Piling firm Keller unveiled its 2011 half-year results today with revenue rising up to £545.5M from £496.9M but the UK division making a loss of £2M and cutting more jobs.
The firm reported a 10% increase in revenue to £545.5M however its operating profits were down to £6.4M, reducing from £13.6M in 2010 and operating margin down to 1.2% from 2.8% in 2010.
Keller reported that there has been “no significant easing of the challenges that have beset our industry for the last couple of years”.
The firm said that global recession affecting the US and Western Europe is taking longer than expected and overcapacity remains an issue.
Keller’s UK business reported a revenue of £22.7M, down from £28.1M in 2010, with an operating loss of £2M, rising from a £0.1M in 2010. However, the firm has recently won a £37M contract for grouting works as part of £700M Victoria Underground station upgrade.
Australia proved much more successful to Keller, with revenue up 23% to £216M.
The firm said they see little change in its key construction markets in US and Western Europe in the short term, but its developing markets in Australia, the Middle East and India continue to offer “good opportunities”.
“While we continue to make progress in our developing markets, a recovery in our more mature construction markets is taking longer than expected and over-capacity remains an issue, particularly in the US, maintaining pressure on margins in the near term,” said Keller chief executive Justin Atkinson.
“In addition to the usual seasonal improvement, our recent mobilisation on several large jobs will help to support a much stronger second half. Overall, the expected results for the full year remain within the current range of market expectations.”