.
As a result, it is expected that Keller will make a further exceptional charge of between £20 and £30 million in its 2014 full year results. This amount is stated before taking account of future recoveries under applicable insurances which are yet to be agreed, as these cannot be recognised under IFRS.
Keller will announce its full year results on Monday 2 March 2015.
Notes to Editors:
Keller is the world’s largest independent ground engineering specialist, providing technically advanced and cost-effective foundation solutions to the construction industry. With annual revenue of around £1.6bn, Keller has approximately 9,000 staff world-wide.
Keller is the clear market leader in North America and Australia; it has prime positions in most established European markets; and a strong profile in many developing markets.