Galliford Try suffers £60m loss

Aaron Morby 2 years ago
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Galliford Try is forecasting a return to profit this year after being hit by a pre-exceptional loss of £60m.

Hocking is focused on sustainable growth and careful cash management
Hocking is focused on sustainable growth and careful cash management

As a result of the Covid-19 shutdown revenue slid by over a fifth to £1.1bn in the year to June.

But with a strong forward order book, chief executive Bill Hocking said he expected Galliford Try to return to profit this year.

He forecast margins would be back in the 1.4%-1.6% range before central costs of £10m.

Revenue is forecast to recover to up to £1.3bn, based on a strong order book of £3.2bn with 90% of revenue secured for this year ahead.

Galliford also revealed it continued to seek final settlement on three legacy contracts with a major infrastructure fund.

After a final settlement on the Aberdeen Bypass, Galliford also booked a £25m net gain on previous provisions, bringing statutory pre-tax losses to £35m.

Hocking said: “All of our construction sites are now operational, and productivity is close to normal levels.

“The group is performing well and focusing on its core strengths of building, highways and environment. 

“In recent months we have secured a number of significant project wins and we are well placed to benefit from planned future investment in our areas of operation.

He said going forward Galliford Try’s strategy was focused on sustainable growth, careful cash management and margin progression. 

Hocking said Galliford Try remained well capitalised with average month-end cash since the disposal of the house building operation standing at £141m.

“The group is confident in the future as we look to increase operating margins, capitalise on the actions taken to reduce costs and maintain our disciplined approach to contract selection.”

Despite a stronger outlook, the contractor said it would not be paying a final year dividend.

 

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