Keller : View report (4.5MB)

Operational highlights

Another year of good progress.

By precisely blending these elements at the right time, we achieve local results that set the global standard.

Group revenue down year on year by

-2.3%

Group operating margin* up to

6.6%

Earnings per share* increased to

86.4p

per share

• Before exceptional items.

  Operating profit* up to

  £103.4m

  Cash generated from operations* down to

  £142.3m

  Total dividend increased to

  27.1p

  per share

  Highlights Contents

  Key financial highlights

  Revenue from continuing operations (£m)

  4	Chairman's statement
  2015	1,562.4	6	Chief Executive Officer's review
  2014	1,599.7	8	Our markets

  £1,562.4m

  OVERVIEW

  Overview

• Highlights

• About Keller

Strategic report Strategy

2013

2012

2011

1,154.3

1,317.5

1,438.2

10 Our business model

12 Our strategy

14 Strategy in action

STRATEGY

26 Principal risks and uncertainties

29 Resources and relationships

Performance

32 Executive Committee

34 Operating review

34 North America

Operating profit (£m)*

£103.4m

2015

2014

2013

2012

1. Australia

   103.4

2. EMEA

92.0

1. Asia

   77.8

2. Financial review

48.3

Governance

2011 28.9

Earnings per share (pence)*

86.4p

40 Corporate governance statement

PERFORMANCE

40 Board of Directors

42 Chairman's introduction

48 Health, Safety & Environment Committee report

Nomination Committee report

2015

2014

2013

2012

2011

24.8

45.9

75.3

73.0

86.4

49

50 Audit Committee report

52 Directors' remuneration report

67 Directors' report

1. Statement of Directors' responsibilities

2. Independent Auditor's report

Financial statements

72 Consolidated income statement

GOVERNANCE

1. Consolidated statement of comprehensive income

2. Consolidated balance sheet

3. Consolidated statement of

   20.5

   18.3

   16.7

   11.6

   2011 6.6

   Return on capital employed (%)*

   20.5%

   2015

   2014

   2013

   2012

   * Before exceptional items.

   Cautionary statement

   This document contains certain 'forward-looking statements' with respect to Keller's financial condition, results of operations and business and certain of Keller's plans and objectives with respect to these items.

   Forward-looking statements are sometimes, but not always, identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'will', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'potential', 'reasonably possible', 'targets', 'goal' or 'estimates'. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future.

   There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements.

   These factors include, but are not limited to, changes in the economies and markets in which the Group operates; changes in the regulatory and competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; and changes in interest and exchange rates.

   All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Keller or any other member of the Group or persons acting on their behalf are expressly qualified in their entirety by the factors referred to above. Keller does not intend to update these forward-looking statements.

   Nothing in this document should be regarded as a profits forecast.

   This document is not an offer to sell, exchange or transfer any securities of Keller Group plc or any of its subsidiaries and is not soliciting an offer to purchase, exchange or transfer such securities in any jurisdiction. Securities may not be offered, sold or transferred in the United States absent registration or an applicable exemption from the registration requirements of the US Securities Act.

   changes in equity

4. Consolidated cash flow statement

5. Notes to the consolidated financial statements

1. Company balance sheet

2. Company statement of changes in equity

3. Notes to the Company financial statements

Other information 106 Financial record

1. Principal offices

   FINANCIAL STATEMENTS

2. Secretary and advisers

1

KELLER GROUP PLC

Annual Report & Accounts 2015

About Keller

Australia and Sub-Saharan Africa; we have prime positions in most established European markets; and we have a strong profile in many developing markets.

We are the market leader in North America, where we have had a market presence for over 30 years. Today, we operate from locations spanning the US and Canada. Hayward Baker offers extensive ground engineering

solutions across North America.

Our EMEA division has operations across Europe, the Middle East and Africa, together with a developing business in Latin America. We operate as Keller in most of these regions, other than Sub-Saharan Africa, where we operate under the

Western Europe 50%

Africa 18%

Eastern Europe 17%

In the US, Case, McKinney and HJ are heavy foundation specialists and Suncoast provides post- tension cable systems. In Canada, Geo-Foundations specialises in micro-piling, ground anchors, and specialty grouting services and Keller Canada offers a broad range of piling solutions.

US 91%

Canada 9%

Revenue (£m) +9.7%

£851.2m

Operating profit* (£m) +27.5%

£76.4m

* Before exceptional items.

Franki brand.

Middle East 8%

Other 7%

Revenue (£m) -2.2%

£441.5m

Operating profit* (£m) +65.1%

£21.3m

* Before exceptional items.

In recent years we have built up our presence in Asia, where we started life as a ground

improvement specialist, but now offer a wide range of foundation services. We are well established in Singapore, India and Malaysia, with developing businesses in other parts of the ASEAN Region. In Asia we generally operate as Keller, although the Resource Piling name has been retained alongside the Keller brand in Singapore.

Singapore 43%

Malaysia 40%

India 13 % Other 4%

Revenue (£m) -2.8%

£108.2m

Operating profit* (£m) -45.8%

£4.5m

* Before exceptional items.

Keller offers a range of piling services under its Keller Foundations brand. Keller Ground Engineering ('KGE') offers specialist ground improvement and geotechnical solutions. Austral Construction ('Austral') and Waterway Constructions ('Waterway') specialise in foundations for, and the maintenance of, wharves, jetties and other marine structures.

Although they specialise in different techniques, on very large or complex projects, the companies may join forces, under the Keller Australia brand.

Keller Foundations 50%

Waterway 32%

Austral 12% KGE 6%

Revenue (£m) -38.2%

£161.5m

Operating profit* (£m) -54.1%

£7.2m

* Before exceptional items.

2

KELLER GROUP PLC

Annual Report & Accounts 2015