Keller Group PLC on Thursday backed its full-year outlook despite highlighting weak activity levels in Europe.

The London-based geotechnical engineering company said it has continued to sustain the ‘material step-up’ in operational and financial performance delivered in 2023 and in the first half of 2024.

As a result, it remains on track to deliver a full year performance in line with expectations.

‘Whilst the current macroeconomic environment presents both opportunities and challenges across our markets, the overall performance of the group, together with our continuing record order book and the groupwide focus on improving project execution, gives us confidence for the short and medium term,’ the firm said in a statement.

In response, shares in Keller tumbled 12% to 1,443.80 pence each in London on Thursday. Despite the fall, shares are up 64% in the year-to-date.

In North America Foundations, Keller reported continued improvement in underlying contract performance, and ‘buoyant’ market conditions experienced in 2024.

At Suncoast, profit has tempered as expected, reflecting the reversion of pricing to more normalised levels and lower residential trading volumes, it added.

But in the Europe & Middle East division, the macroeconomic environment remained a challenge across Europe.

‘As a result, activity levels remained weak in the European residential and commercial sectors and profitability continued to be impacted by the competitive pricing environment.’

In the Asia-Pacific division, the performance continued to be robust.

Keller expects the year-end net debt/earnings before interest, taxes, depreciation and amortisation leverage ratio to be below its target range of 0.5 to 1.5 times.

In addition, Keller named Carl-Peter Forster as a non-executive director and chair designate.

Forster will join with effect from December 16, succeeding Peter Hill, who announced in July his intention to step down after approaching nine years in the role.

Copyright 2024 Alliance News Ltd. All Rights Reserved.