Keller firing on all cylinders and record profit anticipated

Keller, the global ground engineering specialist, has enjoyed such strong trading in the year to date that a record pre-tax profit is on the cards, the anticipated figure being at “around the top end of market expectations”.

The same goes for anticipated turnover.

In an interim trading statement this morning, covering the period from the start of July to 12 November, Keller said that the forward order book remains at around the same level as this time last year.

The only gloomy note is that work in the commercial sector has dimmed and now runs at “satisfactory to weak, depending on geography”.

“However, the prospects for public infrastructure investment around the world remain good,” said Keller, “while in our growing markets in the Middle East and Eastern Europe demand for our services continues to be strong.

“We expect 2009 to be characterised by challenging market conditions, particularly in the US where, of late, the outlook has clearly deteriorated.

“However, we believe the geographic diversity, proven business model and financial strength of the group will provide resilience in these market conditions.”

Divisional Review:

US

Significant regional variances and the start of a general weakening across the commercial sector.

As expected, a softening of the previously exceptional margins earned in our foundation contracting businesses.

Continental Europe, Middle East & Asia (CEMEA)

Performing extremely well, meeting high levels of demand with an extended range of services.

Australia & UK

The very strong first-half performance from the Group's Australian businesses while UK performance has been steady, in spite of a very weak housing market.

Acquisitions

Keller has announced today that it has completed the acquisitions of Craig Olden in the US and Boreta in the Czech Republic. Both are making profits.

Olden is an earth retention contractor in Texas, specialising in soil nailing services.

Boreta is a foundations specialist operating in the eastern part of the Czech Republic.

The two have a combined annual turnover of £30m and the total sum paid ran to £14m.