Keller has settled a dispute about a problem warehouse contract it completed in 2008 – but it will cost the firm up to £60M.
The ground engineering specialist had previously set aside £30M to deal with the dispute, which almost wiped out its first half profit for 2014.
Keller released a statement, announcing it had reached an agreement to settle with the other parties involved in the dispute. It said: “The final cost to Keller is dependent on a number of remedial actions to be undertaken as part of the settlement agreement but is not expected to exceed £60M, before taking account of any yet to be agreed insurance recoveries. The full terms of the settlement agreement are confidential between the parties.”
This means a further exceptional charge of between £20M and £30M will be made in the firm’s 2014 full-year results, which will be announced on 2 March 2015.
Keller has refused to divulge the problem contract in question. A statement from the group last July said: “The dispute relates to purported defects in a floor slab at a warehouse for which Keller Limited [the UK Keller business] undertook the design and construction of the piling.”