Construction restructure costs Galliford Try £10m

Aaron Morby 6 months ago
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Galliford Try revealed this morning that it has completed the slimming down of its construction business at a cost of £10m.

Prothero says construction is now firmly focused on regional building, together with profitable highways and water work

Around 350 jobs have been shed since the firm announced a £40m writedown in April.

In a statement this morning covering the construction and house building group’s year-end trading, chief executive Graham Prothero said: “We are pleased that the restructure of the construction business is now complete.

“The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively.

“I look forward to the next financial year with the appropriate strategic priorities in place across the group.”

At the June year-end, group net debt reached £60m (2018: net cash £98m) with average net debt of £187m.

Prothero revealed that Galliford Try was still locked in negotiations with Transport Scotland over final settlement of the now completed Aberdeen Bypass.

“The joint venture continues to negotiate on the significant claim with the client, while preparing to pursue this through formal dispute resolution should these talks not reach a satisfactory conclusion,” he said.

Prothero added that the current construction order book stood at £2.9bn (2018: £3.3bn) with 88% of revenue for the new financial year secured.

He said that the expanding Partnerships & Regeneration business continued to achieve strong growth ahead of targets, increasing both revenues and margins, while the house building arm Linden Homes  maintained its sales rate.

 

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