Global geotechnical firm Keller Group today announced that “extremely difficult” conditions in the UK market had led it to last week decide to close its third regional office in two years.
The group also revised down expected profit before tax for 2011 to between £21M and £23M with reports suggesting that analysts had put market expectations at between £30.5M and £35.1M, according to a Thomson Reuters I/B/E/S poll of six analysts. However, the group said its full year revenue would be around £1.15bn, which is in line with market expectations.
While the UK business has won major infrastructure contracts this summer, work on Crossrail and the Victoria Station Ugrade will not make a significant contribution to its results until next year, the firm said.
Keller added that there had been no material change in its financial position since its interim results on 1 August and said it continues to operate “well within” its financial covenants.