Engineering specialist Keller reported an 11 per cent fall in its underlying profits for the full-year but added it was “ideally placed” to respond to a major increase in infrastructure spending under the presidency of Donald Trump.
The FTSE 250 group, which issued a warning on profits in October that caused its biggest one-day share price fall, said underlying profit before tax came in a £85.1m in the 12 months to the end of December, down from £95.7m the year prior.
Falling profits were driven mainly by its business in Australia and Singapore with the US and Europe reporting “excellent” growth, said Keller, in what it described as a “mixed year”.
Keller provides services such as piling, ground improvement works and cable reinforcement of concrete foundations for large construction projects and was contracted to build the foundations for London’s Olympic Stadium.
Following the election of Mr Trump in November, Keller chief executive Alain Michaelis said the company was “ideally placed to help respond to any increase in infrastructure spending in the US and beyond.”
The new US president is promising a blitz of major infrastructure spending to lift growth and create jobs in the world’s largest economy.
“Keller’s strong US market share and large project track record means we are very well placed to benefit from any acceleration of infrastructure spending, although we believe this will likely be an opportunity for 2018 and beyond”, said the company.
The company’s order book ended the year at an all-time high and 20 per cent above 2015 levels. The group’s total revenues also grew by 14 per cent in the year to a record £1.78bn “mainly due to currency movements and strong growth in EMEA”. Revenues were up 3 per cent in constant currency terms.
Mr Michaelis added:
We have continued to strengthen our industry position in terms of geographic reach, product range, and project scale. The Group continues to implement our strategic initiatives which we are confident will realise gross benefits of £50m by 2020, around half of which is expected to be reflected as improved profitability.
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