黑洞社区

Ground engineering specialist Keller has reported a 22% rise in revenue to 拢788m in the first half of 2014, driven by growth in its North American business.

In a statement to the City this morning, the firm reported revenue of 拢788m in the six months to 30 June 2014, up from 拢645m over the same period of 2013.

All of the firm鈥檚 four regional businesses reported a rise in revenue but the North American business reported the greatest leap with revenue rising to 拢373m in the first half of 2014, up from 拢308m in the first half of 2013.

Keller also reported a sharp rise in pre-tax profit before exceptional items to 拢32.5m in the first half of 2014, up from 拢26.8m in the first half of 2013.

However, the firm also incurred exceptional costs of 拢27.6m in the first six months of 2014, which reduced its headline pre-tax profit to 拢4.9m, compared with 拢17.4m in the first half of 2013 when the exceptional costs, totalling 拢9.4m, for that period were also included.

The firm鈥檚 exceptional costs in the first half of 2014 were mostly made-up of a 拢30m exceptional charge - -  that related to a contract dispute over alleged faults in its work on a warehouse completed in 2008.

Keller has said the claims against it are being 鈥渧igorously defended鈥�.

, Keller is embroiled in a multi-million legal wrangle over faults at a 拢40m wine warehouse near Bristol, where it is facing a claim that piling errors caused cracks in the warehouse floor. Keller denies it is responsible for the faults.

It is understood that it is this warehouse project that prompted the exceptional charge, although Keller has declined to comment on the identity of the warehouse project.

As well as exceptional cost of 拢30m for the warehouse dispute the firm incurred other exceptional items, including amoritisation and acquisition costs, totalling 拢4.6m.

The 拢34.5m of exceptional costs were partly offset by recovery of 拢6.9m in contingent payments for its acquisition of Keller Canada, which it said it did not now expect to have to pay because Keller Canada鈥檚 profit had fallen below the expected level.

Justin Atkinson, Keller chief executive said he 鈥渞emained optimistic鈥� about Keller鈥檚 鈥渓ong term prospects鈥�.

He added: 鈥淜eller continues to make positive progress against its strategy and is well positioned to take full advantage of future opportunities.鈥�

Speaking to 黑洞社区, Atkinson said the firm would continue to look at 鈥渂olt on acquisitions鈥� to help further grown the business but had 鈥渘othing of substantial size鈥� in the pipeline.

He said that increased sharing of different piling technologies across the group鈥檚 geographical businesses had improved the firm鈥檚 profit margin.

鈥淚t gives us a competitive advantage to offer technology local competitors cannot offer,鈥� said Atkinson.