Keller Group

Keller Group plc (lse: KLR) is a geotechnical engineering company. It is listed on the London Stock Exchange and is a constituent of the FTSE 250 Index. The company is the world's largest geotechnical specialist contractor.[4]

History

The company was established in the 1950s as the ground engineering division of GKN plc.[5] In 1960, it expanded into a stand-alone piling and ground improvement company and, in 1975, it acquired the German company Johann Keller and took on that name.[5] In 1984, Keller bought Hayward Baker Inc., a US ground engineering business.[6] In 1990, it was the subject of a management buy-out from GKN plc supported by Candover.[6] During May 1994, the company was listed on the London Stock Exchange for the first time;[7] three months later, it was awarded a £7.5 million contract for a German customer; at the time, it was the company's largest single order.[8] In early 1995, Keller Group announced it has recorded £9.4 million in pre-tax profits, a 33 percent rise over the previous year; this was in part attributed to deals made in the North American market.[9][10]

In 1997, Keller Group's fiscal performance dipped somewhat, which was attributed to external factors such as the strengthening of the Sterling and an economic downturn in Germany.[11] Six months later, profits rose to £13.8 million, which was up 10 percent from the previous year; a large portion of these gains were from its international projects.[12] During 1998, the company elected to expand its British-based concrete repair subsidiary Makers,[13] as well as acquire the Australian foundation specialist Franki for £3.5 million.[14] In August 1999, Keller Group stated that two-thirds of its pre-tax profits were derived from Makers.[15]

Throughout the early 2000s, the American market would be a consistent source of profits for the company.[16][17] During 2003, Keller Groups underwent restructuring, which included 50 job losses, due to overcapacity and industry-wide changes;[18] profits declined sharply by 46 percent while its subsidiary Makers was marked down by £7 million.[19][20] However, by the start of 2005, Makers had returned to profitability and Keller Group was once again considering its expansion.[21][22]

During 2006, Keller Group acquired Anderson Drilling, the creators and owners of the Big Stan drilling rig,[23] along with several British specialist firms,[24] amid stronger than expected fiscal results.[25] In September 2007, the company sold its social housing division for nominal consideration;[26] later that same year, the company acquired the American piling specialist HJ Foundation in exchange for £24.5 million.[27]

During 2008, Keller Group was impacted by the start of the Great Recession and a major downturn in the housing market;[28] in an effort to reduce its dependence upon the US market, it turned towards other markets, such as India and eastern Europe.[29][30] One year later, the company achieved over £1 billion in turnover for the first time.[31]

In 2011, it was awarded contracts worth £30 million for grouting, structural monitoring and surveying works on London's Crossrail programme.[32] Two years later, Keller Group doubled its profits, which its management was attributed to its international growth.[33]

During 2015, the company's performance dipped due to a downturn in Australia;[34] while lower revenues were recorded for that year, profits actually rose.[35][36] Nevertheless, in 2018, Keller Group issued a profit warning and dropped out of the FTSE 250 Index.[37][38]

In January 2023, Keller Group published a profit warning after a "deliberate and sophisticated financial reporting fraud" at Austral Construction.[39][40][41] The estimated impact was £6m related to the first half of 2022, and £8m to £10m relating to prior years. Two directors were dismissed as investigations continued,[42][43] and the company's shares fell 10%.[44] The fraud was described by The Times as "apparently sophisticated".[45] Keller's pre-tax profit for 2022 fell by 17% as a result; it made £56m profit across the year, from a turnover of £2.9bn.[46]

In June 2025, Keller announced CEO Michael Speakman would leave in August 2025 for medical reasons, and would be succeeded by James Wroath, a former CEO of logistics firm Wincanton. In 2024, Keller revenues grew 1% to £2.98bn with pre-tax profit up 46% to £184m, and operating profit up 34% to £205m.[47]

Operations

Keller operates under three divisions and is supported by its group head office:

The company has been involved in laying foundations for complex projects including High Speed 2 in the UK[51] and the Spirit Tower in Australia.[52]

• North America: Bencor, Case Foundation, Hayward Baker, HJ Foundation, Keller Canada, McKinney Drilling, Suncoast, Moretrench. With effect from 1 January 2020, these businesses were all branded as Keller and operate as regional parts of a single company.[48]
• Europe, Middle East and Africa: Central Europe, North-East Europe, North-West Europe, South-East Europe, Franki, French Speaking Countries, Middle East, Iberia and Latin America, Brazil[49]
• Asia-Pacific: ASEAN, India, Keller Australia and Austral Construction.[50]

See also

• British Geotechnical Association

External links