Firm says it wants overall profit up 60% by 2021
Galliford Try wants to increase pre-tax profit by close to two thirds over the next four years as the contractor unveiled a double digit rise in interim profit.
The firm said it wants to hike overall full year profit 60% by 2021 and has given its three businesses 鈥� construction, Linden Homes and partnerships and regeneration 鈥� turnover targets which will see the group racking up revenue of close to 拢4bn.
In its last set of full year results for the 12 months to June 2016, Galliford Try saw revenue climb 10% to 拢2.7bn while pre-tax profits were up 18% to 拢135m.
Galliford Try has set the biggest part of its business, construction, a target of making a 2% margin by 2021 and increasing revenue by 拢300m to 拢1.8bn.
But the firm it was being hit by legacy contracts which saw its operating margin in the six months to December 2016 slump from 1.2% to just 0.4%. Revenue at construction remained flat at 拢742m but profit slumped 68% to 拢2.7m.
Group performance was bolstered by a better performance at Linden Homes which saw revenue climb 12% to 拢408m while profit were up 21% to 拢74.3m. The partnerships division also saw profit rise 鈥� by 9% to 拢4.9m. Revenue at this business fell slightly, by 4% to 拢144.3m.
Overall group revenue at Galliford Try in the first half was up 3% to 拢1.3bn while pre-tax profit climbed 19% to 拢63m.
Chief executive Peter Truscott (pictured), who took over from Greg Fitzgerald 18 months ago, said: 鈥淥ur reorganised management teams have settled well and are making positive strides towards their respective operating and financial targets.鈥�
He added: 鈥淐onstruction is making steady progress in resolving legacy contracts and the contribution from newer work is encouraging, demonstrating that the underlying business is strong.鈥�
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