Galliford Try expects further hit from Aberdeen Bypass

Aaron Morby 7 months ago
Share

Galliford Try has warned that bad weather on the troubled £745m Aberdeen Western Peripheral Road project will see another exceptional charge taken in the first half of the year.

Progress has been impacted by bad weather at the start of the year

In an otherwise upbeat trading statement for the start of 2018, chief executive Peter Truscott said that construction’s underlying performance continued to improve as the division worked through legacy contracts.

He said: “We have experienced some further cost pressure, principally from weather delays, which are likely to increase the exceptional charge in the current year. 

“The amount will depend upon progress recovered through the summer, and is expected to be lower than the £25m charge taken in the first half.”

He added: “We are continuing to discuss several significant claims.  Practical completion of the project is anticipated this summer.

Construction’s underlying performance continued to improve, as outstanding legacy contracts diminished.

“The business is seeing a good level of new project wins and opportunities on its multiple frameworks, whilst maintaining its disciplined approach to bidding.”

Its partner on the late-running Scottish road project Balfour Beatty also confirmed this morning the project was on track to meet the latest revised completion date this summer.

Chief executive Leo Quinn said there would be no change to the £105m – £120m Balfour Beatty cash outflow guidance for 2018 provided at the full year 2017 results.

He said Balfour continued to make good progress on the second phase of the Build to Last transformation programme and remains on track to achieve industry standard margins in the second half of 2018.

At the rest the Galliford Try business,  Partnerships & Regeneration continued to benefit from strong demand and opportunity to grow both its mixed tenure and contracting offering.  The business expects to report margin growth driven by market demand, contract wins and our successful geographical expansion.

Truscott added: “In Linden Homes sales rates remain encouraging at 0.71 units per site per week since 1 January, positioning the business well for the remainder of the financial year.

“We are also making good progress in line with our strategic objectives, and expect to report further margin improvement.”

 

 

Latest news

Argent gets go-ahead for major Tottenham Hale revamp

Contractor hunt to start soon with construction set to start next summer
7 hours ago

£2bn Elephant & Castle shopping centre scheme final go-ahead

Demolition to start after London mayor nods through vast scheme
11 hours ago

Drylining boss banned for tax dodging

Insolvency Service investigators uncover huge CIS and VAT payment discrepancies
7 hours ago

Modular building specialist goes into administration

Timber accommodation pod maker Carbon Dynamic runs out of cash on major contract
10 hours ago

Structural engineer crushed under scaffold tubes

Housing giant and scaffold contractor fined a total of £180,000
11 hours ago

Consultant MHBC merges with Cumming

City of London based firm now part of global giant
10 hours ago

Crossrail delayed again as costs rise by another £2bn

Mayor attacks previous management team who insisted project was "on time and on budget"
1 day ago

Top housing association hires Lendlease resi chief

Richard Cook will lead Clarion Group's ambitious development plans
1 day ago

UK’s tallest Premier Inn plan in Docklands

Premier Inn books in at 30-storey mixed resi and hotel scheme
10 hours ago

Kier wins £45m Cambridge schools campus phase one

Northstowe education campus includes a new 1,800 pupil secondary
11 hours ago

Ian Lawson to advise McLaren on growth plans

Former Severfield and Kier boss becomes consultant at expanding contractor
1 day ago

Boost your online presence – join the Enquirer Directory

New site for suppliers and buyers showcases products, services and latest stories
7 months ago

Interserve shares collapse as rescue talks continue

Shares slump to all-time low as firm now worth under £13m
2 days ago

Forrest falls into administration

Construction and housing divisions to cease trading while Engie buys refurb and energy contracts
4 days ago

Wates chief draws up first best behaviour code for private firms

Wates Principles to raise corporate governance standards at private firms
1 day ago

Plan for Bristol Finzels Reach £140m phase 2

Former Avon Fire and Rescue HQ to be transformed with 300 homes and offices
1 day ago

Labour calls for public contract bidding ban on Interserve

Shadow minister demands action to protect taxpayers
1 day ago

£750m East of England framework out for rebid

Construction work to be broken into four project value bands
1 day ago

Lakehouse staff let go as subcontractors quit sites

Workers made redundant and suppliers leaving sites just months after sale
4 days ago

Kier scores November contracts league double

£300m London luxury flats project extends Kier's lead at top of annualised league
4 days ago

Green light for £300m Norwich mixed used scheme

Weston Homes to build 1.2m sq ft scheme creating a "Covent Garden" style urban quarter
4 days ago

Former Kier boss joins McCarthy & Stone

Nigel Turner to lead drive to reduce construction costs
4 days ago

Vermont replaces Forrest on £100m Liverpool site

Elliot Group moves quickly to secure new main contractor as existing site team taken on
5 days ago

Bristol contractor goes into administration

Majority of 50-strong workforce at Helm Construction made redundant
5 days ago

Kier drops out of FTSE 250 as share price dives

Shares trade below discounted rights issue price
5 days ago

Betting Spy: No Arnie no problem for West Ham

West Ham and Man City to land 3/1 double
5 days ago

36-hour Hinkley Point concrete pour releases £70m

BYLOR achieves key concrete raft milestone in 2,500 cu m pour
5 days ago

Murphy major projects chief joins Galliford Try

Sean Blackmore to lead expansion in the rail market
5 days ago

Multiplex Europe MD shifts to non-exec role

Ross Ballingall moves on after eight years heading construction business
5 days ago

MPs demand end to late payment and retentions reform

Hard-hitting select committee report demands end to cash "stranglehold" imposed by big firms
6 days ago

Contractor services