According to industry sources, Keltbray’s infrastructure business will be sold and led by current chief executive Darren James
The infrastructure division covering rail, energy and highways accounted for £378m of Keltbray’s group revenue during the year to 31 October 2023.
Industry sources reportedly said that it was “an open secret that a deal is being done and the firm is being broken up.”
Keltbray responded to the rumours by saying that they “never comment on market speculation of this nature.”
The news follows a pre-tax loss of £1.2m for Keltbray
Annual reports to the year ending 31 October 2023 showed a turnover of £689m, with gross profit increasing 25% to £72.5m.
Operating profit decreased 20% to £4.9m due to investment in the business. However, with a £5.3m outlay on interest payments and other expenses, the pre-tax result was a £1.2m loss, compared to £3.4m profit the previous year.
Any deal to sell Keltbray’s infrastructure business would leave behind the building business under Group owner and executive chairman Brendan Kerr.
Speaking earlier this month about Keltbray’s economic status, Brendan Kerr said: “Keltbray’s business model has certainly been put to the test over the last four years, and I am pleased to report that it has served us well, making us an even stronger, more dynamic business today.
“I would like to thank everyone at Keltbray for their dedication and hard work. Their high levels of engagement have once again been instrumental to the business in producing a good set of results against a challenging backdrop.”
The infrastructure business reportedly boasts a strong order book
Chief executive Darren James sung the praises of the infrastructure business earlier this month, saying: “I am pleased with the group’s performance, particularly in key infrastructure markets such as energy transition and decarbonised transport, where secured work now exceeds £1bn. Our high-quality order book provides visibility and security of future workloads, keeping our projects safely on track and enabling us to deliver a record set of results.
“Our two division, one business structure, addresses a broad range of large and expanding UK end markets, all of which are adapting to key structural drivers such as social and political change, carbon neutrality, energy transition and supply chain challenges to name but a few. This plays to Keltbray’s strength and will bring further opportunities for the group.”
