Shares in ground engineering firm Keller Group shed 27 per cent after warning on 15 per cent profit fall

Francesca Washtell
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Cargo ships navigate in the Suez Canal b
Keller Group was recently awarded a major contract in Port Said, Egypt (Source: Getty)

Shares in ground engineering firm Keller Group plummeted 27 per cent today after the company warned its underlying profits are likely to come in 15 per cent below market expectations.

A continuation of "very difficult" conditions and "underperformance" in Keller's main markets in the Asia Pacific region will drag down full-year profits, the group said in a trading update today.

Keller also flagged it will be hit with an exceptional restructuring charge of £10m, much of which will be non-cash, in its second half results, driven by company downsizing.

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At the time of writing, Keller's stock is down 26.99 per cent to 647p per share, down from a close yesterday of 885.5p.

20 October 2016 @ 10:30amKeller Group (KLR)

Third-quarter trading in the group's core Europe and US markets, which together account for around 70 per cent of revenues, have "remained strong".

However, in other parts of its North America and Europe, Middle East and Africa regions, particularly Canada and sub-Saharan Africa, market conditions have "remained depressed" and the group has had to undertake further restructuring.

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In August, the group's share price shed 11 per cent after it reported a "very difficult" start to the year. Underlying operating profit in the first half fell six per cent to £35.6m, though revenue rose 12 per cent to £849.7m.

Earlier this month, Keller was awarded a £60m contract in Port Said, Egypt, for ground improvement works along the newly-created navigation channels of the Suez Canal.

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