In the UK, almost all the groundwork to get building sites ready for construction is done by the primary contractor - which explains why 95 per cent of Keller's business is overseas. Even so the company has been hard hit by the downturn in private commercial and residential construction, especially in its main market the US where, but for the favourable impact of dollar strength, revenues would have fallen by a quarter and operating profits by 48 per cent.
On the plus side, government spending on public and infrastructure projects has held up well in all its main markets, and Keller has taken costs out of the business, though more needs to be done in France. And though this year promises to be challenging again given the state of US commercial markets, Keller has been building its presence in Australia and in developing markets in the Far East and Europe. In fact, these segments now account for 25 per cent of revenues and the acquisition of Resource Holdings in Singapore extends the product range in the Far East, notably in piling, and boosts critical mass.
House broker Investec Securities expects a further decline in adjusted pre-tax profits this year to £65.3m, giving EPS of 68.8p (2009: £74.7m/77.4p).
KELLER (KLR) | ||||
|---|---|---|---|---|
| ORD PRICE: | 643p | MARKET VALUE: | £ 413m | |
| TOUCH: | 640 - 645p | 12-MONTH HIGH: | 774p | LOW: 460p |
| DIVIDEND YIELD: | 3.4% | PE RATIO: | 8 | |
| NET ASSET VALUE: | 487p* | NET DEBT: | 24% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 0.73 | 30 | 42 | 12.0 |
| 2006 | 0.86 | 49 | 85 | 15.6 |
| 2007 | 0.96 | 103 | 98 | 18.0 |
| 2008 | 1.20 | 113 | 111 | 20.7 |
| 2009 | 1.04 | 75 | 79 | 21.8 |
| % change | -13 | -34 | -29 | +5 |
Ex-div:10 Mar Payment:01 Apr *Includes intangible assets of £119m, or 185p per share | ||||
