Galliford Try margin hits 2.3% as order book rises to £3.5bn

Aaron Morby 3 weeks ago

Growth in infrastructure orders helped Galliford Try to deliver a steady improvement in profit and revenue in the first six months of the year.

Bill Hocking chief says Galliford Try is maintaining strong average month-end cash of £154m
Bill Hocking chief says Galliford Try is maintaining strong average month-end cash of £154m

Bill Hocking, chief executive, said the challenges around inflation and materials shortages were also now beginning to ease allowing group margins to slightly improve to 2.3%.

Revenue for the half year to 31 December 2022 increased 14% to £679m, primarily reflecting disciplined growth in Infrastructure.  This included the benefit of a full six months’ trading from the nmcn water business, acquired in Autumn 2021.

Pre-tax profit reached £7m from a £2.6m loss in the same period a year ago, impacted by a £4.5m exceptional charge from investment in cloud-based IT systems.

At the Building division revenue edged up to £400m, generating a profit of £9.3m, up 11%.

Stronger growth in civils work saw Infrastructure business revenue jump over a third to £277m, which generated a profit of £6.5m (H1 2022: £4.3m) at an improved operating margin of 2.3%.

Despite the recent economic headwinds, Galliford Try’s order book also edged up to £3.5bn.

The firm has now bagged 95% of projected revenue for the current financial year, and 79% has been secured for the next financial year.

Hocking said: “During 2022 the length of time taken to enter new contracts increased, initially in response to rising inflation and later due to delays in public sector decision-making.

“We are also beginning to see these factors normalise, which provides further encouragement for the group’s future outlook.”

He added: “In line with our Sustainable Growth Strategy, we acquired the specialist businesses of MCS Control Systems and Ham Baker in the first six months of the year, which further enhance our Environment business’ off-site build and asset optimisation offering to clients.  The integration of these businesses is progressing well.

“Our strong balance sheet gives confidence in our ability to deliver our Sustainable Growth Strategy and continue to provide long-term sustainable value for our stakeholders.”



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