Keller Group posts big jump in 1H profits

Keller Group reported a big increase in first half profits.

"The continued momentum in the business, together with our strong order book underpins the Board's confidence in the full year expectations which remain unchanged," chief executive officer, Michael Speakman said.

"The underlying strength of the Group's performance provides confidence in our longer-term prospects and is reflected in the Board's decision to increase the interim dividend by 5% for the first half, continuing our 29-year track record of maintained or improved dividend payments."

For the six months ending on 30 June, the geotechnical specialist reported 10% topline growth to reach £1,466bn.

Statutory profits before tax meanwhile surged 70% to £43.1m.

Keller credited its improved performance to North America Foundations and strong margins at Suncoast

Net debt increased by 26% to £244.6m during the period.

However, before interest and tax the company turned free cashflow positive to the tune of £40.8m, against -£41.6m in the year earlier period.

Looking ahead, the specialist described its £1.5bn order book as "strong", adding that it would underpin its performance in the second half.

The interim dividend payout was raised by 5% to 13.9p.

Shares ended the session down by 3.74% to 824.0p.