Keller reports strong first-half growth despite turnover drop in Europe and Middle East

Keller Group has reported strong growth in profit and turnover in its half-year results.

The geotechnical specialist reported turnover of £1.6bn for the six months to 30 June, up 10.3% on last year’s figure of £1.46bn.

The group’s pre-tax profit rose 18%, from £87.4m to £103.3m over the same period. The firm has said it expects its full-year performance to be ahead of market expectations of £3.15bn turnover and £223m operating profit.

Keller described its performance in North America as “outstanding” with record volume and profit growth. Revenue in that region rose 16.7% to £984.9m, while its underlying operating profit increased 18% to £93.8m. Its North America order book rose by nearly 30%.

The group also increased its underlying operating profit and orderbook in its Europe and Middle East business by 28% and 16.5% respectively. However turnover fell by 5.2%., with strong volumes in the Nordics offset by adverse weather and fewer larger projects.

It said: “Subdued market conditions persisted in western Europe, with significant government infrastructure and defence commitments yet to materialise. The UK continued to present challenging market conditions, with volume and profit down on the prior period.”

James Wroath, chief executive at Keller Group, said: “I am delighted to report an excellent first half that reflects the group’s strong operational execution and continued commercial discipline. Our teams around the world have delivered an outstanding performance with record revenue and profit growth in North America, our largest division.

We are building further momentum, with a record order book of £1.9bn demonstrating the benefits of our geographic and sector diversification. This also clearly illustrates our ability to capitalise on megatrends, such as recent increased investment in infrastructure and data centres.”