Contractor says it’s positioned for ‘disciplined growth’ following £1.1bn sale
Fresh from selling its housebuilding operations to Bovis, Galliford Try told shareholders today it had started 2020 with an order book of more than £3bn.
In a trading update issued a week after it completed the £1.1bn sale to Bovis of its Linden Homes arm and its partnerships division, Galliford Try said its underlying construction business was performing well.
Recent contract wins included appointments to the YORCivil four-year major framework for Sheffield council, the A47 and A303 improvement works for Highways England and the Project Nash development in central London for the Portman Estate.
Trading was expected to see an uplift in the second half of the financial year due to market uncertainty and the settlement of claims in the first half of the year around the Aberdeen bypass job.
The group announced just before Christmas that after lengthy talks with client Transport Scotland it expected to receive a cash payment of around £32m but also incur a write-off of £52m.
Having sold its housing operations, the firm was “now a well-capitalised and focused UK construction group”, according to chief executive Bill Hocking.
“Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth,” he added.
Hocking (pictured) also said the group had been re-admitted to the prompt payment code, after being booted off in July last year.
Galliford Try announces its half-year results on 12 March.