Aberdeen bypass woes almost over for Galliford Try

Grant Prior 7 months ago
Share

The Aberdeen bypass job dragged Galliford Try’s construction division down to a £29.1m operating loss for the year to June 30 2018.

Better times are ahead for the construction division

But the firm highlighted a “strong underlying performance” from construction outside of the latest £45m hit from the Aberdeen Western Peripheral Route.

The numbers were also lowered by “some continuing costs from legacy projects, and the absorption of circa £8m of defects claims.”

Galliford is also looking to recover £30m in claims on three infrastructure jobs “for a single client” which are currently going through the adjudication process.

Pre-exceptional costs, construction made a £15.9m profit – up from a £900,000 loss last time on turnover up to £1,687m from £1,569m.

Those numbers saw construction margins hit 0.9% as Galliford targets more than 2% margins by 2021.

The total hit for AWPR has been £123m but Galliford said: “The majority of the route is now complete with significant sections open to the public, and completion of the remaining bridge expected in late Autumn.

“Our provisioning for the loss on this project reflects our current estimate of the final costs, and is reduced by an estimate of our share of significant claims against the client and others, which are yet to be agreed and concluded.

“This inherent uncertainty will be resolved only when the project is complete and the claims finally settled.

“We have continued to enhance our project approval process, ensuring we only take on projects with appropriate levels of risk and anticipated profit.  The portfolio of newer work is performing well and delivering appropriate margins that reflect the associated risk profile.”

Chief executive of Construction and Investments Bill Hocking said the firm’s ideal building job was in the £10-£80m bracket.

He said: “That’s out sweet spot and we know we can manage risks well and make money on those projects.”

Another strong year at Linden Homes helped group pre-tax profits increase to £143.7m from £58.7m on revenue up to £3,132m from £2,820m.

Linden made an operating profit of £184.4m at a margin of 19.5%.

“The underlying Construction business performed well and continues to see a pipeline of suitable opportunities, with new projects delivering improved margins.

“We have made good progress towards completion of the AWPR contract, with significant sections of the road open to traffic and the final section expected to be open by late Autumn 2018.”

Latest news

Interserve finance chief quits

Mark Whiteling exits weeks after banks take control in pre-pack deal
7 hours ago

Green light for reworked Paddington Cucumber

Reuben Brothers gain revised planning for landmark west London tower
5 hours ago

Winners unveiled for £400m Dounreay decommissioning

28 firms named on major nuclear framework: Full list of winners
14 hours ago

Guinness plans largest ever homes scheme in Leeds

Plan for over 900 homes at Leeds South Bank site
14 hours ago

Opinion: Lack of talent at the top is hurting construction

Time to promote a new generation of younger directors to end the "over-optimism" bonus culture
14 hours ago

Ex-Crossrail chief Wolstenholme wanted more bonus cash

Project chief challenged decision to deny him extra pay for performance
1 day ago

Waiting over for £340m Belgravia council estate rebuild

Westminster council seeks firm for Ebury Bridge Estate rebuild
14 hours ago

Morrison takes on refurb job from failed contractor

Morrison to complete renovation scheme after original builder went bust
1 day ago

Call-up for £110m Southsea seafront defence job

Portsmouth city council aims to shortlist three firms to bid eight year project
14 hours ago

Eight placed on £200m London Universities framework

Graham, Speller, 8build and Walter Lilly among preferred list
1 day ago

Boost your online presence – join the Enquirer Directory

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

Giant ‘concreteberg’ blocks sewers in Islington

Work starts to chisel out 105 tonne blockage as hunt starts for culprits
2 days ago

Lendlease chief jumps for Crown Estate top job

Dan Labbad to take Crown Estate chief executive role at start of 2020
2 days ago

Race starts for £2bn YORcivil framework places

Eight firms to share £2bn pipeline over four years
2 days ago

Green light for £150m Bolton Church Wharf regen plan

Muse approved to start demolition and work up details of scheme
2 days ago

Wills Bros wins £31.5m Maybole Bypass in Scotland

5.2km bypass on A77 in south west Scotland will employ 165 workers at peak
2 days ago

VINCI starts work on new £100m Birmingham hospital

Contractor gets underway on three-year build programme
6 days ago

Pay row set to escalate on HS2 enabling works site

Dispute set to intensify over rates paid by labour supplier
7 days ago

Four civils firms scoop £2.6bn flood and coastal framework

Kier breaks into Environment Agency preferred contractors list
7 days ago

Costain making engineers redundant at tech centre

Contractor cutting jobs at technology division it bought for £17m in 2016
7 days ago

Dozen firms win £500m City of London deal

Morgan Sindall, Osborne and Speller Metcalfe among winners
7 days ago

New £3m fund to improve construction procurement

Companies invited to bid for cash grants in CITB-led efficiency drive
7 days ago

Green light for vast Nottingham Boots Island scheme

Developer Conygar plans to build a 2m sq ft mixed-use scheme
7 days ago

Goldman Sachs bankrolls Brum’s tallest resi project

Builder Sisk can now start work on 42-storey Broad Street skyscraper
7 days ago

SME contractors agree 2.75% pay deal for workers

Annual pay increase will see hourly craft rates rise to £12.79
1 week ago

Lakehouse subbie goes after Sureserve for cash

Specialist wins adjudication award after contractor goes bust
1 week ago

Firms on alert for M4 Newport £185m enabling works

Bidders day planned ahead of July invitation to tender
1 week ago

Robertson hires Laing O’Rourke infrastructure ops director

Bryan Glass will head Robertson's civil engineering business in Scotland
1 week ago

Wates starts £24m Shoreham flood defence

Enabling works to pave way for 540-home Free Wharf scheme
1 week ago

£400m Eastern Highways Framework up for renewal

Essex County Council to invite bids for third generation framework in June
1 week ago

Contractor services