LONDON (dpa-AFX) - Keller Group plc (KLR.L), on Wednesday, issued a trading update for the first four months of the year and said it has maintained strong trading momentum, continuing the consistent operational and financial performance seen in recent years.
While the North American market was less buoyant than the previous year, as anticipated, Keller's strong order book reinforced confidence in delivering a full-year performance in line with the Board's expectations. The company expects a second-half weighting, following an exceptionally strong first half in 2024.
Due to the local nature of Keller's services and supply chain, the company has limited direct exposure to the recently announced US tariffs. However, Keller remains aware of macroeconomic uncertainties, including the potential impact of tariffs on economic activity, future US tax changes, and a foreign exchange headwind that could arise if the USD weakens further.
In North America, trading continued to be strong, driven by infrastructure spending and improved operational performance in the foundations business. However, soft market conditions in the residential segment have impacted pricing at Suncoast. Moretrench Industrial performed strongly.
In the Europe and Middle East Division, weak demand persists in residential and commercial sectors, but infrastructure remains resilient. A previously challenging project is performing to plan operationally, with ongoing discussions to remedy commercial performance. The APAC Division continues to perform well, contributing positively to the Group's overall results.
Keller's strong cash performance has continued, with the Group's net debt/EBITDA leverage ratio expected to remain below the 0.5x - 1.5x target range at the half-year versus 0.3x reported last year. Following the launch of the initial £25 million tranche of the multi-year share buyback program on 31 March 2025, Keller has purchased about 1.056 million shares at a cost of £15 million.
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