Galliford Try still confident of return to profit
Galliford Try still expects to report a return to profitability and a resumption of dividend with its upcoming half year results after performing well throughout the period.
In a trading update issued today, the construction group said all projects have been fully operational since the start of the financial year on 1 July 2020 and that it is continuing to trade at normal levels, and in line with the board’s expectations, through the current restrictions.
Galliford Try has maintained a strong cash position, leaving it “well placed” to manage lockdowns and to continue to support the business. Average month-end cash for the six months ended 31 December 2020 was £158 million (six months to 30 June 2020: £141m). The Group has a PPP asset portfolio, no debt and its period-end cash at 31 December 2020 was £209m (30 June 2020: £197m).
The firm continues to see a strong pipeline of opportunities in its core sectors and in line with its new disciplined approach to risk management and contract selection. At 31 December 2020, the group had an order book of £3.3 billion (H1 2020: £3.2bn), benefitting from recent contract awards including Thames Water’s £590m AMP 7 framework, its appointment to the £10.5bn NHS Shared Business Services framework and the £2.1bn Construction West Midlands framework.
Bill Hocking, chief executive of Galliford Try, said: “The health, safety and wellbeing of our colleagues is of paramount importance, especially during the current lockdown. Our staff and supply chain’s response to the challenges faced in 2020 was exemplary and I am pleased with the trading performance that we have delivered. Despite the ongoing challenges from Covid-19, our strong balance sheet, market leading sector positions and high-quality order book give me confidence in our future performance.”