Friday, November 22, 2024

Galliford Try says revenues and profits beat expectations

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Galliford Try has surpassed profit and sales guidance after the construction firm was boosted by more building projects and infrastructure work.

The Uxbridge-based company saw shares lift in early trading on Thursday as a result.

Bosses said the company is “confident” in its future outlook, as it pointed towards a “strong pipeline” of new opportunities across its sectors.

It came as the London-listed group revealed that revenues jumped by 27.2% to £1.77 billion for the year to June 30 compared with the previous year.

The company’s building division saw revenues grow by 17.7% to £938.3 million, as it benefited from the new work which had been previously delayed due to public sector procurement issues or inflationary pressures.

Meanwhile, its infrastructure arm, which is focused on highways and environmental projects, saw a 38.8% jump in revenues to £819.8 million.

Galliford Try said the strong growth helped push its pre-exceptional profits before tax almost 40% higher to £32.7 million.

Bill Hocking, chief executive of the firm, said: “Galliford Try has delivered another year of sequential, robust revenue and margin growth.

“Our strong progress, well ahead of plan, provided us with the confidence to reset our ambitions over the mid-term.

“Our commitment to risk management, careful contract selection and operational excellence underpins the consistent year-on-year performance and our future prospects.

“We will continue doing what we said we would do, consistently delivering strong performance – supported by our professional teams, a strong balance sheet, solid order book and excellent supply chain and client relationships.”

Julie Palmer, partner at Begbies Traynor, said: “In a year where the construction sector has faced challenge after challenge, Galliford Try’s delayed full-year results paint a picture of a company that has adeptly weathered the storm, delivering a solid performance.

“This strong showing, ahead of analysts’ expectations, is particularly notable as the sector contends with a rise in insolvencies, underscoring the economic pressures facing the industry.

“The easing of interest rates may offer some relief, yet the spectre of further collapses, such as ISG, looms over the market.”

Shares in the business were up 4.3% at 313p on Thursday morning.

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