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by | Feb 22, 2018 | Thrush

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Keller Group plc (LSE: KLR) is a geotechnical engineering company. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company is the world's largest geotechnical specialist contractor.[4]

History

The company was established in the 1950s as the ground engineering division of GKN plc.[5] In 1960, it expanded into a stand-alone piling and ground improvement company and, in 1975, it acquired the German company Johann Keller and took on that name.[5] In 1984, Keller bought Hayward Baker Inc., a US ground engineering business.[6] In 1990, it was the subject of a management buy-out from GKN plc supported by Candover.[6] During May 1994, the company was listed on the London Stock Exchange for the first time;[7] three months later, it was awarded a £7.5 million contract for a German customer; at the time, it was the company's largest single order.[8] In early 1995, Keller Group announced it has recorded £9.4 million in pre-tax profits, a 33 percent rise over the previous year; this was in part attributed to deals made in the North American market.[9][10]

In 1997, Keller Group's fiscal performance dipped somewhat, which was attributed to external factors such as the strengthening of the Sterling and an economic downturn in Germany.[11] Six months later, profits rose to £13.8 million, which was up 10 percent from the previous year; a large portion of these gains were from its international projects.[12] During 1998, the company elected to expand its British-based concrete repair subsidiary Makers,[13] as well as acquire the Australian foundation specialist Franki for £3.5 million.[14] In August 1999, Keller Group stated that two-thirds of its pre-tax profits were derived from Makers.[15]

Throughout the early 2000s, the American market would be a consistent source of profits for the company.[16][17] During 2003, Keller Groups underwent restructuring, which included 50 job losses, due to overcapacity and industry-wide changes;[18] profits declined sharply by 46 percent while its subsidiary Makers was marked down by £7 million.[19][20] However, by the start of 2005, Makers had returned to profitability and Keller Group was once again considering its expansion.[21][22]

During 2006, Keller Group acquired Anderson Drilling, the creators and owners of the Big Stan drilling rig,[23] along with several British specialist firms,[24] amid stronger than expected fiscal results.[25] In September 2007, the company sold its social housing division for nominal consideration;[26] later that same year, the company acquired the American piling specialist HJ Foundation in exchange for £24.5 million.[27]

During 2008, Keller Group was impacted by the start of the Great Recession and a major downturn in the housing market;[28] in an effort to reduce its dependence upon the US market, it turned towards other markets, such as India and eastern Europe.[29][30] One year later, the company achieved over £1 billion in turnover for the first time.[31]

In 2011, it was awarded contracts worth £30 million for grouting, structural monitoring and surveying works on London's Crossrail programme.[32] Two years later, Keller Group doubled its profits, which its management was attributed to its international growth.[33]

During 2015, the company's performance dipped due to a downturn in Australia;[34] while lower revenues were recorded for that year, profits actually rose.[35][36] Nevertheless, in 2018, Keller Group issued a profit warning and dropped out of the FTSE 250 Index.[37][38]

In January 2023, Keller Group published a profit warning after a "deliberate and sophisticated financial reporting fraud" at Austral Construction.[39][40][41] The estimated impact was £6m related to the first half of 2022, and £8m to £10m relating to prior years. Two directors were dismissed as investigations continued,[42][43] and the company's shares fell 10%.[44] The fraud was described by The Times as "apparently sophisticated".[45] Keller's pre-tax profit for 2022 fell by 17% as a result; it made £56m profit across the year, from a turnover of £2.9bn.[46]

Operations

Keller operates under three divisions and is supported by its group head office:

  • North America: Bencor, Case Foundation, Hayward Baker, HJ Foundation, Keller Canada, McKinney Drilling, Suncoast, Moretrench. With effect from 1 January 2020, these businesses were all branded as Keller and operate as regional parts of a single company.[47]
  • Europe, Middle East and Africa: Central Europe, North-East Europe, North-West Europe, South-East Europe, Franki, French Speaking Countries, Middle East, Iberia and Latin America, Brazil[48]
  • Asia-Pacific: ASEAN, India, Keller Australia and Austral Construction.[49]

The company has been involved in laying foundations for complex projects including High Speed 2 in the UK[50] and the Spirit Tower in Australia.[51]

Keller lays foundations for the Spirit Tower, one of Australia's tallest buildings
Keller completes foundation for luxury apartments - Miami

See also

References

  1. ^ "Keller Group plc overview - Find and update company information - GOV.UK". Companies House. 13 November 1989. Retrieved 17 February 2024.
  2. ^ a b c "Annual Results 2023" (PDF). Keller Group. Retrieved 5 March 2024.
  3. ^ "Sustainability". Keller Group. Retrieved 13 February 2024.
  4. ^ "Keller performing well 'despite challenges'". Ground Engineering. 22 November 2021. Retrieved 11 March 2023.
  5. ^ a b "Share of the week: Keller Group". The Times. 11 December 2017. Retrieved 23 May 2019.
  6. ^ a b Brown, G. (2015). The Independent Director: The Non-Executive Director's Guide to Effective Board Presence. Palgrave Macmillan. ISBN 978-1349502691.
  7. ^ "Keller Group". London Stock Exchange. Archived from the original on 4 August 2019. Retrieved 23 May 2019.
  8. ^ "18Aug94 GERMANY: ROCK STEADY KELLER – HANNOVER CONTRACT.The Keller Group has won its largest single contract since its flotation on the stock market in May with a £7.5 million project in Germany". constructionnews.co.uk. 18 August 1994.
  9. ^ "Keller shows profits rise after stock market move". constructionnews.co.uk. 6 April 1995.
  10. ^ "Keller makes big US bucks". constructionnews.co.uk. 21 September 1995.
  11. ^ "German slump takes toll on Keller results". constructionnews.co.uk. 4 September 1997.
  12. ^ "Overseas work sets up Keller". constructionnews.co.uk. 12 March 1998.
  13. ^ "Keller to build up Makers base in UK". constructionnews.co.uk. 3 September 1998.
  14. ^ "Keller down under". constructionnews.co.uk. 10 September 1998.
  15. ^ "Keller thanks Makers for growth in pre-tax profits". constructionnews.co.uk. 26 August 1999.
  16. ^ FISHLOCK, BILL (31 August 2000). "Barometer set to rise as Keller rides storm". constructionnews.co.uk.
  17. ^ "US proves golden for a bullish Keller". constructionnews.co.uk. 14 March 2002.
  18. ^ "Keller restructures as overcapacity takes toll". constructionnews.co.uk. 28 August 2003.
  19. ^ "Profits plummet by 46 per cent at restructured Keller". constructionnews.co.uk. 18 March 2004.
  20. ^ "Makers' price slashed". constructionnews.co.uk. 4 December 2003.
  21. ^ "Makers shapes up for Keller". constructionnews.co.uk. 7 January 2005.
  22. ^ "Makers recovery ups Keller's 2004 profits". constructionnews.co.uk. 10 March 2005.
  23. ^ "Meet Big Stan: Giant Drill Is the Rock Star of the Southwest | 2011-08-08 | ENR | Engineering News-Record". www.enr.com. Retrieved 10 September 2022.
  24. ^ ATKINSON, JUSTIN (25 May 2006). "Keller focused on something special". constructionnews.co.uk.
  25. ^ "Claims to boost Keller results". constructionnews.co.uk. 22 June 2006.
  26. ^ Boyd, Olivia (20 September 2007). "Keller sells social housing business to Mears". Building.
  27. ^ McCulloch, Chloë (2 October 2007). "Keller Group buys US piling contractor for £24.5m". Building. Retrieved 4 August 2019.
  28. ^ GLANCY, LISA (13 May 2008). "Keller's housing woes". constructionnews.co.uk.
  29. ^ "Keller planning a passage to India". constructionnews.co.uk. 5 March 2008.
  30. ^ ROGERS, DAVID (29 July 2008). "Keller looks beyond US in growth plans". constructionnews.co.uk.
  31. ^ Stewart, Dan (2 March 2009). "Keller turnover breaks £1bn barrier". building.co.uk.
  32. ^ Withers, Iain (17 August 2011). "Keller lands £30m Crossrail contracts". building.co.uk.
  33. ^ Withers, Iain (4 March 2013). "Overseas growth doubles Keller profit". building.co.uk.
  34. ^ Farah, Yoosof (14 May 2015). "Keller profit dips due to Australia slowdown". building.co.uk.
  35. ^ Clark, Tim (29 February 2016). "Profit jumps at Keller". building.co.uk.
  36. ^ Dransfield, Louise (1 August 2016). "Keller highlights overseas reach in solid results". building.co.uk.
  37. ^ Champ, Hamish (6 December 2018). "Kier and Keller fall out of FTSE250". building.co.uk.
  38. ^ Rogers, Dave (11 October 2018). "Keller warns on profit". building.co.uk.
  39. ^ "Fraud a profit drag for Keller". Investors Chronicle. 7 March 2023. Retrieved 11 March 2023.
  40. ^ "Keller shares underpinned despite revelation of fraud at Australian unit". Shares Magazine. 9 January 2023. Retrieved 11 March 2023.
  41. ^ "Keller Posts Strong Overall Performance In H2; Identifies Financial Reporting Fraud In Austral Unit". RTT News. 9 January 2023. Retrieved 11 March 2023.
  42. ^ "Two sacked as top mining contractor uncovers suspected 'sophisticated fraud'". Sydney Morning Herald. 10 January 2023. Retrieved 7 March 2023.
  43. ^ Morby, Aaron (9 January 2023). "Keller fires two directors after unearthing profit reporting fraud". Construction Enquirer. Retrieved 9 January 2023.
  44. ^ Pitcher, Greg (9 January 2023). "Keller shares plunge after reporting fraud uncovered". Construction News. Retrieved 9 January 2023.
  45. ^ "Keller sacks two and counts the cost of 'apparently sophisticated' fraud". The Times. 10 January 2023. Retrieved 12 March 2023.
  46. ^ Ing, Will (7 March 2023). "Keller profit falls after £18m reporting fraud". Construction News. Retrieved 8 March 2023.
  47. ^ "Keller rebrands North American businesses". The Construction Index. 6 January 2020. Retrieved 6 January 2020.
  48. ^ "Keller focuses European operation". Ground Engineering. 19 November 2020. Retrieved 17 March 2023.
  49. ^ "Keller to shut loss-making Australian subsidiary". The Construction Index. 1 July 2019. Retrieved 1 July 2019.
  50. ^ "HS2: Bauer-Keller JV wins £95M geotechnical contract". Ground Engineering. 14 April 2021. Retrieved 12 March 2023.
  51. ^ "$1.2b Surfers tower begins its rise". Gold Coast Bulletin. 18 February 2017. Retrieved 12 March 2023.

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