Galliford Try has published a strong trading update for the first six months of the current financial year.
Revenue for the full year is expected to be approaching £1.5 billion with profit before tax forecasted to be between £25 million and £28 million, around 5 per cent ahead of market expectations.
Average month-end cash for the six months to 31 December 2023 was £149 million (year to 30 June 2023: £135 million) and the group’s period-end cash position was £209 million (31 December 2022: £196 million).
Galliford maintains a portfolio of PPP assets and has no pensions liabilities, debt or associated covenants.
The group’s order book of £3.7 billion (31 December 2022: £3.5 billion) is mainly in long-term frameworks and provides good visibility of future workload, well beyond the current financial year.
In November last year, Galliford completed a share buyback programme with 8,404,148 shares repurchased and cancelled, around 7.5 per cent of issued share capital.
Complementing the group’s Sustainable Growth Strategy, Galliford’s recent acquisition of mechanical and electrical engineering specialists AVRS Systems is integrating well into its Environment division, it said. It follows the acquisitions of nmcn’s water businesses and Lintott in 2021, and MCS Control Systems and Ham Baker in 2022.
“Given the excellent progress to date against the group’s Sustainable Growth Strategy, the board expects to update its strategic targets to 2030 during the second quarter of 2024,” said Galliford.
The company is also working to replace group finance director Andrew Duxbury who will leave Galliford during the year.
The group will announce its results for the half year on 6 March.
“Galliford Try continues to perform strongly and consistently, and our performance in the first half of the financial year provides increased confidence for the full year,” said Bill Hocking, chief executive.
“We are pleased with our recent acquisition of AVRS Systems, complementing our existing operations and acquisitions of specialists Ham Baker and MCS Control Systems, further adding to our ability to provide enhanced specialist services to our water sector and related clients.
“We have excellent people and project teams, a strong balance sheet and high-quality carefully selected order book in our chosen sectors.
“We are encouraged by the performance and momentum in the business and our expectations for the full year to June 2024 have improved accordingly.”
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