Troubled groundworks specialist loses 拢20-25m on US and Spanish companies
Groundworks specialist Keller has written off between 拢20m and 拢25m of goodwill on businesses heavily exposed to the troubled US residential and Spanish construction markets.
The write downs have hit Keller firms Suncoast in the US and Keller-Terra in Spain.
In a statement to the City Keller said: 鈥淚n both markets [the US and Spain], the short term prospects are no better than a year ago and only a slow recovery is expected over time. As a consequence, the full year 2010 results will include non-cash goodwill impairment charges in respect of Suncoast, our business most exposed to the US residential market, and Keller-Terra in Spain.
It said: 鈥淪ubject to the completion of the detailed year-end financial exercise, we currently expect these non-cash impairment charges to total between 拢20m and 拢25m, or around half of the total goodwill relating to these businesses.鈥�
In a statement on November 18 Keller has warned of shrinking margins, zero growth and 拢3m in redundancy and restructuring costs in the fourth quarter of the year. Keller鈥檚 said this morning said that market and trading conditions remained in line with that statement.
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