REG - Galliford Try Hldgs - Half-year Financial Report
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RNS Number : 2073V Galliford Try Holdings PLC 04 March 2026
4 MARCH 2026
GALLIFORD TRY HOLDINGS PLC
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 31 DECEMBER 2025
STRONG FIRST HALF MOMENTUM, GIVING CONFIDENCE IN INCREASED FULL YEAR DELIVERY
Strategy and Outlook
· Revenue and adjusted profit before tax for the full financial year are
expected to be above the top end of the range of current market
expectations.(1)
· Successful transition to the AMP8 water programme; extensive
participation in national long-term frameworks in both our core and
higher-margin specialist businesses.
· Strong market positions in highways, education, defence, custodial and
health - supporting local and national government future spending plans on
social and economic infrastructure.
· Secure outlook with £4.1bn (H1 2025: £3.9bn) long-term, high
quality, disciplined and focused order book providing good visibility and
consistency to trading.
· Excellent visibility of future revenues: 98% and 80% of projected FY26
and FY27 revenue secured.
· Continued organic investment in higher margin adjacent businesses through
establishment of Keighley pipe fabrication facility.
· On 27 February 2026, acquired Nene Valley Fire & Acoustic Limited
for c£10m, an established, growing passive fire protection business that will
enhance our existing specialist fire businesses and accelerate our progress in
this high margin growth sector. The cash funded deal is expected to be
margin accretive in first year.
Financial and Operational Highlights
· 1.3% increase in revenue to £934.9m (H1 2025: £923.2m), slightly
ahead of expectations.
· 3.2% divisional adjusted operating margin (H1 2025: 2.7%), showing
continued good progress against our 4.0% strategic target for 2030, driven by
execution of our quality strategy approach in improved contracting
environments.
· 20.5% increase in adjusted profit before tax to £24.7m (H1 2025:
£20.5m), with broad based progress across core businesses.
· 18.2% increase in interim dividend to 6.5p per share (H1 2025: 5.5p),
in line with EPS growth.
· Strong balance sheet, 12-month average month end cash at £189.9m (30
June 2025: £178.7m, H1 2025: £176.4m) and PPP assets of £38.5m (30 June
2025: £38.6m, H1 2025: £40.2m). Net cash at 31 December 2025 of £211.7m
(June 2025: £237.6m, H1 2025: £210.0m).
Financial Results H1 2026 H1 2025 Change
Revenue £934.9m £923.2m +1.3%
Adjusted operating profit(2) £21.6m £17.7m +22.0%
Divisional adjusted operating margin(2) 3.2% 2.7% +54bps
Adjusted profit before tax(2) £24.7m £20.5m +20.5%
Adjusted basic earnings per share(2) 18.6p 15.7p +18.5%
12 months average month end cash £189.9m £176.4m +7.7%
Order book £4.1bn £3.9bn +5.1%
Statutory Results
Revenue £934.9m £923.2m +1.3%
Profit before tax £24.3m £20.0m +21.5%
Basic earnings per share 18.3p 15.3p +19.6%
Interim dividend per share 6.5p 5.5p +18.2%
Net cash £211.7m £210.0m +0.8%
(1. ) The company compiled range of analysts' forecasts for the year ending
30 June 2026, based on forecasts at 26 January 2026, is for revenue of
£1,912m to £1,922m and adjusted profit before tax of £48.9m to £51.4m.
(2. ) Note 17 below contains the rationale for use, and reconciliations of
these adjusted performance measures to their nearest statutory measure.
Bill Hocking, Chief Executive, commented:
"I am pleased with the Group's performance in the first half of the financial
year which supports increased confidence in improved revenue, adjusted
operating margins and profit expectations for the full year.
In addition to the transition to the AMP8 water programme and our continued
framework and project successes, we also see further opportunities across all
our chosen sectors. Our track record of operational delivery, focused risk
management, committed people and established relationships with our supply
chain and clients provides consistency to our results.
The Group benefits from a strong balance sheet and a high quality, carefully
selected order book, providing good visibility of future workloads well beyond
the current financial year. Continued investment in our people ensures
consistent delivery for our clients and positions us well to support the
Government's commitment to economic growth through major infrastructure
investment.
Our continuing strong performance and order book gives us confidence to raise
our expectations for the full year to 30 June 2026. We will continue to
focus on driving long-term value creation for all our stakeholders in our
Sustainable Growth Strategy to 2030."
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/Ffion Dash 020 7260 2700
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 GMT today, Wednesday 4 March 2026. To register for this event please
follow this link: GFRD H1 26 Results - webcast registration
(https://brrmedia.news/GFRD_HY26)
Analysts, should you wish to ask a question, please dial-in on +44 (0) 33 0551
0200 quoting 'Galliford Try HY26' when prompted by the operator. Other
participants may submit their questions via the webcast platform.
A live presentation and Q&A session for retail investors will be held on
Friday 13 March 2026 at 10:00am GMT 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
12 March 2026, 09:00 GMT, or at any time during the live presentation.
Investors can register for the event via this link: Investor Meet Company -
Galliford Try
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.
FINANCIAL REVIEW
During the first half of the financial year, the Group delivered another
strong year of performance resulting in an increase in revenue, profit before
tax, and improved divisional adjusted operating margin. Our operating
performance, strong financial position and high-quality order book support our
confidence in our future performance.
Revenue for the half year to 31 December 2025 increased 1.3% to £934.9m (H1
2025: £923.2m). Outside of the AMP transition in the Environment business, we
have seen good revenue progress across our Building, Infrastructure and
Specialist businesses.
Adjusted operating profit increased by 22.0% to £21.6m (H1 2025: £17.7m).
The combined divisional adjusted operating margin was up 54bps at 3.2% (H1
2025: 2.7%), with improvement in both Building and Infrastructure. Building
generated an adjusted operating profit of £14.9m (H1 2025: £12.5m),
representing an adjusted operating margin of 3.1% (H1 2025: 2.7%), up 45bps.
Infrastructure generated an adjusted operating profit of £15.2m (H1 2025:
£12.3m), representing an adjusted operating margin of 3.3% (H1 2025: 2.7%) up
62bps. Both of these increases were driven by quality first-time delivery of
our projects and improved commercial terms across our newer frameworks.
Adjusted profit before tax was £24.7m (H1 2025: £20.5m), an increase of
20.5%.
The taxation charge of £6.1m reflects a forecast effective tax rate of 25.1%
for the year to 30 June 2026, which compares to the standard corporation tax
rate of 25.0%.
The Group continues to be well capitalised, maintaining its focus on
disciplined cash management in line with its key capital allocation
objectives. The Group operates with daily net cash, no drawn bank debt
facilities, and no defined benefit pension liabilities. The average month-end
cash for the rolling 12 months ended 31 December 2025 was £189.9m (year to 30
June 2025: £178.7m, H1 2025: £176.4m) and period-end cash at 31 December
2025 was £211.7m (30 June 2025: £237.6m, H1 2025: £210.0m).
The Group also benefits from a PPP asset portfolio of £38.5m (30 June 2025:
£38.6m, H1 2025: £40.2m), reflecting a blended 7.9% (30 June 2025: 7.9%, H1
2025: 7.6%) discount rate and generating ongoing interest income.
The Group has a £25m revolving credit facility, which remains undrawn,
providing further agility and resilience.
The Group adopts appropriate discipline and risk management when sourcing new
work supported by our strong balance sheet which is also important in
providing confidence to our clients, staff and supply chain. We are committed
to pursuing a collaborative and open approach with our supply chain. Our
performance under the Prompt Payment Code continues to remain strong with 97%
of invoices paid within 60 days in the period (H1 2025: 97%) and average
payment being made in 29 days (H1 2025: 26 days).
ACQUISITION
On 27 February 2026 the Group acquired Nene Valley Fire & Acoustic Limited
(Nene Valley Fire) for c£10m, a well-established fire protection business
offering strong growth potential and enhancement to our existing passive and
active specialist fire businesses, Asset Intelligence and Oak Fire Protection.
The intention is to combine Nene Valley Fire with our existing Asset
Intelligence and Oak Fire Protection business as a catalyst for significant
national growth for the enhanced and combined business. The cash-funded deal
is expected to be margin accretive in its first year.
This acquisition builds on the Group's established track record of integrating
specialist bolt-on businesses to enhance technical capability and support its
Sustainable Growth Strategy, including the acquisitions of nmcn's water
business (including Lintott), MCS Control Systems, Ham Baker and AVRS Systems
since 2021. The four previous deals originally brought c£124m of annual
revenues and critical mass to our Environment business which, now matured, is
expected to deliver £500m - £600m of annual revenues over period 2027 -
2030. The Group has an active M&A pipeline for higher margin adjacent
market opportunities that meet our strategic and financial thresholds.
DIVIDEND AND SHAREHOLDER RETURNS
The directors have reviewed the Group's results and based on adjusted earnings
per share of 18.6p (H1 2025: 15.7p), and the outlook for the remainder of the
financial year, the Board has declared an interim dividend of 6.5p per share
(H1 2025: 5.5p) which will be paid on 10 April 2026 to shareholders on the
register at the close of business on 13 March 2026. The shares will be marked
ex-dividend on 12 March 2026.
On 17 September 2025, the Group launched its third share buyback programme of
up to a maximum of £10.0m. As at 27 February 2026 the Group had purchased a
total of 1,765,102 shares, for an aggregate consideration of £9.0m. The
Group expects to complete the buyback before the end of the financial year.
OUTLOOK
The Group enters the second half of the year with improved confidence for the
financial year to 30 June 2026, and benefits from good multi-year revenue
visibility, with 98% and 80% of projected FY26 and FY27 revenue secured. Our
outlook is supported by recent framework and project wins together with a
strong pipeline of opportunities across all of our chosen sectors.
The UK's planned major investment in economic and social infrastructure
continues to provide a supportive backdrop for growth across our chosen
markets.
The Group has a strong track record in the public and regulated sectors and,
through its positions on major national long-term frameworks, continues to see
opportunities particularly in water, transportation, education, defence,
custodial and health. Accordingly, the Group is well placed to support the
Government's central commitment to grow the economy and invest in
infrastructure and development.
Revenue and adjusted profit before tax for the full financial year are
expected to be above the top end of the range of current market
expectations.( )
OPERATIONAL REVIEW
Building
Our Building business operates through regional offices, serving a range of
public and commercial clients across the UK, with a focus on the education,
defence, health and custodial sectors, and in affordable homes, where we have
core and proven strengths. Building maintains a substantial presence in
Scotland, operating as Morrison Construction.
Our Facilities Management (FM) business complements these operations by
providing building maintenance services and we continue to grow the
capabilities of this operation.
H1 2026 H1 2025 Change
Revenue (£m) 476.5 467.3 2.0%
Adjusted Operating profit (£m) 14.9 12.5 19.2%
Adjusted Operating margin (%) 3.1 2.7 45bps
Order book (£bn) 2.4 2.3 £0.1bn
Building's revenue was up 2.0% to £476.5m (H1 2025: £467.3m) with adjusted
operating profit up 19.2% to £14.9m (H1 2025: £12.5m) driven by quality
delivery against our risk-managed order book, resulting in an improved
adjusted operating margin up 45bps at 3.1% (H1 2025: 2.7%).
We have won places on the new £15.4bn Department for Education (DfE)
Construction Framework 25 (CF25) and the £3bn affordable homes framework
across the East, South and London regions for the Registered Provider, The
Hyde Group.
Building currently has an order book of £2.4bn (H1 2025: £2.3bn), including
19% in Education, 49% in Defence and Custodial, 14% in Facilities Management
and 4% in Health.
Infrastructure
Our Infrastructure business, comprising primarily Highways and Environment
(incorporating our activities in water and wastewater), carries out critical
engineering projects across the UK. This business has established long-term
frameworks with customers where we have a strong track record of delivery,
focusing on public and regulated sector work and projects with early
contractor involvement.
H1 2026 H1 2025 Change
Revenue (£m) 454.2 451.7 0.6%
Adjusted Operating profit (£m) 15.2 12.3 23.6%
Adjusted Operating margin (%) 3.3 2.7 62bps
Order book (£bn) 1.7 1.6 £0.1bn
Infrastructure revenue was up 0.6% to £454.2m (H1 2025: £451.7m) with
adjusted operating profit up 23.6% at £15.2m (H1 2025 £12.3m), resulting in
an improved adjusted operating margin up 62bps at 3.3% (H1 2025: 2.7%). The
strong margin improvement was driven by quality delivery against improved
commercial terms in both environment and highways and good progress on our
major highways projects balancing the AMP8 transition.
We have won a place on National Grid's £9.0bn Major Works & Civils
Framework, Lot 1 - Converter Civils & Buildings, as part of the HVDC
programme and have been reappointed to the £1.0bn YORCivil Major Works 2
Framework.
Infrastructure currently has an order book of £1.7bn (H1 2025: £1.6bn)
comprising £547m in Highways and £1,167m in Environment.
Investments
Investments delivers major building and infrastructure projects through public
private partnerships (PPP) and the co-development of Private Rented Sector
(PRS) projects, generating work for the wider Group in the process.
H1 2026 H1 2025 Change
Revenue (£m) 4.2 4.2 -
Adjusted Operating (loss) (£m) (1.1) (0.1) £(1.0)m
Asset valuation (£m) 38.5 40.2 £(1.7)m
Net interest income (£m) 1.8 1.8 -
In the first half of the financial year, revenue was £4.2m (H1 2025: £4.2m)
with an adjusted operating loss of £1.1m (H1 2025: adjusted operating loss of
£0.1m).
At 31 December 2025 the Group directors' valuation of our PPP portfolio was
£38.5m (June 2025: £38.6m, H1 2025: £40.2m), reflecting a blended 7.9%
discount rate (June 2025: 7.9%, H1 2025: 7.6%) and capital redemptions
received. These highly marketable assets contribute to our balance sheet
strength and generated interest income in the period of £1.8m (H1 2025:
£1.8m).
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 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 leveraging both top line growth, working in
improved contracting environments, operational improvements (quality,
efficiency, digital and technology) and accelerated growth in our
higher-margin adjacent market businesses
Cash retain a strong balance sheet and operating cash generation
Dividends sustainable dividends with earnings cover of 1.8x
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 long term frameworks, underpinned by
management's discipline and focus, and robust outlook of a long-term pipeline
of opportunities. Our sector focus means 87% 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.
At 31 December 2025, the Group's order book was £4.1bn (H1 2025: £3.9bn) of
which 95% is in the public and regulated sectors and 5% is in the private
sector. 98% of projected revenue for the current financial year is secured,
and 80% is already secured for the next financial year (H1 2025: 98% and 81%
respectively).
CAPITAL ALLOCATION
A strong balance sheet is an important element in delivering the Group's
Sustainable Growth Strategy, as it provides a competitive advantage in the
market, supports the Group's disciplined approach, and provides confidence to
our clients and supply chain. The 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 continue to be:
· Invest in the business (organic and acquisitive)
We are able to allocate self-generated capital to assist the development of
our adjacent markets, as demonstrated by our operational and acquisitive
investments. Following the opening of our Scottish manufacturing facility,
we recently opened a further facility in Yorkshire with the capability to
manufacture "pipe specials" for the water sector reflecting a further
enhancement and expansion to our specialist water business offering. On 27
February 2026, we acquired Nene Valley Fire & Acoustic Limited, a
well-established fire protection business for circa £10m, offering strong
growth potential and enhancement to our existing passive and active specialist
fire businesses, Asset Intelligence and Oak Fire Protection. This represents
our fifth acquisition in the last five years, deploying generated capital into
higher margin specialist businesses without the need for external financing.
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 dividend to
shareholders while retaining capital to invest in growing the business.
· Returning excess cash
We continue to assess the cash requirements of the business to ensure the
Group remains well positioned to deliver on its Sustainable Growth Strategy
and has sufficient funds to invest in the business. As previously announced,
where average month-end cash and PPP assets increase above the level required,
the Board will consider making additional returns to shareholders where this
represents the best return for shareholders.
Environment, Social and Governance (ESG)
Sustainability underpins our long-term success as it helps us to win work,
engages our people, benefits communities and the environment, and makes us
more efficient. Our ESG Committee, chaired by the Chief Financial Officer,
monitors progress against the six pillars of our sustainability strategy,
which are mapped to the UN Sustainable Development Goals, as set out below:
Health and Safety
The health, safety and wellbeing of our people, subcontractors, suppliers,
clients and the public remains the Group's top priority.
During the first half of the year, our Lost Time Frequency Rate (LTFR)
increased slightly from 0.11 to 0.13 and our Accident Frequency Rate (AFR)
also increased from 0.03 to 0.05. Our behavioural safety programme,
Challenging Beliefs, Affecting Behaviour (CBAB) drives a safety mindset based
on awareness, training, coaching and visible leadership.
We continue to focus on our Back to Basics approach of Right Person, Right
Planning, Right Equipment and Right Workplace. In addition, in February 2026,
we ran a learning week dedicated to avoiding service strikes, a key challenge
in the industry, with training sessions, videos, increased site tours from
Executive Board members and Senior Leadership, and including audits, toolbox
talks and reinforcing the standards, practices, actions and behaviours that
keep everyone on our sites safe.
People
People are key to the delivery of our strategy, and in November 2025, we held
a Leadership Conference with circa 250 of our Senior Leadership to provide an
update on our Sustainable Growth strategy to 2030, provide an opportunity to
share ideas across our business and ensure our leaders are all aligned to the
Group's priorities.
Retaining, gaining and developing talent remain the pillars of our people
strategy, driven by our Employee Value Proposition (EVP) 'Grow Together' which
delivers on our pledge 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. In 2025, we maintained our record high employee advocacy
score of 87%, compared to a sector average of 81%.
Doing the Right Thing is central to creating an inclusive culture where
everyone is safe, respected and valued and this is underpinned in our Code of
Conduct. To underline this, we introduced Active Bystander workshops for all
our people, which help to recognise and challenge inappropriate behaviour.
Early careers roles (apprentices, trainees, graduates and sponsored students)
help us to grow our own talent, shape our leaders and influence the skillsets
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.
Environment and Climate Change
We have pledged to achieve net zero carbon across our own operations by 2030
and all activities by 2045, and have 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 identifying actions to reduce
emissions relating to the use of diesel, company vehicles, site compounds,
permanent offices, business travel, and construction materials as well as
initiatives to continuously improve the way we measure and report emissions.
In July 2025, we received the Green Economy Mark from the London Stock
Exchange for deriving at least 50% of our revenue from green products and
services. This 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', (2024: B), recognising the maturity of the
approach we are taking to climate action across 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.
We are participating in Build UK's Open Doors initiative again this year - an
opportunity for students to gain insight into how we operate our sites and
what a career in construction can offer. Last year, 500 students and 17
projects were involved in the week-long event.
We continue to deliver our Mentoring the Next Generation scheme aimed at
encouraging the next generation of women into construction by teaming up with
local schools. 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 have
expanded the programme and have enrolled a further circa 60 students across
six schools in the second cohort.
We take part in the Considerate Constructors Scheme (CCS), which assesses
sites on their approach to communities, the environment and workforce. In the
six months to 31 December 2025, we maintained our high average score of 44.5
(HY 2025: 43.5) out of 50, which remains above the industry average of 41.1
(HY 2025: 40.5) and we received 22 CCS National Site Awards.
Clients
Delivering excellence for our clients is key to the long-term sustainability
of our business. Our approach is reflected by the fact that 94% of our order
book is repeat business (H1 2025: 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.
Delivering high quality projects for our clients, right first time, every
time, is key to developing long-term relationships. Our approach is to embed
quality culture and behaviours into our processes, alongside robust systems
for maintaining high quality outcomes across the design, construction and
operation of the projects we deliver.
Our approach embeds technology and Modern Methods of Construction to drive
better outcomes for our clients by improving safety, enhancing quality,
enabling collaboration, improving visualisation, lowering carbon, and driving
down costs. The digitalisation tools we are deploying are driving margin
growth, creating a more efficient approach to project delivery.
Supply Chain
Recognising the key role our supply chain plays in the delivery of our
strategy, we held a National Supply Chain Conference for 300 of our key
partners, with the event designed to strengthen collaboration and provide
updates from our Executive Board and Senior Leadership team on strategic
direction, performance priorities, the role of digital, innovation, culture,
and future pipelines. The conference provided partners with a clear view of
the Group's long‑term vision and the essential role they play in driving
shared success.
We are committed to paying 95% of supply chain invoices within 60 days, in
line with our Bronze Award status under the Fair Payment Code. We continue to
outperform this target, with 97% of invoices paid within 60 days in the latest
six months to 31 December 2025 (H1 2025: 97%) and our average days to pay is
29 days (H1 2025: 26 days).
We continue to minimise the risk of modern slavery within our operations and
supply chain and use the UK Government Modern Slavery Assessment tool to
assess our performance and identify opportunities for improvement. As part of
this ongoing improvement, we have developed a programme of audits of our
preferred supplier labour agencies to assess their compliance, financial
stability, and ethical practices.
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 55% 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.
PRINCIPAL RISKS AND UNCERTAINTIES
The directors consider that the principal risks and uncertainties which may
have a material impact on the Group's performance in the second half of the
financial year remain primarily the same as those outlined on pages 59 to 62
of the Group's Annual Report and Financial Statements for the year ended 30
June 2025. Those risks the Group considers to be of particular importance and
highlighted as the principal risks in focus within the 30 June 2025 Annual
Report are; work winning, project delivery, resources and regulatory
compliance.
Condensed consolidated income statement
for the half year ended 31 December 2025 (unaudited)
Half year to Half year to
31 December 2025 31 December 2024
Notes £m £m
Revenue 4 934.9 923.2
Cost of sales (854.4) (852.1)
Gross profit 80.5 71.1
Administrative expenses (59.3) (53.9)
Operating profit 21.2 17.2
Finance income 5 4.9 4.9
Finance costs 5 (1.8) (2.1)
Profit before income tax 24.3 20.0
Income tax expense 6 (6.1) (4.6)
Profit for the period 18.2 15.4
Earnings per share
Basic 8 18.3 15.3p
Diluted 8 17.6 14.7p
The notes are an integral part of the condensed consolidated financial
statements.
Condensed consolidated statement of comprehensive income
for the half year ended 31 December 2025 (unaudited)
Half year to Half year to
31 December 31 December
2025 2024
Notes £m £m
Profit for the period 18.2 15.4
Other comprehensive income/(expense):
Items that may be reclassified subsequently to profit or loss
Movement in fair value of PPP and other investments 10 0.5 (0.9)
Other comprehensive income/(expense) for the period net of tax 0.5 (0.9)
Total comprehensive income for the period 18.7 14.5
The notes are an integral part of the condensed consolidated financial
statements.
Condensed consolidated balance sheet
at 31 December 2025 (unaudited)
31 December 2025 30 June 2025
(audited)
Notes £m £m
Assets
Non-current assets
Intangible assets 3.0 3.4
Goodwill 9 93.6 93.6
Property, plant and equipment 5.7 6.0
Right of use assets 48.9 51.1
PPP and other investments 10 38.5 38.6
Deferred income tax assets 7.7 11.0
Total non-current assets 197.4 203.7
Current assets
Trade and other receivables 11 367.1 388.6
Current income tax assets 2.3 3.7
Cash and cash equivalents 211.7 237.6
Total current assets 581.1 629.9
Total assets 778.5 833.6
Liabilities
Current liabilities
Trade and other payables 12 (555.7) (609.1)
Lease liabilities (22.5) (22.7)
Provisions for other liabilities and charges 13 (52.5) (48.6)
Total current liabilities (630.7) (680.4)
Non-current liabilities
Lease liabilities (29.1) (31.1)
Total non-current liabilities (29.1) (31.1)
Total liabilities (659.8) (711.5)
118.7
Net assets 122.1
Equity
Ordinary share capital 50.5 51.1
Share premium 1.7 1.6
Other reserves 138.4 137.7
Retained earnings (71.9) (68.3)
Total shareholders' equity 118.7 122.1
The notes are an integral part of the condensed consolidated financial
statements.
These condensed consolidated financial statements were approved by the Board
of Directors on 4 March 2026.
Condensed consolidated statement of changes in equity
for the half year ended 31 December 2025 (unaudited)
Notes Ordinary share capital Share Premium Other reserves Retained earnings Total shareholders' equity
£m £m £m £m £m
As at 31 December 2025
At 30 June and 1 July 2025 51.1 1.6 137.7 (68.3) 122.1
Profit for the period - - - 18.2 18.2
Other comprehensive income - - - 0.5 0.5
Total comprehensive income for the period 51.1 1.6 137.7 (49.6) 140.8
Transactions with owners:
Dividends 7 - - - (13.8) (13.8)
Share-based payments - - - 1.6 1.6
Tax relating to share-based payments - - - 1.0 1.0
Purchase of own shares 8 - - - (11.1) (11.1)
Issue of shares 0.1 0.1 - - 0.2
Cancellation of shares 8 (0.7) - 0.7 - -
At 31 December 2025 50.5 1.7 138.4 (71.9) 118.7
As at 31 December 2024
At 30 June and 1 July 2024 (restated note 19) 52.0 0.8 136.4 (75.6) 113.6
Profit for the period - - - 15.4 15.4
Other comprehensive expense - - - (0.9) (0.9)
Total comprehensive income for the period - - - 14.5 14.5
Transactions with owners:
Dividends 7 - - - (11.9) (11.9)
Share-based payments - - - 1.1 1.1
Tax relating to share-based payments - - - 1.4 1.4
Purchase of own shares 8 - - - (6.0) (6.0)
Issue of shares 0.1 0.2 - - 0.3
Cancellation of shares 8 (0.5) - 0.5 - -
At 31 December 2024 (restated note 19) 51.6 1.0 136.9 (76.5) 113.0
The notes are an integral part of the condensed consolidated financial
statements.
Condensed consolidated statement of cash flows
for the half year ended 31 December 2025 (unaudited)
Notes Half year to Half year to
31 December 2025 31 December 2024 (restated - note 19)
£m
£m
Cash flows from operating activities
Profit for the period 18.2 15.4
Adjustments for:
Income tax expense 6.1 4.6
Net finance income 5 (3.1) (2.8)
Profit before finance costs and taxation 21.2 17.2
Depreciation and amortisation 12.8 11.5
Share-based payments 1.6 1.1
Net cash generated from operations before changes in working capital 35.6 29.8
Decrease in trade and other receivables 17.3 54.1
Decrease in trade and other payables (53.4) (87.5)
Increase in provisions 3.9 2.1
Net cash generated from/(used in) from operations 3.4 (1.5)
Interest received 4.9 4.9
Interest paid (1.8) (2.1)
Corporation tax received 1.3 9.4
Net cash generated from operating activities 7.8 10.7
Cash flows from investing activities
Decrease/(increase) in amounts due from joint ventures 2.3 (2.1)
PPP loan repayments 10 0.6 0.7
Proceeds from disposal of subsidiary - 1.9
Acquisition of property, plant and equipment (0.3) (0.5)
Net cash generated from investing activities 2.6 -
Cash flows from financing activities
Repayment of lease liabilities (11.6) (10.1)
Purchase of own shares 8 (11.1) (6.0)
Dividends paid to Company shareholders 7 (13.8) (11.9)
Net proceeds of issue of ordinary share capital 0.2 0.3
Net cash used in financing activities (36.3) (27.7)
Net decrease in cash and cash equivalents (25.9) (17.0)
Cash and cash equivalents at beginning of period 237.6 227.0
Cash and cash equivalents at end of period 211.7 210.0
The notes are an integral part of the condensed consolidated financial
statements.
Notes to the condensed consolidated half year financial statements
for the half year ended 31 December 2025 (unaudited)
1 Basis of preparation
Galliford Try Holdings plc is a public limited company incorporated in England
and Wales and domiciled in the UK. The address of its registered office is
Blake House, 3 Frayswater Place, Cowley, Uxbridge, Middlesex, UB8 2AD. The
Company has its listing on the London Stock Exchange. This condensed
consolidated half year financial information was approved for issue on 4 March
2026.
This condensed consolidated half year financial information does not comprise
statutory financial statements within the meaning of Section 434 of the
Companies Act 2006. Statutory financial statements for the year ended 30
June 2025 were approved by the board of directors on 17 September 2025 and
delivered to the Registrar of Companies. The report of the auditors on those
financial statements was unqualified, did not contain an emphasis of matter
paragraph and did not contain any statement under Section 498 of the Companies
Act 2006. This condensed consolidated half year financial information has been
reviewed, not audited. The auditors' review opinion is included in this
report.
This condensed consolidated half year financial information for the period
ended 31 December 2025 has been prepared in accordance with the Disclosure
Guidance and Transparency Rules of the Financial Conduct Authority and with UK
adopted International Accounting Standard 34, "Interim financial reporting".
The condensed consolidated half year financial information should be read in
conjunction with the annual financial statements for the year ended 30 June
2025, which have been prepared in accordance with UK adopted International
Accounting Standards.
The Group's activities, together with the factors likely to affect the future
development, performance and position of the business are set out in this half
year report. The annual financial statements for the year ended 30 June 2025
included the Group's objectives, policies and processes for managing capital,
its financial risk management objectives, details of its financial instruments
and hedging activities and its exposure to credit risk and liquidity risk.
After making enquiries, the directors have a reasonable expectation that the
Group has adequate resources to continue in operational existence for at least
twelve months from the date of signing the condensed consolidated half year
information, and accordingly continue to adopt the going concern basis of
preparation.
2 Accounting policies
The accounting policies applied are consistent with those of the annual
financial statements for the year ended 30 June 2025. There are no new
standards effective for the first time in the period beginning 1 July 2025
which have a material impact on the Group's reported results.
Critical accounting estimates and judgements
The Group's principal judgements and key sources of estimation uncertainty
remain unchanged since the year ended 30 June 2025. The principal judgements
and key sources of estimation uncertainty are set out in note 1 on pages 143 -
144 of the annual financial statements for the year ended 30 June 2025.
The Group's five largest unagreed variations and claims positions as at 31
December are summarised in aggregate below:
2025 2024
£m £m
Overall contract value 517.1 733.3
Revenue in the period 75.2 83.5
Estimated end of contract variations and claims 95.8 66.3
These five positions represent the most significant estimates of revenue. The
estimated end of contract variations and claims is at the lower end of the
range of reasonably possible outcomes. The total estimated contract variations
and claims of the subsequent five largest positions is £22.5m (31 December
2024: £16.8m).
3 Segmental reporting
Segmental reporting is presented in the condensed consolidated half year
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 material
activities outside the UK, segmental 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 reportable 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 operating profit/loss which excludes amortisation of acquired
intangible assets and exceptional items. 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.
Half year to 31 December 2025 Building Infrastructure Investments Central Total
£m £m £m £m £m
Revenue 476.5 454.2 4.2 - 934.9
Adjusted operating profit (note 17) 14.9 15.2 (1.1) (7.4) 21.6
Finance income - - 1.8 3.1 4.9
Finance costs (0.6) (1.0) - (0.2) (1.8)
Adjusted profit before taxation (note 17) 14.3 14.2 0.7 (4.5) 24.7
Amortisation of acquired intangible assets - (0.4) - - (0.4)
Profit/(loss) before taxation 14.3 13.8 0.7 (4.5) 24.3
Income tax charge (6.1)
Profit for the period 18.2
Half year to 31 December 2024 Building Infrastructure Investments Central Total
£m £m £m £m £m
Revenue 467.3 451.7 4.2 - 923.2
Adjusted operating profit (note 17) 12.5 12.3 (0.1) (7.0) 17.7
Finance income - 0.1 1.8 3.0 4.9
Finance costs (0.7) (1.0) - (0.4) (2.1)
Adjusted profit before taxation (note 17) 11.8 11.4 1.7 (4.4) 20.5
Amortisation of acquired intangible assets - (0.5) - - (0.5)
Profit/(loss) before taxation 11.8 10.9 1.7 (4.4) 20.0
Income tax charge (4.6)
Profit for the period 15.4
Inter-segment revenue, which is priced on an arm's length basis, is eliminated
from revenue above. In the half year to 31 December 2025 this amounted to
£41.1m (31 December 2024: £58.9m), of which £0.1m (31 December 2024:
£1.1m) was in Building, £30.8m (31 December 2024: £36.9m) was in
Infrastructure, and £10.2m (31 December 2024: £10.2m) was in Investments.
4 Revenue
Nature of revenue streams
(i) Building & 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, typically on a straight line-basis.
(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 period to 31 December 2025 and 31 December 2024 has been
derived from performance obligations settled over time.
5 Net finance income
Group Half year to Half year to
31 December 2025 31 December 2024
£m £m
Interest receivable on bank deposits 3.1 3.0
Interest receivable from PPP and other investments 1.8 1.9
Finance income 4.9 4.9
Other (including interest on lease liabilities) (1.8) (2.1)
Finance costs (1.8) (2.1)
Net finance income 3.1 2.8
6 Income tax expenses
The adjusted effective tax rate (being the effective tax rate applied to the
adjusted profit before tax) for the period is 25.1% (31 December 2024: 22.9%).
The statutory effective tax rate for the period is also 25.1%. Both the
adjusted and statutory effective tax rate of 25.1% is also expected to apply
to the full year to 30 June 2026. This is marginally higher than the UK
corporation tax rate applicable to the period of 25.0%.
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.
7 Dividends
The following dividends were paid and recognised by the Company in each
accounting period presented:
Half year to 31 December 2025 Half year to 31 December 2024
£m pence per share £m pence per share
Previous year net final 13.8 13.5 11.9 11.5
Dividend recognised in the period 13.8 13.5 11.9 11.5
The following dividends were declared by the Company in respect of each
accounting period presented:
Half year to 31 December 2025 Half year to 31 December 2024
£m pence per share £m pence per share
Interim 6.5 6.5 5.6 5.5
Dividend relating to the period 6.5 6.5 5.6 5.5
The interim dividend for the period to 31 December 2025 of 6.5 pence per share
was approved by the board on 4 March 2026 and has not been included as a
liability as at 31 December 2025. This interim dividend will be paid on 10
April 2026 to shareholders who are on the register at the close of business on
13 March 2026.
8 Earnings per share
Basic and diluted earnings per share
Basic earnings per share 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 Employee Share Trust,
which are treated as cancelled.
The average number of shares is diluted by reference to the average number of
potential ordinary shares held under option in the period. The dilutive
effects amount 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 purchase of own shares represents share related transactions of £4.3m (31
December 2024: £2.2m), in addition to £6.8m (31 December 2024: £3.8m)
purchased by the Company as part of the share buyback programme announced in
September 2025 (31 December 2024 share buyback relates to the programme
announced in October 2024).
During the period to 31 December 2025, 1,334,298 shares have been purchased
for a consideration of £6.8m as part of the share buyback announced in
September 2025.
As at 31 December 2025 the Employee Benefit Trust held 2,124,586 shares (31
December 2024: 3,066,609), with a weighted average of 2,575,350 during the
period (31 December 2024: 3,472,967).
The earnings and weighted average number of shares used in the calculations
are set out below.
Half year to 31 December 2025 Half year to 31 December 2024
Earnings Weighted average number of shares Per share amount pence Earnings £m Weighted average number of shares Per share amount pence
£m
Total operations
Basic EPS
Earnings attributable to ordinary shareholders 18.2 99,334,463 18.3 15.4 100,308,548 15.3
Basic EPS - Adjusted (note 17)
Adjusted earnings attributable to ordinary shareholders 18.5 99,334,463 18.6 15.8 100,308,548 15.7
Effect of dilutive securities:
Options n/a 4,011,375 n/a n/a 4,325,110 n/a
Diluted EPS 18.2 103,345,838 17.6 15.4 104,633,658 14.7
Diluted EPS - Adjusted (note 17) 18.5 103,345,838 17.9 15.8 104,633,658 15.1
9 Goodwill
Goodwill is allocated to the Group's cash-generating units (CGUs) identified
according to business segment. The goodwill is attributable to the following
business segments:
31 December 2025 30 June 2025
(audited)
£m £m
Building 40.0 40.0
Infrastructure 53.6 53.6
At 31 December and 30 June 93.6 93.6
As stated in the annual financial statements for the year ended 30 June 2025,
detailed impairment reviews were carried out for all business segments.
Consideration has been given as to whether any events have occurred since
the year ended 30 June 2025 which could give rise to an impairment trigger. No
impairment triggers have been identified from these reviews.
10 PPP and other investments
31 December 2025 30 June 2025
£m (audited)
£m
At 1 July 38.6 41.8
Disposals and subordinated loan repayments (0.6) (1.3)
Movement in fair value 0.5 (1.9)
At 31 December and 30 June 38.5 38.6
The portfolio valuation reflects a blended discount rate of 7.9% (30 June
2025: 7.9%). An increase/reduction of 0.5% (which is considered an appropriate
range given the relatively low risk associated with the portfolio) would
result in a corresponding decrease/increase in the fair value of approximately
£1.3m (30 June 2025: £1.3m).
11 Trade and other receivables
31 December 2025 30 June 2025
(audited)
£m £m
Amounts falling due within one year:
Trade receivables 43.9 47.2
Less: Provision for impairment of receivables (0.3) (0.4)
Trade receivables - net 43.6 46.8
Contract assets 280.2 295.9
Amounts due from joint venture undertakings 4.6 6.9
Research and development expenditure credits 5.4 5.1
Prepayments and other receivables 33.3 33.9
Total 367.1
388.6
12 Trade and other payables
31 December 2025 30 June 2025
(audited)
£m £m
Trade payables 86.7 124.9
Contract liabilities 151.7 124.7
Other taxation and social security payable 55.5 48.1
Accruals and other payables 261.8 311.4
Total 555.7 609.1
13 Provisions for other liabilities and charges
Group Onerous contracts £m Rectification £m Total
£m
At 1 July 2025 1.0 47.6 48.6
Utilised (0.1) (9.3) (9.4)
Additions 2.4 10.9 13.3
At 31 December 2025 3.3 49.2 52.5
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 31 December 2025, £13.1m (30 June 2025: £13.1m) of provisions related
to one contract. Further details are provided in the critical accounting
estimates and judgements in the 2025 annual report (page 144). 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 as at 31 December 2025, £39.9m (30 June
2025: £36.0m) 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 31 December 2025, there remained approximately 6 years (30 June 2025: 6
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 as at 31 December
2025 (30 June 2025: £13.1m) 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 £7.1m
and £13.1m at 31 December 2025 (30 June 2025: between £7.1m and £13.1m).
During the period £nil and £nil (period to 31 December 2024: £0.1m and
£nil) of the opening provision of £13.1m (opening provision as at 1 July
2024: £14.6m) was utilised and released respectively, with no additions
during the period (period to 31 December 2024: £nil). Management has sought
input from external experienced industry figures and industry bodies to
support the provision it has made.
14 Financial instruments
The Group's activities expose it to a variety of financial risks. The
condensed consolidated half year financial statements do not include all
financial risk management information and disclosures required in the annual
financial statements; they should be read in conjunction with the Group's
financial statements for the year ended 30 June 2025.
There have been no significant changes in the risk management policies since
the year end.
Fair value estimation
Specific valuation techniques used to value financial instruments are defined
as:
i. Level 1 - Quoted market prices or dealer quotes in active markets
for similar instruments.
ii. Level 2 - The fair value of equity securities and interest rate
swaps is calculated as the present value of the estimated future cash flows
based on observable yield curves.
iii. Level 3 - Other techniques, such as discounted cash flow analysis,
are used to determine fair value for the remaining financial instruments.
The following table presents the Group's assets that are measured at fair
value:
31 December 2025 30 June 2025 (audited)
Level 3 Total Level 3 Total
£m £m £m £m
Assets
Other investments
- PPP and other investments 38.5 38.5 38.6 38.6
Total 38.5 38.5 38.6 38.6
There were no transfers between levels during the period. The valuation
techniques used to derive level 3 fair values are consistent with those set
out in the 30 June 2025 financial statements. Level 3 fair values are
determined using valuation techniques that include inputs not based on
observable market data. For all other financial instruments, the fair value is
materially in line with the carrying value. The key assumptions used in Level
3 valuations include the expected timing of receipts, credit risk and discount
rates. The typical repayment period is 10-15 years and the timing of receipts
is based on historical data.
During the period, government gilts have decreased, while the base rate has
increased. The underlying assets remain low risk and insulated from short term
changes to the macro-economic environment. The fair value of the portfolio
reflects a blended discount rate of 7.9% (30 June 2025: 7.9%) and is based on
current market conditions. The sensitivity to discount rates is set out in
note 10. If receipts were to occur earlier than expected, the fair value
could increase.
15 Guarantees and contingent liabilities
The Group has surety bonding facilities and bank guarantees. These are
supported by counter indemnities given by the Company and certain subsidiaries
in the Group in the normal course of business. Utilisation of the bonding and
guarantee facilities total £150.7m at 31 December 2025 (30 June 2025:
£154.9m). 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 £6.6m (30 June
2025: £nil and £12.0m). 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 3 fire safety related 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.
16 Related party transactions
Since the last Group annual financial statements for the year ended 30 June
2025, there have been no significant changes to the nature of related party
transactions.
17 Adjusted performance measures
Throughout the Interim statement, 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.
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. The Group's
statutory measures take into account all of the factors, including exceptional
items which do not reflect the ongoing underlying performance of the Group.
Adjusted performance measures
In assessing its performance, the Group has adopted certain non-statutory
measures that more appropriately 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 as
well as the amortisation of acquired intangible assets which the Board
believes assist in understanding the performance achieved by the Group. 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.
Half year to Half year to
31 December 2025 31 December 2024
£m £m
Amortisation of acquired intangible assets (0.4) (0.5)
Loss before tax (0.4) (0.5)
0.1 0.1
Associated tax credit on items above
Total (0.3) (0.4)
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 defined as
the combined adjusted operating profit as a percentage of revenue for the
Building and Infrastructure divisions.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
Building Infrastructure Investments Central Total
£m
£m
£m
£m
£m
Half year ended 31 December 2025
Statutory operating profit/(loss) 14.9 14.8 (1.1) (7.4) 21.2
Exclude: amortisation of acquired intangible assets - 0.4 - - 0.4
Adjusted operating profit/(loss) 14.9 15.2 (1.1) (7.4) 21.6
Revenue 476.5 454.2 4.2 - 934.9
Adjusted operating margin 3.1% 3.3% n/a n/a 2.3%
Building Infrastructure Investments Central Total
£m
£m
£m
£m
£m
Half year ended 31 December 2024
Statutory operating profit/(loss) 12.5 11.8 (0.1) (7.0) 17.2
Exclude: amortisation of acquired intangible assets - 0.5 - - 0.5
12.5 12.3 (0.1) (7.0) 17.7
Adjusted operating profit/(loss)
Revenue 467.3 451.7 4.2 - 923.2
Adjusted operating margin 2.7% 2.7% n/a n/a 1.9%
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.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
Half year to 31 December 2025 Half year to 31 December 2024
£m £m
Statutory profit before tax 24.3 20.0
Exclude: amortisation of acquired intangible assets 0.4 0.5
Adjusted profit before tax 24.7 20.5
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.
A reconciliation of the statutory measure to the Group's performance measure
is shown below, based on continuing operations:
Half year to 31 December 2025
Earnings Ave number of shares EPS
£m
pence
Statutory results 18.2 99,334,463 18.3
Exclude: amortisation of acquired intangible assets 0.3 n/a n/a
Adjusted earnings per share 18.5 99,334,463 18.6
Half year to 31 December 2024
Earnings Ave number of shares EPS
£m
pence
Statutory results 15.4 100,308,548 15.3
Exclude: amortisation of acquired intangible assets 0.4 n/a n/a
Adjusted earnings per share 15.8 100,308,548 15.7
18 Events after the reporting date
As reported in note 7, an interim dividend of 6.5p per share has been declared
for the six months ended 31 December 2025.
On 27 February 2026 the Group acquired Nene Valley Fire & Acoustic Limited
for c£10m, a well-established fire protection business offering strong growth
potential and enhancement to our existing passive and active specialist fire
businesses, Asset Intelligence and Oak Fire Protection. The intention is to
combine Nene Valley Fire & Acoustic Limited with our existing Asset
Intelligence and Oak Fire Protection business as a catalyst for significant
national growth for the enhanced and combined business. The cash-funded deal
is expected to be margin accretive in its first year and the synergised IRR
case is well in excess of cost of capital.
There are no other events after the reporting date to disclose.
19 Prior year restatement
The restatement made to the statement of cashflows and statement of changes in
equity is a flow through from the restatement reported in the 30 June 2025
annual report as explained below. This represents a non-cash restatement
following a correction to the Group's application of IFRS 15 contract
combination accounting, consistent with that disclosed and accounted for in
the 30 June 2025 annual report.
Under its existing IFRS 15 accounting policy, the Group had incorrectly
combined contracts on a small percentage of framework agreements. The Group
has restated the condensed consolidated statement of changes in equity
reflecting a reduction to retained earnings of £8.8m as at 30 June 2024 (as
detailed in the year ended 30 June 2025 annual report page 183) and 31
December 2024. Further to this, a balance sheet reclassification resulting in
a reduction of £15.3m to both the trade and other receivables, and trade and
other payables balances as at 31 December 2024 has been made, reflecting the
reversal of the framework combination accounting previously applied. As a
result, the condensed consolidated statement of cash flows for the period to
31 December 2024 has been restated to reflect the corresponding movements in
these balances.
There is no other impact to the other primary statements and disclosure notes
presented.
Condensed consolidated statement of changes in equity
30 June 2024 30 June 2024
Previously reported Adjustment £m Restated
£m
£m
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
31 December 2024 31 December 2024
Previously reported Adjustment £m Restated
£m
£m
Equity
Share capital 51.6 - 51.6
Share premium 1.0 - 1.0
Other reserves 136.9 - 136.9
Retained earnings (67.7) (8.8) (76.5)
Total equity 121.8 (8.8) 113.0
Condensed consolidated statement of cash flows
31 December 2024 31 December 2024
Previously reported Adjustment £m Restated
£m
£m
Decrease in trade and other receivables 38.8 15.3 54.1
Decrease in trade and other payables (72.2) (15.3) (87.5)
Total (33.4) - (33.4)
Forward looking statements
Certain statements in this half year report are forward looking. Such
statements should be treated with caution as they are based on current
information and expectations and are subject to a number of risks and
uncertainties that could cause actual events or outcomes to differ materially
from expectations.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority.
The condensed set of financial statements has been prepared in accordance with
International Accounting Standard 34, 'Interim Financial Reporting' as adopted
by the UK.
The directors confirm that these condensed consolidated half year financial
statements have been prepared in accordance with IAS 34 as adopted by the UK;
and that the interim management report herein includes a fair review of the
information required by DTR 4.2.7 and DTR 4.2.8 namely:
· an indication of important events that have occurred during the six
months and their impact on the condensed set of financial statements, and a
description of the principal risks and uncertainties for the remaining six
months of the financial year; and
· material related party transactions in the first six months and
any material changes in the related party transactions described in the last
annual report.
The directors of Galliford Try Holdings plc are:
Alison Wood Non-executive Chair
Bill Hocking Chief Executive
Kris Hampson Chief Financial Officer
Kevin Boyd Non-executive Director
and Senior Independent Director
Sally Boyle Non-executive
Director
Michael Topham Non-executive Director
( )
Signed on behalf of the Board.
Bill Hocking
Chief Executive
Kris Hampson
Chief Financial Officer
4 March 2026
INDEPENDENT REVIEW REPORT TO GALLIFORD TRY HOLDINGS PLC
Conclusion
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 31 December 2025 is not prepared, in
all material respects, in accordance with UK adopted International Accounting
Standard 34 and the Disclosure Guidance and Transparency Rules of the United
Kingdom's Financial Conduct Authority.
We have been engaged by the company to review the condensed set of financial
statements in the half-yearly financial report for the six months ended 31
December 2025 which comprises the Condensed consolidated income statement, the
Condensed consolidated statement of comprehensive income, the Condensed
consolidated balance sheet, the Condensed consolidated statement of changes in
equity, the Condensed consolidated statement of cash flows and the notes to
the condensed consolidated half year financial statements.
Basis for conclusion
We conducted our review in accordance with the International Standard on
Review Engagements (UK) 2410, "Review of Interim Financial Information
Performed by the Independent Auditor of the Entity" ("ISRE (UK) 2410"). A
review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is substantially
less in scope than an audit conducted in accordance with International
Standards on Auditing (UK) and consequently does not enable us to obtain
assurance that we would become aware of all significant matters that might be
identified in an audit. Accordingly, we do not express an audit opinion.
As disclosed in note 1, the annual financial statements of the group are
prepared in accordance with UK adopted international accounting standards. The
condensed set of financial statements included in this half-yearly financial
report has been prepared in accordance with UK adopted International
Accounting Standard 34, "Interim Financial Reporting.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention to suggest that the directors have
inappropriately adopted the going concern basis of accounting or that the
directors have identified material uncertainties relating to going concern
that are not appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410, however future events or conditions may cause the group to
cease to continue as a going concern.
Responsibilities of directors
The directors are responsible for preparing the half-yearly financial report
in accordance with the Disclosure Guidance and Transparency Rules of the
United Kingdom's Financial Conduct Authority.
In preparing the half-yearly financial report, the directors are responsible
for assessing the company's ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to
liquidate the company or to cease operations, or have no realistic alternative
but to do so.
Auditor's responsibilities for the review of the financial information
In reviewing the half-yearly report, we are responsible for expressing to the
Company a conclusion on the condensed set of financial statement in the
half-yearly financial report. Our conclusion, including our Conclusions
Relating to Going Concern, are based on procedures that are less extensive
than audit procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
Our report has been prepared in accordance with the terms of our engagement to
assist the Company in meeting the requirements of the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct Authority and for
no other purpose. No person is entitled to rely on this report unless such a
person is a person entitled to rely upon this report by virtue of and for the
purpose of our terms of engagement or has been expressly authorised to do so
by our prior written consent. Save as above, we do not accept responsibility
for this report to any other person or for any other purpose and we hereby
expressly disclaim any and all such liability.
BDO LLP
Chartered Accountants
Gatwick, UK
4 March 2026
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
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