GALLIFORD TRY HOLDINGS PLC TRADING UPDATE
THURSDAY 11 JULY 2024
STRONG PERFORMANCE AND CONFIDENT OUTLOOK
Galliford Try Holdings plc, the UK
construction group, today provides an update on trading for the
year ended 30 June 2024. The Group expects to announce its
results for the full year on 19 September 2024.
Highlights
· Strong progress in
the year against our strategic targets, with increased revenue and
profit before tax.
· Full year revenue
and pre-exceptional profit before tax expected to be above the
upper end of current analyst forecasts1.
· Continued balance
sheet strength, with circa £227m of cash at 30 June 2024 (2023:
£220m) and average month-end cash during the financial year of
circa £155m (2023: £135m).
· Confident outlook
driven by a high-quality order book of £3.8bn (2023: £3.7bn) with
92% of revenue for the new financial year secured (2023:
92%).
· Capital Markets
Event, held on 23 May 2024, set out the Group's growth strategy to
2030, building further on the strong operational and financial
performance delivered since 2021.
· Kris Hampson will
join the Group as Chief Financial Officer on 2 September
2024.
1 The range of analyst forecasts for revenue and pre-exceptional
profit before tax for the year ended 30 June 2024 is £1.435bn to
£1.643bn and £26.7m to £29.2m respectively
as at 1 July 2024.
Current Trading
The Group performed well throughout
the year and as a result of the strong progress against its
strategic targets set in 2021, the Group, in May 2024, updated its
sustainable financial growth targets through to 2030, which
include:
Divisional operating
margin
|
increasing to 4.0% through a focus on both top and
bottom line growth and accelerated growth in our higher-margin
adjacent market businesses
|
Revenue
|
growing to in excess of £2.2bn, maintaining disciplined
contract selection and robust risk management in resilient market
sectors
|
Cash
|
retain a strong balance sheet and operating cash
generation
|
Dividends
|
sustainable dividends with earnings cover of
1.8x
|
The strong momentum reported at the
half year results continued in the second half of the year, and as
a result, the Group expects to report full year revenue and
pre-exceptional profit before tax above the upper end of current
analyst forecasts1.
Balance Sheet
The year-end cash at 30 June 2024
was circa £227m and in addition the Group has a circa £42m
portfolio of Public Private Partnership (PPP) assets, no pensions
liabilities and no debt or associated covenants. Average
month-end cash for the year ended 30 June 2024 was circa £155m
(year to 30 June 2023: £135m).
The Group's strong balance sheet is
an important differentiator for our clients and
suppliers.
Order Book and Outlook
The Group's operations are
predominantly in the public and regulated sectors. We operate
across the UK and are well positioned to deliver on local and
national commitments to improve the UK's economic and social
infrastructure.
The Group continues to see a strong
pipeline of new opportunities across its chosen sectors.
Since January 2024 we have been successful in securing projects and
participation on major frameworks including:
-
the £3.2bn Communities &
Housing Investment Consortium (CHIC) Newbuild Development Framework
for affordable homes.
-
the Scottish government's £600m public sector civil
engineering works framework.
-
South West Water's Tier 2 Delivery Partners MEICA
framework.
-
£500m Generation Five (Gen5) Civil Engineering,
Highways and Transportation Collaborative Framework 2024-
2028.
-
£101m of public sector building projects for the
Ministry of Justice and Defence Infrastructure
Organisation.
-
£98m of Infrastructure projects, in South London for
Thames Water, the Netley Water Treatment Works in Surrey and, in
highways, redevelopment of the A629 route into central
Halifax.
-
the new £69m Paisley Grammar School Community Campus
on behalf of Renfrewshire Council.
The Group has a strong order book of
£3.8bn at 30 June 2024. We start the new financial year with
92% of revenue secured and with significant investment required in
our chosen sectors of the UK's infrastructure.
Bill Hocking, Chief Executive, commented:
"We expect to report another year of
strong performance across all our operations with increased revenue
and profit as we continue to progress our updated Sustainable
Growth Strategy to 2030.
Galliford Try's ability to maintain
its balance sheet strength is key to our clients and suppliers as
well as our continued success in maintaining a high-quality order
book in our chosen sectors. Our confidence in the future is
supported by our order book as well as a long-term pipeline of
future opportunities.
I continue to be impressed by our
people, their professionalism and work ethic. We are
excited about the new financial year, our strategy to 2030 and the
opportunity to deliver further strong performance and long-term
sustainable value for all stakeholders."
A conference call for Analysts and
Investors will be held at 09:30am BST today, Thursday 11 July
20242:
Dial-in:
UK-Wide: +44 (0) 33 0551 0200
Password (if
prompted): Galliford Trading Update
2Please join the event 5-10 minutes prior to scheduled start
time. If prompted, provide the conference password or event
title.
For further enquiries please
contact:
Galliford Try
|
Bill Hocking, Chief
Executive
Kevin Corbett, General Counsel &
Company Secretary
|
01895 855001
|
Teneo
|
James Macey White/Victoria
Boxall
|
020 7260 2700
|
Certain information contained in this
announcement would have constituted inside information (as defined
by Article 7 of Regulation (EU) No 596/2014), as it forms part of
domestic law by virtue of the European Union (Withdrawal) Act 2018)
("MAR") prior to its release as part of this announcement and is
disclosed in accordance with the Company's obligations under
Article 17 of those Regulations.
Note to Editors
Galliford Try is a
leading UK construction group listed on the London Stock
Exchange. Operating as Galliford Try and Morrison
Construction, the Group carries out building and infrastructure
projects with clients in the public, private and regulated sectors
across the UK.