In the year to 30th June 2024 Galliford Try grew revenue by 27% to £1,772.8m (2023: £1,393.7m) and pre-tax profit trebled to £30.9m (2023: £10.1m).
Operating profit before amortisation was up 35% at £29.6m (2023: £21.9m).
The overall results were well balance across the two operating divisions: building and infrastructure.
Galliford Try Building grew revenue by 18% to £938.3m and made an operating profit before amortisation of £24.0m
Galliford Try Infrastructure grew revenue by 39% to £819.8m and made an operating profit before amortisation of £20.1m.
“Our commitment to risk management, careful contract selection and operational excellence underpins the consistent year on year performance and our future prospects,” said chief executive Bill Hocking.
“The UK's planned, and required, investment in economic and social infrastructure continues to support growth in our chosen markets; and our confidence in the group's outlook is supported by our carefully selected, sector focused, high quality order book which provides visibility and security of future workloads. We will continue doing what we said we would do, consistently delivering strong performance - supported by our professional teams, a strong balance sheet, solid order book and excellent supply chain and client relationships.”
Galliford Try has no debt or defined benefit pension obligations, and at 30th June 2024 had a cash balance of £227.0m (2023: £220.2m). It operates with daily net cash and the average month-end cash balance in the year was £154.8m (2023: £134.7m). Similar levels of average cash are expected throughout the current financial year.
Galliford Try has announced a further share buyback programme up to a maximum of £10m, reflecting both a corporation tax refund and its confidence in future cash generation.
Galliforf Try's results were orginally scheduled to be posted last month, but its auditors requested more time. [See previous report here.]
Commenting on the results, Begbies Traynor partner Julie Palmer said: “In a year where the construction sector has faced challenge after challenge, Galliford Try's delayed full-year results paint a picture of a company that has adeptly weathered the storm, delivering a solid performance with pre-exceptional profits up nearly 40%.
“With a substantial £3.8bn order book, a debt-free balance sheet and recent contract wins, including a contract valued at more than £400m to help deliver Wessex Water’s investment plan, the construction firm is in a prime position to leverage the new government’s focus on infrastructure development.
“This strong showing, ahead of analysts' expectations, is particularly notable as the sector contends with a rise in insolvencies, underscoring the economic pressures facing the industry. The easing of interest rates may offer some relief, yet the spectre of further collapses, such as ISG, looms over the market.
“As the construction industry looks to the government's infrastructure plans as a much needed catalyst for growth, Galliford Try's performance highlights how the larger operators are now looking ahead with some excitement.”
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