LONDON (ShareCast) - - Pre-tax profits up 21%
- Revenues rise 22% on US strength
- Interim divi lifted by 5%

Ground engineering group Keller said profits jumped by over a fifth in the first half with all of its four divisions achieving strong revenue growth despite adverse currency movements.

Pre-tax profit before exceptional items increased by 21% year-on-year to £32.5m in the six months to 30 June.

Exceptional items excluded from the bottom line included a £30m charge due to a contract dispute on a project completed in 2008. Claims intimated against Keller, which are currently the subject of litigation, "are denied and being vigorously defended", the company said.

Group revenues were 22% higher at £788.2m, but would have risen 33% if foreign exchange rates had remained stable. Organic growth was driven mainly by strong performances from operations in the US and Australia, it said.

In the States in particular, which remains Keller's largest market, a 10% increase in private construction spending so far this year helped to offset flat public expenditure. North American operations generated revenues of £373m, up 21%.

The company lifted its interim dividend by 5% to 8.4p per share.

"We expect the group's results for the full year to be in line with current market expectations and, looking further ahead, we remain optimistic about our long-term prospects," said chief executive Justin Atkinson.

"Keller continues to make positive progress against its strategy and is well positioned to take full advantage of future opportunities."

BC

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