TIDMGFRD
RNS Number : 2731F
Galliford Try Holdings PLC
15 July 2021
GALLIFORD TRY HOLDINGS PLC TRADING UPDATE
THURSDAY 15 JULY 2021
Galliford Try Holdings plc, the UK construction group, today
provides an update on trading for the year ended 30 June 2021. The
Group expects to announce its results for the full year on 16
September 2021.
Highlights
-- Strong performance resulting in improved profitability and high quality order book.
-- Good progress against our margin improvement target, with
full year profit before tax expected to be towards the upper end of
the analysts' current range (1) .
-- Well-capitalised, with circa GBP215m of cash at 30 June 2021
(2020: GBP197.2m) and average month-end cash during the financial
year of circa GBP164m.
-- All our construction sites are fully operational since the
start of the financial year and progressing in line with our medium
term margin targets.
-- Positive outlook, with a high quality order book, in our
chosen sectors, of GBP3.3bn (2020: GBP3.2bn). 90% of revenue for
the new financial year secured (2020: 90%) and strong pipeline of
future orders.
-- Published commitment to achieve net zero(2) across the
Group's own operations by 2030 and across all activities by 2045,
validated by Science Based Targets.
Current Trading
In March 2021 we announced a return to profitability and
resumption of dividends and are pleased to confirm that we have
made further good operational progress. We expect to report full
year profit before tax towards the upper end of the analysts'
current range. (1)
We continue to prioritise the health, safety and wellbeing of
everyone on our sites and in our offices. All the Group's
construction sites are operating in accordance with strict Covid
safety procedures with productivity at normal levels.
Our disciplined approach to bidding and active engagement with
our supply chain have proved particularly important during the
current period of materials shortages and inflation. We have
successfully managed and mitigated these challenges without any
material impact on trading. Our continuing investment in modern
construction practices and digitalisation enables us to deliver
quality to our customers and further improve our operational
performance.
Balance Sheet
The Group's strong balance sheet continues to be a
differentiator for our clients and supports our ability to win high
quality contracts and framework positions. Our financial strength
also provides confidence to our supply chain, and we have further
improved our prompt payment performance during the financial year.
The average month-end cash for the financial year to 30 June 2021
was circa GBP164m and, in addition, the Group has a portfolio of
PPP assets, no pensions liabilities and no debt or associated
covenants.
Order Book
Throughout the financial year we have been successful in winning
key projects and positions on strategic frameworks. We are
encouraged by the pipeline of new opportunities across our chosen
sectors, which align to our disciplined approach to risk management
and contract selection.
Our focus on the public and regulated sectors makes us well
placed to benefit from increasing Government investment in economic
and social infrastructure, and our pipeline of work with high
quality private sector clients continues to be robust. Major
contract wins during the period, included in our GBP3.3bn order
book, include:
- in Environment, for Scottish Water, the GBP350m SR21
Non-Infrastructure framework and the GBP350m Delivery Vehicle 2
programme;
- in Highways, our involvement in the GBP400m NEPO Civil Works
framework and for Leicestershire County Council the GBP48m Grantham
Southern Relief Road; and
- in Building the GBP41m Wallyford School for East Lothian Council and Hub South East.
Bill Hocking, Chief Executive, commented:
"We are pleased with the good progress we have made. Our people,
working off firm foundations of risk management and contract
discipline, have delivered strong financial results. We are meeting
our objectives of operating sustainably and delivering controlled
growth, cash generation and improved margins. The Group has an
excellent order book and is strongly positioned to contribute to
the UK's economic recovery.
We were pleased to publish our net zero carbon targets recently,
which build on our successful track record of reducing carbon
emissions over the last decade. Operating sustainably is fully
integrated into our strategy, and we will provide further details
of our sustainability commitments with our annual results in
September.
I am grateful for the dedication and resilience of all our
people, which has contributed to the Group's strong performance. We
start the new financial year in an excellent position. The quality
of our people, our balance sheet and our order book mean that I
look forward to the new financial year with confidence."
A conference call for Analysts and Investors will be held at
09:00am BST today, Thursday 15 July 2021:
Dial-in: +44 20 3936 2999
Access code: 394407
For further enquiries please contact:
Bill Hocking, Chief Executive
Andrew Duxbury, Finance
Galliford Try Director 01895 855001
James Macey White
Tulchan Communications Giles Kernick 020 7353 4200
Note to Editors
Galliford Try is 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
projects with clients in the public, private and regulated sectors
across the UK.
(1) The range of analysts' estimates for profit before tax for
the year ending 30 June 2021 is GBP9.0m to GBP11.2m based on
forecasts at 1 July 2021.
(2) Galliford Try has committed to achieving net zero carbon
across its own operations (Scope 1 and 2 and operational Scope 3)
by 2030 and has already reduced emissions by 62% since 2012. The
group is additionally targeting net zero emissions across all
activities by 2045 at the latest.
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