Share price fall for Keller on profit warning

published 15 November 2011

Ground engineering specialist Keller, lost almost 16% of its share price after warning that its full-year profit before tax to be below market expectations and in the range of £21m to £23m.

The news comes despite revenue set to be in line with forecasts at £1.15bn.

Trading in the US and Europe has been in line, but the results elsewhere have suffered from a combination of tougher market conditions in certain locations and delays in the start of a few large projects.

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The group was keen to emphasise that its order book at the end of October was around 20% up on the same time last year, but warned that the current macro-economic conditions mean that the outlook for construction markets, particularly in Europe, remains uncertain.

The firm said: "In this environment, we will continue to exercise caution in our management of costs and to focus on risk management, the most efficient use of our resources and maximizing cash generation.

"This prudent approach, together with our geographic diversification, will help us in today's difficult markets, whilst ensuring that we are well-placed to benefit as markets and economies improve. The underlying UK construction market remains extremely difficult and we continue to take action accordingly."

Last week, the firm took the decision to close another of its UK offices, the third regional office to be closed in the last two years.

The share price fell 15.91% to 294.75p by 15:10.