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FTSE: Galliford Try staff get cost of living payment as profits soar

Galliford Try's full-year profits beat City consensus forecasts. Photo: Christopher Furlong/Getty Images
Galliford Try's full-year profits beat City consensus forecasts. Photo: Christopher Furlong/Getty Images

Full-year profits and revenues at Galliford Try (GFRD.L) soared as the construction business looks to the future with confidence.

Galliford also announced a "one-off payment" totalling £1m ($1.1m) to support 1,800 workers this autumn amid the cost of living crisis.

The group, which focuses on the education, health and water sectors as well as highways, posted a £19.1m ($22m) pre-tax profit for the year to 30 June 2022.

That was up 68% on the year before and well ahead of the City consensus forecast of £17.7m.

Revenues inched up to £1.2bn from £1.1bn, its divisional operating margin rose to 2.4% from 2.0%, closing in on its 3.0% target by 2026. Average net cash increased to £174m from £164m.

"We continue to see good demand across our core markets and anticipate continued progress in the new financial year, in line with our targets," the company said in the results statement.

"Through our active engagement with our supply chain and disciplined approach to risk management, bidding and careful project management we have successfully managed and mitigated the challenges of supply shortages and inflation without any overall impact on trading or margin."

Shares in the company jumped 3.8% to 163p in early trade on Wednesday in London.

The final dividend was raised by 66% to 5.8 pence, with directors confident about the outlook, given a "high quality" £3.4bn order book and 90% of revenue for the new financial year already secured.

Together with the interim dividend of 2.2p, the total dividend for the year reached 8p, up 70% on last year.

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Chief executive Bill Hocking, said: "The group has had another successful and progressive year. We have made an excellent start to our Sustainable Growth Strategy, delivering risk managed controlled growth while making good progress towards our margin improvement target.

"With our passionate teams, strong balance sheet, market-leading sector positions, excellent client and supplier relationships and high-quality order book, we look forward to the future with confidence."

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