REG - Galliford Try Hldgs - Trading Statement

Galliford Try HoldingsAnnouncement

17/01/2024 07:00

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RNS Number : 8941Z  Galliford Try Holdings PLC  17 January 2024

Galliford Try Holdings plc

Trading Update

Wednesday 17 January 2024

 

 

Galliford Try Holdings plc, the UK construction group, today provides an
update on trading for the half year period from 1 July 2023 to 31 December
2023. The Group expects to announce its results for the half year on Wednesday
6 March 2024.

 

Update on Current Trading

 

The Group is performing well, with strong momentum throughout the first six
months of the current financial year, and continues to make good progress
against its Sustainable Growth Strategy.

Trading is ahead of the prior year period and the Board's expectations, which
were previously increased at the time of the full year results in September
2023. With good visibility over the second half, revenue for the full
financial year is now expected to be approximately 5 per cent. ahead of
current market expectations(1), with an equivalent increase in expected profit
before tax.

We are pleased with our recent acquisition of AVRS Systems in November 2023,
and the progress of the integration of this specialist business in our growing
Environment division. Together with our acquisitions of Ham Baker and MCS at
the start of the last financial year, the Environment division is developing
its adjacent market strategy as planned.

 

(1) The range of analysts' forecasts for the year ended 30 June 2024,  based
on forecasts at 12 January 2024, is £1,435m to £1,490m for revenue and
£25.2m to £28.1m for pre-exceptional profit before tax.

Strategic Update

 

Given the excellent progress to date against the Group's Sustainable Growth
Strategy, the Board expects to update its strategic targets to 2030 during the
second quarter of 2024.

Balance Sheet

 

The average month-end cash for the six months ended 31 December 2023 was circa
£149m (year to 30 June 2023: £135m) and period-end cash at 31 December 2023
was circa £209m (31 December 2022: £196m).  The Group continues to maintain
a portfolio of PPP assets and has no pensions liabilities and no debt or
associated covenants.

 

The Group's strong balance sheet supports our ability to secure high quality
contracts and frameworks, attract a highly skilled supply chain and continue
to invest in the business.

 

Order Book and Outlook

 

The Group's order book of £3.7bn (31 December 2022:  £3.5bn) remains
predominantly in long term frameworks and provides good visibility of future
workload, well beyond the current financial year.  We continue to see a
robust pipeline of opportunities across our chosen sectors, supported by our
strong track record and focus on the public and regulated sectors alongside
high-quality private clients.

 

We recently announced our appointment to build the £87m new build-to-rent
development at Brent Cross Town, north London for Related Argent and Invesco
Real Estate, our second appointment on this development.  In the first half
of the year our Building business was also appointed to undertake the £72m
remodelling and refurbishment of Adelaide House in central London and our
Investments and Building businesses signed contracts with a major build to
rent operator for a £52m development in Cardiff.

 

Capital Allocation

 

In September 2022, having reviewed the Group's strong cash performance and
ongoing capital requirements the Group launched a share buyback programme of
up to a maximum of £15m.  On 17 November 2023 we announced the completion of
the share buyback programme with a total of 8,404,148 shares repurchased and
subsequently cancelled, representing approximately 7.5 per cent. of issued
share capital.

 

Board

 

As previously announced Andrew Duxbury, Group Finance Director, will leave the
Group during the year.  The Group is making good progress on securing
Andrew's replacement and an update will be provided in due course.  Also, as
previously announced, Marisa Cassoni, Non-executive Director and Chair of the
Audit Committee, was appointed Senior Independent Director with effect from 1
November 2023.

 

 

Bill Hocking, Chief Executive, commented:

 

"Galliford Try continues to perform strongly and consistently, and our
performance in the first half of the financial year provides increased
confidence for the full year.

 

We are pleased with our recent acquisition of AVRS Systems, complementing our
existing operations and acquisitions of specialists Ham Baker and MCS Control
Systems, further adding to our ability to provide enhanced specialist services
to our water sector and related clients.  We have excellent people and
project teams, a strong balance sheet and high-quality carefully selected
order book in our chosen sectors.

 

We are encouraged by the performance and momentum in the business and our
expectations for the full year to June 2024 have improved accordingly."

 

A conference call for Analysts and Investors will be held at 09:00am UKT
today, Wednesday 17 January 2024.

Dial in: (Toll-Free): +44 800 358 1035 or (Local): +44 20 3936 2999

Access Code: 762981

 

For further enquiries please contact:

 

 Galliford Try  Bill Hocking, Chief Executive                            01895 855001

                Andrew Duxbury, Finance Director

                Kevin Corbett, General Counsel & Company Secretary
 Teneo          James Macey White                                        020 7353 4200

 

 

Note to Editors

Galliford Try is a trading name of Galliford Try Holdings plc, a
leading UK construction group listed on the London Stock Exchange. Operating
as Galliford Try and Morrison Construction, the group carries out building and
infrastructure (environment and highways) projects with clients in the public,
private and regulated sectors across the UK.

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