Shares in Keller Group PLC (LON:KLR) plummeted on Thursday after the ground engineering firm told investors that it would miss expectations for the current financial year because of “very difficult” market conditions in the Asia Pacific region.
Keller’s Asia division incurred more losses in the third quarter and the British firm said it expects the recovery in this side of its business to take longer than previously thought.
“As a result, the board now expects the group's full year 2016 underlying results to be around 15% below current market estimates, mainly due to underperformance in APAC,” the firm said in a statement.
On top of this, second half results will also include an exceptional restructuring charge of around £10mln, related to “further downsizing actions”.
Keller added that third quarter trading in North America and Europe – which makes up around 70% of its revenues – was steady, however.
On a more positive note, the like-for-like order book for work to be undertaken over the next 12 months is at all-time high.
On its outlook, Keller told investors that it is “well placed” to deliver solid performance in 2017 given the strength of the order book and improving European and US markets.
Investors weren’t impressed though, with the share price dipping 27% to 650p.