For the year to 31 December 2011, Keller Group reported an 8% rise in group revenues for 2011 to 拢1,154.3m (2010: 拢1,068.9m) but with operating profits down a third to 聽拢28.9m (2010: 拢43.3m).
The resulting operating margin was 2.5%, compared with 2010鈥檚 4.1%.
Chairman Roy Franklin said: 鈥淭hese results reflect tough market conditions which remained very challenging throughout 2011, with the uncertain macro-economic outlook impeding any significant recovery in our mature construction markets - principally the US and Western Europe - and overcapacity maintaining pressure on margins.聽聽聽聽聽
鈥淎gainst this backdrop, the group has continued to take steps to reduce its fixed cost base.聽Actions taken in 2011 will deliver a further 拢5m of savings in 2012, bringing the total fixed overhead reduction in North America and Western Europe since 2009 to over 拢20m, a reduction of around 20%.聽Going forward, we will continue to keep costs under close scrutiny.鈥�
Keller鈥檚 UK business further reduced its costs in 2011 by closing one office and cutting the size of another. Despite these actions, the business still reported a loss, which was exacerbated by the impact of two legacy contracts, the company said.聽
During the year the UK business was awarded contracts valued at 拢37m for the Victoria Station Upgrade project and 拢31m for the Crossrail project, which started towards the end of 2011.聽Another Crossrail contract was for the largest-ever restricted access piling project awarded in the UK, at Lord Hill's Bridge.聽With the first phase of the contract - installing vertical piles - now complete, the more challenging second phase, which involves installing minipiles at up to 38-degree angles, is progressing well, Keller said.
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