(Adds analyst comments; updates share price)
July 30 British construction company Keller
Group Plc said it would take a charge of 30 million
pounds ($51 million) in the first half, related to a dispute on
a project completed by its unit in 2008.
The company's shares fell as much as 2.8 percent on
Wednesday, making them one of the top percentage losers on the
FTSE-250 midcap index.
Keller said the dispute relates to purported defects in a
floor slab at a warehouse for which its unit, Keller Ltd,
undertook the design and construction of the piling.
The company, which built the foundation for London's Olympic
stadium, said the claims were currently the subject of
"The outcome is uncertain but may be significantly less bad
than the headline suggests (it may be covered in full by
insurance)," analysts at Liberum said in a note to clients.
"The shares are cheap, offer substantial margin recovery
potential and the balance sheet is strong," they said, adding
that a drop in the stock's price was a buying opportunity.
Keller said the charge was before taking into account
recoveries under applicable insurances.
The company is scheduled to report first-half results on
Aug. 4. Its pretax profit jumped 70 percent to 74.1 million
pounds in the year ended Dec. 31.
Shares in the FTSE-250 company were down 2.8 percent at 887
pence per share at 1526 GMT.
($1 = 0.5916 British pounds)
(Reporting by Aashika Jain and Aastha Agnihotri in Bangalore;
Editing by Savio D'Souza)