Keller Group reports strong start to year

(Sharecast News) - Keller Group said in an update on Wednesday that it has made a strong start to the year, with trading in line with full-year expectations as resilient infrastructure demand and improved operational performance continued to support momentum across key regions. The FTSE 250 geotechnical contractor said activity remained robust in North America, where infrastructure spending and improvements in its foundations business offset softer conditions in the residential market.

Suncoast faced pricing pressure due to a weaker residential segment, while Moretrench Industrial delivered strong results.

In Europe and the Middle East, infrastructure work remained solid, although residential and commercial demand stayed subdued.

The previously-flagged project challenge in the region was progressing operationally, with commercial discussions ongoing.

Keller also reported continued good performance in its Asia-Pacific division.

The company maintained its full-year guidance and noted a strong order book and typical second-half weighting.

Cash performance remained solid, and the group said it expected to keep its net debt-to-EBITDA ratio below its 0.5x to 1.5x target range at the half year.

Since the launch of its £25m share buyback on 31 March, Keller said it had repurchased about 1.056 million shares at a cost of £15m.

At 0904 BST, shares in Keller Group were up 1.68% at 1,570p.

Reporting by Josh White for Sharecast.com.