Corporate

Keller Group plc, the world’s largest geotechnical specialist contractor, announces its results for the half year ended 30 June 2023. 

A graphic with Keller Group Interim Results for 2023

Record H1 performance; positive H2 outlook; dividend increased

Keller Interim results 2023 summary table

1  Restated for prior period accounting error arising from the financial reporting fraud at Austral as detailed in note 3 to the interim condensed consolidated financial statements.
2  Underlying operating profit and underlying diluted earnings per share are non-statutory measures which provide readers of this Announcement with a balanced and comparable view of the Group’s performance by excluding the impact of non-underlying items, as disclosed in note 8 to the interim condensed consolidated financial statements.
3  Net debt is presented on a lender covenant basis excluding the impact of IFRS 16 as disclosed within the adjusted performance measures in the interim condensed consolidated financial statements.

Highlights 

  • Record first half performance in revenue and underlying profit
  • Revenue of £1,466.3m, up 6% (at constant currency), demonstrating the benefit of our diverse and resilient revenue streams
  • Record first half underlying operating profit of £67.0m, up 50% (at constant currency), with an increased underlying operating profit margin of 4.6% (H1 2022: 3.2%). Performance driven by improved performance at North America Foundations and a strong margin performance at Suncoast, offset by losses associated with the closeout of legacy projects at Austral and a more competitive pricing environment due to market conditions in Europe
  • Underlying diluted EPS of 56.0p, up 48%, with growth in earnings moderated by higher finance costs
  • Statutory diluted EPS of 45.0p, up 81%
  • Strong recovery in free cash flow before interest and tax of £40.8m, benefitting from the increased underlying profits and the improved working capital performance
  • Net debt of £244.6m, up 26%, impacted by the timing of US tax payments. Net debt/EBITDA leverage ratio of 1.2x (H1 20221: 1.2x)
  • Strong order book of £1.5bn which underpins performance in the second half of the year 
  • Overall accident frequency rate decreased to 0.09 from 0.10 injuries per 100,000 hours worked
  • Interim dividend increased by 5% to 13.9p (H1 2022: 13.2p), reflecting strong performance and confidence in both the second half and our longer-term prospects 
Keller delivered a record performance in the first half, largely driven by management actions to drive performance in our North American Foundations business and strong profitability at Suncoast, together with a number of large projects. Accordingly, performance will be more evenly weighted between the first and second half of the year. The continued momentum in the business, together with our strong order book underpins the Board’s confidence in the full year expectations which remain unchanged. The underlying strength of the Group’s performance provides confidence in our longer-term prospects and is reflected in the Board’s decision to increase the interim dividend by 5% for the first half, continuing our 29-year track record of maintained or improved dividend payments.”
Michael Speakman
Chief Executive Officer
Read full announcement: Half year results for the half year ended 30 June 2023

For further information, please contact:

Keller Group plc
Michael Speakman, Chief Executive Officer
David Burke, Chief Financial Officer
Caroline Crampton, Group Head of Investor Relations

www.keller.com
020 7616 7575

FTI Consulting
Nick Hasell
Matthew O’Keeffe

020 3727 1340

A webcast for investors and analysts will be held at 09.00am BST on 1 August 2023 , at Investec Bank plc, 30 Gresham Street, London EC2V 7QP. 
RSVP: connie.gibson@fticonsulting.com

The webcast replay will be available later the same day on demand: https://www.investis-live.com/keller/649ae6ac9b8a600d00174000/klrt

Conference call:
Participants joining by telephone:
UK (Local): 020 4587 0498 
UK (Toll-free): 0800 358 1035

Participant access code: 004656

Accessing the telephone replay:
A recording will be available until 8 August 2023
UK: 020 3936 3001
UK (Toll-free): 0808 304 5227

Access code: 350651

Notes to editors:
Keller is the world's largest geotechnical specialist contractor providing a wide portfolio of advanced foundation and ground improvement techniques used across the entire construction sector. With around 10,000 staff and operations across five continents, Keller tackles an unrivalled 6,000 projects every year, generating annual revenue of nearly £3bn. 

Cautionary statements:
This document contains certain 'forward-looking statements' with respect to Keller's financial condition, results of operations and business and certain of Keller's plans and objectives with respect to these items. Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their very nature, forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies and markets in which the Group operates; changes in the regulatory and competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; and changes in interest and exchange rates. For a more detailed description of these risks, uncertainties and other factors, please see the Principal risks and uncertainties section of the Strategic report in the Annual Report and Accounts. All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Keller or any other member of the Group, or persons acting on their behalf, are expressly qualified in their entirety by the factors referred to above. Keller does not intend to update these forward-looking statements. Nothing in this document should be regarded as a profits forecast. This document is not an offer to sell, exchange or transfer any securities of Keller Group plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act of 1933 (as amended). 
LEI number: 549300QO4MBL43UHSN10. Classification: 1.2 (Half yearly financial reports).