Keller Group PLC on Tuesday said profit fell in 2022 despite a strong revenue rise, due to impairments of past acquisitions.

Keller, a London-based geotechnical engineering firm, said revenue was £2.94 billion, a new record and up 32% from £2.22 billion in 2021.

However, pretax profit fell by 17% to £56.3 million from £67.5 million in 2021. Keller said this was the result of increased non-underlying costs of £37.2 million, comprising £24.0 million of non-cash goodwill impairments and amortization of acquired intangible assets. Supply chain issues and inflation resulting from the war in Ukraine contributed to this, the company said.

Underlying pretax profit was up by 17% to £93.5 million from £79.6 million a year ago.

Kelle is a specialist contractor for the construction industry, expert in piling, ground improvement, earth retention, and monitoring.

Despite the lower annual profit, Keller declared a final dividend of 24.5 pence per share, bringing the total dividend for the year to 37.7p, up 5.0% from 35.9p a year prior.

Looking ahead, Keller said it has entered the new year with increased momentum, and a more solid operational base. The company added that it is confident that 2023 will be a year of good progress.

Chief Executive Officer, Michael Speakman said: ‘Whilst higher interest rates will increase our interest expense in 2023, we have entered the new financial year with increased momentum, a more solid operational base and are well-placed for major contract awards. This, together with the actions we have taken, gives us confidence that 2023 will be a year of good progress.’

Shares were down by 5.6% to 765.00p in London on Tuesday morning.

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