In a Stock Exchange update today the firm said: “Management is implementing further cost reduction measures in its more difficult markets, which will result in a total of £3m of redundancy and other reorganisation costs in 2010, most of which will be incurred in the final quarter.

“After taking account of these charges, the Board expects the 2010 full-year results to be around the bottom end of the current range of market expectations.

“The Group’s business in the UK has continued to be beset by very weak market conditions.

“Actions taken in the first half to reduce overheads and operating costs will not be sufficient to offset the impact on its full-year results of a reduction in volume in the second half.”

Keller said its order book has improved but “underlying margins are not expected to begin to improve until such time as there is confidence in a sustained recovery in volumes.”