Galliford Try (GFRD) Trading Update summary

Financial performance and outlook

• Full year revenue and pre-exceptional profit before tax expected above the upper end of analyst forecasts for FY24.

• Year-end cash position at GBP 227 million, with average maintenance/month-end cash of GBP 155 million, reflecting continued balance sheet strength.

• No pension liabilities, no debt, and GBP 42 million in PPP assets, reinforcing financial stability.

• Order book reached GBP 3.8 billion at 30 June 2024, up GBP 100 million, covering 92% of new financial year revenue.

• Over 60% of revenue for FY2026 already secured.

Strategic initiatives and targets

• New growth strategy targets revenue above GBP 2.2 billion and 4% operating margin by 2030, focusing on higher-margin adjacent markets.

• Dividend cover target set at 1.8 times, blending normal activities and PPP investments, supporting long-term shareholder returns.

• Strong balance sheet remains a key differentiator for clients and suppliers.

• Recent re-entry into the affordable homes market via the Communities and Housing Investment Consortium.

• Continued emphasis on disciplined contract selection and robust risk management.

Order book and market outlook

• Secured major framework positions and projects, including CHIC Newbuild (£3.2bn), Scottish government (£600m), and several public sector and infrastructure contracts.

• Strong pipeline of opportunities in public and regulated sectors, supporting future growth.

• Well positioned to deliver on UK economic and social infrastructure commitments.

• Active in prison construction and refurbishment, with modern methods of construction helping to manage costs.

• PPP portfolio valuation remains stable, with changes only reflecting discount rate movements.