Galliford Try has reported a record year with the publication this morning of its final results for the year to 30 June 2015, with profit before tax and earnings per share reaching new records.
Revenue including joint ventures rose 31% to £2,431 million (2014: £1,851 million). Group revenue, excluding the share of joint ventures, was 33% higher at £2,348 million (2014: £1,768 million). The acquisition of Miller Construction in July 2014 added around £400 million to revenue this year.
Profit from operations, which is stated before finance costs, exceptional items, tax and share of joint ventures' interest and tax, rose 26% to £138.9 million (2014: £110.5 million). This resulted in another record profit before tax and exceptional costs of £117.7 million, up 24% from £94.9 million in 2014, reflecting revenue growth and improving margins across the Group. The Board said the company remains on track to achieve its enhanced 2018 targets.
The group’s construction division margin has improved to 1.2% (2014: 1.0%), whilst the order book has shown what it describes as “impressive growth” to £3.8 billion (2014: £3.0 billion), with 90% of this year's revenue already secured (2014: 88%).
The group, which is involved in several AMP 6 alliances, said that whilst labour availability and costs remain challenging, it was continuing to manage this effectively, working closely with its supply chain.
Commenting on its infrastructure division, Galliford Try said the business had continued to secure substantial new contracts.
In regulated markets the Tier 1 company’s joint venture with MWH Treatment and Black & Veatch was appointed preferred bidder by Scottish Water for its non-infrastructure Quality and Standards IV framework. The award is worth approximately £560 million to the joint venture over six years.
Infrastructure's profit from operations was £7.7 million (2014: £5.0 million), representing a margin of 2.0% (2014: 1.3%).
Greg Fitzgerald, Executive Chairman, commented:
"I am delighted to announce another record year at Galliford Try with all of our businesses buoyed by encouraging market trends. In Housebuilding we have achieved progress on margins, and made strides towards further enhancement, implementing some operational restructuring and other business improvement initiatives. We are very pleased to have acquired the Shepherd Homes business, which will accelerate our growth in the North. We have achieved a significant increase in the landbank with market conditions remaining positive. We are continuing to see strong demand for our Partnerships affordable housing offering. “
“Our Construction division has made excellent progress in closing out older contracts, and won significant new work in an improving market, strongly assisted by the timely acquisition and swift integration of Miller Construction.”
“All businesses saw high levels of build cost inflation but early signs indicate the situation may be moderating.”
“Reflecting the delivery of record results and our continued confidence in the business, we have increased our full year dividend by 28%.”
Peter Truscott will take over as the Group's new Chief Executive from 1 October 2015. Following a three month handover Greg Fitzgerald will take up the role of Non-Executive Chairman from 1 January 2016.