KELTBRAY DELIVERS STRONG RESULTS

Esher 27 April 2018: Keltbray Group; the UK leading specialist contractor, which offers engineering, construction, demolition, decommissioning, remediation, rail, environmental services and reinforced concrete structure solutions, today announced its financial results for the year ending 31 October 2017. The Group continues to grow with an increase in turnover of £48.1 million (13%) from £369.4 million to £417.5 million. Operating profit at £23.8m (2016 £24.4) and profit before tax £23.3m (2016 £23.6m) were slightly below the previous year.

Operating profit margin has reduced to 5.6%(2016 6.6%) due to tightening trading conditions and an increase in overhead costs reflecting investment in management, systems and infrastructure to manage the growth in turnover and to provide a robust framework for future growth.

Keltbray Group now directly employs around 1,500 people across the following three business streams:

1. Specialist Contracting Services (SCS): demolition, engineering design, reinforced concrete structures, piling and sheet piling, asbestos management, remediation, waste and soil treatment and supply of plant and haulage services

2. Rail: civil and rail engineering, permanent way (track), piling, overhead line electrification design an installation, and plant hire.

3. Services: labour agency hire and recruitment, training and development and occupational health services serving mainly internal companies.

In 2017 the SCS business achieved turnover growth of15% (from £269.4 million to £311.0 million). This was primarily driven by our demolition, civil engineering and piling businesses.

Meanwhile, the rail business stream increased turnover by 6% (from £100.0 million to £106.5 million)

Keltbray CEO, Brendan Kerr, said: “We are pleased with these results, which saw us increase turnover, generally maintain profit levels and improve our cash position against a backdrop of an increasingly uncertain economic climate, particularly in London and the South East, where lack of clarity on Brexit remains a dampener on growth.

“While we expect the demand for our demolition and civil engineering services to slow down this year, we estimate this reduction to be partially offset by Keltbray Structures, which ended the year with a pipeline of more than £120 million worth of work.

“The change in the nature of project spend under Control Period 6 announced by Network Rail has led us to review other markets to diversify our client base for overhead line electrification opportunities. As previously announced we are working with Aecon to assist them in the delivery of major overhead line electrification projects in Canada. We remain committed to the UK rail market and the opportunities in Canada will assist us build a more sustainable rail business for the future”.

“We remain committed to our specialist contractor roots and the continuing investment in our self-delivery model which means we employ, manage and train our own employees using our own specialist plant and equipment, but have developed a mitigation strategy to meet the challenging times ahead. This will see the Group continuing to diversify into specialist services that are aligned to our existing portfolio, and strengthen our position in other construction-related sectors, such as residential, infrastructure, industrial and utilities.”

ENDS

More information:
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For more information, please contact Keltbray’s head of communications, Marit Meyer-Bell, on tel. 0786 765 3392 or by email to marit.meyerbell@keltbray.com

Keltbray Group
Keltbray Group is the UK’s leading specialist business, which offers engineering, construction, demolition, piling, decommissioning, remediation, rail, reinforced concrete structures and environmental services. The company dates back to 1976, employs more than 1500 people, and is a key player in developing and maintaining Britain’s built environment. Keltbray provides services to meet the needs of diverse and complex projects, and its well qualified people take pride in delivering projects safely and efficiently, on time and to budget, and with care for the environment and our communities. Keltbray has contributed to a range of high profile construction projects including The Shard, Queen Elizabeth Olympic Park Stadium, St Pancras International, Crossrail, Earls Court, Battersea Power Station and HS2.