LONDON (ShareCast) - (Sharecast News) - The share price of Keller surged on Tuesday after the geotechnical engineering company reported a big increase in underlying annual profits that beat market expectations and a share buyback programme, bolstered by a record year-end order book.
Revenues were just 1% higher in 2024 at £2.99bn, but would have been 4% higher at constant currency.

North American revenues, which make up the bulk of the business, increased 4.2% at constant currency to £1.79bn, driven by improved trading in the foundations business. In Europe and the Middle East, revenues were up 5.5% at £835m, reflecting an improved performance in Europe and the completion of a large infrastructure project in Central Europe.

That helped to offset a 2.1% revenue decline in Asia Pacific to £366m, due to a "moderation of trading volume" in Australia following a strong performance in 2023, as well as lower volumes at the Austral unit.

Underlying operating profits were up 22% on a constant currency basis at £213m, helped by a 100-basis point improvement in the underlying operating profit margin to 7.1%.

Meanwhile, free cash flow generation increased by 87% to £193m, while net debt was slashed by £117m to £30m.

The company ended the year with a record order book of £1.6bn, up from £1.5bn at the end of 2023.

As well as a 10% increase in the total dividend to 49.7p, Keller said it was launching a multi-year share buyback programme, with an initial tranche of £25m in the first quarter.

"2024 was another outstanding year for Keller, ahead of expectations, delivering improved performance across all key metrics - profits, earnings, margin, return on capital, cash conversion and debt reduction," said chief executive Michael Speakman.

Shares were up nearly 14% at 1,468p by 1047 GMT.

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