Firm closes in on deal to take on ISG custodial work
Galliford Try is upgrading its profit forecast for the year after a strong first half performance saw pre-tax profit jump 54% to £20m.
A strong half of work activity across both infrastructure and building divisions saw revenue approaching £1bn at the half year to December, up 13% to £923m.
The firm is benefitting from strong positions on Government building and infrastructure frameworks and is close to signing off a deal to take on failed ISG’s custodial work.
Once signed off, this will cover a programme of custodial work in the Midlands and Wales.
Across the group, the building and infrastructure divisions delivered a combined adjusted operating margin of 2.7% (H1 2024: 2.5%).
Revenue at the building division edged forward nearly 5% to £467m generating a 17% rise in adjusted operating profit to £12.5m.
Infrastructure enjoyed a 25% surge in revenue to £452m, helped by starts on delayed road jobs and water infrastructure spend holding up around the AMP7 to AMP8 transition.
This saw adjusted operating profit rise nearly a third to £12.3m, delivering an operating margin of 2.7%.
Galliford Try maintained a strong balance sheet over the first six months with average month-end cash ahead 14% at £176m.
Bill Hocking, chief executive, said: “The group’s excellent performance in the first half of the financial year provides increased confidence and improved revenue, margin and profit expectations for the full year.
“Our recent major long-term framework wins and order book provide clear visibility and security of future workloads well beyond the current financial year and we welcome the Government’s commitment to grow the economy by major investment in infrastructure and development.
“Our performance and future outlook give us confidence to improve our expectations for the full year to 30 June 2025 and we are committed to delivering long-term sustainable value for our stakeholders.”
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