Keller Group plc ("Keller" or the "Group")
Keller Group plc announces that it is to make a £30 million exceptional charge in its 2014 half year results in respect of a dispute arising on a project that Keller's UK subsidiary, Keller Limited, completed in 2008.
The dispute relates to purported defects in a floor slab at a warehouse for which Keller Limited undertook the design and construction of the piling. These purported defects are alleged by other parties to be due, in part at least, to deficiencies in the provision of Keller's services.
The claims intimated against Keller Limited, which are currently the subject of litigation, are denied and being vigorously defended. However, the Board has determined that, given the uncertainties inherent in any litigation, it would be appropriate to record an exceptional charge of £30 million in the Group's 2014 half year results. The amount is stated before taking account of recoveries under applicable insurances which are yet to be agreed, as these cannot be recognised under IFRS. The Group will update the market on future developments when necessary.
Keller will announce its half-year results on Monday 4 August 2014.
Notes to Editors:
Keller is the world's largest independent ground engineering specialist, providing technically advanced and cost-effective foundation solutions to the construction industry. With annual revenue of around £1.6bn, Keller has approximately 9,000 staff world-wide.
Keller is the clear market leader in North America, Australia and Southern Africa; it has prime positions in most established European markets; and a strong profile in many developing markets.