REG - Galliford Try Hldgs - Final Results
03/10/2024 07:00
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RNS Number : 7329G Galliford Try Holdings PLC 03 October 2024
07:00 AM THURSDAY 3 OCTOBER 2024
GALLIFORD TRY HOLDINGS PLC
ANNUAL RESULTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2024
Strong Performance and Confident Outlook
Delivering Sustainable Growth
· Strong performance across all operations delivering increased
revenue and profit, ahead of analysts' previous expectations at 1 July 2024.
· Pre-exceptional profit before tax increased by 39.7% to
£32.7m (2023: £23.4m).(1)
· Divisional operating margin increased 13bps to 2.5% (2023:
2.4%).(2)
· Final dividend payment of 11.5p (2023: 7.5p), together with an
interim dividend of 4.0p giving a total dividend for the financial year of
15.5p, up 47.6%.
· Well-capitalised debt-free balance sheet, £227.0m cash
(2023: £220.2m), average month end cash for the year of £154.8m (2023:
£134.7m), PPP asset portfolio of £41.8m (2023: £44.6m) and no pension
liabilities.
· Confident outlook with a high quality £3.8bn order book (2023:
£3.7bn) positioned across our chosen sectors and 92% of FY25 revenue already
secured.
· Additional capital return through £10m share buyback
programme.
· Capital Markets Event, held on 23 May 2024, set out the Group's
updated growth strategy and targets to 2030, building further on the strong
operational and financial performance delivered since 2021.
· Kris Hampson joined the Group as Chief Financial Officer on 2
September 2024.
Financial results
2024 2023 Change
Revenue £1,772.8m £1,393.7m +27.2%
Operating profit before amortisation(1,2) £29.6m £21.9m +35.2%
Divisional operating margin(2) 2.5% 2.4% +13bps
Pre-exceptional profit before tax(1,2) £32.7m £23.4m +39.7%
Pre-exceptional earnings per share 27.9p 18.9p +47.6%
Average month-end cash £154.8m £134.7m +14.9%
Order book £3.8bn £3.7bn +2.7%
Statutory results
Revenue
£1,772.8m £1,393.7m +27.2%
Statutory profit before tax £30.9m £10.1m +205.9%
Statutory earnings per share 36.2p 8.7p +316.1%
Full year dividend per share 15.5p 10.5p +47.6%
Net Cash £227.0m £220.2m +3.1%
(1)Operating profit is stated before exceptional items throughout the
statement unless otherwise noted. Exceptional items relate to our investment
in cloud-based Enterprise Resource Planning (ERP) and recovery of a
Corporation Tax Group Relief adjustment. FY23 is stated excluding the effect
of the contract settlement announced on 8 June 2023.
(2)Divisional operating margin is defined as operating profit before
amortisation as a percentage of revenue.
Bill Hocking, Chief Executive, commented:
"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, and to announce our
updated Sustainable Growth targets to 2030 at the Capital Markets Event held
in May 2024.
Our commitment to risk management, careful contract selection and operational
excellence underpins the consistent year on year performance and our future
prospects. The UK's planned, and required, investment in economic and social
infrastructure continues to support growth in our chosen markets; and our
confidence in the Group's outlook is supported by our carefully selected,
sector focused, high quality order book which provides visibility and security
of future workloads. 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.
I am very much looking forward to working with Kris Hampson, our new Chief
Financial Officer, who brings a wealth of stakeholder experience to the Group
and positions us to further progress our sustainable growth ambition. I
continue to be impressed by our people, their professionalism and work ethic
and thank them all for their contribution to the ongoing success of the Group.
We are confident in the outlook for the current financial year, with 92% of
FY25 revenue already secured, and are encouraged by our recent framework and
sector wins which align with our strategy to 2030 and underpin the opportunity
to deliver further strong performance and sustainable long-term value for all
stakeholders."
Enquiries:
Galliford Try Bill Hocking, Chief Executive 01895 855001
Kris Hampson, Chief Financial Officer
Kevin Corbett, General Counsel & Company Secretary
Teneo James Macey White/Victoria Boxall 020 7260 2700
This announcement contains inside information. The person responsible for
making this announcement on behalf of Galliford Try is Kevin Corbett, General
Counsel & Company Secretary.
Investor presentations
Webcast and conference call
A webcast presentation and conference call for Analysts and Investors will be
held at 09:30am BST today, Thursday 3 October 2024. To register for this event
please follow the link https://brrmedia.news/GFRD_FY_24
(https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fbrrmedia.news%2FGFRD_FY_24&data=05%7C02%7Clisa.ducasse%40gallifordtry.co.uk%7C490e532a9ed34561ecba08dcdbb8edea%7C15813f7f44bc4e8fbab129b341c4f66f%7C0%7C0%7C638626834574504239%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=FFMm4FjOmRDyLp9%2Fid3W1gPTcgkbtEiCSbpa2czQ0CQ%3D&reserved=0)
. This will be available for playback after the event.
Analysts who wish to ask a question are requested to dial in on the conference
line detailed below. Other participants may submit their questions via the
webcast.
Telephone number: +44 (0) 330 551 0200.
Password: Quote Galliford Try Full Year if prompted by the operator.
Investor Meet Company
A live presentation and Q&A session for retail investors will be held on
11 October 2024 at 11:30am BST via the Investor Meet Company platform. The
presentation is open to all existing and potential shareholders. Questions can
be submitted pre-event via your Investor Meet Company dashboard up until 10
Oct 2024, 09:00 BST, or at any time during the live presentation. Investors
can register for the event via this link:
https://www.investormeetcompany.com/galliford-try-holdings-plc/register-investor
(https://www.investormeetcompany.com/galliford-try-holdings-plc/register-investor)
FINANCIAL REVIEW(1)
The Group delivered another year of growth, resulting in improved
profitability and dividends, which in turn, delivered an excellent total
shareholder return over the 12-month period.
Revenue
Revenue for the year increased by 27.2% to £1,772.8m (2023: £1,393.7m),
reflecting c.£379m from continuing strong organic growth. Building increased
its revenue by 17.7% to £938.3m (2023: £797.1m). Revenue benefited from the
ongoing organic growth as well as the delivery of the work that was previously
communicated as delayed by the macro inflation and public sector procurement
challenges in 2022. Infrastructure (comprising Highways and Environment)
recorded revenue of £819.8m (2023: £590.8m), up 38.8%, with Environment also
benefiting from ongoing organic growth as well as strong AMP7 spending. PPP
Investments' revenue was £14.7m, up 153.4% (2023: £5.8m).
Profit
The Group's pre-exceptional operating profit before amortisation was up 35.2%
to £29.6m (2023: £21.9m) reflecting strong organic growth and operational
leverage. The combined divisional operating margin improved by 13 basis points
to 2.5% (2023: 2.4%), in line with our margin improvement strategy as outlined
in the operational review below.
The Group's pre-exceptional profit before tax for the year was £32.7m (2023:
£23.4m) reflecting organic and acquisitive growth and the impact of our risk
management and margin improvement initiatives.
Exceptional items outside of Profit before Tax of £1.8m were incurred in the
year (2023: £10.5m), as set out in note 5 to the financial statements
relating to our investment in cloud-based Enterprise Resource Planning (ERP)
finance and commercial systems of £2.6m (HY24 £2.6m, no further costs
expected in FY25) partially offset by £0.8m interest relating to the recovery
of a Corporation Tax Group Relief adjustment from 2019. These ERP systems
costs are part of our investment in our digital and data capabilities. The new
system, Orbit, went into operation in September 2023, and is driving
efficiency by joining up processes across our people, pre-construction,
commercial, finance and procurement processes and supporting decision-making
with its data and insights. Investing in systems such as Orbit enables us to
continuously improve and optimise our processes.
Tax
The exceptional tax credit of £9.6m arises following amendments to company
tax returns filed in March 2024 and agreed by HMRC for the period ended
30 June 2019. The £9.6m credit arises from additional group relief claims
being filed for the period, resulting in a refund due from HMRC for overpaid
corporation tax. The £0.8m exceptional interest credit arises as a direct
result of the £9.6m exceptional tax credit being due from HMRC. The time lag
between the due dates for the initial corporation tax payments for 30 June
2019 period and the subsequent refund from HMRC in August 2024 resulted in the
£0.8m of repayment interest. The tax and interest amounts have been accrued
before year end with the cash received in August 2024.
We recorded pre-exceptional earnings per share for the year of 27.9p (2023:
18.9p). The post-exceptional earnings per share in 2024 was 36.2p (2023:
8.7p). Dividend per share of 15.5p is based on the pre-exceptional EPS of
27.9p.
The table below reconciles profit before income tax to our alternative
performance measure of pre-exceptional profit before income tax, which is a
key metric for monitoring performance of the business.
2024 2023
£m £m
Profit before income tax 30.9 10.1
Exceptional items (1.8) (10.5)
Impairment of Financial Assets - (2.8)
Pre-exceptional profit before income tax and impairment of financial assets 32.7 23.4
Balance Sheet
The Group has no debt or defined benefit pension obligations, and at 30 June
2024 had a cash balance of £227.0m (2023: £220.2m). The Group operates with
daily net cash and the average month-end cash balance in the year was £154.8m
(2023: £134.7m) demonstrating the Group's continued robust cash performance.
We anticipate similar levels of average cash in FY25.
We are proud of our collaborative and open approach with all our supply
chain. Under the Prompt Payment Code, and in a year when we implemented our
new ERP system, we paid 96% of invoices within 60 days (2023: 98%), with the
average payment being made in 26 days (2023: 26 days).
At 30 June 2024, we had a PPP portfolio of £41.8m (2023: £44.6m), reflecting
a blended 7.6% discount rate (2023: 7.3%). This portfolio contributes to our
balance sheet strength and during the year generated interest income of £3.8m
(2023: £3.9m).
At 30 June 2024, net working capital employed was £274.6m (2023: £268.5m).
Dividend and Share Buyback
Having reviewed the Group's results and the outlook, the Directors are
recommending a final dividend of 11.5 pence per share which, subject to
approval will be paid on 5 December 2024 to shareholders on the register at 8
November 2024. Together with the interim dividend of 4.0 pence per share
paid in April 2024, this will result in a total full year dividend for 2024 of
15.5 pence per share.
The Company has commenced a share buyback programme to repurchase up to £10
million of ordinary shares of 50 pence per share reflecting both the receipt
of a corporation tax refund and our confidence in the ongoing future cash
generation of the Group, while maintaining flexibility for growth related
investments, including acquisitions.
(1) Pre-exceptional items unless otherwise stated.
CURRENT TRADING AND OUTLOOK
The Group's operations are predominantly in the public and regulated sectors
and we continue to see a strong pipeline of new opportunities across our
chosen sectors. We operate across the UK and are well positioned to deliver on
local and national commitments to improve the UK's economic and social
infrastructure.
Our businesses are performing well and the Group is consistently delivering
increased dividends and profit growth, supported by a strong balance sheet,
excellent order book and good supply chain and client relationships. We will
continue our disciplined approach to risk management, careful contract
selection and operating sustainably.
The UK's planned, and required, investment in economic and social
infrastructure continues to support growth in our chosen markets and our
confidence in the Group's future outlook is supported by our high-quality
order book as well as the robust and resilient pipeline of opportunities we
see across our chosen sectors.
During the year, the Group enjoyed the benefits of both strong AMP7 revenues
from its water clients and the realisation of delayed Building division
projects that had been delayed due to public sector challenges and inflation
delays in 2022. As AMP7 now runs off, we are pleased by the early trading on
the change over to the much larger AMP8 water plan, with the contract awards
reflecting recognition of our differentiated quality offering, supporting
delivery of our Sustainable Growth Strategy target of in excess of £2.2bn of
revenue by 2030.
OPERATIONAL REVIEW
BUILDING
Building operates through nine regional businesses, serving a range of public
and private sector clients across the UK, with a focus on the Education,
Defence, Health and Custodial sectors, and going forward in Affordable Homes,
where we have core and proven strengths. Our Facilities Management (FM)
business continues to complement our operations by providing high-quality
building maintenance services. Building maintains a substantial presence in
Scotland, operating as Morrison Construction.
2024 2023 Change
Revenue (£m) 938.3 797.1 +17.7%
Operating profit before amortisation (£m) 24.0 18.5 +29.7%
Operating profit margin (%) 2.6 2.3 +23bps
Order book (£m) 2,294 2,249 +2.0%
Building (which includes our FM business) increased its revenue by 17.7% to
£938.3m (2023: £797.1m) generating an improved operating profit before
amortisation, up 29.7% at £24.0m (2023: £18.5m), representing a margin of
2.6% (2023: 2.3%). Revenue benefited from the volume of new work that was
previously delayed by inflation and public sector procurement challenges in
2022.
We plan to continue growing the capabilities of our FM operations, providing
high-quality building maintenance services as well as focusing on
decarbonising existing buildings through retrofit and other measures.
Building won contracts and positions on frameworks worth over £989m, (2023:
£999m). Significant appointments and wins for Building included:
- £835m NHS North of England Commercial Procurement Collaborative
(NOE CPC) Specialist Estates Engineering & Maintenance Services (Hard FM)
Framework, for its Asset Intelligence, Facilities Management (FM) and Oak
Specialist Services businesses.
- the £72m remodelling and refurbishment of Adelaide House in central
London for St Martin's Property Investments Limited.
- a £52m 30-storey build to rent development in Cardiff.
- a £87m build to rent development for Related Argent and Invesco
Real Estate at Brent Cross Town.
- the £3.2bn Communities & Housing Investment Consortium (CHIC)
Newbuild Development Framework for affordable homes.
- £101m of public sector building projects for the Ministry of
Justice and Defence Infrastructure Organisation.
- the new £69m Paisley Grammar School Community Campus on behalf
of Renfrewshire Council.
Building's order book stands at £2,294m up 2.0%, compared to £2,249m last
year. The order book is well diversified across our chosen sectors comprising
of 27.6% in Education, 19.0% in Defence, 14.4% in Custodial, 14.1% in
Facilities Management, 21.1% in Commercial and 3.8% in Health.
INFRASTRUCTURE
Infrastructure carries out projects across the UK, focused on Highways and
Environment (incorporating our activities in water and wastewater). This
business has established long term relationships with customers where we have
a strong track record on capital delivery and a growing capability in capital
maintenance and asset optimisation.
2024 2023 Change
Revenue (£m) 819.8 590.8 +38.8%
Operating profit before amortisation (£m) 20.1 14.5 +38.6%
Operating profit margin (%) 2.5 2.5 -
Order book (£m) 1,546 1,464 +5.6%
Infrastructure's revenue was up 38.8% to £819.8m (2023: £590.8m) generating
an operating profit before amortisation of £20.1m (2023: £14.5m) and margin
2.5% (2023: 2.5%). The improved performance is in line with our expectations.
Infrastructure won contracts and positions on frameworks worth £889m (2023:
£659m). These included:
- £3.1bn AMP8 Southern Water Capital Programme Strategic
Delivery Partner Framework.
- South West Water's Tier 2 Delivery Partners MEICA framework.
- the Scottish government's £600m public sector civil engineering
works framework.
- £500m Generation Five (Gen5) Civil Engineering, Highways and
Transportation Collaborative Framework 2024- 2028.
- £98m of Infrastructure projects, in South London for Thames Water,
the Netley Water Treatment Works in Surrey and, in highways, redevelopment of
the A629 route into central Halifax.
Infrastructure's current order book is £1,546m, up 5.6% compared to £1,464m
last year, including £641m in Infrastructure (Highways) and £905m in
Environment.
On 8 November 2023 the Group acquired AVRS Systems, a Mechanical, Electrical,
Instrumentation, Controls and Automation (MEICA) solutions specialist,
delivering projects predominantly within the water and energy sectors with
specialist preparation works in areas of sites like Sellafield. AVRS was
integrated into the Environment business.
In October 2023 the Group disposed of its non-core Rock & Alluvium piling
business to Van Elle Holdings plc.
INVESTMENTS
Investments delivers major developments through public-private partnerships
and co-development opportunities in the Private Rented Sector (PRS),
generating work for the wider Group in the process.
2024 2023 Change
Revenue (£m) 14.7 5.8 153.4%
Profit/(loss) from operations (£m) (1.0) 1.4 -171.4%
Net interest income 3.8 3.8 -
Directors' valuation (£m) 41.8 44.6 -6.3%
Revenue was £14.7m (2023: £5.8m) up 153.4% with an operating loss of £1m
(2023: profit of £1.4m). Performance includes the recognition of initial
development fees related to the financial close of the PRS scheme in Cardiff
as well as the ongoing project management fees associated with the
construction of the scheme itself. In 2023, operating profit included £3.6m
relating to the profit on disposal of our interest in a joint venture
arrangement.
At the year-end the business was preferred bidder on 6 further PRS schemes
with a gross development value of c£505m and potential further opportunities
in the future.
At the year end, the directors' valuation of our Public, Private Partnerships
(PPP) portfolio was £41.8m (2023: £44.6m), which is the fair value included
in the balance sheet reflecting a blended discount rate of 7.6% (2023: 7.3%).
The valuation compared with a value invested of £33.9m (2023: £35.2m). The
portfolio generated an annuity interest income of £3.8m (2023: £3.9m before
£0.1m of IFRS16 costs).
SUSTAINABLE GROWTH STRATEGY
Our strategy is to deliver high-quality buildings and infrastructure in a
socially responsible way, while providing a sustainable financial return for
our shareholders and delivering on our aspirations to create long term value
for all our stakeholders. The Group's strategic enablers are a progressive
culture, socially responsible delivery, focus on quality and innovation, and
disciplined risk management to give sustainable financial returns.
The Group performed well throughout the year and as a result of the strong
progress against its strategic targets set in 2021, the Group, in May 2024,
updated its sustainable financial growth targets through to 2030, which
include:
Revenue growing to in excess of £2.2bn, maintaining disciplined contract selection
and robust risk management in resilient market sectors
Divisional operating margin increasing to 4.0% through a focus on both top and bottom line growth and
accelerated growth in our higher-margin adjacent market businesses
Cash retain a strong balance sheet and operating cash generation
Dividends sustainable dividends with earnings cover of 1.8x
Our strategy is designed to:
- retain our strong platform for sustainable growth, with a particular
focus on our progressive culture, robust risk management and commercial
discipline.
- improve our operational performance and drive margin
progression; and
- deliver strong predictable cash flows, margin growth and
sustainable returns.
We intend to grow revenue in our existing core markets of Building and
Infrastructure. As well as organic growth, we will leverage our national
footprint, core capabilities, excellent client, supplier and community
relationships to increase volumes. Margin improvement will be driven by
contract selection, the right embedded margins in the business and operational
excellence including digitalisation and modern methods of construction.
We will also grow our higher margin specialist businesses, including within
Environment where we have completed several acquisitions (increasing our
capital maintenance and asset optimisation capabilities); our Specialist
Services division; and within our Affordable Homes business, we are making
progress in re-establishing relationships, winning framework positions and
bidding selectively to grow the business.
Risk management and order book
The Group's embedded culture of risk awareness enables us to identify and
manage the risks associated with operating in a dynamic external environment.
This culture gives us a well-established approach to strong risk management,
commercial discipline and contract selection, and is one of the key enablers
to delivering our Sustainable Growth Strategy. The management of recent past
inflationary pressures, demonstrate the value and importance of the Group's
risk management framework and focus and this approach is reflected in the high
quality of our order book.
At 30 June 2024, the Group had an order book of £3.8bn (2023: £3.7bn), of
which 91% is in the public and regulated sectors and 9% is in the private
sector (2023: 87% and 13% respectively).
The Group's strong participation in frameworks provides good visibility of
future revenue and amounts to 86% of our order book (2023: 82%).
Importantly, frameworks provide the certainty of a pipeline of work with
repeat known clients on established terms and conditions. Our reputation for
quality and delivery is allowing us to price for value and is demonstrated in
our improving margin position and underpins our 2030 margin targets.
During the year ended 30 June 2024, Building and Infrastructure were appointed
to contracts and frameworks worth over £989m and £889m, respectively.
The Group started the new financial year with 92% of planned revenue secured
for the 2025 financial year (2023: 92%).
Capital Allocation
A strong balance sheet is an important element in delivering the Group's
Sustainable Growth Strategy, as it provides a competitive advantage in the
market, supports the Group's disciplined approach, and provides confidence to
our clients and supply chain. The current outlook across our markets remains
encouraging and supports our strategy. The Group will also always ensure that
it is prepared for any adverse change in market conditions that may arise. Our
strong balance sheet is particularly important for the Group to continue to
operate its disciplined approach to contract selection and focus on operating
margin, irrespective of any short-term economic concerns.
The Group's capital allocation priorities are:
· Invest in the business
We are able to allocate capital to assist the development of our adjacent
markets, as demonstrated by our acquisition during the year of AVRS Systems.
Our strong cash balance sheet enables the Group to react quickly to strategic
opportunities, including bolt-on acquisitions that enhance our capabilities
and increase value, and to continue to invest in enablers of growth such as
digital capabilities.
· Paying sustainable dividends to shareholders
The Board understands the importance of dividends to shareholders and in
setting its dividend considers the Group's profitability and retained
reserves, its strong balance sheet, high-quality order book and longer-term
prospects. Consistent with this approach the Group expects dividend per share
to increase in line with earnings as the business grows.
The Group has a dividend policy of earnings covering the dividend by 1.8
times. Alongside dividend growth from our operational performance, the policy
also reflects the low-risk nature of the PPP asset portfolio and its annuity
interest income and provides a sustainable increase in dividend to
shareholders while retaining capital to invest in growing the business.
· Returning excess cash
We continue to assess the cash requirements of the business to ensure the
Group remains well positioned to deliver on its Sustainable Growth Strategy
and has sufficient funds to invest in the business. As previously announced,
where average month-end cash and PPP assets increase above the level required,
the Board will consider making additional returns to shareholders where this
represents the best return for shareholders.
ENVIRONMENT, SOCIAL and GOVERNANCE (ESG)
Operating sustainably helps us to win work, engages our employees, benefits
communities and the environment, and makes us more efficient. This is why ESG
remains an integral part of our updated strategy, and at the core of how we
deliver stakeholder value. We monitor progress against the six pillars of our
sustainability framework as set out below:
Health and Safety
Health and Safety is the number one priority for our business, with our
commitment to no harm driving the actions that we take to keep each other safe
every day. This was, once again, highlighted in our Employee Survey, where 96%
of respondents stated that we give health and safety a high priority.
As part of our drive for no harm, we made a concerted effort to address our
Lost Time Frequency Rate (LTFR), which measures every incident that results in
an employee taking more than a day away from work. During the year this figure
improved from 0.20 to 0.14. Our Accident Frequency Rate (AFR), which measures
where the number of injuries resulting in more than seven days away from work,
also fell from 0.09 to 0.04, with 13 of our 19 business units recording zero
AFR.
During the year, we launched an update to the leadership module within our
award-winning Challenging Beliefs, Affecting Behaviour (CBAB) safety
programme, to reinforce the link between safety and quality in construction
and safety in use. This approach allows us to use our strong culture
surrounding Health and Safety and apply it with a quality focused mindset.
People
Retaining, attracting and developing talent continues be a focus of our people
strategy. We have invested further in our Employee Value Proposition (EVP)
'Grow Together' which delivers on our promise to be a people-orientated,
progressive employer driven by our values. In support of this, we launched a
dedicated Careers website to better showcase the opportunities we have on
offer; continued to promote our internal mobility programme Explore, delivered
training on Equity, Diversity and Inclusion (EDI) and made improvements to our
learning and development offer. During the year we promoted 352 staff within
the company.
Employee advocacy is a powerful indicator of the effectiveness of our people
strategy, measuring how engaged employees are and how likely they are to
recommend our business as a great place to work. In our 2024 employee survey,
we achieved an employee advocacy score of 87% compared to a sector average of
75%.
Our EDI team is working with The Clear Assured Company, a global diversity and
inclusion specialist, so that we continue to embed the most inclusive
practices across our organisation on the back of our accreditation to their
Bronze level in our first ever EDI review in 2023. Key developments in this
area have been the design and commencement of Inclusive Leadership awareness
sessions, which aim to equip senior management with knowledge of how EDI
influences business performance, and provide them with skills to progress a
culture of inclusion that contributes to high performance.
Early careers roles (apprentices, trainees, graduates and sponsored students)
remain a key area of focus for both retention and recruitment as these roles
help us to grow our own talent, shape our leaders and influence the skill sets
and composition of our future workforce, including diversity. We were pleased
to be voted the number one place for apprentices to work, and number two for
graduates, in TheJobCrowd's list of Top Construction and Civil Engineering
Companies. We were also among 20 companies out of a total of 600 to be awarded
the new Platinum membership of The 5% Club's Employer Audit Scheme in
recognition of our approach to providing 'earn and learn' opportunities for
our young people.
Environment and Climate Change
We have pledged to achieve net zero carbon across our own operations by 2030
and all activities by 2045, and set near-term emissions reduction targets
which have been validated by the Science Based Targets initiative (SBTi),
In support of this ambition, during the year we developed our first net zero
route map which identifies 16 activities where action is required if we are to
achieve our emission reduction targets. These include the use of diesel,
company vehicles, site compounds, permanent offices, business travel, design,
construction materials, emissions measurement, internal carbon charging and
offsetting.
In calendar year 2023, our scope 1 and 2 emissions demonstrated a continued
transition from fossil fuels to electricity. Emissions relating to the use of
diesel on our sites were down 9.1%, and emissions relating to company cars and
vans were down 6.9%. This was partially offset by an increase in emissions
relating to electricity consumption, resulting in our overall scope 1 and 2
emissions reducing by 2.5% compared to 2022.
Our full scope 3-foot printing exercise performed in 2022, using a spend-based
approach, estimated that emissions relating to the materials and subcontract
services that go into our projects represent circa 89% of our total carbon
footprint. To help us monitor the impact of the design and procurement
decisions we are making to reduce carbon, we are working with our supply chain
and technology partners to develop and trial technology solutions that allow
us to estimate our supply chain carbon emissions more accurately using actual
quantities and product specific emissions factors.
We continue to participate in the CDP, a global disclosure system for
organisations to manage their environmental impacts. In 2023, we achieved an
improved score of B 'Management level', (2022: C 'Awareness level'),
recognising the progress we are making in embedding climate action into our
governance, strategy and operations. We also retained our MSCI AAA rating.
Communities
Delivering a legacy of positive social value outcomes is increasingly
important for our clients and employees. Since 2022, we have delivered circa
£935 million in social and local economic value by providing employment, work
for the local supply chain, and opportunities for training and
apprenticeships.
During the year, we launched a pilot mentoring scheme aimed at encouraging the
next generation of women into construction by teaming up initially with five
schools in the East Midlands. Mentors from our business have been paired with
students and the three-year programme aims to provide upskilling of students'
communication skills for the workplace, career matching to their interests,
and guidance with CV writing and interviewing.
We continue to take part in the Considerate Constructors Scheme (CCS), which
assesses sites on their approach to communities, the environment and
workforce. We maintained our high score of 42.9 (2023: 43.4) out of 50, which
remains above the industry average of 40.6.
Clients
Delivering excellence for our clients is key to the long-term sustainability
of our business. Our approach is reflected by the fact that 93% of our order
book is repeat business (2023: 87%) and we have already secured 92% of our
order book for FY25 (2024: 92%).
Our focus on delivering quality outcomes and building trusted relationships
with our clients is reflected by the fact that 86% of our order book is in
frameworks. Frameworks are a vehicle for the public and regulated sectors to
procure projects in a collaborative manner, forming long-term relationships,
improving quality and creating efficiencies. Securing positions on frameworks
is our preferred route to market as it provides us with greater certainty and
the ability to act more strategically.
Quality is a key priority for the construction industry; our approach is to
embed quality into our designs and to follow through into project delivery and
handover. This is supported by Modern Methods of Construction, our Business
Management System (BMS), which contains the processes and templates required
to provide quality assurance at every step of a project's journey.
The digitalisation tools we are deploying are driving margin growth by
creating a more efficient approach to project delivery. However, they also
drive better outcomes for our clients by improving safety, enhancing quality,
enabling collaboration, improving visualisation, lowering carbon, and driving
down costs. As an example, we are using software to overlay 3D design models
with augmented reality to simulate the next sequence of activity, highlighting
potential issues before they happen and creating operational efficiencies.
Our capability in supporting clients to design, build and maintain low carbon
infrastructure and buildings is recognised by our representation on two of the
working groups developing the UK Net Zero Carbon Buildings Standard (NZCBS), a
cross-industry initiative which will provide a single agreed definition and
methodology for the industry to determine what constitutes a net zero carbon
building.
Supply Chain
The majority of our work is delivered in partnership with our supply chain, so
we align key supply chain members with our culture and develop collaborative
relationships that improve social, environmental and economic outcomes. This
is led through our Advantage through Alignment (AtA) programme and 61% of our
core aligned trades spend is now with aligned subcontractors. Training and
education remain a key theme beyond AtA, and we continue to offer our CBAB and
net zero programmes to key supply chain members.
During the year, we have upgraded our supplier on-boarding platform, which now
includes a Risk Radar to help us monitor and manage supply chain risk. The
radar includes live updates on financial health scores, health and safety
incidents, environmental incidents, employment tribunals, and tax cases.
We are signatories of the Prompt Payment Code and pay 96% of invoices within
60 days (FY23: 98%), with an average days to pay of 26 days. We are also
making progress against the additional metric of paying 95% of invoices from
suppliers with fewer than 50 employees within 30 days.
BOARD
Kris Hampson joined the board as Chief Financial Officer on 2 September 2024
replacing Andrew Duxbury, Group Finance Director who left the Group on 31 May
2024. The Board thanks Andrew for his significant contribution to the
Group. Kevin Boyd joined the Board as a Non-executive Director on 1 March
2024.
Consolidated income statement
for the year ended 30 June 2024
2024 2023
Notes Pre-Exceptional items Exceptional items (note 5) Total Pre-Exceptional items Exceptional items (note 5) Total
£m £m £m £m £m £m
Revenue 4 1,772.8 - 1,772.8 1,393.7 - 1,393.7
Cost of sales (1,641.4) - (1,641.4) (1,292.3) - (1,292.3)
Gross profit 131.4 - 131.4 101.4 - 101.4
Other income 12 - - - 3.6 - 3.6
Administrative expenses (104.1) (2.6) (106.7) (86.1) (10.5) (96.6)
Impairment of financial assets 13 - - - (2.8) - (2.8)
Operating profit/(loss) 27.3 (2.6) 24.7 16.1 (10.5) 5.6
Finance income 6 8.8 0.8 9.6 6.3 - 6.3
Finance costs 6 (3.4) - (3.4) (1.8) - (1.8)
Profit/(loss) before income tax 32.7 (1.8) 30.9 20.6 (10.5) 10.1
Income tax (expense)/credit 7 (4.8) 10.1 5.3 (3.1) 2.1 (1.0)
Profit/(loss) for the year 27.9 8.3 36.2 17.5 (8.4) 9.1
Earnings per share
Basic
Profit attributable to ordinary shareholders 9 27.9p 36.2p 16.6p 8.7p
Diluted
Profit attributable to ordinary shareholders 9 26.7p 34.7p 15.6p 8.1p
The notes are an integral part of the consolidated financial statements.
Consolidated statement of comprehensive income
for the year ended 30 June 2024
Notes 2024 2023
£m £m
Profit for the year 36.2 9.1
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss
Movement in fair value of PPP and other investments 12 (1.5) (2.4)
Total items that may be reclassified subsequently to profit or loss (1.5) (2.4)
Other comprehensive expense for the year net of tax (1.5) (2.4)
Total comprehensive income for the year 34.7 6.7
The notes are an integral part of the consolidated financial statements.
Balance sheet
Group
Notes 30 June 2024 30 June 2023
£m £m
Assets
Non-current assets
Intangible assets 10 4.3 5.6
Goodwill 11 93.6 92.7
Property, plant and equipment 5.3 7.2
Right-of-use assets 51.4 38.6
PPP and other investments 12 41.8 44.6
Deferred income tax assets 18 15.0 15.5
Total non-current assets 211.4 204.2
Current assets
Trade and other receivables 13 370.8 286.5
Current income tax assets 11.6 1.8
Cash and cash equivalents 14 227.0 220.2
Total current assets 609.4 508.5
Total assets 820.8 712.7
Liabilities
Current liabilities
Trade and other payables 15 (609.2) (525.1)
Lease liabilities (20.5) (14.9)
Provisions for other liabilities and charges 16 (36.2) (29.9)
Total current liabilities (665.9) (569.9)
Non-current liabilities
Lease liabilities (32.5) (24.2)
Total non-current liabilities (32.5) (24.2)
Total liabilities (698.4) (594.1)
Net assets 122.4 118.6
Equity
Share Capital 52.0 52.4
Share premium 0.8 -
Other reserves 20 136.4 135.3
Retained earnings 20 (66.8) (69.1)
Total equity attributable to owners of the Company 122.4 118.6
Consolidated statements of changes in equity
for the year ended 30 June 2024
Notes Ordinary shares Share Other Retained earnings Total shareholders' equity
£m premium reserves £m £m
£m £m
Consolidated statement
At 30 June 2022 55.5 - 132.2 (55.6) 132.1
Profit for the year - - - 9.1 9.1
Other comprehensive expense - - - (2.4) (2.4)
Total comprehensive income for the year - - - 6.7 6.7
Transactions with owners:
Dividends 8 - - - (9.6) (9.6)
Purchase of shares - - - (14.0) (14.0)
Share-based payments 19 - - - 3.4 3.4
Cancellation of shares 20 (3.1) - 3.1 - -
At 30 June 2023 52.4 - 135.3 (69.1) 118.6
Profit for the year - - - 36.2 36.2
Other comprehensive expense - - - (1.5) (1.5)
Total comprehensive income for the year - - - 34.7 34.7
Transactions with owners:
Dividends 8 - - - (24.2) (24.2)
Purchase of shares - - - (12.0) (12.0)
Share-based payments 19 - - - 1.8 1.8
Tax relating to share-based payments - - - 2.0 2.0
Issue of shares 0.7 0.8 - - 1.5
Cancellation of shares 20 (1.1) - 1.1 - -
At 30 June 2024 52.0 0.8 136.4 (66.8) 122.4
Statement of cash flows
for the year ended 30 June 2024
Group
Notes 2024 2023
£m £m
Cash flows from operating activities
Profit for the year 36.2 9.1
Adjustments for:
Income tax (credit)/expense - continuing operations (5.3) 1.0
Net finance income - continuing operations 6 (6.2) (4.5)
Profit before finance costs and taxation for continuing operations 24.7 5.6
Depreciation, amortisation and impairment of non-current assets 10 20.7 17.1
Profit on disposal of joint venture 12 - (3.6)
Share-based payments 19 1.8 3.4
Impairment of financial asset - 2.8
Other non-cash movements (0.4) (0.2)
Net cash generated from operations before changes in working capital 46.8 25.1
(Increase) in trade and other receivables 13, 22 (84.1) (43.3)
Increase in trade and other payables 15, 22 84.9 47.7
Increase in provisions 16 6.3 2.5
Net cash generated from operations 53.9 32.0
Interest received 6.2 6.3
Interest paid (3.4) (1.8)
Income tax (paid)/received (0.5) (1.0)
Net cash generated from operating activities 56.2 35.5
Cash flows from investing activities
Dividends received from joint ventures and associates - 0.3
Decrease in amounts due from joint ventures 0.1 0.2
Proceeds from disposal of joint venture - 3.6
PPP loan repayments 12 1.3 0.5
Acquisition of business combinations, net of cash acquired 22 (3.5) (1.0)
Proceeds from disposal of subsidiaries 1.8 -
Acquisition of property, plant and equipment (1.0) (2.2)
Net cash (used)/generated from investing activities (1.3) 1.4
Cash flows from financing activities
Repayment of lease liabilities (16.7) (12.0)
Purchase of own shares (8.7) (14.0)
Dividends paid to Company shareholders 8 (24.2) (9.6)
Net proceeds from issue of ordinary share capital 1.5 -
Net cash used in financing activities (48.1) (35.6)
Net increase in cash and cash equivalents 6.8 1.3
Cash and cash equivalents at 1 July 14 220.2 218.9
Cash and cash equivalents at 30 June 14 227.0 220.2
Notes to the consolidated financial statements
1 Basis of preparation
The financial information set out in this preliminary announcement does not
constitute Galliford Try Holdings plc's statutory accounts for the years ended
30 June 2024 and 30 June 2023. Statutory accounts for the year ended 30 June
2024 will be delivered to the Registrar of Companies following the Company's
Annual General Meeting. The Auditor has reported on those accounts; their
report was unqualified, did not draw attention by way of emphasis, and did not
contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
The Board approved the Statutory accounts for the year ended 30 June 2024 on 3
October 2024.
Statutory accounts for the year ended 30 June 2023 have been delivered to the
Registrar of Companies. The Auditor has reported on those accounts; their
report was unqualified, did not draw attention by way of emphasis, and did not
contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
In preparing the consolidated financial statements the directors have
considered the risks and potential impact of climate change to the Group. It
is unlikely that these risks will have a material financial impact in the
short and medium term, particularly given the nature of the contractual
arrangements in place, however the directors continue to monitor this,
particularly regarding any judgements on construction contracts, impairment
reviews and going concern.
Galliford Try Holdings plc (the Company) is a public limited company
incorporated, listed and domiciled in the UK, and registered under the laws of
England and Wales. The address of the registered office is 3 Frayswater Place,
Cowley, Uxbridge, UB8 2AD. The Company has its listing on the London Stock
Exchange.
The financial information contained in this results announcement has been
prepared on the basis of the accounting policies set out in the statutory
statements for the year ended 30 June 2024. Whilst the financial information
included in this announcement has been computed in accordance with the
recognition and measurement requirements of UK-adopted International
Accounting Standards and with the requirements of the Companies Act 2006, this
announcement does not itself contain sufficient disclosures to comply with
IFRS.
2 Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2023.
3 Segmental reporting
Segmental reporting is presented in the consolidated financial statements in
respect of the Group's business segments, which are the primary basis of
segmental reporting. The business segmental reporting reflects the Group's
management and internal reporting structure. Segmental results include items
directly attributable to the segment, as well as those that can be allocated
on a reasonable basis. As the Group has no activities outside the UK, segment
reporting is not required by geographical region.
The Chief Operating Decision-Makers (CODM) have been identified as the Group's
Chief Executive and Chief Financial Officer. The CODM review the Group's
internal reporting in order to assess performance and allocate resources.
Management has determined the operating segments of the Group to be Building,
Infrastructure, Investments and Central (primarily representing central
overheads).
The CODM assess the performance of the operating segments based on a measure
of adjusted earnings before finance costs, amortisation, exceptional items and
taxation. This measurement basis excludes the effects of non-recurring
expenditure and exceptional items from the operating segments, such as
restructuring costs and impairments when the impairment is the result of an
isolated, non-recurring event. In the financial year ended 30 June 2023, the
Group has also presented pre-exceptional performance excluding the impairment
of financial assets as a result of a one-off contract settlement as announced
on 8 June 2023 (disclosed in the consolidated income statement as an
impairment of financial assets of £2.8m). Interest income and expenditure are
included in the result for each operating segment that is reviewed by the
CODM. Other information provided to them is measured in a manner consistent
with that in the financial statements.
Income statement
Year-ended 30 June 2024 Building Infrastructure Investments Central Total
£m £m £m £m £m
Revenue 938.3 819.8 14.7 - 1772.8
Pre-exceptional operating profit/(loss) before amortisation 24.0 20.1 (1.0) (13.5) 29.6
Finance income 0.1 0.3 3.8 4.6 8.8
Finance costs (1.2) (1.6) - (0.6) (3.4)
Pre-exceptional profit/(loss) before amortisation and taxation 22.9 18.8 2.8 (9.5) 35.0
Amortisation of intangible assets (1.0) (1.1) - (0.2) (2.3)
Pre-exceptional profit/(loss) before taxation 21.9 17.7 2.8 (9.7) 32.7
Exceptional items - 0.8 - (2.6) (1.8)
Profit before tax 21.9 18.5 2.8 (12.3) 30.9
Income tax credit 5.3
Profit for the year 36.2
Year-ended 30 June 2023 Building Infrastructure PPP Investments £m Central Total
£m £m £m £m
Revenue 797.1 590.8 5.8 - 1,393.7
Pre-exceptional operating profit/(loss) before amortisation and impairment of 18.5 14.5 1.4 (12.5) 21.9
financial assets
Finance income - 0.3 3.9 2.1 6.3
Finance costs (0.7) (0.7) (0.1) (0.3) (1.8)
Pre-exceptional profit/(loss) before amortisation and taxation and impairment 17.8 14.1 5.2 (10.7) 26.4
of financial assets
Amortisation of intangible assets (1.0) (0.9) - (1.1) (3.0)
Pre-exceptional profit/(loss) before taxation and impairment of financial 16.8 13.2 5.2 (11.8) 23.4
assets
Impairment of financial assets - (2.8) - - (2.8)
Exceptional items - - - (10.5) (10.5)
Profit before tax 16.8 10.4 5.2 (22.3) 10.1
Income tax credit (1.0)
Profit for the year 9.1
Inter-segment revenue is eliminated from revenue above. In the year to 30 June
2024, this amounted to £91.8m (2023: £61.0m) for continuing operations, of
which £0.6m (2023: £nil) was in Building, £57.8m (2023: £40.1m) was in
Infrastructure, £13.8m (2023: £nil) was in Investments and £19.6m (2023:
£20.9m) was in central costs.
Balance sheet
30 June 2024 Notes Building Infrastructure Investments Central Total
£m £m £m £m £m
Goodwill and intangible assets 40.0 57.9 - - 97.9
Other including working capital employed (60.2) (160.7) 42.7 (24.3) (202.5)
Net cash 14 158.3 50.4 (7.0) 25.3 227.0
Net assets/(liabilities) 138.1 (52.4) 35.7 1.0 122.4
Total Group liabilities (698.4)
Total Group assets 820.8
30 June 2023 Notes Building Infrastructure Investments Central Total
£m £m £m £m £m
Goodwill and intangible assets 41.0 57.1 - 0.2 98.3
Other including working capital employed (60.9) (178.2) 43.3 (4.1) (199.9)
Net cash 14 139.0 42.7 (8.6) 47.1 220.2
Net assets/(liabilities) 119.1 (78.4) 34.7 43.2 118.6
Total Group liabilities (594.1)
Total Group assets 712.7
4 Revenue
Nature of revenue streams
(i) Building and Infrastructure segments
Our Construction business operates nationwide, working with clients
predominantly in the public and regulated sectors, such as health, education
and defence markets within the Building segment and road and water markets
within the Infrastructure segment (as well as private commercial clients).
Projects include the construction of assets (with services including design
and build, construction only and refurbishment) in addition to the
maintenance, renewal, upgrading and managing of services across utility and
infrastructure assets.
Revenue stream Nature, timing of satisfaction of performance obligations and significant
payment terms
Fixed price A number of projects within these segments are undertaken using fixed-price
contracts.
Contracts are typically accounted for as a single performance obligation; even
when a contract (or multiple combined contracts) includes both design and
build elements, they are considered to form a single performance obligation as
the two elements are not distinct in the context of the contract, given that
each is highly interdependent on the other.
The Group typically receives payments from the customer based on a contractual
schedule of value that reflects the timing and performance of service
delivery. Revenue is therefore recognised over time (the period of
construction) based on an input model (reference to costs incurred to date).
On a number of contracts, the Group recognised revenue over time (the period
of construction) based on an output model (reference to milestone reached,
units delivered or work certified).Un-invoiced amounts are presented as
contract assets.
No significant financing component typically exists in these contracts.
Cost-reimbursable A number of projects are undertaken using cost reimbursable/target price
(possibly with a pain/gain share mechanism) contracts.
These projects are often delivered under frameworks, however, individual
performance obligations under the framework are normally determined at a
project level where multiple services are supplied. The Group constrains
revenue and calculates any pain/gain mechanism at the framework level where
appropriate.
The Group typically receives payments from the customer based on actual costs
incurred. Revenue is therefore recognised over time (the period of
construction) based on an input model (reference to costs incurred to date).
Un-invoiced amounts are presented as contract assets.
No significant financing component typically exists in these contracts.
Facilities management* Contracts undertaken within the Building segment that provide full life-cycle
solutions to clients, are accounted for as a single performance obligation,
with revenue recognised over time and typically on a straight-line basis.
* Facilities management represents around 5% of the
total Building segment turnover.
(ii) Investments segment
Our Investments business specialises in managing construction through to
operations for major building projects through public private partnerships and
co-development opportunities. The business leads bid consortia and arranges
finance, as well as making debt and equity investments (which are recycled).
Revenue stream Nature, timing of satisfaction of performance obligations and significant
payment terms
Investments The Group has investments in a number of PPP Special Purpose Vehicles (SPVs),
delivering major building and infrastructure projects.
Development fees and land sales on co-development private rental schemes
represent a performance obligation that is recognised at a point in time when
control is deemed to pass to the customer (on financial close).
The business additionally provides management services and project manages
developments under Management Service Agreements (MSA) or separate development
arrangements. Revenue for these services is typically recognised over time as
and when the service is delivered to the customer.
The business additionally provides management services to the SPVs under
Management Service Agreements (MSA). Revenue for these services is typically
recognised over time as and when the service is delivered to the customer.
Disaggregation of revenue
The Group considers the split of revenue by operating segment to be the most
appropriate disaggregation. All revenue has been derived from performance
obligations settled over time, except for £7.3m (2023: £nil) that is
recognised at a point in time within the investments segment.
Revenue on existing contracts, where performance obligations are unsatisfied
or partially unsatisfied at the balance sheet date, is expected to be
recognised as follows:
Revenue - year ended 30 June 2024 2025 2026 2027 Total
£m £m onwards £m
£m
Building 660.1 177.0 1.9 839.0
Infrastructure 572.3 157.9 16.6 746.8
Total Construction 1,232.4 334.9 18.5 1,585.8
Investments 2.8 2.5 25.3 30.6
Total transaction price allocated to performance obligations yet to be 1,235.2 337.4 43.8 1,616.4
satisfied
Revenue - year ended 30 June 2023 2024 2025 2026 Total
£m £m onwards £m
£m
Building 614.4 214.4 32.7 861.5
Infrastructure 453.1 185.0 49.4 687.5
Total Construction 1,067.5 399.4 82.1 1,549.0
Investments 3.2 2.6 26.5 32.3
Total transaction price allocated to performance obligations yet to be 1,070.7 402.0 108.6 1,581.3
satisfied
Any element of variable consideration is estimated at a value that is highly
probable not to result in a significant reversal in the cumulative revenue
recognised.
5 Exceptional items
2024 2023
£m £m
Implementation costs of cloud based arrangements(1) - administrative expenses (2.6) (10.5)
Finance income(2) 0.8 -
Loss before tax (1.8) (10.5)
Associated tax credit on items above 0.5 2.1
Exceptional income tax credit(2) 9.6 -
Total 8.3 (8.4)
1 The Group incurred £2.6m (2022: £10.5m) of customisation and
configuration costs associated with the move to Oracle Fusion, a cloud-based
computing arrangement, during the period. Taking into account the IFRIC Agenda
Decision issued by the IFRS IC in March 2021, the Group has analysed the costs
and concluded that these costs should be expensed in the period. In accordance
with the Group's existing accounting policy, management considers that the
costs should be separately disclosed as exceptional because they are
significant and irregular. The move to Oracle Fusion is now complete with no
further exceptional costs expected.
2 The Group previously disclosed that it had not recognised an asset in
respect of historic trading losses due to the losses being subject to
agreement with HMRC. This led to an uncertain tax treatment which, based on
the advice of tax advisors, the group concluded it was not probable HMRC would
accept. During the year to 30 June 2024 HMRC agreed a quantum of historic
trading losses available and that they could be utilised against historical
trading profits, resulting in a cash tax refund of £9.6m with associated
interest of £0.8m, which was received after 30 June 2024. Management
considers that the refund should be disclosed separately as exceptional given
it is material in quantum and one off in nature.
An associated tax credit of £0.5m (2023: £2.1m) has been recognised in
respect of the implementation costs of cloud based arrangements and the
exceptional finance income (£0.2m tax charge (2023: n/a)).
6 Net finance income
Group 2024 2023
£m £m
Interest receivable on bank deposits 4.6 2.4
Interest receivable from PPP Investments and joint ventures 4.2 3.9
Finance income 8.8 6.3
Other (including interest on lease liabilities) (3.4) (1.8)
Finance costs before exceptional items (3.4) (1.8)
Exceptional items 0.8 -
Net finance income 6.2 4.5
7 Income tax charge/(credit)
Group Notes 2024 2023
£m £m
Analysis of expense in year
Current year's income tax
Current tax - pre-exceptional items 3.3 -
Current tax - exceptional items 5 (0.5) -
Deferred tax - pre-exceptional items 5.0 3.0
Deferred tax - exceptional items 18 - (2.1)
Adjustments in respect of prior years
Current tax - exceptional items (9.6) -
Deferred tax - pre-exceptional items 18 (3.5) 0.1
Income tax (credit)/expense (5.3) 1.0
Tax on items recognised in other comprehensive income
Tax recognised in other comprehensive income - -
Total tax (credit)/expense (5.3) 1.0
The total income tax credit for the year of £5.3m (2023: charge of £1.0m) is
lower (2023: lower) than the expected charge based on the standard rate of
corporation tax in the UK of 25.0% (2023: 20.50%). The differences are
explained below:
2024 2023
£m £m
Profit before income tax 30.9 10.1
Profit before income tax multiplied by the blended standard corporation tax 7.7
rate in the UK of 25% (2023: 20.5%)
2.1
Effects of:
Expenses not deductible for tax purposes 0.2 0.1
Non-taxable income (0.2) (1.0)
Adjustments in respect of prior years (13.1) 0.1
Change in tax rates - 0.1
Other 0.1 (0.4)
Income tax (credit)/expense (5.3) 1.0
The adjustments in respect of prior years include a £9.6m tax credit for
exceptional items, as explained in note 5.
The Group is within the scope of OECD Pillar Two rules. The rules are designed
to ensure a minimum effective tax rate of 15% across each country of
operation.
The rules were enacted into UK law in July 2023 and are effective from 1 July
2024 to the Group. Due to the Group trading only in the UK, it is not expected
there will be a significant impact as a result of the implementation of the
rules, however the Group continues to review any potential implications with
advisors.
In the Spring Budget 2021, the UK Government announced that from 1 April 2023,
the corporation tax rate would increase from 19% to 25%. This new law was
substantively enacted in the Finance Bill 2021 and received Royal Assent on 10
June 2021. Where appropriate, deferred taxes at the balance sheet date have
been measured using the appropriate tax rates (based on when the underlying
balance is expected to crystallise) and reflected in these financial
statements.
8 Dividends
2024 2023
Group £m pence per share £m pence per share
Previous year final 7.7 7.5 6.4 5.8
Special 12.5 12.0 - -
Current year interim 4.0 4.0 3.2 3.0
Dividend recognised in the year 24.2 23.5 9.6 8.8
The following dividends were declared by the Company in respect of each
accounting period presented:
2024 2023
£m pence per share £m pence per share
Interim 4.1 4.0 3.2 3.0
Special - - 12.6 12.0
Final 11.9 11.5 7.9 7.5
Dividend relating to the year 16.0 15.5 23.7 22.5
The directors are proposing a final dividend in respect of the financial year
ended 30 June 2024 of 11.5 pence per share (2023: 7.5 pence per share),
bringing the total dividend in respect of 2024 to 15.5 pence per share (2023:
10.5p excluding the special dividend). The final dividend will absorb
approximately £11.9m of equity. Subject to shareholders' approval at the AGM
to be held on 28 November 2024, the dividend will be paid on 5 December 2024
to shareholders who are on the register of members at the close of business on
8 November 2024.
The directors declared a special dividend of 12.0 pence per share on 8 June
2024 following the settlement of its long-standing dispute concerning three
contracts with entities owned by a major infrastructure fund, returning a
substantial portion of the proceeds to shareholders.
9 Earnings per share
Basic and diluted earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary
shareholders by the weighted average number of ordinary shares outstanding
during the year, excluding those held by the Trust, which are treated as
cancelled.
Under normal circumstances, the average number of shares is diluted by
reference to the average number of potential ordinary shares held under option
in the year. The dilutive effect amounts to the number of ordinary shares
which would be purchased using the aggregate difference in value between the
market value of shares and the share option price. Only shares that have met
their cumulative performance criteria are included in the dilution
calculation. The Group has two classes of potentially dilutive ordinary
shares: those share options granted to employees where the exercise price is
less than the average market price of the Company's ordinary shares during the
year and the contingently issuable shares under the Group's long-term
incentive plans. A loss per share cannot be reduced through dilution, hence
this dilution is only applied where the Group has reported a profit.
The earnings and weighted average number of shares used in the calculations
are set out below.
2024 2023
Earnings Weighted average number of shares Per share amount Earnings Weighted average number of shares Per share amount
£m pence £m pence
Basic EPS - pre-exceptional
Earnings attributable to ordinary shareholders pre-exceptional items 100,051,095 27.9
27.9 17.5 105,180,316 16.6
Basic EPS
Earnings attributable to ordinary shareholders post-exceptional items 36.2 100,051,095 36.2
9.1 105,180,316 8.7
Effect of dilutive securities:
Options n/a 4,315,217 n/a n/a 7,286,375 n/a
Diluted EPS - pre-exceptional 27.9 104,366,312 26.7 17.5 112,466,691 15.6
Diluted EPS 36.2 104,366,312 34.7 9.1 112,466,691 8.1
The 2023 pre-exceptional EPS (basic) excluding the impact of the one-off
contract settlement as announced on 8 June 2023 (note 13) is 18.9p (and
diluted EPS is 17.7p).
10 Intangible assets
Group Notes Customer contracts and relationships Computer software Total
£m
£m £m
Cost
At 1 July 2022 17.4 11.5 28.9
Additions 22 0.3 - 0.3
At 30 June 2023 17.7 11.5 29.2
Additions 22 1.0 - 1.0
At 30 June 2024 18.7 11.5 30.2
Accumulated amortisation and impairment loss
At 1 July 2022 (10.7) (9.4) (20.1)
Amortisation in year (1.8) (1.2) (3.0)
Impairment loss - (0.5) (0.5)
At 1 July 2023 (12.5) (11.1) (23.6)
Amortisation in year (1.9) (0.4) (2.3)
At 30 June 2024 (14.4) (11.5) (25.9)
Net book amount
At 30 June 2024 4.3 - 4.3
At 30 June 2023 5.2 0.4 5.6
At 30 June 2022 6.7 2.1 8.8
11 Goodwill
Group Notes £m
Cost
At 30 June 2022 88.2
Additions 22 4.5
At 30 June 2023 92.7
Additions 22 0.9
At 30 June 2024 93.6
Aggregate impairment at 30 June 2022, 2023, and 2024 -
At 30 June 2022, 2023, and 30 June 2024 -
Net book amount
At 30 June 2024 93.6
At 30 June 2023 92.7
At 30 June 2022 88.2
Goodwill is allocated to the Group's CGUs identified according to business
segment. The goodwill is attributable to the following business segments:
2024 2023
£m
£m
Building 40.0 40.0
Infrastructure 53.6 52.7
93.6 92.7
Impairment review of goodwill and key assumptions
Goodwill is tested for impairment at least annually. The recoverable amount of
a CGU is determined based on value in use calculations. These calculations use
pre-tax cash flow projections based on future financial budgets approved by
the Board, based on past performance and its expectation of market
developments. The key assumptions within these budgets relate to revenue and
the future profit margin achievable, in line with our strategy and targets.
Future budgeted revenue is based on management's knowledge of actual results
from prior years and latest forecasts for the current year, along with the
existing secured works and management's expectation of the future level of
work available within the market sector. In establishing future profit
margins, the margins currently being achieved are considered in conjunction
with expected inflation rates in each revenue and cost category. In Building
and Infrastructure, the margins currently being achieved are expected to
increase in line with the strategy set out in the Strategic report within the
Annual Report for the year ended 30 June 2024. The Building and Infrastructure
CGUs are not sensitive to changes in key assumptions and management does not
consider that any reasonable possible change in any single assumption would
give rise to an impairment of the carrying value of goodwill and intangibles.
12 PPP and other investments
Group 2024 2023
£m
£m
At 1 July 44.6 47.5
Disposals and subordinated loan repayments (1.3) (0.5)
Movement in fair value (1.5) (2.4)
At 30 June 41.8 44.6
These comprise debt and equity investments in PPP/PFI investments (joint
ventures and associates) over which the Group has significant influence.
The debt element of the investments represents over 99% of the total portfolio
balance and is held at fair value. The fair value reflects a blended discount
rate of 7.6% (2023: 7.3%). A 0.5% increase/reduction in the discount rate
would result in a corresponding decrease/increase in the value of the
investments recorded in the balance sheet of approximately £1.5m (2023:
£1.6m).
During the year, there were no additions (2023: £nil) to the Group's PPP/PFI
investments and subordinated loans of £1.3m (2023: £0.5m) were repaid. Of
the total fair value movement in the year of £1.5m, all of it relates to the
movement in the fair value of the PPP/PFI investments (2023: £2.4m) and has
been recorded through other comprehensive income.
During the year to 30 June 2023 the Group disposed of equity accounted
interests in joint ventures held at £nil, generating a profit on disposal of
£3.6m.
13 Trade and other receivables
Group
Notes 2024 2023
£m
£m
Amounts falling due within one year:
Trade receivables 43.7 52.0
Less: provision for impairment of receivables (0.4) (0.1)
Trade receivables - net 43.3 51.9
Contract assets 17 290.1 204.9
Amounts due from joint ventures 0.8 0.9
Research and development expenditure credits 5.4 5.8
Other receivables 14.0 7.6
Prepayments 17.2 15.4
370.8 286.5
The Group announced on 8 June 2023 that it had agreed settlement terms in
respect of its long-standing dispute concerning three contracts with entities
owned by a major infrastructure fund. The settlement brought to a conclusion a
complex and challenging multi-contract dispute. Taking into account the
requirements of IFRS 15, the Group had constrained the revenue recognised in
prior periods to the extent that it was highly probable not to result in a
significant reversal in the future and had also previously assessed any
expected credit loss provision in accordance with IFRS 9. As a result of the
settlement a further one-off expected credit loss of £2.8m was recognised in
the financial year ended 30 June 2023.
14 Cash and cash equivalents
Group
2024 2023
£m
£m
Cash at bank and in hand and per the statement of cash flows 227.0 220.2
Cash at bank above includes £21.7m (2023: £11.0m), being the Group's share
of cash held by jointly controlled operations. The Group has no bank
borrowings or loans.
Net cash excludes IFRS 16 lease liabilities.
15 Trade and other payables
Group
Notes 2024 2023
£m
£m
Trade payables 107.6 136.6
Contract liabilities 17 121.8 106.6
Other taxation and social security payable 70.4 53.4
Other payables 2.4 1.9
Accruals 307.0 226.6
609.2 525.1
16 Provisions for other liabilities and charges
Group Onerous contracts Rectification Total
£m
At 30 June 2023 (2.0) (27.9) (29.9)
Balance sheet reclassifications(1) (0.5) (4.5) (5.0)
Utilised 1.6 3.6 5.2
Released - 2.3 2.3
Additions (0.6) (8.2) (8.8)
At 30 June 2024 (1.5) (34.7) (36.2)
(1) Correction of immaterial balance sheet classifications in the previous
year.
Onerous contract provisions are made on loss-making contracts the Group is
obliged to complete.
Rectification provisions are made for potential claims and defects for
remedial works against work completed by the Group and includes provisions for
dilapidations on premises the Group occupies.
As at 30 June 2024 £14.6m of provision related to one contract. Further
details are provided in the critical accounting estimates and judgements. The
remaining balance of the provision relates to a number of immaterial balances.
Due to the level of uncertainty, combination of cost and income variables and
timing across the remaining portfolio of contracts, it is impracticable to
provide a quantitative analysis of the aggregated judgements that are applied
at a portfolio level and therefore management has not given a range of
expected outcomes.
Due to the nature of the provisions, the timing of any potential future
outflows is uncertain, however they are expected to be utilised within the
Group's normal operating cycle, and accordingly are classified as current
liabilities. Of the total provisions, £24.6m (2023: £16.4m) is likely to be
utilised within 12 months, with the remainder utilised in more than 12 months.
The impact of discounting is not material.
The Group regularly engages in contracts with general or defect warranty
rectification requirements, typically less than 3 years. Within the pool of
open warranty period contracts, the group built, as part of a joint venture
arrangement with 2 other partners, a single infrastructure scheme under a
contract that included various defect warranty obligations, with the longest
obligation lasting up to 12 years. At 30 June 2024, there remained 7 years of
the longest warranty liability period remaining. This is the only contract the
group has that has a general defect warranty period of this length. The
contractual nature of the defect warranty liability and the completion of the
scheme are the obligating events and the group, as part of the joint
operation, has remediated items since completion and has other known issues
ongoing that will likely result in future cash outflows, though the timing and
quantum remain uncertain.
The Group also believes that there will be further unknown but probable cash
outflows relating to as yet unknown items as scheduled inspections of various
structural elements of the scheme are completed that have a potentially
material range of outcomes.
The Group has provided £14.6m (2023: £16.9m) against future defect costs and
this represents management's best estimate of potential future payments
associated with the warranty rectification responsibilities. The provision
requires a limited number of significant estimates and assumptions by
management, with a significant level of estimation risk as a result arising
from the level of defects and associated cost that may arise. Management
estimates the reasonable range of estimates to be between £7.3m and £17.5m
at 30 June 2024. Management has sought input from external experienced
industry figures and industry bodies to support the provision it has made.
During the year £0.1m and £2.3m of the opening provision of £16.9m was
utilised and released respectively, with additions of £0.1m made in the year.
17 Contract balances
Contract assets and liabilities are included within 'trade and other
receivables' and 'trade and other payables' respectively on the face of the
balance sheet. Where there is a corresponding contract asset and liability in
relation to the same contract, the balance shown is the net position. The
timing of work performed (and thus revenue recognised), billing profiles and
cash collection results in trade receivables (amounts billed to date and
unpaid), contract assets (unbilled amounts where revenue has been recognised)
and contract liabilities (customer advances and deposits where no
corresponding work has yet to be performed), being recognised on the Group's
balance sheet.
The reconciliation of the Group opening to closing contract balances is shown
below:
2024 2023
Contract Contract liability Contract Contract liability
asset
£m
asset
£m
£m
£m
At 1 July 204.9 (106.6) 173.4 (104.4)
Revenue recognised in the year 1,725.0 47.8 1,334.9 58.8
Net cash received in advance of performance obligations being fully satisfied - (63.0) - (61.0)
Transfers in the year from contract assets to trade receivables (1,639.8) - (1,303.4) -
30 June 290.1 (121.8) 204.9 (106.6)
Revenue allocated to performance obligations that are unsatisfied at 30 June,
is expected to be recognised as disclosed in note 4.
The amount of revenue recognised in the year from performance obligations
satisfied in previous periods amounts to £4.7m (2023: £4.8m).
18 Deferred income tax
Deferred income tax is calculated in full on temporary differences under the
liability method and is measured at the average tax rates that are expected to
apply in the periods in which the timing differences are expected to reverse.
Deferred income tax assets and liabilities are offset when there is a legally
enforceable right to offset current income tax assets against current income
tax liabilities. The net deferred tax position at 30 June was:
Group
2024 2023
£m
£m
Deferred income tax assets 15.6 16.6
Deferred income tax liabilities (0.6) (1.1)
Net deferred income tax 15.0 15.5
The movement for the year in the net deferred income tax account is as shown
below:
Group
2024 2023
£m
£m
At 1 July 15.5 14.0
Current year's deferred income tax (5.7) (0.9)
Adjustment in respect of prior years 4.5 (0.1)
Transfer from current tax assets and change in rates of deferred income tax 0.3 2.5
Acquisition of subsidiaries (0.2) -
Disposal of subsidiaries 0.6 -
At 30 June 15.0 15.5
All remaining unutilised tax losses have now been recognised. The Group
previously disclosed that it had not recognised £53.0m of trading losses due
to them being subject to agreement with HMRC. During the year to 30 June 2024
HMRC confirmed the quantum of the trading losses available and that they could
be utilised against historical trading profits, resulting in a cash refund of
£9.6m and associated interest of £0.8m. This is recorded as an income tax
receivable at 30 June 2024. This has been disclosed as exceptional as
explained in note 5.
19 Share-based payments
The Group operates performance-related share incentive plans for Executives,
details of which are set out in the Directors' Remuneration report. The Group
also operates save as your earn and other long term bonus schemes. The total
charge for the year before tax relating to employee share-based payment plans
was £1.8m (2023: £3.4m), all of which related to equity-settled share-based
payment transactions.
20 Other reserves and retained earnings
Group Notes Other Retained earnings
reserves
£m
£m
At 30 June 2022 132.2 (55.6)
Profit for the year - 9.1
Dividends paid 8 - (9.6)
Share-based payments 19 - 3.4
Movement in fair value of PPP and other investments 12 - (2.4)
Purchase of own shares - (14.0)
Cancellation of shares 3.1 -
At 30 June 2023 135.3 (69.1)
Profit for the year - 36.2
Dividends paid - (24.2)
Share-based payments - 1.8
Tax relating to share-based payments - 2.0
Movement in fair value of PPP and other investments - (1.5)
Purchase of own shares - (12.0)
Cancellation of shares 1.1 -
At 30 June 2024 136.4 (66.8)
The Group's other reserves relate to a merger reserve amounting to £132.2m
(2023: £132.2m) and a capital redemption reserve of £4.2m (2023: £3.1m).
The purchase of own shares represents shares purchased by the Galliford Try
Employee Share Trust of £4.3m (2023: £1.9m) and other share related
transactions of £3.3m (2023: £1.5m), in addition to £4.4m (2023: £10.6m)
purchased as part of the share buyback announced in September 2022. The
buyback programme has now completed as announced on 17 November 2023.
21 Guarantees and contingent liabilities
The Group has surety bonding facilities and bank guarantees. These are
supported by counter indemnities given by the Company and certain subsidiaries
in the Group in the normal course of business. Utilisation of the bonding and
guarantee facilities total £182.1m at 30 June 2024 (2023: £165.5m). It is
not expected that any material liabilities will arise.
Disputes arise in the normal course of business, some of which lead to
litigation or arbitration procedures. While the outcome of disputes and
arbitration is never certain, the directors believe that the resolution of all
existing actions will not have a material adverse effect on the Group's
financial position.
Where the Group has received such claims, the directors have made provision in
the financial statements when they believe it is probable a liability exists
and it can be reliably estimated, but no provision has been made where the
Group's liability is considered only possible or remote. This is based on the
best estimates of future costs to be incurred after assessing all relevant
information and taking legal advice where appropriate. The Group has currently
assessed a pool of non-fire safety related claims that meet the contingent
liability threshold for disclosure. These claims are of a similar nature with
a collective range of between £nil and £8.6m. The Group's assessment of
liability and estimates of future costs could change in the future. Although
the Group has appropriate insurance arrangements in place that should mitigate
any significant exposure, the recognition thresholds under IAS 37 would mean a
liability could be recognised before a corresponding asset.
The continuing evolution of Government legislation and guidance, such as the
Building Safety Act and its implications for cladding solutions used on
historical contracts, also creates ongoing uncertainty that the Group manages.
The Group is tracking a pool of three fire safety claims which meet the
definition of contingent liabilities under IAS37. Management do not think
consider it is practicable to value the pool because of the lack of supporting
evidence from the claimants and the length of time it takes for these cases to
evolve and for any reliable quantum, if any, to be established. Factors
include the complexity of the building projects in question, the many
suppliers involved in the supply chain and the potential for reimbursement
from subcontractors. The Group believes it has strong legal positions with
contractual support on all the cases, however, at this time, it cannot fully
rule out that material settlements may result, should this be the case,
management expects there will be recovery from the supply chain, designers or
insurers that can be full or partial.
As Government legislation and guidance changes in the future, the Group will
reassess the estimates made accordingly.
22 Business combinations
During the year, the Group acquired 100% of the share capital AVRS Systems
Limited. The Group has also finalised (with no changes to the provisional
values) the acquisition accounting of MCS Control Systems Limited and certain
contracts and assets of Ham Baker Limited (in administration) having
previously reported the balances as provisional in accordance with IFRS 3. In
the prior year, the acquisition accounting for nmcn was also finalised.
AVRS Systems Limited
On 8 November 2023, the Group acquired 100% of the share capital of AVRS
Systems Limited ("AVRS"), a leading mechanical and electrical engineering
specialist for £4.5m settled in cash. The addition of AVRS's capabilities is
complementary to the operations of Galliford Try's expanding Environment asset
optimisation and capital maintenance business in line with the Groups
strategy. In particular, AVRS provides additional competencies that complement
those acquired over the past two years with nmcn's Water business, Lintott
Control Systems Limited, MCS Control Systems Limited and the capital
maintenance business of Ham Baker.
The goodwill of £0.9m arising from the acquisition is significantly
attributable to the acquired workforce and their technical expertise and the
opportunity to leverage this expertise across the Group to enhance the asset
optimisation and capital maintenance strategy
The following table summarises the consideration paid, and the provisional
fair value of the assets acquired and liabilities assumed.
£m
Recognised amounts of identifiable assets acquired and liabilities assumed
Property plant and equipment (including right of use assets) 1.0
Intangible assets 1.0
Trade and other receivables 2.5
Cash and cash equivalents 1.0
Trade and other payables (0.9)
Corporation tax liability (0.3)
Lease liabilities (0.5)
Deferred tax liability (0.2)
Total identifiable net liabilities 3.6
Goodwill 0.9
Total 4.5
Consideration
Cash 4.5
Total 4.5
As part of the conditions of the sale and in addition to the initial
consideration of £4.5m, an earn out arrangement is in place, whereby the
sellers are entitled up to additional £2.5m. Due to the nature of the earn
out, this will be treated as remuneration as it requires the sellers to remain
in employment during the earn out period of two years.
The acquisition contributed £9.5m of revenue and a profit before tax of
£0.4m in the period to 30 June 2024. If the acquisition had taken place at 1
July 2023, it would have contributed £13.2m of revenue and a profit before
tax of £1.1m.
23 Alternative performance measures
Throughout the Annual Report and Accounts, the Group has presented financial
performance measures which are used to manage the Group's performance. These
financial performance measures are chosen to provide a balanced view of the
Group's operations and are considered useful to investors as they provide
relevant information on the Group's performance. They are also aligned to
measures used internally to assess business performance in the Group's
budgeting process and when determining compensation. An explanation of the
Group's financial performance measures and appropriate reconciliations to its
statutory measures are provided below.
Providing clarity on the Group's alternative performance measures
The Group has included this note and the enclosed explanations and
reconciliations with the aim of providing transparency and clarity on the
measures adopted internally to assess performance. The APMs adopted by the
Group are also commonly used in the sectors it operates in. This additional
information is not defined under international accounting standards and may
therefore not be comparable with similarly titled profit measures reported by
other companies. It is not intended to be a substitute for, or superior to,
international accounting standards measures of profit.
The Board believes that disclosing these performance measures enhances
investors' ability to evaluate and assess the underlying financial performance
of the Group's operations and the related key business drivers.
Measuring the Group's performance
The following measures are referred to in this report:
Statutory measures
Statutory measures are derived from the Group's reported financial statements,
which are prepared in accordance with UK adopted International Accounting
Standards and in line with the Group's accounting policies, that can be found
in note 1.
The Group's statutory measures take into account all of the factors, including
exceptional items which do not reflect the ongoing underlying performance of
the Group.
Alternative performance measures
In assessing its performance, the Group has adopted certain non-statutory
measures that reflect the underlying performance of the Group. These typically
cannot be directly extracted from its financial statements but are reconciled
to statutory measures below:
a) Pre-exceptional performance
The Group adjusts for certain significant irregular (exceptional) items which
the Board believes assist in understanding the performance achieved by the
Group as this reflects the underlying and ongoing performance of the
business. A reconciliation of the statutory measure to the pre-exceptional
measure is provided in the following tables. In the financial year ended 30
June 2023, the Group also presented pre-exceptional performance excluding the
impairment of financial assets as a result of a one off contract settlement as
announced on 8 June 2023 (disclosed in the consolidated income statement as an
impairment of financial assets of £2.8m).
b) Operating profit before amortisation
The Group adjusts operating profit to exclude the amortisation of intangible
assets as this reflects the ongoing performance of the business. Operating
margin reflects the ratio of pre-exceptional operating profit before
amortisation of intangible assets and revenue. In the financial year to 30
June 2023, operating margin also excludes the impairment of financial assets
as a result of the one off contract settlement as announced on 8 June 2023.
This differs from the statutory measure of operating profit which includes the
amortisation of intangible assets. Divisional operating margin is the combined
operating margin of Building and Infrastructure.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
Building Infrastructure Investments Central Total
£m
£m
£m
£m
£m
Year ended 30 June 2024
Statutory operating profit/(loss) 23.0 19.0 (1.0) (16.3) 24.7
exclude: amortisation of intangible assets 1.0 1.1 - 0.2 2.3
exclude: exceptional items - - - 2.6 2.6
Pre-exceptional operating profit before amortisation 24.0 20.1 (1.0) (13.5) 29.6
Revenue 938.3 819.8 14.7 - 1722.8
Operating margin 2.6% 2.5% n/a n/a 1.7%
Year ended 30 June 2023
Statutory operating profit/(loss) 17.5 10.8 1.4 (24.1) 5.6
exclude: amortisation of intangible assets 1.0 0.9 - 1.1 3.0
exclude: exceptional items) - - - 10.5 10.5
Pre-exceptional operating profit before amortisation 18.5 11.7 1.4 (12.5) 19.1
exclude: impairment of financial assets - 2.8 - - 2.8
Pre-exceptional operating profit before amortisation excluding the impairment 18.5 14.5 1.4 (12.5) 21.9
of financial assets
Revenue 797.1 590.8 5.8 - 1,393.7
Operating margin excluding the impairment of financial assets 2.3% 2.5% n/a n/a 1.6%
c) Pre-exceptional profit before tax
The Group uses a profit before tax measure which excludes exceptional items
and other items as noted above. This differs from the statutory measure of
profit before income tax, which includes these items.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
2024 2023
£m
£m
Statutory profit before tax 30.9 10.1
exclude: exceptional items 1.8 10.5
Pre-exceptional profit before tax 32.7
20.6
Pre-exceptional profit before tax excluding the impairment of financial assets
in 2023 was £23.4m.
d) Pre-exceptional earnings per share
In line with the Group's measurement of adjusted performance, the Group also
presents its earnings per share on an adjusted basis. This differs from the
statutory measure of earnings per share, which includes these items. A
reconciliation of the statutory measure to the Group's performance measure
(post-tax) is shown below, based on continuing operations:
2024 2023
Earnings Weighted EPS Earnings Weighted EPS
£m
pence
£m
pence
average number average number
of shares
of shares
Statutory results 36.2 100,051,095 36.2 9.1 105,180,316 8.7
exclude: exceptional items (8.3) n/a n/a 8.4 n/a n/a
Pre-exceptional earnings per share 27.9 100,051,095 27.9 17.5 105,180,316 16.6
Pre-exceptional earnings per share excluding the impairment of financial
assets in 2023 was 18.9p based on post tax profit of £ £19.9m.
24 Events after the reporting date
On 3 October 2024, the Group announced a further share buyback programme of up
to a maximum of £10m, details can be found in the announcement on the Group's
investor website.
There were no other material post balance sheet events arising after the
reporting date.
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