TIDMGFRD
RNS Number : 8941Z
Galliford Try Holdings PLC
17 January 2024
Galliford Try Holdings plc
Trading Update
Wednesday 17 January 2024
Galliford Try Holdings plc, the UK construction group, today
provides an update on trading for the half year period from 1 July
2023 to 31 December 2023. The Group expects to announce its results
for the half year on Wednesday 6 March 2024.
Update on Current Trading
The Group is performing well, with strong momentum throughout
the first six months of the current financial year, and continues
to make good progress against its Sustainable Growth Strategy.
Trading is ahead of the prior year period and the Board's
expectations, which were previously increased at the time of the
full year results in September 2023. With good visibility over the
second half, revenue for the full financial year is now expected to
be approximately 5 per cent. ahead of current market expectations
(1) , with an equivalent increase in expected profit before
tax.
We are pleased with our recent acquisition of AVRS Systems in
November 2023, and the progress of the integration of this
specialist business in our growing Environment division. Together
with our acquisitions of Ham Baker and MCS at the start of the last
financial year, the Environment division is developing its adjacent
market strategy as planned.
(1) The range of analysts' forecasts for the year ended 30 June
2024, based on forecasts at 12 January 2024, is GBP1,435m to
GBP1,490m for revenue and GBP25.2m to GBP28.1m for pre-exceptional
profit before tax.
Strategic Update
Given the excellent progress to date against the Group's
Sustainable Growth Strategy, the Board expects to update its
strategic targets to 2030 during the second quarter of 2024.
Balance Sheet
The average month-end cash for the six months ended 31 December
2023 was circa GBP149m (year to 30 June 2023: GBP135m) and
period-end cash at 31 December 2023 was circa GBP209m (31 December
2022: GBP196m). The Group continues to maintain a portfolio of PPP
assets and has no pensions liabilities and no debt or associated
covenants.
The Group's strong balance sheet supports our ability to secure
high quality contracts and frameworks, attract a highly skilled
supply chain and continue to invest in the business.
Order Book and Outlook
The Group's order book of GBP3.7bn (31 December 2022: GBP3.5bn)
remains predominantly in long term frameworks and provides good
visibility of future workload, well beyond the current financial
year. We continue to see a robust pipeline of opportunities across
our chosen sectors, supported by our strong track record and focus
on the public and regulated sectors alongside high-quality private
clients.
We recently announced our appointment to build the GBP87m new
build-to-rent development at Brent Cross Town, north London for
Related Argent and Invesco Real Estate, our second appointment on
this development. In the first half of the year our Building
business was also appointed to undertake the GBP72m remodelling and
refurbishment of Adelaide House in central London and our
Investments and Building businesses signed contracts with a major
build to rent operator for a GBP52m development in Cardiff.
Capital Allocation
In September 2022, having reviewed the Group's strong cash
performance and ongoing capital requirements the Group launched a
share buyback programme of up to a maximum of GBP15m. On 17
November 2023 we announced the completion of the share buyback
programme with a total of 8,404,148 shares repurchased and
subsequently cancelled, representing approximately 7.5 per cent. of
issued share capital.
Board
As previously announced Andrew Duxbury, Group Finance Director,
will leave the Group during the year. The Group is making good
progress on securing Andrew's replacement and an update will be
provided in due course. Also, as previously announced, Marisa
Cassoni, Non-executive Director and Chair of the Audit Committee,
was appointed Senior Independent Director with effect from 1
November 2023 .
Bill Hocking, Chief Executive, commented:
"Galliford Try continues to perform strongly and consistently,
and our performance in the first half of the financial year
provides increased confidence for the full year.
We are pleased with our recent acquisition of AVRS Systems,
complementing our existing operations and acquisitions of
specialists Ham Baker and MCS Control Systems, further adding to
our ability to provide enhanced specialist services to our water
sector and related clients. We have excellent people and project
teams, a strong balance sheet and high-quality carefully selected
order book in our chosen sectors.
We are encouraged by the performance and momentum in the
business and our expectations for the full year to June 2024 have
improved accordingly."
A conference call for Analysts and Investors will be held at
09:00am UKT today, Wednesday 17 January 2024.
Dial in: (Toll-Free): +44 800 358 1035 or (Local): +44 20 3936
2999
Access Code: 762981
For further enquiries please contact:
Bill Hocking, Chief Executive
Andrew Duxbury, Finance Director
Kevin Corbett, General Counsel
Galliford Try & Company Secretary 01895 855001
Teneo James Macey White 020 7353 4200
Note to Editors
Galliford Try is a trading name of Galliford Try Holdings plc, a
leading UK construction group listed on the London Stock Exchange.
Operating as Galliford Try and Morrison Construction, the group
carries out building and infrastructure (environment and highways)
projects with clients in the public, private and regulated sectors
across the UK.
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