Keller enjoys record turnover in first half

Keller, the international ground engineering group, enjoyed a rocketing turnover in the first half of 2006, with sales jumping by more than a third to £450m.

The first-half operating margin of 7.9% was a record. It was boosted by benign weather conditions and some additional claims income. Historically, Keller's full-year margins have run to around 6%.

As a result of the latest interim figures, analysts have lifted their forecast for the full year from £65m to £70m.

Keller's interim results (six months to 30 June) show a pre-tax profit of £33m (£16m).

Cash generation from operations increased to £29m. Chief executive Justin Atkinson said: "Over the long term, cash generation should be the same figure as a company's pre-tax profit."

Keller's net debt of £48m is well down on the figure of £65m a year ago. The decrease comes after Keller spent £12m on acquisitions and a £4m one-off contribution to its UK pension scheme.

A further £10m has been spent since the half-year-end on the acquisition of Piling Contractors.

[Contract Journal, 23 August 2006, p 4]