UK revenue at piling contractor falls by a fifth to £23m
Piling contractor Keller has reported an operating loss of £2m following a further reduction in headcount.
The company confirmed a 20% drop in turnover as it merged its equipment yards to reduce its cost base.
However, in its results statement for the six months ended 30 June 2011, Keller said it expected an improved performance in the second half of the year as transport infrastructure projects get underway.
The business was recently awarded a £37m contract on the Victoria £700m Victoria Underground Station upgrade. The scheme involves the installation of over 2,400 jet grout columns to make way for approximately 400m of new tunnels.
Works will start in late 2011 and are scheduled for completion early in 2014.
Overall worldwide turnover during the period rose 10% to £545m but pre-tax profit fell 69% from £11m to £3.4m.
Keller warned recovery in the US and Western European markets will be slow owing to overcapacity.