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Keller warns it is set to miss profit target
18:52 13 Aug 2003
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Keller 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 building foundations specialist's 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 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 ground improvement businesses have remained solid.
Keller's concrete refurbishment business, Makers, will now focus on its core markets of social housing and infrastructure, and withdraw from or sell its non-core interests.
The building foundations specialist's 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 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 ground improvement businesses have remained solid.
Keller's concrete refurbishment business, Makers, will now focus on its core markets of social housing and infrastructure, and withdraw from or sell its non-core interests.
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