Keller expects to miss profit target

While Keller's interim results will be in line with expectations, the building foundations specialist has warned the City that it will miss its 20% profit growth target in the full year due to problems in the second half.

The statement reads: "While orders in the second quarter have remained good in most parts of the business, it now appears that the anticipated spill-over into the second half of the year of jobs delayed in the first few months is unlikely to be fully realised. This, coupled with disappointing trading in the UK and the impact of the translation effect  of a weaker dollar, leads the board to expect that profit before tax for the full year will not meet the 20% year-on-year growth target previously anticipated."

In the UK, the foundations business has suffered from weak margins in piling, while volumes and margins in the geotechnical and grounmd improvement businesses have remained solid.

To improve the situation in the UK, Keller is focussing Makers on its core markets (social housing and infrastructure) and will sell off non-core interests.

The performance in the US was described as "creditable".

Keller's interim results are announced on 22 August.