Dismantling of concrete specialist will cost Keller up to £10m in finanical second half
Ground engineering specialist Keller has announced that it is to break up its Makers division following an interim loss in the division of £5.3m.
The concrete repair and building refurbishment business will be broken up over the next six months, which will result in an exceptional loss of £10m for Keller.
Keller blamed the loss on problems with two large contracts and a ‘significant decline’ in volumes.
The group said Makers’ various divisions would be sold or discontinued. It will not sell Makers as a going concern.
Across the business Keller increased pre-tax profit by 20% to £40.1m for the six months ended 30 June 2007.
Keller said a record order book would ensure that full year profit would be significantly ahead of last years results.
The firm announced that it had won the contract to build the foundations of The Chicago Spire, a 150-storey residential tower, which will be the tallest building in the US.
Keller Chief Executive Justin Atkinson said: “The prevalence of very large scale development projects around the world, requiring complex foundation solutions, is playing to our strengths.”
Shares increased 4.6% this morning to 960.50p.