黑洞社区

Ground engineering contractor Keller is targeting expansion in the US to capitalise on president Donald Trump鈥檚 planned $1tn infrastructure programme.

Alain Michaelis, chief executive of the London stock exchange-listed firm 鈥� which posted mixed results for 2016 today 鈥� told 黑洞社区 the president鈥檚 spending spree presented the firm鈥檚 拢950m-turnover North American business with 鈥渙pportunity for growth鈥�.

He declined to rule out taking a role on construction of Trump鈥檚 controversial planned border wall between the US and Mexico 鈥� but said the project was unlikely to fit the firm鈥檚 criteria for taking on jobs, explaining: 鈥淚f it鈥檚 just a wall it鈥檒l be simple foundation work [鈥�] We tend to take on jobs with technical complexity.鈥�

Michaelis (pictured), the former Rolls Royce group operations director who took over from previous boss Justin Atkinson last May, said the firm forecast its North American business would be able to take advantage of Trump鈥檚 building push from 2018-19 when it expects projects to come on to site.

鈥淲e are three times bigger in the US than the market players in that space, so we鈥檙e well placed,鈥� he added.

In its results, Keller also revealed it has reclaimed 拢14.3m in insurance payouts and rental income on the 拢54m it set aside in exceptional charges against a problem wine warehouse contract.

The firm set aside the charge two years ago against the project in Avonmouth near Bristol, which was completed in 2008 but became the subject of disputes over allegations of defective work causing cracks to the floor slab.

These disputes were settled two years ago with Keller eventually buying the warehouse for 拢62m last May but is yet to find a buyer.

Michaelis said: 鈥淲e have long term stable tenants [of the warehouse] and we will sell it in due course. It could be a month, it could be a year.鈥�

He said the firm had learned lessons from the warehouse problems around 鈥渟kills, risk management and needing quality management teams鈥�.

The 拢14.3m exceptional gain on the warehouse project helped the firm post a 31% jump in pre-tax profit to 拢73.9m for 2016, up from 拢56.3m the previous year.

But when exceptional items were stripped out across both years, Keller posted a drop in pre-tax profit to 拢85.1m, down from 拢95.7m the year before, due to a slowdown in its Asia Pacific markets.

Revenue in the year to December 2016 increased 14% to 拢1.78bn, up from 拢1.56bn.

Keller reported healthy trading in the UK, where it is also targeting an increase in infrastructure work but Michaelis warned there was 鈥渟ome weakness鈥� currently.

And on the May government鈥檚 planned infrastructure push, he said: 鈥淭here鈥檚 a lag, we are not seeing it on the ground yet, it鈥檚 quiet.鈥�