Shares digital

Keller (KLR) – Finals PTP: £103.2m (£83.7m) Divi: 18p (15.6p)

A degree of exposure to the beleaguered housing market in the US meant shares in Keller, the ground engineering specialist, were battered last year. However, the group managed a strong performance, registering its highest ever operating margin (from continuing operations) at 11%.

Thanks to a mix of organic and acquisitive growth, revenue was up 11% to £955 million, and taxable profits grew 23% to £103.2 million, although if you include tax, one-offs and discontinued operations profits net of tax were flat at £56.8 million.

The total dividend was raised 15% to 18p. Exposure to the US is now reduced, and weakness in the residential housing could be offset by decent growth in non-residential areas. All other regions performed wonderfully last year and growth should continue.

Shares says: Strong balance sheet, growing business and low PE at around six times 2008 EPS.

by: Carlo Svaluto