Keller Group (KLR)

Sector:

Construction and Building Materials

Index:

FTSE Small Cap

600.00p
   
  • Change Today:
      6.00p
  • 52 Week High: 876.00
  • 52 Week Low: 445.50
  • Currency: UK Pounds
  • Shares Issued: 72.09m
  • Volume: 44,587
  • Market Cap: £432.56m
  • RiskGrade: 326

Keller hails stronger performance in Asia-Pacific as profits jump

By Abigail Townsend

Date: Tuesday 03 Mar 2020

LONDON (ShareCast) - (Sharecast News) - A return to profitability at Keller's Asia-Pacific business helped bolster group profits, the geotechnical services contractor confirmed on Tuesday.

Keller, which works on construction projects around the world preparing the ground and laying foundations, among other services, said underlying profits improved 2% to £101.8m on a constant currency basis in the year to 31 December. Statutory pre-tax profits surged to £51.6m from £8.4m. The improvement was largely driven by the return to profit in Asia-Pacific, which had been rocked by challenging market conditions.

Revenues rose 2%, also on a constant currency basis, to £2.3bn. The company said that growth in North America and in Europe, the Middle and Africa, alongside favourable currency rates, had been offset by a planned reduction of activity in Asia-Pacific.

Revenue from APAC declined 27%, to £287m. North America reported 15% growth to £1.33bn, however, while EMEA nudged ahead 2% to £679.6m.

Keller's home UK market accounts for just 3% of its business.

Michael Speakman, chief executive, said: "2019 was a significant year of decisive progress for Keller. The return to profit in APAC and the group's strong cashflow generation underpinned the improved financial performance, which was in line with expectations. Our more focused strategy will ensure that Keller evolves in the future to become a more efficient higher-quality business."

Looking forward, the company said the current year had "started well" with the order book now in excess of £1bn.

However, Speakman also sounded a note of caution. "While we are cautiously optimistic and expect another year of continued progress, supported by our robust order book, we remain cognisant of challenging macroeconomic conditions and the potential indirect impact of Covid-19."

Peel Hunt, which has a 'buy' recommendation on Keller, said: "After a testing first-half, which saw profits down materially, the group bounced back well in the second half and especially the first quarter.

"Divisionally, the star performer was APAC, which returned to profit for the whole year and not just the second half. EMEA was materially lower, as expected due to the completion of two major projects in 2018.

"Covid-19 clearly presents a risk but the group's direct supply chain is more domestic in its nature."

Shares in Keller were ahead 7% at 765p by 1430 GMT.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Keller Group Market Data

Currency UK Pounds
Share Price 600.00p
Change Today 6.00p
% Change 1.01 %
52 Week High 876.00
52 Week Low 445.50
Volume 44,587
Shares Issued 72.09m
Market Cap £432.56m
RiskGrade 326

Keller Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
36.84% above the market average36.84% above the market average36.84% above the market average36.84% above the market average36.84% above the market average
10.53% above the sector average10.53% above the sector average10.53% above the sector average10.53% above the sector average10.53% above the sector average
Price Trend
0.21% below the market average0.21% below the market average0.21% below the market average0.21% below the market average0.21% below the market average
12.82% above the sector average12.82% above the sector average12.82% above the sector average12.82% above the sector average12.82% above the sector average
Income
81.34% above the market average81.34% above the market average81.34% above the market average81.34% above the market average81.34% above the market average
50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average50.00% above the sector average
Growth
35.66% above the market average35.66% above the market average35.66% above the market average35.66% above the market average35.66% above the market average
Sector averageSector averageSector averageSector averageSector average

What The Brokers Say

Strong Buy 4
Buy 1
Neutral 0
Sell 0
Strong Sell 0
Total 5
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Keller Group Dividends

  Latest Previous
  Final Special
Ex-Div 30-Jul-20 30-Jul-20
Paid 21-Aug-20 21-Aug-20
Amount 25.10p 2.30p

Trades for 22-May-2020

Time Volume / Share Price
16:40 4,621 @ 588.25p
16:35 17,310 @ 600.00p
16:29 117 @ 601.00p
16:29 185 @ 601.00p
16:29 51 @ 601.00p

Keller Group Key Personnel

CEO Michael Speakman

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