Galliford Try Construction set to gain £150m cash reserve

Aaron Morby 4 years ago
Share

Galliford Try’s Construction business would be fully recapitalised if the break-up of the group goes ahead.

The standalone contractor would enjoy an average daily net cash balance of around £150m if Bovis Homes’ offer to buy Linden Homes and Partnership housing is approved.

Bill Hocking, chief executive of construction and investments, said the remaining business would employ around 3,400 staff generating revenue of around £1.4bn.

This would make it a top 12 contractor just behind Wates, which topped £1.5bn revenue last year.

The £300m cash injection following from the deal would translate to a daily cash balance of around £150m, said Hocking.

“If the deal does go-ahead we will be a well-capitalised construction business.”

“We have restructured to grow in a sensible and disciplined way with controlled risk.”

Around 300 staff were made redundant in the recent restructuring, 50 less than first expected. Galliford Try has exited high-risk major infrastructure projects, like the Queensferry Crossing and Aberdeen Western Peripheral Route.

The slimmed-down construction operation will now focus on building projects and water and highways work on the infrastructure side where it maintains a strong position.

Hocking said: “We have also changed our emphasis around rail and aviation. The aim is to target building works around rail corridors and airports.

“The rail and aviation business units have been closed, with expertise in these sectors now feeding into the regional delivery teams.”

He said: “We have a good construction business and feel we can build on underlying operating margins of 1.1%.

“Prospects for construction are now very good whether the Bovis deal goes ahead or not.”

The business has already secured 89% of planned revenue for the 2020 financial year.

Construction’s order book stands at £2.9bn, slightly down on £3.3bn previously.  Of this, 79% is in the public sector (2018: 75%), 4% is in regulated industries (2018: 9%) and 17% for the private sector (2018: 16%).

Hocking said that the spread of work for both public and private clients would provide a strong foundation for the future as an independent construction group.

 

 

Latest news

Developer dumps Henry Construction from London tower job

Growing list of subcontractors and suppliers complain they have not been paid
5 hours ago

HS2 construction shake-up sees main contractor changes

Align to take over responsibility for parts of the route previously under the control of EKFB
5 hours ago

Claritas Group heading for liquidation

CEO of £50m turnover contractor confirms news and thanks staff and suppliers
5 hours ago

Go-ahead for clutch of major jobs to reboot Manchester

Two biggest high rise projects at Bridge Street and Medlock Street to cost £575m to build
5 hours ago

Plan for major NHS estate green upgrade framework

NHS Shared Business Services starts early consultation with firms on decarbonisation retrofit plan
5 hours ago

Willmott Dixon signs £34m revamp of DfE headquarters

Grade II Sanctuary Buildings in Victoria will be modernised and made energy efficient
5 hours ago

£500m southern highways framework up for renewal

Ten firms face fight to retain places on major councils roads framework
1 day ago

Engineering losses halve Briggs & Forrester profit

Main engineering services arm suffers £1.6m loss
1 day ago

Plans in for University of East London campus expansion

Work to start in early 2024 on 280,000 sq ft Stratford teaching and student rooms scheme
1 day ago

CITB told to improve by Ofsted inspectors

Number of in-house apprentices drops as training body changes business model
2 days ago

IHP wins £100m Derbyshire mental health projects

Vinci/McAlpine JV will build two 54-bed Adult Acute Care units
1 day ago

Align hits key milestone on HS2 Colne Valley viaduct

Engineers rise to the challenge to complete first V-piers in lakes
1 day ago

£9.3bn race starts for National Grid construction partners

Plan for Great Grid Upgrade Partnership to be set out at bidders day in early June
2 days ago

Plan approved to redevelop major Glasgow shopping mall

Outline plan backed for demolition of St Enoch centre for over 900 homes, shops and leisure space
2 days ago

Banned demolition boss wins appeal to remain a director

Paul Cluskey wins Court appeal to remain director of Cantillon but steps down as MD
3 days ago

B&K confirms £140m Leeds build to rent project

Work to start on Whitehall Riverside twin blocks for client Glenbrook
3 days ago

McLaren Property to revamp Liverpool roller skating site

242-bed student scheme unveiled for sensitive site
2 days ago

Wates names Midlands construction chief

Matt Johnson promoted after just 10 months at family-owned builder
3 days ago

Glencar lands £28m Peel Ports Liverpool shed job

240,000 sq ft Alexandra Docks warehouse will be five football pitches long
3 days ago

Private equity giant buys United Living

US based investment group Apollo makes latest swoop on UK construction market
3 days ago

Quartet secure Thirteen Group £500m new homes deal

Esh, Morris & Spottiswood, ReGen and Henry Boot secure spots on new build framework
3 days ago

Luton Town FC to start new stadium before end of 2023

Talks already underway with contractors ahead of submission for detailed planning this summer
3 days ago

Plans for renovation of historic Cardiff Market

Subject to planning and final funding work could start next year
3 days ago

£53m race to cut Magnox reactor buildings down to size

Trawsfynydd reactor buildings to be reduced in height by a third
3 days ago

Cyclist dies in lorry collision outside Keltbray site

Work shut down after fatal collision with truck delivering to central London site
1 week ago

Another demolition director banned after bid rigging probe

Brown and Mason boss becomes fourth director disqualified after cartel investigation
1 week ago

Five hospitals at risk of collapse added to new build programme

Weak concrete crisis and soaring costs force £20bn hospital programme rethink
1 week ago

Scottish South West Hub names new partners

Balfour Beatty joins construction partners for first time
1 week ago

RC frame specialist Getjar revenue tops £100m again

Profit margins nearly halved in face of labour and material price rises
1 week ago

London’s Camden Council advances £470m King’s Cross scheme

Camley Street scheme to consist of 350 homes and 200,000 sq ft of offices
1 week ago

Contractor services