StockMarketWire.com - Keller group said Thursday it expected full-year results to record an exceptional restructuring charge of approximately £57m owing to a group-wide restructuring programme.

The group wide restructuring programme, the company said it planned to scale back operations in its in Brazil and South Africa businesses amid challenging market conditions.

The company also said it would downside its ASEAN business, exiting its Heavy Foundations activities in Singapore and Malaysia, which had become 'highly commoditised and continue to see heavy competitive and pricing pressure.'

These operations had a combined annual revenue of approximately £60m and represent substantially all of the expected 2018 loss in ASEAN of between £12m-£15m, the company said.

Keller said it would improve performance it Waterway business by exiting the highly congested bridge superstructure market and refocusing on higher margin projects, but admitted that legacy lower margin contracts in Waterway were expected to crimp performance in through the first half of next year.

'The group expects that these measures, along with leadership changes and actions already implemented, will have the combined effect of returning the APAC region to profit in H2 2019,' Keller said.

Keller also announced it had secured improved terms on the refinancing of its existing debt facilities which were due to mature in September 2019, by entering into a new syndicated revolving credit facility totalling £375m.


At 9:15am: [LON:KLR] Keller Group PLC share price was -16p at 606p



Story provided by StockMarketWire.com