Topic Results, Investors
Date 11 Jul 2024
1 The range of analyst forecasts for revenue and pre-exceptional profit before tax for the year ended 30 June 2024 is £1.435bn to £1.643bn and £26.7m to £29.2m respectively as at 1 July 2024.
|
Divisional operating margin |
increasing to 4.0% through a focus on both top and bottom line growth and accelerated growth in our higher-margin adjacent market businesses |
|
Revenue
|
growing to in excess of £2.2bn, maintaining disciplined contract selection and robust risk management in resilient market sectors |
|
Cash |
retain a strong balance sheet and operating cash generation |
|
Dividends |
sustainable dividends with earnings cover of 1.8x |
The strong momentum reported at the half year results continued in the second half of the year, and as a result, the Group expects to report full year revenue and pre-exceptional profit before tax above the upper end of current analyst forecasts1.
Balance Sheet
The year-end cash at 30 June 2024 was circa £227m and in addition the Group has a circa £42m portfolio of Public Private Partnership (PPP) assets, no pensions liabilities and no debt or associated covenants. Average month-end cash for the year ended 30 June 2024 was circa £155m (year to 30 June 2023: £135m).
The Group’s strong balance sheet is an important differentiator for our clients and suppliers.
Order Book and Outlook
The Group’s operations are predominantly in the public and regulated sectors. We operate across the UK and are well positioned to deliver on local and national commitments to improve the UK’s economic and social infrastructure.
The Group continues to see a strong pipeline of new opportunities across its chosen sectors. Since January 2024 we have been successful in securing projects and participation on major frameworks including:
- the £3.2bn Communities & Housing Investment Consortium (CHIC) Newbuild Development Framework for affordable homes.
- the Scottish government’s £600m public sector civil engineering works framework.
- South West Water’s Tier 2 Delivery Partners MEICA framework.
- £500m Generation Five (Gen5) Civil Engineering, Highways and Transportation Collaborative Framework 2024-2028.
- £101m of public sector building projects for the Ministry of Justice and Defence Infrastructure Organisation.
- £98m of Infrastructure projects, in South London for Thames Water, the Netley Water Treatment Works in Surrey and, in highways, redevelopment of the A629 route into central Halifax.
- the new £69m Paisley Grammar School Community Campus on behalf of Renfrewshire Council.
The Group has a strong order book of £3.8bn at 30 June 2024. We start the new financial year with 92% of revenue secured and with significant investment required in our chosen sectors of the UK’s infrastructure.
Bill Hocking, Chief Executive, commented: “We expect to report another year of strong performance across all our operations with increased revenue and profit as we continue to progress our updated Sustainable Growth Strategy to 2030.
"Galliford Try’s ability to maintain its balance sheet strength is key to our clients and suppliers as well as our continued success in maintaining a high-quality order book in our chosen sectors. Our confidence in the future is supported by our order book as well as a long-term pipeline of future opportunities.
"I continue to be impressed by our people, their professionalism and work ethic. We are excited about the new financial year, our strategy to 2030 and the opportunity to deliver further strong performance and long-term sustainable value for all stakeholders.”