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TAKE PROFITS Keller Group (KLR)

Close Keller Group (KLR) at market (3,272p)

Keller has been one of the standout performers for FTSE Investor, more than doubling since we first highlighted the shares. The business has consistently exceeded expectations, combining steady revenue growth with a marked improvement in profitability, returns on capital and cash generation. Net debt has been almost eliminated, free cash flow remains strong and management has rewarded shareholders with a rapidly growing dividend. More recently, the company upgraded full-year expectations, helping drive the shares to record highs and reinforcing confidence in the quality of the business.

After a 122% gain, however, much of that progress is now reflected in the share price. While the valuation is not excessive on traditional measures, the market is now pricing Keller as a consistently higher-quality business, leaving less room for positive surprises than when we first highlighted the opportunity. Following such a strong re-rating, and with expectations now materially higher, this feels like a sensible point to lock in gains. Taking profits is not a reflection of any deterioration in the business, but rather an acknowledgement that the investment case has largely played out and that capital can now be recycled into opportunities offering a more attractive risk-reward balance.

Profit excluding dividends +122%

KLR Daily Candle Chart