US tax reform legislation
For immediate release 5 January 2018
US tax reform legislation - estimated impact on Keller
The US Government recently passed the Tax Cuts & Jobs Act which contains significant tax reform measures.
Keller expects this tax reform legislation will benefit its future after tax earnings. This is mainly due to the future reduction in the US corporate income tax rate from 35% to 21%, partly offset by a net adverse impact from other changes. Our current estimate, which is subject to further analysis and clarification of certain items, is that the changes will reduce the Group's future overall effective percentage tax rate by around 5% points to a number in the high twenties percent.
In addition, we expect that the Group's 2017 earnings will benefit from a one-off non-cash credit to the Group income statement as a result of the revaluation of US deferred tax liabilities. Based on the net liabilities at the end of 2016, this credit is expected to be around US$10m.
As noted above, we are in the process of working through in detail the impact of these changes and will give a further update in the Group's full year 2017 results announcement on 26 February 2018.
For further information, please contact:
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Keller Group plc |
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James Hind, Finance Director Victoria Huxster, Head of Investor Relations |
020 7616 7575 |
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Finsbury |
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Gordon Simpson |
020 7251 3801 |
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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 £2.0bn, 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.
For more information, please go to:
http://www.keller.com/investors.aspx and http://www.keller.com/investors/investment-case.aspx.
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
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