Contractor started new financial year with 92% of revenue secured
Galliford Try says it expects to beat market predictions for revenue and profit when it publishes its annual results later this year.
In a year-end trading update this morning, the contractor reported strong progress against its strategic targets, with revenue and pre-exceptional pre-tax profit expected to be above the upper end of current analyst forecasts.
Bill Hocking, chief executive, said: “We expect to report another year of strong performance across all our operations with increased revenue and profit as we continue to progress our updated Sustainable Growth Strategy to 2030.”
Current market forecasts for the year to 30 June are for revenues of £1.4bn to £1.6bn and underlying profits of £26.7m to £29.2m.
In May, the group updated its sustainable financial growth targets to 2030, which included increasing operating margin to 4% and revenue to £2.2bn.
“Galliford Try’s ability to maintain its balance sheet strength is key to our clients and suppliers as well as our continued success in maintaining a high-quality order book in our chosen sectors,” said Hocking.
“Our confidence in the future is supported by our order book as well as a long-term pipeline of future opportunities.”
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The group had an order book of £3.8bn at 30 June, starting the new financial year with 92% of revenue secured.
Since January, Galliford Try has secured places on a number of major frameworks, including the £3.2bn Communities & Housing Investment Consortium Newbuild Development Framework for affordable homes, and the Scottish government’s £600m public sector civil engineering works framework.
Year-end cash at 30 June was around £227m.
The group expects to announce its results for the full year on 19 September.
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