Keller Group PLC Sale of Property (7931E)

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RNS Number : 7931E

Keller Group PLC

11 May 2017

For immediate release 11 May 2017

Keller Group plc

Sale of Property

Keller Group plc ("Keller" or "the Group"), the world's largest geotechnical contractor, announces that it has sold the freehold of a processing and warehousing facility at Avonmouth, near Bristol, to CSUK1 Holdings Limited and CSUK1 Investments Limited for a cash consideration of GBP62m.

As previously announced, Keller acquired the property in May 2016 pursuant to a settlement agreement in connection with a contract dispute arising on a project completed in 2008. Since that time, the Group has received around GBP4m of rental income, which has been treated as an exceptional item.

Most of the proceeds will be used to repay the GBP48m bank facility raised for the original acquisition of the property.

The property is held on the Group's balance sheet at a value of GBP54m. The sale therefore realises a profit of GBP8m before costs which will be included as an exceptional profit in the Group's 2017 interim results.

For further information, please contact:

 
 Keller Group plc                      www.keller.com 
 James Hind, Finance Director          020 7616 7575 
 
   Finsbury 
 Gordon Simpson, Theo Hildebrand       020 7251 3801 
 

Notes to Editors:

Keller is the world's largest geotechnical contractor, providing technically advanced geotechnical solutions to the construction industry. With annual revenue of around GBP1.8bn, Keller has approximately 10,000 staff world-wide.

Keller is the clear market leader in the US, Canada, Australia and South Africa; it has prime positions in most established European markets and a strong profile in many developing markets.

LEI: 549300QO4MBL43UHSN10

Classification: Inside Information (DTR Annex 1)

This announcement includes inside information as defined in Article 7 of the Market Abuse Regulation No. 596/2014 and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations. On the publication of this announcement via a Regulatory Information Service ("RIS"), this information is considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

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May 11, 2017 02:01 ET (06:01 GMT)