Following a record start to the year, Keller Group PLC (LSE:KLR) forecast full-year profits well ahead of the market consensus, sending its shares almost 12% higher in early deals on Wednesday.
In a trading update, the geotechnical specialist contractor revelead a record performance for the half year to 30 June 2023 and said underlying operating profit for the full year is expected to be “materially ahead of previous market expectations”.
As a result of the strong results, the company is raising its interim dividend by 5% 13.9p.
CEO Michael Speakman commented: "The actions we have taken to improve operational execution have resulted in an increased operating margin and a record performance in the first half of the year.
“This significant progress, together with the increased momentum and our robust order book, gives us the confidence to increase our expectations for the year."
Keller said operational improvements have led to a strong recovery in its North America foundations business, while the European operations are experiencing challenges leading to some margin erosion and some project delays.
At 9.45am, shares were 83p higher at 787p.