Galliford Try 2023 trading update and order book

Galliford Try has provided a trading update for the year ended 30 June 2023 – showing a strong performance across its operations and increased revenue. 

Despite macroeconomic challenges and delays in signing new contracts during FY2022, the Group’s Sustainable Growth Strategy progresses, it said.   

Key highlights 

• Profit before tax (PBT): £22.1 million-£23.3 million (based on 1 July 2023 forecasts)   
• Cash (at the bank and in hand): £220 million (FY2022: £219 million) 
• Average month-end cash: £135 million (FY2022: £174 million) 
• Order book: £3.7 billion (FY2022: £3.4 billion) 
• 92% of revenue secured for new financial year (FY2022: 90%) 
• Multi-contract dispute settlement: £26 million (cash)  
• Dividend to shareholders of 12p per share (to be paid in October) 

The Group has also purchased 6,437,148 shares for £11.1 million, as of 7 July FY2023. 

The PBT forecast excludes a £3 million contract settlement write-off and exceptional costs related to investment in cloud-based digital systems, previously disclosed. 

“As a result of the strong performance in the financial year-to-date, the Group expects to report full year pre-exceptional profit before tax at the upper end of current analyst forecasts,” said Galliford. 

The Group has a portfolio of PPP assets, no pensions liabilities and no debt or associated covenants. 

In acquisitions, nmcn‘s water businesses, MCS Control Systems, and Ham Baker have now been integrated into Galliford’s Environment business.  

And the Science Based Targets initiative (SBTi) validated Galliford’s near-term target to reduce carbon emissions. 

Project and framework wins (since January 2023) 

• £5.1 billion Defence Estate works 
• £4.5 billion Southern Construction Framework 
• £2.5 billion MoJ framework 
• £600 million Southern Water AMP8 Framework 
• £140 million Carlisle Southern Link Road 
• £81 million Melton Mowbray distributor road 
• £75 million Brent Cross residential project 

The Group will announce its full-year results on 20 September 2023. 

“The Group expects to report another year of strong performance across all its operations with increased revenue and profit before tax and we continue to progress our Sustainable Growth Strategy, supporting our financial targets to 2026,” said Bill Hocking, chief executive of Galliford Try. 

“An important differentiator for our clients and suppliers is the Group’s ability to maintain its balance sheet strength and continue our success in maintaining a high-quality order book in our chosen public and regulated sectors. 

“The Group prides itself on a progressive culture that invests in and supports its staff, and I am grateful to all our people for their professionalism and work ethic which delivered the performance of the Group during the year.” 

Enjoyed this? Try GRAHAM reports £1bn turnover in statement