Galliford Try returns to profit with margin at 2%

Aaron Morby 1 year ago

Galliford Try has returned to profit and reinstated shareholder dividends after two years in the red.

Chief executive Bill Hoicking is aiming to raise operating margins to 3% across the business
Chief executive Bill Hoicking is aiming to raise operating margins to 3% across the business

The firm this morning said it was on track to meet its financial targets of 3% margin across the building and infrastructure divisions with operating cash at £160m.

Over the year revenue edged up 3% to £1.12bn, generating a pre-tax profit of £11.4m, compared with a reported pre-exceptional loss of £60m in 2020.

Building generated profit of £16m (2020: pre-exceptional loss of £52m), representing a margin of 2%, while Infrastructure generated profit of £6m (2020: pre-exceptional loss of £1.8m), at a 1.8% margin.

This took the combined group operating margin to 2%.

Bill Hocking, chief executive, said: “We have dealt with challenging circumstances and continue to successfully manage the current market conditions.

“Our commitment to robust risk management, careful contract selection and operational excellence underpins our performance and prospects. “

He added that Galliford Try now had a strong order book and balance sheet putting it on course to deliver growth in the years ahead.

The group started the new financial year with 90% of planned revenue secured for the 2022 financial year.

 At June 2021 year-end Galliford’s order book was up to £3.3bn (2020: £3.2bn) of which 91% came from the public and regulated sectors and 9% is in the private sector (2020: 81% and 19% respectively).

Average month-end cash in the year was £164m.

During the year Building and Infrastructure secured contracts and frameworks worth over £641m and £590m respectively.  

Key work wins

–       the £400m NEPO Civil Works framework;

–       Scottish Water’s £350m SR21 Non-Infrastructure framework;

–       Scottish Water’s £350m Delivery Vehicle 2 programme; and

–       Leicestershire County Council’s £48m Grantham Southern Relief Road.

Latest news

Moving in to new markets paying off for McLaren

Contractor carving out new niche as leading player in heavy refurbs
2 days ago

Plan to add retentions record to payment reporting law

Government consults on tougher reporting to include disputed invoices and retention policies
2 days ago

Morgan Sindall wins £88m Beckton DLR depot upgrade

Delayed work to start on Docklands Light Railway train maintenance depot in East London
2 days ago

Hare and Severfield win £250m Sellafield deal

Country's two biggest steelwork contractors secure 17-year framework
2 days ago

Max Steward returns to head up ISG’s Agility fit-out arm

Former ISG project director returns after three years to take up MD role
2 days ago

McLaren wins massive Portland House refurb

Construction to start this year on £380m revamp of 28-storey building in central London
3 days ago

Green light for £275m HS2 Midlands nerve centre

Trio of contractors battling it out to win huge new depot near Birmingham
3 days ago

Winners named for Government £10bn offsite framework

29 firms secure places on mega framework for schools, healthcare, defence and justice jobs
3 days ago

ISG, Amey and Costain now industry’s quickest payers – list

Average payment times from main contractors slip by a day
4 days ago

Staff at Outco Surfacing start looking for new jobs

Administration notice filed two years after acquisition of NMC Group
3 days ago

£4.75m building work provision tips Higgins into the red

Partnerships business counts cost of changes to building safety rules
3 days ago

John F Hunt snaps up London temporary works design firm

Demolition contractor buys geotechnical and structural engineering design specialist RKD Consultant
3 days ago

Vital Energi lands £13m package at Plumstead regen site

Specialist will start on site this summer helping to transform the former home of Arsenal FC
3 days ago

Galliford Try to start £14m Scunthorpe Market scheme

Firm will build NHS staff accommodation and offices in two phases
3 days ago

Vast £500m British Library expansion go-ahead

London Mayor still needs to give final nod to 800,000 sq ft extension at St Pancras site in London
4 days ago

Wates names new chief executive

Cork-born Eoghan O’Lionaird to join later this month
4 days ago

Keltbray director joins Barhale as North East chief

Mark Wood heads operations in Yorkshire and North East England
4 days ago

Major London City building green deep retrofit approved

St Bride’s Tavern near Fleet Street will be demolished for the building expansion
4 days ago

Gilbert Ash lands starring role in £38m Welsh theatre revamp

Contractor to start work this year on Theatr Clwyd upgrade
4 days ago

Property clients to ramp up spending on decarbonising

Survey reveals nearly half of property chiefs plan to speed up spending on net-zero programmes over next twelve months
4 days ago

Average self employed labour rates top £1,000 a week

Average weekly earnings reach high for skilled trades
5 days ago

BAM wins £49m Harrogate Convention Centre revamp

Local council hopes to sanction work start this autumn
5 days ago

Renaker to top-out Manchester with 71-storey skyscraper

Developer lifts the lid on planned five-building cluster for phase 3 of Great Jackson Street development
6 days ago

Costain bridge lift delayed by ground conditions

National Highways chiefs postpone planned lifting operation
5 days ago

Nexus sells utilities and EV contracting arms for £78m

Group to now focus on remaining business at south east housing civils contractor Tamdown
5 days ago

Speller Metcalfe lands lead role on £40m Tamworth revamp

Town centre to be transformed under ambitious plans
5 days ago

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
6 days ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
6 days ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
1 week ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
1 week ago

Contractor services