Keller profit down a third

2nd Mar 2010 08:21

Ground engineering specialist Keller suffered a 34% slump in profits in 2009 and is yet to see any sustained upturn in orders.It warned that 2010 will be another challenging year, especially after the severe weather in the northern hemisphere in the first two months, which greatly restricted group output.Pre-tax profit tumbled to £74.7m in the year ended 31 December 2009 from £113.2m in 2008 on revenue down 13% to £1.04bn."As a group, we have not yet seen a sustained upturn in orders and this is reflected in our order book, which is 14% below the same time last year on a constant currency basis," the firm said.Commercial construction in the developed world is likely to contract further, particularly in the US, which Keller says will increase the downward pressure on margins.But government spending in most parts of the world is expected to remain at a relatively high level and Keller expects to see some benefit from US stimulus spending in the second half.The total dividend rises 5% to 21.75p a share.