GFRD

TIDMGFRD

RNS Number : 0212N

Galliford Try Holdings PLC

18 January 2023

Galliford Try Holdings plc

Trading Update

18 January 2023

Galliford Try Holdings plc, the UK construction group, today provides an update on trading for the half year period from 1 July 2022 to 31 December 2022. The Group expects to announce its results for the half year on 8 March 2023.

Update on Current Trading

The Group is performing well with trading in line with the Board's expectations. We are well placed for the financial year to 30 June 2023 and continue to make good progress against our Sustainable Growth Strategy.

We continue to maintain good relationships with our supply chain and clients which, together with our strong balance sheet, has enabled us to manage the economic conditions effectively with no material impact on trading.

Capitalising on our financial strength we are pleased with our two recent acquisitions, of MCS Control Systems and Ham Baker, in the first half of the year and the integration and development of these businesses into our Environment division is progressing as planned.

Balance Sheet

The average month-end cash for the six months ended 31 December 2022 was circa GBP154m (year to 30 June 2022: GBP174m) and period-end cash at 31 December 2022 was circa GBP195m (31 December 2021: GBP211m). This is in line with the Board's expectations given the recent acquisitions, our ongoing investment in cloud-based digital systems as previously disclosed, and circa GBP10m of dividends and capital returns in the half year. The Group maintains 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 continue to secure high quality contracts and frameworks.

Order Book and Outlook

The Group's order book of GBP3.5bn provides good visibility of future workload. We continue to see a robust pipeline of new opportunities across our chosen sectors, supported by our strong track record and focus on the public and regulated sectors alongside high-quality private clients.

Recent framework and project wins include the GBP95m Rye Hill custodial facility for the Ministry of Justice, a GBP65m manufacturing facility for JDR Cable Systems and two frameworks for Welsh Water, representing the first capital maintenance framework wins for the business since the acquisition of nmcn water.

Capital Allocation

In September 2022, having reviewed the Group's strong cash performance and ongoing capital requirements while continuing to prioritise a strong balance sheet, the Group launched a share buyback programme of up to a maximum of GBP15m company shares. As at 16 January 2023 the Group has purchased a total of 2,489,671 shares, for an aggregate consideration of GBP3.9m.

Board

After over seven years on the board Gavin Slark, Non-executive Director, has decided to step down from the board on 31 March 2023, due to other business commitments.

Bill Hocking, Chief Executive, commented:

"Performance in the first half of the financial year has demonstrated good progress against our strategic objectives and provides confidence for the full year.

We are pleased with our recent acquisition of MCS Control Systems and Ham Baker, complementing our existing operations and affording an enhanced specialist service to our water sector and related clients.

We have excellent people and project teams, a strong balance sheet and high-quality order book in our chosen sectors. We have confidence in our ability to deliver our strategy and long-term sustainable value for all stakeholders."

A conference call for Analysts and Investors will be held at 09:00am BST today, Wednesday 18 January 2023.

Dial-in: +44 800 640 6441(Toll Free) or +44 20 3936 2999.

Access code: 794330

For further enquiries please contact:

 
                           Bill Hocking, Chief Executive 
                            Andrew Duxbury, Finance Director 
                            Kevin Corbett, General Counsel 
 Galliford Try              & Company Secretary                 01895 855001 
 Tulchan Communications    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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