Last Updated May 16th 2023
Keller Group plc
Keller Group is the world’s largest independent ground engineering contractor and a UK leader in geotechnical solutions. Listed in London, the group is a FTSE 250 company with an annual turnover of over £2 billion and has secured major piling contracts on the High Speed 2 rail link.
Although Keller”s group hq is in London, the group has a head office in Coventry and it operates worldwide. It has strong coverage across Europe, the US and Australia and a growing operation in the Middle East and Asia. In all, Keller employs around 10,000 staff across five continents.
The group is led by chief executive Michael Speakman and in the UK, the group works through Keller Foundations; Getech; Colcrete Eurodrill, which makes grouting mixers and equipment and drilling consumables; Phi Group, the largest retaining solution specialist in the UK and Keller Geotechnique. Its core services cover piling, retaining structures, ground improvement, anchors & soil nailing, grouting, piled walls, cut off & barriers, soil mixing and monitoring solutions.
Today, Keller works through 19 business units and is focused on being a preferred international geotechnical specialist contractor in markets where it has leading positions and working on what it sees as large, attractive projects. The aim is that local businesses will leverage the group”s scale and expertise to provide engineered solutions and drive market leadership.
Keller has a regional structure which allows it to compete with local operators for small and medium sized contracts. It typically works on around 6,000 projects a year, across the £25k -£1 million bracket and with an average project value of £500k. The group estimates it has an 16% share of its core markets.
The group recently unveiled solid results for 2022 and a ‘robust’ £1.4 billion order book. In March 2023, CEO Michael Speakman said: “… we have entered the new financial year with increased momentum, a more solid operational base and are well placed for major contract awards. This, together with the actions we have taken, gives us confidence that 2023 will be a year of good progress”.
Keller UK was awarded gold level accreditation with the Supply Chain Sustainability School in 2021, the only independent geotechnical specialist to reach this standard.
Meanwhile, Keller UK is currently on a mission to cut carbon emissions, with recent initiatives including slashing energy consumption, introducing EVs and the latest, most efficient rigs.
Financials
To view the financials for Keller Group., visit Companies House and use Company ID 02442580.
Keller put in a strong performance in 2022. Revenues rose by 32% to £2,994.6 million, mainly driven by organic growth. The group”s underlying operating profit rose by 23% to £108.6 million although the operating margin slipped to 3.7% from 4.0%, reflecting inflation and issues in North America. Underlying pre-tax profits rose by 17% to £93.5 million. Meanwhile, the group”s free cash flow fell to a negative £33.8 million from a positive £62.5 million previously and its net debt climbed to £218.8 million from £119.4 million, partly reflecting investment in a major Saudi project.
Europe
Operating profits across Keller”s Europe business rose by 20.2% to £29.1 million in 2022, on revenues up 19.4% (constant currency) at £649.3 million. Meanwhile the group”s order book in the region increased slightly to £347.5 million. The group’s UK business saw revenue growth thanks to increased activity at its core foundations and geotechnique businesses and the smooth running of its High Speed 2 (HS2) rail contract.
On HS2, Keller has a C1 package worth around £84m and the main packages of work on C2/3 were worth around £48m.
In February 2021, a 50/50 jv between Keller and VSL International won a £167 million contract to deliver geotechnical work as part of the C1 package between London and Birmingham on HS2. The contract was awarded by Align, a jv of Bouygues Travaux Publics SAS, Sir Robert McAlpine and VolkerFitzpatrick, which is building the C1 section of involving 21.6km of high-speed rail line, including a 3.4km viaduct and twin-bore 16km tunnels under the Chilterns.
The Keller/VSL jv will construct the piled foundations for the viaducts, grouting works, retaining structures for four ventilation shafts, and ground improvement works for the tunnel cross passages. At its peak, the project will involve 270 people on site.
Meanwhile, three Keller divisions have worked together on a £37m redevelopment of Rhodes House, an historic building in Oxford. Piling, jet grouting and monitoring works were undertaken as part of remodelling work by Beard Construction. Other key projects where Keller has worked in recent years include installing the foundations for a new 52-bed modular ward at Southend University Hospital where the firm worked for Galliford Try.
Meanwhile, two Keller divisions have worked on a major flood defence project in London, installing specialist minipiles and undertaking groundwater monitoring as part of the Environment Agency’s 10-year plan. The works are led by Team 2100, a venture which includes Balfour Beatty, Jacobs and others.
In November 2022, Keller acquired Nordwest Fundamentering AS, a specialist geotechnical contractor based in Trondheim, in the west of Norway, for around £6m, building its market share in the region whilst exiting small businesses in Denmark and the Ivory Coast.
North America
Keller is the market leader in the US, with a presence for over 25 years. In 2022, revenues rose by 29% to £1,896.1 million and underlying operating profit rose slightly to £82 million although the order book slipped by 13% to £761.3 million. Suncoast, a post-tension business serving the housing sector, saw high volumes despite a continued slowdown in the US housing market.
Asia-Pacific, Middle East, Africa
Keller has built up its presence in Asia in recent years. The business started life as a ground improvement specialist, but now offers a wide range of foundation services. The group’s AMEA division saw a 9% rise in revenues to £399.2 million in 2022 helped by a recovery in trading in Australia, the Middle East, Africa and India. Meanwhile, underlying operating profit re-bounded dramatically to £6.6 million from a loss of £0.9 million previously. The division’s order book in the region rose by 56% to £298.4 million.
Glenigan Data
Figures from Glenigan point to a varied workload at Keller. They show that the group is the piling contractor on the £31 million revamp of the Sainsbury Wing of the National Gallery in Trafalgar Sq where Sir Robert McAlpine is the main contractor and work started in early 2023 (Project ID: 21074478). Glenigan data also shows that Keller is the piling contractor on the £200 million Phase 3 of alterations at the ExCel exhibition centre in east London where work also started in early 2023 (Project ID: 18365178).
Conclusion: Geographic spread and market presence should ensure long term health
Although some of its overseas markets remain challenging, Keller has emerged from the pandemic in good shape with a healthy order book and it stands to benefit from a boost to infrastructure spending by governments worldwide. Improvements to its margins should follow. The group’s UK operations are benefitting from some major orders on HS2 and some landmark projects in the capital although they remain exposed to a slowing in commercial market. Longer term, Keller”s wide geographic spread and strong brand and market presence should ensure it continues to thrive.
Winning work with Keller
Keller believes that it can best serve its local construction markets with a regional structure with common goals, shared interests and good working relationships. The group puts significant store by the pooling of expertise and resources and the transfer of technologies which can in turn create synergies.
Key contacts
Mark Snell, Operations Director- Piling
Tel: 0207 6167575
Email: mark.snell@keller.co.uk
At Colcrete Eurodrill, the contact is Managing Director Mark Rex
Tel: 01246 868700
Email: mark.rex@colcrete-eurodrill.co.uk