Keller Group FY profits fall on higher costs, Ukraine war

7th Mar 2023 07:45

(Sharecast News) - Geotechnical engineering company Keller Group on Tuesday reported a fall in full-year earnings as inflation, higher costs and the war in Ukraine took their toll.

The company reported pre-tax profit of £56.3m for the year to December 31, down 17%. On an underlying basis profit rose 17% to £93.5m

Group revenue was £2.94bn, up 24% on the prior year on a constant currency basis.

"Whilst markets generally began to recover in volume terms, the residual pandemic-related labour and supply chain shortages were compounded by more localised effects of the war in Ukraine, resulting in increased supply chain issues and stronger inflationary pressures than the global economy has seen for some time," the company said.

"Against this uneven macroeconomic backdrop, construction demand has reacted variably across geographies and sectors and almost all our businesses faced the challenge of serving increased market demand with a decreasing and more expensive supply base."

Keller said that higher interest rates would increase interest expenses in 2023, but noted that the company had started the new financial year with increased momentum, a more solid operational base and was "well placed" for major contract awards.

Reporting by Frank Prenesti for Sharecast.com