Keller Group ups full year profit guidance

Keller Group, an international ground engineering specialist, delivered a strong performance in the four months to the end of October, with results coming in ahead of its own expectations and ahead of the same period last year.

The group's 2012 full-year revenue is now expected to be around £1.3bn, in line with market expectations, with full-year profit before tax to be significantly above the current range of market expectations.

The group said the majority of the growth was driven by progress in its North American business, where it has taken advantage of a gradual improvement in the construction market.

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A good performance was also seen in Asia, while in Europe, the Middle East and Africa the company is expecting a much improved second half after actions taken in the first. Australia is trading ahead of the previous year.

At the end of October the order book was around 10% above last year.

In a statement the company said: "Looking further ahead, at a macroeconomic level the outlook remains extremely uncertain. Europe continues to face a number of economic and political challenges, whilst the rate of growth in much of Asia appears to be slowing. In the US, where the construction market and economy as a whole are in the early stages of recovery, this recovery is threatened by the "fiscal cliff".

"Despite this backdrop, the board believes that corporate actions taken in recent years mean that the group is better placed than ever to face whatever economic headwinds may materialise. Longer term, we remain confident that our strategy and our strengths will underpin sustained future growth."

NR