Keller are in good shape depsite "challanging" conditions

Keller Group plc , the international ground engineering specialist, issued a resilient trading forecast in their Interim Management Statement released this week. the group say that most of the geographical markets in which we operate remain "challenging" however in most of their regions public infrastructure spending remains robust although privately-financed construction generally is still fragile.

Revenues and margins since the first half have continued to be below the comparable period in 2008 , however the group say that "viewed in the context of the difficult market conditions, the results so far reflect a resilient performance."

The Group's financial position remains strong. After payment for the acquisition of Resource Holdings, net debt at the end of October stood at approximately £100million reflecting good cash generation in the period. The Group retains over £200million of committed facilities expiring between 2010 and 2014 to meet its strategic and operational goals.

Order intake, which in the first half of the year was down 22% on a like-for-like basis compared with the preceding first half, has since remained reasonably steady. However, reduced levels of construction expenditure around the world have, as expected, resulted in tighter pricing which will generate lower margins until our markets recover.