Galliford Try Holdings PLC (GFRD)

[daveh]

Half year results:
https://www.investegate.co.uk/galliford ... 00022072S/

HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2022


Confident outlook and strong performance


· Profit before tax up 65% to £11.7m (H1 2022: £7.1m) before exceptional costs1,4.

· Revenue up 14% to £679m (H1 2022: 594m).

· Divisional operating margin increased to 2.3% (H1 2022: 2.2%)2, making good progress against the Sustainable Growth Strategy.

· Continued strong balance sheet , with average month-end cash for the period of £154m (H1 2022: 180m) and a PPP asset portfolio of £46.1m (June 2022: £47.5m).

· Interim dividend up 36% to 3.0p per share (H1 2022: 2.2p), with established dividend cover policy of 2.0x annual earnings.

· Additional capital return of up to £15m through the Group's ongoing share buyback programme.

· Environment business further enhanced by the acquisition of the specialist businesses, MCS Control Systems and Ham Baker.

· Sustainable Growth Strategy on track to meet our carbon reduction commitments and financial targets to 2026.

· Full year profit before tax expected to be at the upper end of current analyst estimates3.

· Confident outlook with £3.5bn high quality and focused order book (H1 2022: £3.4bn) with 95% and 79% of projected FY23 and FY24 revenue secured.

and

DIVIDEND AND CAPITAL ALLOCATION



The directors have reviewed the Group's pre-exceptional results and outlook for the current financial year and have declared an interim dividend of 3.0p per share which will be paid on 14 April 2023 to shareholders on the register at the close of business on 17 March 2023.



The Group's key capital allocation objectives are:



- Supporting operational requirements and strategic opportunities

A strong balance sheet is an important element in delivering the Group's Sustainable Growth Strategy, as it provides a competitive advantage in the market, supports the Group's disciplined approach, and provides confidence to our clients and supply chain. Furthermore, and as demonstrated by the acquisitions of the water businesses of nmcn, in October 2021, and more recently MCS Control Systems and Ham Baker, a strong cash balance sheet enables the Group to react quickly to such strategic opportunities, that enhance our capabilities and increase future value.



- Mitigating the effect of future market downturns

The future outlook across our markets remains very encouraging and supports our strategy. The Group will continue to ensure that it is prepared for any adverse change in market conditions that may arise. Our strong balance sheet is particularly important for the Group to continue to operate its disciplined approach to contract selection and focus on operating margin, irrespective of any short term economic concerns. The recent inflationary pressures clearly demonstrate the value and importance of the Group's risk management framework and focus.



- Paying sustainable dividends to shareholders

The Board understands the importance of dividends to shareholders, and in setting its dividend considers the Group's profitability, its strong balance sheet, high quality order book and longer term prospects. Consistent with this approach, the Group expects dividend per share to increase in line with earnings, with a dividend cover of 2.0 times annual earnings.



We continue to assess the cash requirements of the business to ensure the Group remains well positioned to deliver on its Sustainable Growth Strategy. Consistent with the framework set out above, in September 2022 the Group announced an initial share buyback programme to repurchase up to £15m of ordinary shares of 50 pence per share. The Board is satisfied with the progress of this buyback programme, with a total of 2,349,508 shares purchased and cancelled during the six months to 31 December 2022, at a total cost of £3.7m.

[daveh]

Another contract win:
https://www.investegate.co.uk/galliford ... 00059447S/

GALLIFORD TRY APPOINTED TO £2.5BN MOJ CONSTRUCTOR SERVICES FRAMEWORK

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed to the new £2.5bn Constructor Services Framework by the Ministry of Justice (MoJ).

The business has been awarded places on lot 4 - London and East England on Framework A, lots 6 - South and 8 - London and East England on Framework B and lot 9 - National Framework C.

[monabri]

Another contract win:
https://www.investegate.co.uk/galliford ... 00059447S/

GALLIFORD TRY APPOINTED TO £2.5BN MOJ CONSTRUCTOR SERVICES FRAMEWORK

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed to the new £2.5bn Constructor Services Framework by the Ministry of Justice (MoJ).

The business has been awarded places on lot 4 - London and East England on Framework A, lots 6 - South and 8 - London and East England on Framework B and lot 9 - National Framework C.

Are you sure it's a contract win..it looks like they are on the "invited list" of companies to bid on future work?

[daveh]

They call it a contract in the RNS title, but yes reading the details its looks like it is as you say just appointed to be an approved contractor for the MoJ.
be interesting to see how much work they get out of it (and whether they can make a profit on it).

[daveh]

Another "contract" renewal.

https://www.investegate.co.uk/galliford ... 00029022T/

GALLIFORD TRY REAPPOINTED TO MAJOR REGIONAL CONSTRUCTION FRAMEWORK

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been reappointed by the Southern Construction Framework (SCF) to the £4.5bn SCF Construct Framework.

[daveh]

Another contract win to build houses for rent:

https://www.investegate.co.uk/galliford ... 05015217U/

GALLIFORD TRY APPOINTED TO £75M BRENT CROSS TOWN RESIDENTIAL CONTRACT

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed by Related Argent and Invesco Real Estate, the global real estate investment manager, acting on behalf of a US separate account client, to a £75m contract to deliver a new build-to-rent (BTR) residential building at Brent Cross Town, north London.

The new BTR homes are part of the 180-acre Brent Cross Town regeneration scheme, which is being delivered in partnership by Barnet Council and Related Argent, and will see the creation of 249 new homes for private rent and amenity areas across three new blocks.

[daveh]

Another contract win:

https://www.investegate.co.uk/galliford ... 10010254W/

GALLIFORD TRY APPOINTED TO £140M CARLISLE SOUTHERN LINK ROAD (CSLR)

Galliford Try, one of the UK's leading construction groups, announces that its Highways business has been appointed to build the new £140m Carlisle Southern Link Road (CSLR) which will be delivered by Cumberland Council.

They seem to be winning a lot of new work at the moment - hope they can make a decent margin on it.

[daveh]

Contract win:

GALLIFORD TRY APPOINTED TO £387M PACKAGES THROUGH MAJOR DEFENCE PROGRAMME

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed as the sole appointee to two new packages in the major new Defence Estate Optimisation Portfolio (DEOP) by the Defence Infrastructure Organisation (DIO) on behalf of the Ministry of Defence.

The business was successful in its bids to win the Air & UK Strategic Command and Munster Barracks, Catterick lots, which have an approximate value of £387m, and include refurbishment, new-build and single living accommodation projects at RAF bases and Strategic Command facilities across the country, and Catterick garrison.

[daveh]

Contract dispute settled, special dividend announced:
https://www.investegate.co.uk/announcement/7564965

Settlement agreed with major infrastructure fund and announcement of Special Dividend

Galliford Try Holdings plc, the UK construction group, today announces that it has agreed settlement terms in respect of its long-standing dispute concerning three contracts with entities owned by a major infrastructure fund. The settlement brings to a conclusion a complex and challenging multi-contract dispute. As a result of the settlement Galliford Try will receive a cash payment of £26m and anticipates reporting a one-off non-cash write-off of c£3m in the current financial year.

Given the Group's strong balance sheet, and consistent with its established capital allocation objectives, the Group intends to return to shareholders a substantial proportion of the proceeds over time while retaining an element of the proceeds to invest in its growth strategy. Accordingly, the Board has decided to declare a Special Dividend of 12 pence per share, payable following publication of the Group's results for the financial year ending 30 June 2023. The form and amount of any additional return will be considered by the Board in due course. The Special Dividend will be paid on 27 October 2023 to shareholders on the register as at 6 October 2023. The ex-dividend date is 5 October 2023.

[daveh]

Trading update:
https://www.investegate.co.uk/announcem ... nt/7624324

STRONG PERFORMANCE AND CONFIDENT OUTLOOK



Galliford Try Holdings plc, the UK construction group, today provides an update on trading for the year ended 30 June 2023. The Group expects to announce its results for the full year on 20 September 2023.



Highlights



· Good progress in the year against our strategic targets, including the successful integration of two acquisitions.

· Full year pre-exceptional profit before tax expected to be at the upper end of current analyst forecasts1.

· Strong performance across all operations with increased revenue and profit before tax.

· Special dividend to shareholders of 12p per share following resolution of a long running dispute, to be paid in October 2023.

· Balance sheet strength, with circa £220m of cash at 30 June 2023 (2022: £219m) and average month-end cash during the financial year of circa £135m (2022: £174m).

· Achieved UN-backed Science Based Target validation of our near-term target to reduce carbon emissions.

· Strong outlook, with a high-quality order book of £3.7bn (2022: £3.4bn) including recent major framework wins. 92% of revenue for the new financial year secured (2022: 90%).

[daveh]

Contract win:
https://www.investegate.co.uk/announcem ... ct/7632100

GALLIFORD TRY APPOINTED TO £72M REMODELLING OF LANDMARK LONDON OFFICE

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed by St Martin's Property Investments Limited to undertake the £72m remodelling and refurbishment of Adelaide House in central London.



The works consist of the remodelling of the nine-storey, Grade II-listed building, adjacent to London Bridge to a Category A office standard, as well as reconfiguration and enhancement works to external areas including the roof and riverside gardens.

[daveh]

Contract:
https://www.investegate.co.uk/announcem ... ct/7695744

GALLIFORD TRY SIGNS CONTRACTS ON £52M BUILD TO RENT DEVELOPMENT

Galliford Try, one of the UK's leading construction groups, announces that its Investments and Building businesses have signed contracts with a major build to rent operator for a £52m development in Cardiff.



The development will see the creation of 272 one and two-bedroom apartments in a 30-storey tower at Guildford Crescent, close to the centre of Cardiff. In addition, the project will improve the local public realm, as well as providing retail spaces on the ground floor.

[daveh]

Finals:
https://www.investegate.co.uk/announcem ... ts/7765891

GALLIFORD TRY HOLDINGS PLC

ANNUAL RESULTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2023





Continued Earnings Momentum, Delivering Shareholder Value

and Improved Outlook





· Strong performance across all operations delivering increased revenue and profit.

· Pre-exceptional profit before tax increased by 23% to £23.4m (2022: £19.1m) excluding the £2.8m contract settlement write-off previously announced.1,2

· Divisional operating margin of 2.4% (2022: 2.4%), with increased confidence in our target margin of 3% by 2026.3

· Improved annual dividend policy of 1.8x cover to recognise the value of the PPP assets.

· Final dividend payment of 7.5p up 29% (2022: 5.8p), together with an interim dividend of 3.0p giving a total dividend for the financial year of 10.5p, up 31%.

· Special dividend to shareholders of 12.0p per share, as previously announced following resolution of a long running dispute, to be paid in October 2023.

· Share buyback returned a further £10.6m to shareholders during the year and is now over 90% complete.

· Well-capitalised debt-free balance sheet, average month end cash for the period of £135m (2022: £174m), PPP asset portfolio of £44.6m (2022: £47.5m) and no pension liabilities.

· Improved outlook with high quality £3.7bn order book (2022: £3.4bn) positioned across our chosen sectors and 92% of FY24 revenue already secured.

· Increased confidence in FY24 outlook, with pre-exceptional profit before tax expected to be at the upper end of the current range of analyst estimates4.

· On track to deliver FY26 targets and our Sustainable Growth Strategy.

and later

Dividends and capital allocation



Having reviewed the Group's results and the outlook, the Directors are recommending a final dividend of 7.5 pence per share which, subject to approval will be paid on 8 December 2023 to shareholders on the register at 10 November 2023. Together with the interim dividend of 3.0 pence per share paid in April, this will result in a total full year dividend for 2023 of 10.5 pence per share.

In addition the Board has previously declared a Special Dividend of 12 pence per share. The Special Dividend will be paid on 27 October 2023 to shareholders on the register as at 6 October 2023.


The Group's capital allocation priorities are:


· Strong balance sheet to support operations

A strong balance sheet is an important element in delivering the Group's Sustainable Growth Strategy, as it provides a competitive advantage in the market, supports the Group's disciplined approach, and provides confidence to our clients and supply chain. The current outlook across our markets remains encouraging and supports our strategy. However the Group also ensures that it is prepared for any adverse change in market conditions that may arise. Our strong balance sheet is particularly important for the Group to continue to operate its disciplined approach to contract selection and focus on operating margin, irrespective of any short term economic concerns. The inflationary pressures of the last year, clearly demonstrate the value and importance of the Group's risk management framework and focus.



· Invest in the business

We are able to allocate capital to assist the development of our adjacent markets, as demonstrated by our acquisitions during the year of the water businesses of MCS Control Systems and Ham Baker. Our strong cash balance sheet enables the Group to react quickly to strategic opportunities, including bolt-on acquisitions that enhance our capabilities and increase value, and to continue to invest in enablers of growth such as digital capabilities.



· Paying sustainable dividends to shareholders

The Board understands the importance of dividends to shareholders, and in setting its dividend considers the Group's profitability, its strong balance sheet, high-quality order book and longer term prospects. Consistent with this approach the Group expects dividend per share to increase in line with earnings as the business grows.

The Board's confidence in the outlook has led to an improved dividend policy, of earnings covering the dividend by 1.8 times. Alongside dividend growth from our operational performance, this improvement reflects the low-risk nature of the PPP asset portfolio and its annuity interest income, and provides a sustainable increase in dividend to shareholders while retaining capital to invest in growing the business.



· Returning excess cash

We continue to assess the cash requirements of the business to ensure the Group remains well positioned to deliver on its Sustainable Growth Strategy and has sufficient funds to invest in the business. As previously announced, where average month-end cash and PPP assets increase above the level required, the Board will consider making additional returns to shareholders.

In line with this approach in June 2023 the Board declared a Special Dividend to be paid in October 2023, and in September 2022 the Group announced an initial share buyback programme to repurchase up to £15m of ordinary shares of 50 pence per share. The Board is satisfied with the progress of this buyback programme, with a total of 7,985,696 shares purchased and cancelled as at 15 September 2023, at a total cost of £14.1m.

Looks like a decent set of results. They sit at 7th place in my HYPTUSS, but having been burnt by Carrillion in the past I'm wary of buying more. Having split of their housebuilding arm to Bovis (now Vistry) they make up just 0.5% of my portfolio, though with the special they are punching above their weight in dividend terms accounting for 1.1% of this years dividends to date.

[daveh]

I've had a bit more of a read through the results:
Net cash with average end of month net cash position of £135m, revenue up, profits up (both post and pre exceptionals) generous dividends that are growing, plus a share buyback which will decrease the number of shares that need to be paid the dividend. Large order book, and forecasts for further profit increases next year. Market likes it, as up 4% when I looked earlier today. So why not buy more?

But margins are only 2.4% and that worries me as it leaves little room for mis-pricing of contracts particularly in this strongly inflationary period.

[daveh]

Contract:

https://www.investegate.co.uk/announcem ... ct/7864114

GALLIFORD TRY APPOINTED TO FURTHER £87M BRENT CROSS TOWN RESIDENTIAL CONTRACT

Galliford Try, one of the UK's leading construction groups, announces that its Building business has been appointed by Related Argent and Invesco Real Estate, the global real estate investment manager, acting on behalf of a US separate account client, to an £87m contract to deliver a further phase of the new build-to-rent (BTR) development at Brent Cross Town, north London.

Having previously been awarded a contract to build 249 new homes earlier this year, Galliford Try has now been appointed to build a further 286 apartments across three blocks. In addition, further retail and amenity space will also be created, including leisure suite with swimming pool for the major residential development, which is being delivered in partnership by Barnet Council and Related Argent.

[daveh]

Acquisition:

https://www.investegate.co.uk/announcem ... on/7869713

Acquisition of AVRS Systems Limited

Galliford Try is pleased to announce that it has acquired AVRS Systems Limited (AVRS), a specialist mechanical, electrical, instrumentation, control and automation (MEICA) design and build contractor to the water and energy sectors for a total consideration of up to £7.0m.

Established in 1972, AVRS delivers specialist MEICA design and build solutions. In the water sector they have long term frameworks with key water sector clients as well as the Coal Authority and MoD, with operations being very closely aligned to Galliford Try's existing business. In the energy sector AVRS have long term client relationships providing in-house design, supply, installation and commissioning of MEICA. AVRS is an excellent fit with Galliford Try and the acquisition is a continuation of our previously disclosed strategy relating to the development of adjacent markets, as set out in our Sustainable Growth Strategy.

AVRS' capabilities are complementary to the operations of Galliford Try's expanding Environment business and will accelerate the growth of our asset optimisation and capital maintenance strategy. AVRS operates out of premises in Cumbria, Middlesborough and Warwickshire, and has c.95 employees.

The initial acquisition consideration of £4.5m will be financed from Galliford Try's existing cash resources.

[daveh]

Trading statement from yesterday:
https://www.investegate.co.uk/announcem ... nt/7992397

Trading Update

Wednesday 17 January 2024





Galliford Try Holdings plc, the UK construction group, today provides an update on trading for the half year period from 1 July 2023 to 31 December 2023. The Group expects to announce its results for the half year on Wednesday 6 March 2024.



Update on Current Trading

The Group is performing well, with strong momentum throughout the first six months of the current financial year, and continues to make good progress against its Sustainable Growth Strategy.

Trading is ahead of the prior year period and the Board's expectations, which were previously increased at the time of the full year results in September 2023. With good visibility over the second half, revenue for the full financial year is now expected to be approximately 5 per cent. ahead of current market expectations1, with an equivalent increase in expected profit before tax.

We are pleased with our recent acquisition of AVRS Systems in November 2023, and the progress of the integration of this specialist business in our growing Environment division. Together with our acquisitions of Ham Baker and MCS at the start of the last financial year, the Environment division is developing its adjacent market strategy as planned.

1 The range of analysts' forecasts for the year ended 30 June 2024, based on forecasts at 12 January 2024, is £1,435m to £1,490m for revenue and £25.2m to £28.1m for pre-exceptional profit before tax.


Strategic Update

Given the excellent progress to date against the Group's Sustainable Growth Strategy, the Board expects to update its strategic targets to 2030 during the second quarter of 2024.

Look a decent set of results.

[daveh]

Contract:
https://www.investegate.co.uk/announcem ... ct/8032036

GALLIFORD TRY APPOINTED TO NEW £3.2BN AFFORDABLE HOMES FRAMEWORK

Galliford Try, one of the UK's leading construction groups, announces that it has secured a position on the new £3.2 billion Communities & Housing Investment Consortium (CHIC) Newbuild Development Framework for affordable homes.

The business has won a place on the £2.5 billion Lot 2 of the eight-year framework, for new build projects worth more than £10 million, and the £650 million Lot 3, for regeneration projects, on behalf of CHIC, a nationwide procurement and asset management consortium owned by its membership, which consists mainly of housing associations and local authorities. Galliford Try anticipates accessing the framework to build low and medium rise affordable apartments, building on its existing capabilities in the build to rent market.

[daveh]

three more contracts:

https://www.investegate.co.uk/announcem ... ct/8050003

Galliford Try, the UK construction group, announces that it has signed three new infrastructure contracts totalling £98 million.

[daveh]

Interims:
https://www.investegate.co.uk/announcem ... rt/8072658

GALLIFORD TRY HOLDINGS PLC
HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 2023

STRONG MOMENTUM AND CONTINUING GROWTH


Strategy and Outlook

· Secure outlook with £3.7bn (H1 2023: £3.5bn) high quality and focused order book.

· Excellent visibility over future revenue with 98% and 83% of projected FY24 and FY25 revenue secured.

· Sustainable Growth Strategy on track to achieve our targets ahead of plan.

· Capital Markets Event on 23 May 2024 to update strategy to 2030.


Financial and Operational Highlights

· 21% increase in revenue to £819m (H1 2023: £679m), with growth in both Building and Infrastructure.

· 2.5% divisional operating margin (H1 2023: 2.3%), with margin improvements in both Building and Infrastructure, showing good progress against our strategic target.

· 33% increase in profit before tax to £15.6m (H1 2023: £11.7m) before exceptional costs1.

· 33% increase in interim dividend to 4.0p per share (H1 2023: 3.0p).

· Strong balance sheet with operating cash inflow in the period, average month-end cash for the period of £150m (H1 2023: £154m) and a PPP asset portfolio of £43.5m (June 2023: £44.6m).

· Building business is making progress in Private Rented and Affordable Housing, recently appointed to the £3.2bn Communities & Housing Investment Consortium (CHIC) Newbuild Development Framework for affordable homes.

· Environment business continues to develop its capabilities including the acquisition of mechanical and electrical engineering specialists AVRS Systems.

· Highways business appointed to the Generation 5 Civil Engineering, Highways and Transportation Collaborative Framework 2024-2028.

DIVIDEND AND CAPITAL ALLOCATION

The directors have reviewed the Group's results and outlook for the current financial year and have declared an interim dividend of 4.0p per share which will be paid on 12 April 2024 to shareholders on the register at the close of business on 15 March 2024.