Engineering specialist reports boost in profits despite lower revenue for 2015
Ground enginnering specialist Keller has reported a 12% jump in profit despite a fall in revenue.
According to the firm’s 2015 results operating profit increased 12% to £103.4m, up from £92m the previous year. Revenue stood at £1.56bn, down from £1.59bn in 2014. Operating margins increased from 5.8% to 6.6%.
The improved results came despite Keller being hit by a slowdown in the Australian market over the first four months of the year following completion of its largest project, the A$230m (£118m) Wheatstone power plant project in Australia, which prompted a profit warning last May.
Keller pointed to an upturn in activity in its American market, which accounts for approximately 50% of group revenue, citing a fourth successive increase in spending on construction. The firm also noted that it had seen construction activity in the Middle East left unaffected by the low oil price.
Alain Michaelis, Keller chief executive said: “The group has performed well in 2015. We have been pleased to record another year of profit growth despite sales being lower as a result of less revenue from large projects. At the end of January, the group order book of work to be undertaken over the next twelve months, including that of 2015 acquisitions, was 15% higher than at the same time last year, with increases in all divisions.
“Whilst conditions in our markets are varied, the ongoing strength in the US, our largest market, continuing improvements in underlying operating performance, and our strong order book mean that the Group is set for another year of progress in 2016.”