Boss Bill Hocking says contractor benefiting from increase in award of major framework jobs
Contractor Galliford Try said it is on course to report pre-tax profit for the year to 30 June at the upper end of analyst forecasts after delays in awarding public sector contracts eased in the last six months.
The firm said it had made good progress on integrating acquisitions, including the purchase of collapsed contractor NMCN鈥檚 water business, and had benefited from a 拢26m cash settlement of a long-running legal dispute.
Analysts have forecast the firm to report pre-tax profit of between 拢22.1m and 拢23.3m for the financial year to end of June.
The firm said it had upped its order book to 拢3.7bn, from 拢3.4bn a year ago, and reported average month-end cash of circa 拢135m, down on the 拢174m for the 2022 financial year.
It said the resolution of the long-running dispute would result in the payment of a special 12p per share dividend to shareholders, and heralded its progresses, which it said had been achieved against 鈥渁 backdrop of macroeconomic challenges鈥�.
However, the firm said that the 鈥渄elays in signing new contracts鈥� experienced during 鈥渃alendar year 2022鈥� were now 鈥渆asing鈥�. Recent contract wins highlighted by the firm include the 拢5.1bn Defence Estate Optimisation Portfolio, the 拢4.5bn Southern Construction Framework, the 拢2.5bn Ministry of Justice Constructor Services Framework and the 拢600m Southern Water AMP8 Framework.
The contractor said the easing of the delays in awarding contracts had contributed to a 鈥渧ery strong orderbook at 30 June 2023鈥�.
Bill Hocking, chief executive, said: 鈥淭he group expects to report another year of strong performance across all its operations with increased revenue and profit before tax and we continue to progress our sustainable growth strategy, supporting our financial targets to 2026.
鈥淲e are excited about the new financial year and the opportunity to deliver further strong future performance and long-term sustainable value for all stakeholders.鈥�
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