Keller lifts guidance on improving markets

Keller Group, the engineering group which specialises in ground projects like putting foundation piles in for bridges, had a strong morning after upgrading its full year profit forecasts.

The group says there has been a recovery in most of its main markets, including Australia and the USA.

The recovery has pushed revenues up 13% compared to the same period of last year, coming in at £613.8m for the six months to the end of June. The US revenue contribution has risen 27% in constant currency terms since the start of the year.

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Profits before tax rose from £3.4m in the prior year to £11m this year and the order book is 27% ahead of 2011.

Justin Atkinson, Keller Chief Executive said: "These results show a strong improvement overall, with three out of four of the group's regions performing significantly better than at this time last year."

He added: "Accordingly, the group's results for the full year are expected to be slightly ahead of the top end of the range of market expectations."

The median forecast among five brokers covering the stock is for profit before tax of £42.55m.

Keller's shares were up 4.6% at 11:00.

BS