REG - Galliford Try Hldgs - Final Results
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RNS Number : 5996Z Galliford Try Holdings PLC 17 September 2025
7:00AM WEDNESDAY 17 SEPTEMBER 2025
GALLIFORD TRY HOLDINGS PLC
ANNUAL RESULTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2025
STRONG FULL YEAR PERFORMANCE AND CONFIDENT OUTLOOK
Strategy and Outlook
· Well placed to support the Government's commitment to invest in the
UK's infrastructure and affordable housing.
· Confident outlook with a high quality £4.1bn order book (2024:
£3.8bn) across our diversified growth sectors and areas of planned Government
and regulated spend.
· High visibility of future work streams and revenue with 92% and 75% of
projected FY26 and FY27 revenue secured.
· Good progress towards our Sustainable Growth targets for 2030, delivery
of 2026 3.0% divisional adjusted operating margin target one year early.
· Trading momentum has continued into the new financial year, trading
slightly ahead of expectations.
Financial and Operational Highlights
· The Group has delivered a fifth year of sequential growth, with
increases in revenue, profit, margin and cash.
· 6.3% increase in revenue to £1,875.2m (2024: £1,763.7m), driven by
AMP7 run-off in Environment and robust Highways performance.
· 28.6% increase in adjusted profit before tax to £45.0m (2024:
£35.0m), driven by volume, quality delivery and disciplined operational
management.
· 3.0% divisional adjusted operating margin (2024: 2.5%), up 42 bps to
deliver 2026 target one year early.
· 17.4% increase in final dividend payment of 13.5p (2024: 11.5p),
together with an interim dividend of 5.5p giving a total dividend for the
financial year of 19.0p, up 22.6%.
· Well-capitalised debt-free balance sheet, £237.6m cash (2024:
£227.0m), average month end cash for the year of £178.7m (2024: £154.8m),
PPP asset portfolio of £38.6m (2024: £41.8m) and no pension liabilities.
· Completion of 2024 £10m share buyback and announcement of new £10m
share buyback programme.
· Prior year non-cash technical restatement and 2024 restated exceptional
item on an onerous nmcn framework acquired. No impact to reported 2024
adjusted PBT, and no exceptional items in 2025.
Financial Results
2025 2024(1,3) Change
Revenue £1,875.2m £1,763.7m +6.3%
Adjusted operating profit £40.6m £29.6m +37.2%
Divisional adjusted operating margin(2) 3.0% 2.5% +42bps
Adjusted profit before tax £45.0m £35.0m +28.6%
Adjusted basic earnings per share 34.4p 29.6p +16.2%
Average month end cash £178.7m £154.8m +15.4%
Order book £4.1bn £3.8bn +7.9%
Statutory results
Revenue £1,875.2m £1,763.7m +6.3%
Statutory profit before tax £44.1m £19.2m +129.7%
Statutory earnings per share 33.7p 27.3p +23.4%
Full year dividend per share 19.0p 15.5p +22.6 %
Net cash £237.6m £227.0m +4.7%
(1) Pre-exceptional items are now referred to as 'adjusted' throughout this
statement. Note 21 below contains the rationale for use, and reconciliations
of these adjusted measures to their nearest statutory measure and explanations
of changes made in the period to adjusted profit before tax and adjusted
earnings per share. All other measures and definitions remain unchanged.
( 2) Divisional adjusted operating margin is defined as adjusted
operating profit as a percentage of adjusted revenue. It is stated for the
combined Building and Infrastructure divisions.
(3) Prior year non-cash technical restatement of statutory revenue and cost of
sales as explained in revenue section of this statement and note 22.
Bill Hocking, Chief Executive, commented:
"Galliford Try has continued its progress, achieving a fifth consecutive year
of strong financial and operational performance, with an increase in revenue,
profit, margin and cash.
Our robust risk management, balance sheet strength, professional and committed
teams and strong relations with clients and suppliers enables us to
successfully deliver projects and consistently add value to stakeholders.
Growth in the Group's chosen sectors is fully supported by the Government's
planned, and critically required, broad based investment in the UK's economic
and social infrastructure.
As a UK only contractor with a track record of delivery in water, national and
local authority highways, defence, custodial, education and affordable homes,
we are uniquely positioned to support the UK's key areas of future spend and
investment. The Group's framework positions and growing high quality, sector
focused order book provides clear visibility and security of future workloads
well beyond the current financial year.
With 92% of projected revenue of the current financial year and 75% of FY27
already secured, the Government's future spending plans and our aligned sector
focus, particularly in AMP8, we are confident in the outlook for the Group, in
our strategy to 2030 and in our ability to continue to deliver long-term
sustainable value for all our stakeholders."
Enquiries to:
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.
Presentations
A conference call for analysts and institutional investors will be held at
09:30am BST today, Wednesday 17 September 2025. To register for this event
please follow this link: GFRD FY Results - Conference call registration
(https://brrmedia.news/GFRD_FY25)
Analysts who wish to ask a question should dial +44 (0) 33 0551 0200 quoting
'Galliford Try FY25' when prompted by an operator. Other participants may
submit their questions via the webcast platform.
An open presentation and Q&A session for retail investors will be held on
Friday 26 September 2025 at 10:00am 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 25 September 2025, 09:00 BST, or at any time during
the live presentation. Investors can register for the event via this
link: Investor Meet Company - Galliford Try
(https://www.investormeetcompany.com/galliford-try-holdings-plc/register-investor)
FINANCIAL REVIEW
The Group delivered another year of strong growth, resulting in significantly
improved profitability, margin, cash and dividends, together with incremental
capital returns over the 12-month period.
Revenue
Revenue for the year was up 6.3% to £1,875.2m (2024: £1,763.7m). Revenue
progress was broad based across our core and specialist businesses with the
Group's Building division increasing its revenue by 2.8% to £964.7m (2024:
£938.3m) as a result of consistent demand in the education, justice and
defence sectors. Our Infrastructure division (comprising Highways and
Environment) recorded revenue of £902.5m (2024: £810.7m), up 11.3% driven by
a robust performance in Highways and a strong run off in AMP7 in
Environment. PPP Investments' revenue of £8.0m was down on the previous
year (2024: £14.7m) which included the financial close and associated fees on
our first PRS scheme in Cardiff.
Revenue growth over the last 2 years has totalled more than 33% with a CAGR of
c14% since 2021, the strength of this growth aligned with the well trailed
transition from AMP7 to AMP8 in 2026, means we expect some flattening of
revenue growth in the current year before increasing towards our 2030 targets
from 2027 as supported by our record diversified orderbook.
A non-cash prior year restatement has been recorded following a correction to
the Group's application of IFRS15 contract combination accounting, and, having
made the correction, management have reconsidered the treatment of
previously-combined material losses on one framework and restated c£11.7m as
an exceptional item.
Under its existing IFRS15 accounting policy, the Group had incorrectly
combined contracts on a small number of framework agreements and as a result,
the Group has restated its financial statements, reducing revenue and
increasing cost of sales in 2024 with an aggregate impact to reported profit
before tax of £11.7m with associated tax and working capital corrections.
Full details of the restatement can be found in note 22. As a result of
identifying the error, management have reconsidered the treatment of material
losses on specific batches of contracts under one framework agreement,
acquired in the nmcn water division acquisition in FY2022, with £11.7m
presented as an exceptional item in the 2024 final results. No restatements
were made to adjusted profit before tax in 2024 or to the balance sheet at
July 1 2023 and no exceptional losses have been reported in 2025.
The nmcn frameworks and associated subsidiaries were acquired out of
administration for £1m in October 2021. Since the integration of nmcn,
revenues of more than £750m have been delivered, and given its strong market
positioning and long term water contract relationships, the Group is
forecasting further revenues of more than £1.5bn on the acquired nmcn
businesses through the strategy period to 2030. Margins are in line with
target trajectory and the business is performing ahead of the pre-acquisition
investment case.
Profit
The Group's adjusted operating profit was up 37.2% to £40.6m (2024: £29.6m)
reflecting the Group's consistent operational and sector focus and
representing a c50% CAGR since 2021. The combined divisional operating margin
improved by 42 basis points to 3.0% (2024: 2.5%), representing the delivery of
our previously announced 2026 target of 3.0% one year early making good
progress towards our strategic targets in 2030.
Our core divisions delivered adjusted operating margin and adjusted operating
profit progress as a result of both revenue growth and our continued focus on
risk management and margin improvement initiatives.
The Group generated net interest of £4.4m (2024: £6.2m) reflecting non
repeat of prior year exceptional corporate tax interest and one-time RCF
implementation costs.
The Group's adjusted profit before tax for the year was £45.0m (2024:
£35.0m), up 28.6%, with no exceptional items reported in 2025.
The table below reconciles profit before income tax to our alternative
performance measure of adjusted profit before income tax, which is a key
metric for monitoring performance of the business.
2025 2024
£m
Profit before income tax 44.1 19.2
Exceptional items - 13.5
Amortisation of Acquired Intangibles 0.9 2.3
Adjusted profit before income tax 45.0 35.0
The taxation charge of £10.5m (2024: credit of £8.2m) reflects an effective
tax rate (ETR) of 23.9% for the year to 30 June 2025, which compares to the
standard effective tax rate of 25.0%. The prior year was impacted by an
exceptional tax credit of £13.0m largely as a result of the recognition of
previously unrecognised tax losses following agreement with HMRC. We expect
the ETR to revert towards the standard ETR in the current year.
We recorded adjusted basic earnings per share (EPS) for the year of 34.4p
(2024: 29.6p), an increase of c16%. The statutory EPS in 2025 was 33.7p (2024:
27.3p), up 23.4%.
Dividend and Share Buyback
Having reviewed the Group's results and the outlook, the Directors are
recommending a final dividend of 13.5 pence per share which, subject to
approval will be paid on 5 December 2025 to shareholders on the register at 7
November 2025. Together with the interim dividend of 5.5 pence per share paid
in April 2025, this will result in a total full year dividend for 2025 of 19.0
pence per share. Dividend per share of 19.0p is based on the adjusted EPS of
34.4p and 1.8x cover.
On 3 October 2024 the Group launched its second share buyback programme of up
to a maximum of £10.0m of company shares. On 21 May 2025 the Group completed
the programme, purchasing and cancelling 2,690,861 ordinary shares at an
average price of approximately £3.72 per share, at a total cost of £10.0m.
As a result of the strong cash delivery in the period and the enhanced
orderbook, we are announcing a further share buyback today totalling £10m
over the balance of the current financial year. The buyback will be funded out
of operational cash generation and reflects our strong cash performance in
2025, our record order book and our confidence in the future cash generation
of the business.
Balance Sheet
The Group has no drawn bank debt or defined benefit pension obligations and at
30 June 2025 had a net cash balance of £237.6m (2024: £227.0m). The Group
operates with daily net cash and the average month-end cash balance in the
year was up 15.4% to £178.7m (2024: £154.8m) demonstrating the Group's
continued robust cash performance.
During H2 the Group received a request from HMRC to advance its VAT payments
on account and final quarterly VAT payments reverting to a historic payment
pattern. The change in payment profile has no impact on the amount of VAT
liability being settled, but has resulted in cash flows being pulled forwards,
thereby reducing month end cash balances. In our statutory cashflow, c£17m of
cash payments were made in 2025, that would otherwise have been paid in 2026,
which lowered the average cash metric in 2025 by c£8m. The expected impact on
the average cash position in 2026 will be a further reduction of c£18m. On a
full year basis, the 2025 average cash position would therefore have been
c£161m if the change had occurred before the start of the year.
We acknowledge the support of our suppliers and we are committed to the Fair
Payment Code paying 97% of invoices within 60 days (2024: 96%), with the
average payment being made in 26 days (2024: 26 days).
At 30 June 2025, we had a PPP portfolio of £38.6m (2024: £41.8m), reflecting
a blended 7.9% discount rate (2024: 7.6%). This portfolio contributes to our
balance sheet strength and during the year generated interest income of £3.6m
(2024: £3.8m).
In March 2025 the Group established a Revolving Credit Facility (RCF) to
provide greater agility and resilience. We were pleased to have received such
positive support from three providers, which alongside an already strong
balance sheet, provides an excellent platform to take advantage of future
opportunities as we prepare the Group for the growth to deliver the 2030
sustainable growth targets. Key features:
· £25m for a term of three years, options to extend for two years
and an accordion option of a further £10m.
· The RCF is unsecured and provided by leading clearing banks.
· The RCF has remained undrawn to date.
CURRENT TRADING AND OUTLOOK
The Group's operations are predominantly in the public and regulated sectors
and given the Government's recently expanded commitment to the required
investment in the UK's social and economic infrastructure, we see a strong
pipeline of new opportunities across our chosen sectors over the next few
years. We are a UK only contractor and are well positioned to support these
public and private infrastructure commitments with strong supplier teams,
excellent people, a strong balance sheet and a proven business model over the
last five consecutive years. Our framework successes and growing high quality
sector focused order book of £4.1bn provides clear visibility and security of
future workloads well beyond the current financial year. Our order book is
diversified and we have no particular dependency on any one project or sector.
All our businesses have performed well since the period end, with trading
slightly ahead of expectations for 2026, underpinned by the Government's
spending commitments in our chosen markets. We have previously communicated
an expected flattening of revenue growth in the current year as the transition
from AMP7 to AMP8 takes place before we accelerate towards our 2030 revenue
targets from 2027. Based on our recent margin trajectory, delivering the 3.0%
margin target one year early, we are confident in delivering further margin
expansion and profitability in the current year as we make continued progress
towards our 4.0% divisional adjusted operating margin target in 2030.
Our record order book, and our well-established and disciplined approach to
risk management and careful contract selection enables us to be confident in
delivering our 2030 targets, resulting in increased dividends and shareholder
returns.
OPERATIONAL REVIEW
BUILDING
Building operates through regional businesses, serving a range of public and
private sector clients across the UK, with a focus on the education, defence,
custodial and health 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 includes a substantial presence in Scotland,
operating as Morrison Construction.
2025 2024 Change
Revenue (£m) 964.7 938.3 +2.8%
Adjusted operating profit (£m) 28.1 24.0 +17.1%
Adjusted operating margin (%) 2.9 2.6 +36bps
Order book (£m) 2,454 2,294 +7.0%
Building revenue increased by 2.8% to £964.7m (2024: £938.3m) with an
adjusted operating profit of £28.1m, up 17.1% (2024: £24.0m), representing
an adjusted operating margin of 2.9% (2024: 2.6%) driven by our quality
delivery and disciplined operational management. We continue to grow 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 £1,125m, (2024:
£989m). Significant appointments and wins included: fire safety improvement
projects for the Ministry of Justice at HMP Wakefield (£44.5m) and HMP
Moorland (£56m) as well as a £63m contract to deliver single living
accommodation at RAF Digby in Lincolnshire. Building also took over c£133m
work from the ISG business which went into administration in the year.
Building's order book stands at £2,454m up 7.0% versus the prior year (2024:
£2,294m). The order book is diversified across our chosen sectors with 18.2%
in education, 28.5% in defence, 20.0% in custodial, 15.6% in FM and 16.4% in
commercial.
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.
2025 2024 Change
Revenue (2024 restated) (£m) 902.5 810.7 +11.3%
Adjusted operating profit (£m) 27.4 20.1 +36.3%
Adjusted operating margin (%) 3.0 2.5 +50bps
Order book (£m) 1,688 1,546 +9.2%
Infrastructure's revenue was up strongly by 11.3% to £902.5m (2024 restated:
£810.7m) generating an adjusted operating profit of £27.4m, up 36.3% (2024:
£20.1m) and adjusted operating margin of 3.0% (2024: 2.5%).
Infrastructure won contracts and positions on frameworks worth £1,045m (2024:
£889m). These include in Highways, the £59bn National Grid Framework, the
£1.0bn North East Procurement Organisation (NEPO) Civil Engineering and
Infrastructure Works Framework and the £66.5m Banwell Bypass for North
Somerset Council. In Environment, the business secured a place on Yorkshire
Water's new £850m Non-Infrastructure Works Framework, part of AMP8.
Infrastructure's current order book is £1,688m, up 9.2% (2024: £1,546m)
including £617m in Infrastructure (Highways) and £1,071m in Environment.
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.
2025 2024 Change
Revenue (£m) 8.0 14.7 (45.6)%
Adjusted operating loss (£m) (0.4) (1.0) +0.6m
Net interest income (£m) 3.5 3.8 (7.9)%
Asset valuation (£m) 38.6 41.8 (7.7)%
Revenue was £8.0m (2024: £14.7m) down 45.6% with an adjusted operating loss
of £0.4m (2024: loss of £1.0m) reflecting no financial close or associated
fees in the year versus the financial close at Guildford Crescent in Cardiff
in the prior year. At the year-end the business was preferred bidder on
further PRS schemes with a gross development value of c£360m and potential
further opportunities in the future.
At the year end, the directors' valuation of our Public, Private Partnerships
(PPP) portfolio was £38.6m (2024: £41.8m), which is the fair value included
in the balance sheet reflecting a blended discount rate of 7.9% (2024: 7.6%).
The valuation compared with a value invested of £32.6m (2024: £33.9m). The
portfolio generated an annuity interest income of £3.6m (2024: £3.8m)
partially offset by £0.1m of interest cost.
SUSTAINABLE GROWTH STRATEGY TO 2030
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.
In May 2024, due to the Group's strong performance during the prior strategy
period, the Group 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 adjusted operating margin increasing to 4.0% through growth and operational leverage, a more supportive
contracting environment, continued operational improvements (quality,
efficiency, digital and technology)and accelerated growth in our higher-margin
adjacent specialist services & investment businesses
Cash retain a strong balance sheet and operating cash generation
Dividends sustainable dividends with earnings cover of 1.8x
RISK MANAGEMENT AND ORDER BOOK
The Group's strategy is founded on commercial discipline and robust risk
management. Our confidence in the Group's future performance is based on our
high quality order book, primarily in recently won long term secure
frameworks, underpinned by management's discipline and focus, and robust
outlook of a long term pipeline of opportunities.
We welcome the Government's commitment and planned investment in the UK's
social, economic and national infrastructure. Our sector focus in critical
areas such as water, defence and custodial means c90% of contracts are
delivered through frameworks providing a reliable stream of long term future
work built on relationships with clients on known and established terms,
conditions and risk profile.
During the year ended 30 June 2025, Building and Infrastructure were appointed
to contracts and frameworks worth £1,125m and £1,045m, respectively.
At 30 June 2025 the Group's diversified order book was £4.1bn (2024: £3.9bn)
of which 93% is in the public and regulated sectors and 7% is in the private
sector. The Group started the new 2026 financial year with 92% of planned
revenue secured for the 2025 financial year (2024: 92%), looking further out,
we have already secured 75% of our targets for 2027, this is c5 percentage
points ahead of our view for FY 2026 12 months previously.
CAPITAL ALLOCATION
A strong balance sheet is a fundamental 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 strong 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 unchanged and continue to be:
· Invest in the business (organic and acquisitive)
We are able to allocate capital to assist the development of our adjacent
markets, as demonstrated by our acquisitions. Our strong cash balance 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, 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 adjusted earnings covering the dividend by
1.8 times. In addition to dividend growth from our operational performance,
this 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.
Capital returns over the last 5 years have totalled £107.7m including
dividends of £60.2m, Special Dividends of £12.5m and share buybacks
(including today's announcement) of £35.0m.
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 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 our number one priority, with a commitment to no harm
driving our actions. This was, once again reinforced by our record low
incident rates, as well as recognised in our Employee Survey, where 96% of
respondents stated that we give health and safety a high priority.
During the year, our Lost Time Frequency Rate (LTFR), which measures every
incident that results in an employee taking more than a day away from work,
improved from 0.14 to 0.09. Our Accident Frequency Rate (AFR), which measures
the number of injuries resulting in more than seven days away from work, also
improved from 0.04 to 0.03, with 13 of our 21 business units recording zero
AFR.
Visible leadership of safety is a powerful way to promote and maintain safe
behaviours on site. We increased director safety tours from 1,276 to 1,654 and
conducted 97,264 Safe Behaviour Discussions, which engage operatives to
reaffirm positive behaviour and constructively challenge any potential
non-compliance. We are also working towards reviewing Lead Indicators, which
we use to drive improvement in safety culture and behaviour, with a view to
replacing those which consistently achieve 100% compliance, with new
indicators targeted at improvement areas.
People
Retaining, developing and gaining talent continues to be the focus of our
people strategy, driven by our Employee Value Proposition (EVP) 'Grow
Together', which delivers on our promise to be a people-orientated,
progressive employer driven by our values.
Employee advocacy is a powerful indicator of the effectiveness of our people
strategy, measuring how likely our people are to recommend our business as a
great place to work. This year, we maintained our record high employee
advocacy score of 87%, compared to a sector average of 81%.
Learning and development remains a key theme, and we refreshed our 120 Career
Paths, each with bespoke development options and key competencies for success,
and launched a new app to promote them. During the year, we promoted 401 staff
within the company.
Doing the Right Thing is central to creating an inclusive culture where
everyone is safe, respected and valued. In line with this, we started the
roll-out of Active Bystander workshops for all of our people, to help
recognise and challenge inappropriate behaviour.
Employing more women in our business is key to accessing diverse skills and
talent. Our survey of women across the Group highlighted that 84% of women
would recommend Galliford Try as a place to work, and 70% see themselves here
in the long term.
Early careers roles (apprentices, trainees, graduates and sponsored students)
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 to work for both apprentices and graduates in
TheJobCrowd's list of Top Construction and Civil Engineering Companies. We
were also among 65 companies out of a total of 1,200 to be awarded the
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.
In July, we achieved the Gold Award in the Defence Employer Recognition Scheme
for actively championing defence people initiatives, and we were named as one
of the Top 50 employers for people leaving the Armed Forces by the GREAT
British Employers of Veterans programme.
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, we have developed our 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 July 2025, we were awarded the Green Economy Mark by the London Stock
Exchange, an award that recognises companies that derive at least 50% of their
revenue from green products and services. This award recognises the role we
are playing to decarbonise the built environment and improve our water
infrastructure and demonstrates the resilience of our business model to the
transition to a low carbon economy.
We continue to participate in the CDP, a global disclosure system for
organisations to manage their environmental impacts. In 2025, we maintained
our score of B 'Management level', (2022: B), 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 over
£2bn 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 completed the first year of our Mentoring the Next
Generation 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. Following the successful first year, we are expanding the
programme and have enrolled a further circa 60 students across six schools in
the second cohort.
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 average score of 43.9 (2024: 42.9) 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 (2024: 93%) 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 c90% 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. They also drive better
outcomes for our clients by improving safety, enhancing quality, enabling
collaboration, improving visualisation, lowering carbon, and driving down
costs.
The Procurement Act came into effect in February 2025, bringing in several
changes, including greater visibility of the project pipeline and a shift from
'most economically advantageous tender' to 'most advantageous tender'. These
changes align well with our existing approach and strengths.
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 59% of our
core aligned trades spend is with aligned subcontractors. Training and
education remain a key theme beyond AtA, and we continue to offer our
behavioural safety and net zero programmes to key supply chain members.
During the year, we implemented a new supplier onboarding system which aligns
to the Common Assessment Standard, developed by Build UK, Civil Engineering
Contractors Association and other assessment bodies and industry experts. This
standardises the prequalification process, helping our subcontractors achieve
compliance and mitigate risks across 13 key areas of risk management.
We were signatories to the Prompt Payment Code, which was replaced during the
year by the Fair Payment Code. The Fair Payment Code has Gold, Silver and
Bronze Award categories. We have achieved the Bronze Award, and paid 97% of
invoices within 60 days in the year to 30 June 2025 (2024: 96%) and the
average days to pay was 26 days.
BOARD
As previously announced, Kris Hampson joined the board as Chief Financial
Officer on 2 September 2024 and Marisa Cassoni, Non-executive Senior
Independent Director and Chair of the Audit Committee, left the Group on 28
November 2024. Also, as previously announced, Kevin Boyd, who joined the
company on 1 March 2024, was appointed Non-executive Senior Independent
Director and Chair of the Audit Committee from 28 November 2024.
Consolidated income statement
for the year ended 30 June 2025
Notes 2025 2024 Restated
£m
(note 22)
£m
Revenue 3 1,875.2 1,763.7
Cost of sales (1,723.7) (1,644.0)
Gross profit 151.5 119.7
Administrative expenses (111.8) (106.7)
Operating profit 39.7 13.0
Finance income 5 8.9 9.6
Finance costs 5 (4.5) (3.4)
Profit before income tax 44.1 19.2
Income tax (expense)/credit(1) 6 (10.5) 8.2
Profit for the year 33.6 27.4
Earnings per share
Basic
Profit attributable to ordinary shareholders 8 33.7p 27.3p
Diluted
Profit attributable to ordinary shareholders 8 32.2p 26.2p
1 The tax credit in 2024 relates to exceptional items as explained in
note 4.
Consolidated statement of comprehensive income
for the year ended 30 June 2025
Notes 2025 2024
£m
Restated
(note 22)
£m
Profit for the year 33.6 27.4
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss
Movement in fair value of PPP and other investments 11 (1.9) (1.5)
Total items that may be reclassified subsequently to profit or loss (1.9) (1.5)
Other comprehensive expense for the year net of tax (1.9) (1.5)
Total comprehensive income for the year 31.7 25.9
The notes are an integral part of the consolidated financial statements.
Balance sheet
Notes Group
30 June 2025 30 June 2024 Restated
(note 22)
£m
£m
Assets
Non-current assets
Intangible assets 3.4 4.3
Goodwill 9 93.6 93.6
Property, plant and equipment 6.0 5.3
Right-of-use assets 10 51.1 51.4
PPP and other investments 11 38.6 41.8
Deferred income tax assets 17 11.0 17.9
Total non-current assets 203.7 214.3
Current assets
Trade and other receivables 12 388.6 371.2
Current income tax assets 3.7 11.6
Cash and cash equivalents 13 237.6 227.0
Total current assets 629.9 609.8
Total assets 833.6 824.1
Liabilities
Current liabilities
Trade and other payables 14 (609.1) (621.3)
Lease liabilities 10 (22.7) (20.5)
Provisions for other liabilities and charges 15 (48.6) (36.2)
Total current liabilities (680.4) (678.0)
Non-current liabilities
Lease liabilities 10 (31.1) (32.5)
Total non-current liabilities (31.1) (32.5)
Total liabilities (711.5) (710.5)
Net assets 122.1 113.6
Equity
Share capital 51.1 52.0
Share premium 1.6 0.8
Other reserves 19 137.7 136.4
Retained earnings 19 (68.3) (75.6)
Total equity 122.1 113.6
Consolidated statement of changes in equity
for the year ended 30 June 2025
Notes Ordinary shares Share premium Other reserves Retained earnings Total shareholders' equity
£m
£m
£m
£m
£m
Consolidated statement
At 1 July 2023 52.4 - 135.3 (69.1) 118.6
Profit for the year - restated (note 22) - - - 27.4 27.4
Other comprehensive expense - - - (1.5) (1.5)
Total comprehensive income for the year - restated (note 22) - - - 25.9 25.9
Transactions with owners:
Dividends 7 - - - (24.2) (24.2)
Purchase of own shares - - - (12.0) (12.0)
Share-based payments 18 - - - 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 (1.1) - 1.1 - -
At 30 June 2024 - restated (note 22) 52.0 0.8 136.4 (75.6) 113.6
Profit for the year - - - 33.6 33.6
Other comprehensive expense - - - (1.9) (1.9)
Total comprehensive income for the year - - - 31.7 31.7
Transactions with owners:
Dividends 7 - - - (17.5) (17.5)
Purchase of own shares - - - (12.3) (12.3)
Share-based payments 18 - - - 3.4 3.4
Tax relating to share-based payments - - - 2.0 2.0
Issue of shares 0.4 0.8 - - 1.2
Cancellation of shares (1.3) - 1.3 - -
At 30 June 2025 51.1 1.6 137.7 (68.3) 122.1
Statement of cash flows
for the year ended 30 June 2025
Notes Group
2025 2024
£m
Restated
(note 22)
£m
Cash flows from operating activities
Profit for the year 33.6 27.4
Adjustments for:
Income tax expense/(credit) 6 10.5 (8.2)
Net finance income 5 (4.4) (6.2)
Profit before finance costs and taxation 39.7 13.0
Depreciation, amortisation and impairment of non-current assets 24.4 20.7
Dividends received from subsidiary undertakings - -
Share-based payments 18 3.4 1.8
Other non-cash movements - (0.4)
Net cash generated from operations before changes in working capital 67.5 35.1
Increase in trade and other receivables 12 (14.3) (84.5)
(Decrease)/increase in trade and other payables 14 (12.2) 97.0
Increase in provisions 15 12.4 6.3
Net cash generated from operations 53.4 53.9
Interest received 8.9 6.2
Interest paid (4.5) (3.4)
Income tax received/(paid) 7.9 (0.5)
Net cash generated from operating activities 65.7 56.2
Cash flows from investing activities
(Increase)/decrease in amounts due from joint ventures (6.1) 0.1
PPP loan repayments 11 1.3 1.3
Acquisition of business combinations, net of cash acquired - (3.5)
Dividends received from subsidiary undertakings - -
Proceeds from disposal of subsidiaries 1.9 1.8
Acquisition of property, plant and equipment (2.4) (1.0)
Net cash (used)/generated from investing activities (5.3) (1.3)
Cash flows from financing activities
Repayment of lease liabilities 10 (21.2) (16.7)
Purchase of own shares (12.3) (8.7)
Dividends paid to Company shareholders 7 (17.5) (24.2)
Net proceeds from issue of ordinary share capital 1.2 1.5
Net cash used in financing activities (49.8) (48.1)
Net increase/(decrease) in cash and cash equivalents 10.6 6.8
Cash and cash equivalents at 1 July 13 227.0 220.2
Cash and cash equivalents at 30 June 13 237.6 227.0
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 2025 and 30 June 2024. Statutory accounts for the year ended 30 June
2025 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 2025 on
17 September 2025.
Statutory accounts for the year ended 30 June 2024 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 and 2025. Whilst the financial
information included in this announcement has been prepared in accordance with
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.
New standards impacting the Group that have been adopted for the first time
are listed below:
· Amendments to IAS 1, Presentation of financial statements on
Non-current liabilities with covenants
· Amendment to IAS 7 and IFRS 7 - Supplier finance arrangements
· Amendment to IFRS 16 Leases - Leases on sale and leaseback
These standards have been assessed to have no significant impact on the Group
as they are either not relevant to the Group's activities or require
accounting which is consistent with the Group's previous accounting policies.
Going concern
The consolidated financial statements have been prepared on a going concern
basis.
As at 30 June 2025, the Group had substantial cash balances, no loan payable,
and a strong forward secured order book. The directors regularly review the
working capital requirements of the Group while considering downside
sensitivities.
The Group's forecasts have been prepared in the context of the current
economic conditions and additionally, the directors have considered a range of
downside sensitivities. Even in the worst-case scenario, the Group is forecast
to continue to meet its obligations and remain cash positive for a period of
at least 12 months from the date the financial statements are authorised for
issue.
After making enquiries and considering the factors and sensitivities outlined
above for a range of scenarios, the directors have a reasonable expectation
that the Group has adequate resources to continue in operational existence for
the foreseeable future being a period of at least 12 months from the date the
financial statements are authorised for issue. Thus, they continue to adopt
the going concern basis of accounting in preparing the annual financial
statements.
Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2024 unless otherwise stated.
2 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 from the operating segments, such as restructuring costs and
impairments when the impairment is the result of an isolated, non-recurring
event. 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 2025 Building Infrastructure £m Investments £m Central Total
£m
£m
£m
Revenue 964.7 902.5 8.0 - 1,875.2
Adjusted operating profit/(loss) (note 21) 28.1 27.4 (0.4) (14.5) 40.6
Finance income - 0.2 3.6 5.1 8.9
Finance costs (1.4) (2.0) (0.1) (1.0) (4.5)
Adjusted profit/(loss) before taxation (note 21) 26.7 25.6 3.1 (10.4) 45.0
Amortisation of intangible assets - (0.9) - - (0.9)
Exceptional items (note 4) - - - - -
Profit before tax 26.7 24.7 3.1 (10.4) 44.1
Income tax charge (10.5)
Profit for the year 33.6
Year ended 30 June 2024 Building Infrastructure Restated Investments £m Central Total
£m
(note 22)
£m
Restated
£m
(note 22)
£m
Revenue 938.3 810.7 14.7 - 1,763.7
Adjusted operating profit/(loss) (note 21) 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)
Adjusted profit/(loss) before taxation (note 21) 22.9 18.8 2.8 (9.5) 35.0
Amortisation of intangible assets (1.0) (1.1) - (0.2) (2.3)
Exceptional items (note 4) - (10.9) - (2.6) (13.5)
Profit before tax 21.9 6.8 2.8 (12.3) 19.2
Income tax credit 8.2
Profit for the year 27.4
Balance sheet
30 June 2025 Notes Building Infrastructure £m Investments £m Central Total
£m
£m
£m
Goodwill and intangible assets 40.0 57.0 - - 97.0
Net cash 13 143.1 115.0 (7.0) (13.5) 237.6
Non reported segmental net liabilities - - - - (212.5)
Net assets/(liabilities) - - - - 122.1
Total Group liabilities - - - - (711.5)
Total Group assets - - - - 833.6
30 June 2024 Notes Building Infrastructure £m Investments £m Central Total
£m
£m
Restated
(note 22)
£m
Goodwill and intangible assets 40.0 57.9 - - 97.9
Net cash 13 158.3 50.4 (7.0) 25.3 227.0
Non reported segmental net liabilities - - - - (211.3)
Net assets/(liabilities) - - - - 113.6
Total Group liabilities (710.5)
Total Group assets 824.1
3 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. 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).
The Group also recognises revenue over time on the output method based on
payments from customers on a contractual schedule of value that reflects the
timing and performance of service delivery (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 within these segments are undertaken using cost
reimbursable/target-price (possibly with a pain/gain share mechanism)
contracts.
These projects are often delivered under frameworks. Individual performance
obligations under the framework are normally determined at a project level,
however, projects are combined where appropriate. Where projects are combined,
the Group constrains revenue and calculates any pain/gain mechanism at the
combined level.
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 Public-Private Partnerships (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 in the year has been derived from
performance obligations settled over time (2024: all revenue over time except
for £7.3m that was 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 2025 2026 2027 2028 onwards £m Total
£m
£m
£m
Building 736.6 180.1 56.4 973.1
Infrastructure 500.3 176.3 52.4 729.0
Total Construction 1,236.9 356.4 108.8 1,702.1
Investments 3.1 2.7 24.4 30.2
Total transaction price allocated to performance obligations yet to be 1,240.0 359.1 133.2 1,732.3
satisfied
Revenue - year ended 30 June 2024 2025 2026 2027 onwards £m Total
£m
£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
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.
4 Exceptional items
2025 2024
£m
Restated
(note 22)
£m
Contract losses(1) - (11.7)
Implementation costs of cloud based arrangements(2) - (2.6)
Finance income(3) - 0.8
Loss before tax - (13.5)
Associated tax credit on items above - 3.4
Exceptional income tax credit(3) - 9.6
Total - (0.5)
1 Management have classified material losses of £11.7m arising on
specific batches of contracts under one framework agreement, acquired in the
nmcn water division acquisition in FY2022, as an exceptional item in the 2024
results. The Group considers the impact to be exceptional given its nature
(relating to acquired contracts) and quantum (being material), and therefore
should be separately disclosed.
2 The Group incurred £2.6m of customisation and configuration costs
associated with the move to Oracle Fusion during the year to 30 June 2024, a
cloud-based computing arrangement. 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 was completed in the year
ended 30 June 2024 with no further exceptional costs expected.
3 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 position where no asset was
recognised as, based on the advice of tax advisors, the Group concluded it was
not probable HMRC would accept the claims to utilise the losses. 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 considered that the refund
should be disclosed separately as exceptional given it is material in quantum
and one off in nature.
In the year to 30 June 2024, an associated net tax credit of £3.4m has been
recognised in respect of the exceptional items (excluding the exceptional tax
credit noted in footnote 3 above). No exceptional items have been recognised
during the year to 30 June 2025.
5 Net finance income
Group 2025 2024
£m
£m
Finance income on bank deposits 5.2 4.6
Finance income from PPP Investments and joint ventures 3.7 4.2
Finance income before exceptional items 8.9 8.8
Finance costs on lease liabilities (3.5) (2.9)
Other finance costs (1.0) (0.5)
Finance costs before exceptional items (4.5) (3.4)
Exceptional items - 0.8
Net finance income 4.4 6.2
6 Income tax charge/(credit)
Group 2025 2024(1) Restated
£m
(note 22)
£m
Analysis of expense in year
Current year's income tax
Current tax 4.6 1.8
Deferred tax 6.2 3.2
Adjustments in respect of prior years
Current tax - (9.7)
Deferred tax (0.3) (3.5)
Income tax expense/(credit) 10.5 (8.2)
Tax on items recognised in other comprehensive income
Tax recognised in other comprehensive income - -
Total tax expense/(credit) 10.5 (8.2)
1 The year ended 30 June 2024 tax reconciliation includes £9.6m within
the current tax adjustment in respect of prior year years relating to historic
trading losses as explained in note 4, in addition to the tax impact of the
other exceptional items as shown in note 4.
The total income tax charge for the year of £10.5m (2024 restated: credit of
£8.2m) is lower (2024: lower) than the expected charge based on the standard
rate of corporation tax in the UK of 25.0% (2024: 25.0%). The differences are
explained below:
2025 2024
£m
Restated
(note 22)
£m
Profit before income tax 44.1 19.2
Profit before income tax multiplied by the standard corporation tax rate in 11.0 4.8
the UK of 25.0% (2024: 25.0%)
Effects of:
Expenses not deductible for tax purposes - 0.2
Non-taxable income (0.2) (0.2)
Adjustments in respect of prior years (0.3) (13.1)
Other - 0.1
Income tax expense/(credit) 10.5 (8.2)
For the year ended 30 June 2024, the adjustments in respect of prior years
include £9.6m tax credit for exceptional items, as explained in note 4.
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.
7 Dividends
Group and Company 2025 2024
£m pence per share £m pence per share
Previous year final 11.9 11.5 7.7 7.5
Special - - 12.5 12.0
Current year interim 5.6 5.5 4.0 4.0
Dividend recognised in the year 17.5 17.0 24.2 23.5
The following dividends were declared in respect of each accounting period
presented:
2025 2024
£m pence per share £m pence per share
Interim 5.6 5.5 4.0 4.0
Final 13.8 13.5 11.9 11.5
Dividend relating to the year 19.4 19.0 15.9 15.5
The directors are proposing a final dividend in respect of the financial year
ended 30 June 2025 of 13.5 pence per share (2024: 11.5 pence per share),
bringing the total dividend in respect of 2025 to 19.0 pence per share (2024:
15.5p excluding the special dividend). The final dividend will absorb
approximately £13.8m (2024: £11.9m) of equity. Subject to shareholders'
approval at the AGM to be held on 13 November 2025, the dividend will be paid
on 5 December 2025 to shareholders who are on the register of members at the
close of business on 7 November 2025.
8 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.
2025 2024
Earnings Weighted average number of shares Per share amount Earnings restated Weighted average Per share amount restated
£m
pence
(note 22)
number of shares
(note 22) pence
£m
Basic EPS
Earnings attributable to ordinary shareholders 33.6 99,627,362 33.7 27.4 100,051,095 27.3
Basic EPS - Adjusted (note 21)(1)
Adjusted earnings attributable to ordinary shareholders 34.3 99,627,362 34.4 29.6 100,051,095 29.6
Effect of dilutive securities:
Options n/a 4,668,120 n/a n/a 4,315,217 n/a
Diluted EPS 33.6 104,295,482 32.2 27.4 104,366,312 26.2
Diluted EPS - Adjusted (note 21)(1) 34.3 104,295,482 32.9 29.6 104,366,312 28.4
1 Adjusted EPS - basic and diluted, were previously reported on a
pre-exceptional basis which excluded exceptional items only. The adjusted
measure excludes the amortisation of acquired intangible assets.
9 Goodwill
Group £m
Cost
At 30 June 2023 92.7
Additions 0.9
At 30 June 2024 93.6
Additions -
At 30 June 2025 93.6
Aggregate impairment at 30 June 2023, 2024 and 2025 -
At 30 June 2023, 2024 and 30 June 2025 -
Net book amount
At 30 June 2025 93.6
At 30 June 2024 93.6
At 30 June 2023 92.7
Goodwill is allocated to the Group's CGUs identified according to business
segment. The goodwill is attributable to the following business segments:
2025 2024
£m
£m
Building 40.0 40.0
Infrastructure 53.6 53.6
93.6 93.6
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.
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 or combination of reasonable possible changes
in assumptions would give rise to an impairment of the carrying value of
goodwill and intangibles.
10 Leases
This note provides information for leases where the Group is a lessee.
Right-of-use assets
Cost Land and buildings Plant and machinery Motor vehicles £m Total
£m
£m
£m
At 30 June 2024 18.8 13.0 48.5 80.3
At 30 June 2025 19.1 16.0 56.6 91.7
Accumulated depreciation
At 30 June 2024 (6.2) (4.8) (17.9) (28.9)
At 30 June 2025 (6.7) (8.4) (25.5) (40.6)
Net book amount
At 30 June 2025 12.4 7.6 31.1 51.1
At 30 June 2024 12.6 8.2 30.6 51.4
Additions to the right-of-use assets during the 2025 financial year were
£23.9m (2024: 30.8m).
Lease liabilities
2025 2024
£m
£m
Current 22.7 20.5
Non-current 31.1 32.5
Total lease liabilities 53.8 53.0
11 PPP and other investments
Group 2025 2024
£m
£m
At 1 July 41.8 44.6
Disposals and subordinated loan repayments (1.3) (1.3)
Movement in fair value (1.9) (1.5)
At 30 June 38.6 41.8
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 7.9% (2024: 7.6%). 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 £1.3m (2024:
£1.5m).
During the year, there were no additions (2024: £nil) to the Group's PPP/PFI
investments and subordinated loans of £1.3m (2024: £1.3m) were repaid. Of
the total fair value movement in the year of £1.9m (2024: £1.5m), all of it
relates to the movement in the fair value of the PPP/PFI investments (2024:
£1.5m) and has been recorded through other comprehensive income.
12 Trade and other receivables
Notes Group
2025 2024
£m
Restated
(note 22)
£m
Current assets:
Trade receivables 47.2 43.7
Less: provision for impairment of receivables (0.4) (0.4)
Trade receivables - net 46.8 43.3
Contract assets 16 295.9 290.5
Amounts due from joint ventures and associates 6.9 0.8
Research and development expenditure credits 5.1 5.4
Other receivables 9.9 14.0
Prepayments 24.0 17.2
388.6 371.2
13 Cash and cash equivalents
Group
2025 2024
£m
£m
Cash at bank and in hand and per the statement of cash flows 237.6 227.0
Cash at bank above includes £23.0m (2024: £21.7m), 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 (note 10).
Cash and cash equivalents and bank overdrafts are presented on a net (offset)
basis. In 2016, the IFRS Interpretations Committee released an update in
respect of IAS 32 'Financial instruments: presentation' specifically in
relation to offsetting and cash pooling. This clarified that in order to
offset bank account balances, an entity must have both a legally enforceable
right and an intention to do so. The Group's bank arrangements and facilities
with both HSBC Bank plc and Barclays Bank plc provide the legally enforceable
right to offset and the Group demonstrated its intention to offset by formally
sweeping the balances within each bank. Consequently, the balances have been
offset in the financial statements.
14 Trade and other payables
Notes Group
2025 2024
£m
Restated
(note 22)
£m
Trade payables 124.9 107.6
Contract liabilities 16 124.7 131.3
Other taxation and social security payable 48.1 70.4
Other payables 2.8 2.4
Accruals 308.6 309.6
609.1 621.3
All payables are unsecured. Retentions will be paid in the normal operating
cycle of the Group and are therefore shown as a current liability.
The amounts disclosed in the table are the contractual undiscounted cash
flows. Balances due within 12 months equal their carrying balances as the
impact of discounting is not significant.
15 Provisions for other liabilities and charges
Group Onerous contracts Rectification Total
£m
At 30 June 2023 (2.0) (27.9) (29.9)
Balance sheet reclassification(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)
Utilised 0.5 11.4 11.9
Released - 1.3 1.3
Additions - (25.6) (25.6)
At 30 June 2025 (1.0) (47.6) (48.6)
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 include provisions for
dilapidations on premises the Group occupies.
As at 30 June 2025 £13.1m (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, £36.0m (2024: £24.6m) 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 operation
with two 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 2025, there remained 6 years (2024: 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 £13.1m (2024: £14.6m)
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 £19.2m at 30 June 2025 (2024: between £7.3m and £17.5m). During the
year £0.1m and £1.3m (2024: £0.1m and £2.3m) of the opening provision of
£14.6m (2024: £16.9m) was utilised and released respectively, with additions
of £nil (2024: £0.1m) made in the year. Management has sought input from
external experienced industry figures and industry bodies to support the
provision it has made.
16 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:
2025 2024
Contract asset £m Contract liability Contract asset restated Contract liability restated
£m
(note 22)
(note 22)
£m
£m
At 1 July 290.5 (131.3) 204.9 (106.6)
Revenue recognised in the year 1,819.5 55.7 1,715.9 47.8
Net cash received in advance of performance obligations being fully satisfied - (49.1) - (72.5)
Transfers in the year from contract assets to trade receivables (1,814.1) - (1,630.3) -
30 June 295.9 (124.7) 290.5 (131.3)
Revenue allocated to performance obligations that are unsatisfied at 30 June,
is expected to be recognised as disclosed in note 3.
The amount of revenue recognised in the year from performance obligations
satisfied in previous periods amounts to £4.0m (2024: £4.7m).
17 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
2025 2024
£m
Restated
(note 22)
£m
Deferred income tax assets 11.6 18.5
Deferred income tax liabilities (0.6) (0.6)
Net deferred income tax 11.0 17.9
The movement for the year in the net deferred income tax account is as shown
below:
Group
2025 2024
£m
Restated
(note 22)
£m
At 1 July 17.9 15.5
Current year's deferred income tax - expense taken to income statement (6.2) (3.2)
Current year's deferred income tax - credit/(expense) taken to equity 1.2 (0.7)
Adjustment in respect of prior years 0.4 4.5
Transfer (to)/from current tax assets (2.3) 1.4
Acquisition of subsidiaries - (0.2)
Disposal of subsidiaries - 0.6
At 30 June 11.0 17.9
All remaining material 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 was recorded as an income tax
receivable at 30 June 2024 and disclosed as exceptional as explained in note
4.
18 Share-based payments
The Group operates performance-related share incentive plans for Executives,
details of which are set out in the Directors' Remuneration report, as well as
long term bonus plans for staff in addition to a Group wide sharesave scheme.
The total charge for the year before tax relating to employee share-based
payment plans was £3.4m (2024: £1.8m), all of which related to
equity-settled share-based payment transactions.
19 Other reserves and retained earnings
Group Notes Other reserves Retained earnings restated
£m
(note 22)
£m
At 1 July 2023 135.3 (69.1)
Profit for the year - restated - 27.4
Dividends paid 7 - (24.2)
Share-based payments 18 - 1.8
Tax relating to share based payments - 2.0
Movement in fair value of PPP and other investments 11 - (1.5)
Purchase of own shares - (12.0)
Cancellation of shares 1.1 -
At 30 June 2024 - restated 136.4 (75.6)
Profit for the year - 33.6
Dividends paid 7 - (17.5)
Share-based payments 18 - 3.4
Tax relating to share based payments - 2.0
Movement in fair value of PPP and other investments 11 - (1.9)
Purchase of own shares - (12.3)
Cancellation of shares 1.3 -
At 30 June 2025 137.7 (68.3)
The Group's other reserves relate to a merger reserve amounting to £132.2m
(2024: £132.2m) and a capital redemption reserve of £5.5m (2024: £4.2m).
The purchase of own shares represents shares purchased by the Galliford Try
Employee Share Trust of £nil (2024: £4.3m) and other share related
transactions of £2.3m (2024: £3.3m), in addition to £10.0m (2024: £4.4m)
purchased by the Group as part of the share buybacks announced in September
2022 (buyback completed on 17 November 2023) and October 2024 (buyback
completed on 21 May 2025).
20 Guarantees and contingent liabilities
The Group has surety bonding facilities and bank guarantees. These are
supported by counter indemnities given the Group in the Group in the normal
course of business. Utilisation of the bonding and guarantee facilities total
£154.9m at 30 June 2025 (2024: £182.1m). 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 £12.0m (2024:
£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 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.
21 Adjusted 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 adjusted 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 are not considered to reflect the ongoing underlying
performance of the Group.
Adjusted 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) Adjusted 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 adjusted measure is provided
in the following tables. Previously, the Group had referred to pre-exceptional
performance which excluded the impact of exceptional items only. The exclusion
of exceptional items as well as the amortisation of acquired intangibles seeks
to reflect the underlying and ongoing performance of the business with a
consistent methodology across all the adjusted performance measures. The
adjusting items and associated tax impacts that the Group has recognised are
shown below.
2025 2024
£m
Restated
(note 22)
£m
Contract losses(1) - (11.7)
Implementation costs of cloud based arrangements(2) - (2.6)
Finance income(3) - 0.8
Amortisation of acquired intangible assets (0.9) (2.3)
Loss before tax (0.9) (15.8)
Associated tax credit on items above 0.2 3.9
Exceptional income tax credit (3) - 9.6
Total (0.7) (2.3)
1 Management have classified material losses of £11.7m arising on
specific batches of contracts under one framework agreement, acquired in the
nmcn water division acquisition in FY2022, as an exceptional item in the 2024
results. The Group considers the impact to be exceptional given its nature
(relating to acquired contracts) and quantum (being material), and therefore
should be separately disclosed.
2 The Group incurred £2.6m of customisation and configuration costs in
the year to 30 June 2024 associated with the move to Oracle Fusion, a
cloud-based computing arrangement, during the year. 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 items
because they are significant and irregular. The move to Oracle Fusion is now
complete with no further exceptional items expected.
3 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 position where no asset was
recognised as, based on the advice of tax advisors, the group concluded it was
not probable HMRC would accept the claims to utilise the losses. During the
year to 30 June 2024 HMRC agreed a quantum of historic trading losses
available and that they could be utilized 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.
A reconciliation of the statutory measure to the adjusted measure is provided
in the following tables.
b) Adjusted operating profit/(loss) and operating margin
The Group presents operating profit excluding exceptional items and the
amortisation of acquired intangible assets as this reflects the ongoing
performance of the business, which is referred to as adjusted operating
profit/(loss). Operating margin reflects the ratio of adjusted operating
profit/(loss) and revenue. This differs from the statutory measure of
operating profit which includes exceptional items and the amortisation of
acquired intangible assets. Divisional adjusted operating margin is the
combined adjusted operating margin of the Building and Infrastructure
segments.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
Building Infrastructure £m Investments £m Central Total
£m
£m
£m
Year ended 30 June 2025
Statutory operating profit/(loss) 28.1 26.5 (0.4) (14.5) 39.7
exclude: amortisation of acquired intangible assets - 0.9 - - 0.9
exclude: exceptional items (note 4) - - - - -
Adjusted operating profit/(loss) 28.1 27.4 (0.4) (14.5) 40.6
Revenue 964.7 902.5 8.0 - 1,875.2
Adjusted operating margin 2.9% 3.0% n/a n/a 2.2%
Year ended 30 June 2024
Statutory operating profit/(loss) - restated (note 22) 23.0 7.3 (1.0) (16.3) 13.0
exclude: amortisation of acquired intangible assets 1.0 1.1 - 0.2 2.3
exclude: exceptional items (note 4) - restated (note 22) - 11.7 - 2.6 14.3
Adjusted operating profit/(loss) 24.0 20.1 (1.0) (13.5) 29.6
Revenue - restated 938.3 810.7 14.7 - 1,763.7
Revenue on material loss making contracts - 18.6 - - 18.6
Adjusted revenue 938.3 792.1 14.7 - 1,745.1
Adjusted operating margin 2.6% 2.5% n/a n/a 1.7%
c) Adjusted profit before tax
The Group uses a profit before tax measure which excludes exceptional items
and amortisation of acquired intangible assets as noted above, whereas the
statutory measure includes both. Since the prior year, management have changed
the definition of adjusted profit before tax by excluding the amortisation of
acquired intangible assets to align with the measurement of adjusted operating
profit with the same rationale.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
2025 2024(1) Restated
£m
(note 22)
£m
Statutory profit before tax 44.1 19.2
exclude: exceptional items (note 4) - 13.5
exclude: amortisation of acquired intangible assets 0.9 2.3
Adjusted profit before tax 45.0 35.0
1 The Group previously disclosed pre-exceptional profit before tax. The
adjusted profit before tax measure now also excludes the amortisation of
acquired intangible assets.
d) Adjusted earnings per share
In line with the Group's measurement of adjusted performance, the Group also
presents its earnings per share on the same adjusted basis as adjusted profit
before tax. This differs from the statutory measure of earnings per share
which includes both exceptional items and amortisation of acquired intangible
assets. Since the prior year, management has changed the definition of
adjusted earnings per share by excluding the amortisation of acquired
intangible assets to align with the measurement of adjusted operating profit
with the same rationale.
A reconciliation of the statutory measure to the Group's performance measure
(post-tax) is shown below, based on continuing operations:
2025 2024 Restated (note 22)
Earnings Weighted average number of shares EPS Earnings Weighted average number of shares EPS
£m
pence
£m
pence
Statutory results 33.6 99,627,362 33.7 27.4 100,051,095 27.3
exclude: exceptional items (note 4) - n/a n/a 0.5 n/a n/a
exclude: amortisation of acquired intangible assets 0.7 n/a n/a 1.7 n/a n/a
Adjusted earnings per share(1) 34.3 99,627,362 34.4 29.6 100,051,095 29.6
1 Adjusted earnings per share for 2024 was previously reported as 27.9p.
The change reflects the adjusted profit measure excluding the amortisation of
acquired intangible assets, which previously were included.
22 Prior year restatement
A non-cash prior year restatement has been recorded following a correction to
the Group's application of IFRS15 contract combination accounting.
Under its existing IFRS15 accounting policy, the Group had incorrectly
combined contracts on a small percentage of framework agreements and as a
result, the Group has restated its financial statements, reducing revenue and
increasing cost of sales in 2024 with an aggregate impact to reported profit
before tax of £11.7m with associated tax and working capital corrections. No
restatements were required to be made to the balance sheet at 1 July 2023 and
no exceptional losses have been reported in 2025. The full impact of the
restatement is shown in the following tables.
Consolidated income statement
2024 2024
Previously reported Adjustment £m Restated
£m
£m
Revenue 1,772.8 (9.1) 1,763.7
Cost of sales (1,641.4) (2.6) (1,644.0)
Gross profit 131.4 (11.7) 119.7
Administrative expenses (106.7) - (106.7)
Operating profit 24.7 (11.7) 13.0
Finance income 9.6 - 9.6
Finance costs (3.4) - (3.4)
Profit before income tax 30.9 (11.7) 19.2
Income tax credit 5.3 2.9 8.2
Profit for the year 36.2 (8.8) 27.4
Earnings per share
Basic
Profit attributable to ordinary shareholders 36.2p 27.3p
Diluted
Profit attributable to ordinary shareholders 34.7p 26.2p
Consolidated statement of comprehensive income
The total comprehensive income for the year to 30 June 2024 is restated to
£25.9m from £34.7m as a result of the changes noted above.
Consolidated balance sheet
2024 2024
Previously reported Adjustment £m Restated
£m
£m
Assets
Non-current assets
Deferred income tax assets 15.0 2.9 17.9
Other non-current assets 196.4 - 196.4
Total non-current assets 211.4 2.9 214.3
Current assets
Trade and other receivables 370.8 0.4 371.2
Other current assets 238.6 - 238.6
Total current assets 609.4 0.4 609.8
Total assets 820.8 3.3 824.1
Liabilities
Current liabilities
Trade and other payables (609.2) (12.1) (621.3)
Other current liabilities (56.7) - (56.7)
Total current liabilities (665.9) (12.1) (678.0)
Non-current liabilities
Total non-current liabilities (32.5) - (32.5)
Total liabilities (698.4) (12.1) (710.5)
Net assets 122.4 (8.8) 113.6
Equity
Share capital 52.0 - 52.0
Share premium 0.8 - 0.8
Other reserves 136.4 - 136.4
Retained earnings (66.8) (8.8) (75.6)
Total equity 122.4 (8.8) 113.6
The 2023 balance sheet has not been presented as there is no impact to the net
assets, with only an increase to both the contract assets and contract
liabilities of £5.4m which is not deemed to be material.
Consolidated statement of changes in equity
As a result of the change to the total comprehensive income for the year to 30
June 2024, the retained earnings and total shareholders' equity is restated in
line with the changes noted in the balance sheet above.
Consolidated statement of cash flows
2024 2024
Previously reported Adjustment £m Restated
£m
£m
Cash flows from operating activities
Profit for the year 36.2 (8.8) 27.4
Adjustments for:
Income tax expense credit (5.3) (2.9) (8.2)
Net finance income (6.2) - (6.2)
Profit before finance costs and taxation 24.7 (11.7) 13.0
Depreciation, amortisation and impairment of non-current assets 20.7 - 20.7
Share-based payments 1.8 - 1.8
Other non-cash movements (0.4) - (0.4)
Net cash generated from operations before changes in working capital 46.8 (11.7) 35.1
Increase in trade and other receivables (84.1) (0.4) (84.5)
Increase in trade and other payables 84.9 12.1 97.0
Increase in provisions 6.3 - 6.3
Net cash generated from operations 53.9 - 53.9
Net cash generated from operating activities 56.2 - 56.2
Net increase/(decrease) in cash and cash equivalents 6.8 - 6.8
The are no changes to the investing and financing activities, or the opening
and closing cash and cash equivalents balances previously reported.
Segmental results
The impact of the restatement to 2024 impacts the infrastructure segment only.
Trade and other receivables
Previously reported Adjustment £m Restated
£m
£m
Current assets:
Contract assets 290.1 0.4 290.5
Other trade and other receivables 80.7 - 80.7
370.8 0.4 371.2
Trade and other payables
Previously reported Adjustment £m Restated
£m
£m
Contract liabilities 121.8 9.5 131.3
Accruals 307.0 2.6 309.6
Other trade and other payables 180.4 - 180.4
609.2 12.1 621.3
23 Events after the reporting date
On 17 September 2025, 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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