Keller Group to boost payout, appoints new chief executive

Keller Group announced changes to its trading and dividend plan on Thursday, while the business also confirmed the appointment of its interim chief executive on a permanent basis.

Following a review of its strategy, the specialist geotechnical contractor will now focus on large attractive projects and markets where it holds a dominant position as it seeks to become a higher quality business with industry leading margins.

The London-listed company added that, in addition to the normal 5% increase to its annual dividend, the board now intends to declare a non-recurring supplementary dividend of 2.3 pence per share for 2019 and of 4.4 pence per share for 2020.

New permanent chief executive Michael Speakman, who previously served as chief financial officer, said: "The newly enhanced strategy provides greater clarity and creates exciting opportunities to grow shareholder value significantly in the coming years.

"The board's decision to return excess capital to shareholders in the form of supplementary dividends for the financial years 2019 and 2020 evidences the board's confidence in the group's prospects."

Keller added that its current year performance is expected to meet expectations, with the its Asia Pacific division set to return to profit following restructuring efforts.

North American operations are currently being reorganised, while Keller intends to withdraw from South America, where conditions have remained challenging.

Finally, the company also confirmed that Paul Withers, senior independent director and chairman of the remuneration committee, will retire from the board in May 2020.

Keller Group shares were up by 5.79% at 676.00p at 1231 GMT.