Keller sees FY underlying operating profit ahead of market views

Geotechnical engineering firm Keller said on Wednesday that 2023 underlying operating profit was set to be "significantly ahead" of market expectations of £150m after a particularly strong end to the year.

In a post-close trading update for the year to the end of December, the company said the positive trading momentum and strong operational performance seen in the first nine of months had continued in the fourth quarter.

The group also said that the underlying operating profit margin for the year was expected to be "significantly ahead" of recent years.

In North America, management actions to improve performance in the foundations business in the second half of 2022 generated "a material and sustainable" improvement, it said, with a resultant uplift in operating margin.

In Europe, however, the macroeconomic environment remained challenging in H2, with weak demand and competitive pricing denting profitability.

Chief executive Michael Speakman said: "We are very encouraged by the group's strong progress in 2023. The combination of management actions to improve operational performance in project execution, commercial agility in the face of a dynamic market, and the one-off benefits in North America will result in Keller delivering a record performance in 2023 that has significantly exceeded our original expectations.

"The fundamental strengths of the business, together with the continued positive outlook and our strong order book, give us confidence in further progress in 2024."

At 0910 GMT, the shares were up 2.9% at 854p.