Shareholders to receive share of proceeds after settlement reached in 鈥漜omplex and challenging鈥� dispute
Galliford Try has announced it will receive a 拢26m payout after settling a long-standing dispute with an unnamed major infrastructure fund.
The firm said it will return a 鈥渟ubstantial鈥� proportion of the proceeds to shareholders while retaining some to invest in its growth strategy.
In a post on the London Stock Exchange, the company said the settlement brings to a conclusion a 鈥渃omplex and challenging鈥� dispute concerning three contracts with entities owned by the unnamed infrastructure fund.
It also expects to report a one-off non-cash write-off of around 拢3m in the current financial year.
The board has declared a special dividend of 12 pence per share, which will be paid on 27 October 2023 to shareholders on the register as at 6 October 2023, the firm鈥檚 general counsel and company secretary Kevin Corbett said on behalf of the firm.
>>See also: Galliford Try mulls move back into social housing work
鈥淕iven the group鈥檚 strong balance sheet, and consistent with its established capital allocation objectives, the group intends to return to shareholders a substantial proportion of the proceeds over time while retaining an element of the proceeds to invest in its growth strategy,鈥� the firm said.
Galliford Try鈥檚 share value was up 4.31% at 193.4p as of 10.58 this morning.
The firm sold its housebuilding arm, Linden Homes, to the then Bovis Homes for 拢1.1bn in 2020. This came after the firm became embroiled in two problem jobs inScotland, the Aberdeen bypass and Queensferry crossing.
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