The Lemon Fool

Work will begin on the projects immediately with the first planning applications due to be submitted this month and the first homes expected to complete in spring 2020. The projects will deliver a mixture of housing tenures including open market housing, affordable rent, shared ownership, private rented sector and an extra-care development.

Galliford Try plc, the housebuilding, regeneration and construction group, is pleased to announce that its regeneration specialist Galliford Try Partnerships has been selected by Enfield Council to build the first 725 homes at the £6 billion Meridian Water development in the Lea Valley.
This first phase represents a significant mixed tenure project including a high proportion of affordable homes as well as new public squares, shops and leisure facilities and will be located around the new Meridian Water train station. The first new homes are expected to be available in 2022.

Group
· Group trading well and we anticipate achieving a full year result consistent with the current range of analysts' expectations.2
· Strategic review of Construction to restructure and refocus business complete and being implemented, with resized business well placed to deliver improved performance.
· Linden Homes is enjoying stable trading conditions and continues to perform well.
· Partnerships & Regeneration continues to deliver a strong performance.
· Average net debt for the full year expected to be in line with previous guidance of between £170m and £190m.

Construction
As previously announced the Group has undertaken a review of its Construction business with plans being implemented to simplify the business and management structure and to refocus on key strengths in markets and sectors with long-term growth and profitability potential. The business will concentrate on its core strengths in Building, Water and Highways (having already ceased bidding on fixed-price major projects in 2016) resulting in a reduction of up to 350 personnel across the UK. The restructured business's target annual revenue will reduce to approximately £1.3bn generating annualised cost savings of up to £15m from 2021, accelerating progress towards our target operating margins of 2% by 2021.

Construction's profitability in the current year will, as previously announced, be impacted by the division's strategic review, with a write down of approximately £40m to be recognised in the year, in respect of restructuring costs and legacy and current projects. With regard to the claim in respect of the completed Aberdeen Western Peripheral Route, and the previously disclosed £38m work in progress balance in respect of three contracts for a single client, our position is unchanged.

Group

· The Group continues to trade well and expects to report full year profit before tax in line with the current range of analysts' expectations1.

· Full year result to include £40m of previously reported exceptional items2.

· Linden Homes has maintained its sales rate and strong margin and continues to improve its customer satisfaction.

· Partnerships & Regeneration continues to achieve strong growth ahead of targets, increasing both revenues and margins, and successfully completing the acquisition of the Strategic Team Group in Yorkshire.

· The strategic review of Construction is now complete, and underlying operations are performing well.

· Net debt at 30 June 2019 of £60m (2018: net cash £98m) with average net debt of £187m, in line with previous guidance for the full year.

daveh wrote:Merger with Bovis homes.
Posted on the HYP practical board here:
viewtopic.php?f=15&t=19420&p=250652#p250652

77ss wrote:

daveh wrote:Merger with Bovis homes.
Posted on the HYP practical board here:
viewtopic.php?f=15&t=19420&p=250652#p250652

Interesting, but what to do?

At current share prices (673p for GFRD and 1033p for BVS), this deal appears to value the two house building divisions at over 7 times the value of the construction rump. A ratio that varies wildly with the GFRD share price.

If consummated at the current share prices, this would give me a reasonable holding in BVS (about 60% of median) and a ridiculously small holding in the construction business (about 8% of median).

Sell the lot now, or hang in there and sell the construction rump later? I shall have to look carefully at BVS.

Galliford Try plc, the leading housebuilding, regeneration and construction group, announces its Highways business has been appointed to new projects valued at a total of £461m.

Highlights - Financial and Operational (continuing operations)



· Final results in line with expectations; business well-placed for new financial year

· Pre-exceptional revenue of £1,090m, reflecting the business' focus on core sectors and the impact of Covid-19 (2019: £1,403m)

· Rapid and effective response to Covid-19; all sites across the UK fully operational and successfully implementing new working practices

· Focus on cost management and commercial discipline

· Well-capitalised debt-free balance sheet, with cash at 30 June 2020 of £197m (2019: net debt of £57m) and PPP portfolio of £41m



Highlights - Strategy and Outlook



· Successful strategic disposal of Linden Homes and Partnerships housing divisions completed 3 January 2020

· Strategy in place to deliver long-term value; restructured and refocused business to deliver improved performance

· Disciplined approach to risk management and contract selection

· High quality £3.2bn order book (2019: £2.9bn) in focused sectors with 90% of revenue secured for FY21 (2019: 89%)

· Reinstating financial guidance, with strong platform for return to profitability in FY21

DIVIDEND

In light of the coronavirus pandemic, the Board considered it prudent to cancel the previously announced Interim dividend in March 2020. The Board continues to recognise the importance of dividends to all its shareholders, however, given the significant impact of Covid-19 and the importance of maintaining our strong balance sheet, is not proposing a final dividend for the year ended 30 June 2020. The Group has a strong outlook and the Board anticipates reinstating dividend payments, following a return to profitability.

Dod101 wrote:Those that are currently reinstating their dividend should never have cancelled it in the first place; others are prudently waiting to see how things work out.

Dod

GALLIFORD TRY APPOINTED TO THAMES WATER LONDON REGION AMP7 FRAMEWORK

Galliford Try, the leading UK construction group, announces that its Environment business has been appointed to two new lots for the Thames Water AMP7 framework.

The lots, numbered 3 and 6, relate to Thames Water's work in the London region, and represent a total pipeline value of £590m over a four-year period. Of that total, Galliford Try anticipates its place on the lots to be jointly worth up to £60m per annum to the business.