Galliford Try Holdings plc
Annual Report and
Financial Statements 2024
Galliford Try Holdings plc Annual Report and Financial Statements 2024
Delivering
Sustainable
Growth
Revenue
£1,772.8m
(2023: £1,393.7m)
Pre-exceptional operating
profit before amortisation
1
£29.6m
(2023: £19.1m)
Divisional operating margin
2
2.5%
(2023: 2.4%)
Pre-exceptional
profit before tax
1
£32.7m
(2023: £20.6m)
Profit before tax
£30.9m
(2023: £10.1m)
Average month-end cash
3
£154.8m
(2023: £134.7m)
Pre-exceptional
earnings per share
1
27.9p
(2023: 16.6p)
Earnings per share
36.2p
(2023: 8.7p)
Full year dividend
per share
15.5p
(2023: 10.5p)
Order book
£3.8bn
(2023: £3.7bn)
1 Stated before exceptional items. Exceptional items relate to our investment
in cloud-based Enterprise Resource Planning (ERP) and recovery of a
Corporation Tax Group Relief adjustment. See note 32 for a reconciliation
of statutory numbers to Alternative Performance Measures.
2 Divisional operating margin is defined as operating profit before amortisation
as a percentage of revenue.
3 Average month-end cash is a non-statutory measure the Group refers to,
being the average month-end cash balance over the financial year.
Performance
Strategic report
1 Our investment case
2 Business overview
4 Our business model
8 Chair’s statement
10 Market review
Delivering Sustainable Growth
14 Our Sustainable Growth Strategy
18 Chief Executive’s review
22 Operating sustainably
A people-orientated, progressive culture
25 Health and safety
28 Our people
Socially and environmentally
responsible delivery
32 Environment and climate change
36 Communities
Quality and innovation
40 Clients
44 Supply chain
46 Human rights and modern slavery
Sustainable financial returns
48 Financial review
52 Operating review
56 Risk management
61 Task Force on Climate-related
Financial Disclosures
74 Stakeholder engagement and
s172(1) statement
Governance
80 Chair’s review
82 Directors and Executive Board
84 Governance review
95 Nomination Committee report
99 Audit Committee report
104 Remuneration Committee report
108 Directors’ Remuneration Policy report
117 Annual report on remuneration
127 Directors’ report
131 Statement of directors’ responsibilities
Financial statements
132 Independent auditor’s report
141 Consolidated income statement
142 Consolidated statement of comprehensive income
143 Balance sheets
144 Consolidated and Company statements
of changes in equity
145 Statements of cash flows
146 Notes to the financial statements
193 Five-year record (unaudited)
194 Shareholder information
Strong performance
across all operations
delivering increased
revenue and profit.
Pre-exceptional profit
before tax
1
increased
by 59% to £32.7m
(2023: £20.6m).
Divisional operating
margin
2
increased to
2.5% (2023: 2.4%).
Final dividend payment
of 11.5p (2023: 7.5p),
together with an interim
dividend of 4.0p giving
a total dividend for the
financial year of 15.5p,
up 47.6%.
Well-capitalised
debt-free balance sheet,
average month-end
cash for the period
of £154.8m (2023:
£134.7m), PPP asset
portfolio of £41.8m
(2023: £44.6m) and no
pension liabilities.
Confident outlook
with high-quality
£3.8bn order book
(2023: £3.7bn)
positioned across our
chosen sectors and
92% of FY25 revenue
already secured.
Additional capital return
through £10m share
buyback programme.
Capital Markets Event,
held on 23 May 2024,
set out the Group’s
growth strategy to 2030,
building further on the
strong operational and
financial performance
delivered since 2021.
A compelling investment
A progressive culture
Our approach to running a good construction
business that can perform consistently and
predictably revolves around retaining and developing
our people and attracting new people, who share our
purpose, values, objectives and approach to business.
We create a working environment where people are
motivated to give their best, we empower them with
the tools and resources required to carry out their
work, and we reward them competitively. This is
reflected in our consistently high, and above average,
employee advocacy score of 87%, and low churn
rate of 11.4%.
Robust market opportunity
There is robust and consistent long-term demand
across our sectors driven by climate change,
population growth and ageing social and economic
infrastructure, which needs to be replaced, repaired
or upgraded. This demand is underpinning growth
in our chosen markets, where we benefit from
established positions. We are also growing in our
adjacent markets (page 14), where the work is
complementary to our existing capabilities, where
there is strong demand, where the risk profile is
within our appetite, and the margins are higher.
Our geographical footprint, excellent client and
supplier relationships and the barriers to entry at
the scale at which we operate in these markets also
give us an advantage.
Rigorous risk management
The vast majority of the work in our order book
is won on a differentiated quality basis over price,
giving us a well bid, non-cyclical, high-quality pipeline
of work. Some 91% of our clients are in the public
and regulated sectors; we know these clients well
and work collaboratively with them under long-
term agreements. This manages risk and offers
excellent future visibility of work. Visibility enables
us to plan our resources and sustains our strategy
of only pursuing opportunities where we have the
skills, resources and contract terms and conditions
to be successful. Knowing we have a quality future
workload means we can remain selective about the
work we take on.
Strong financial position
Our robust balance sheet is attractive to clients,
as they seek to work with contractors who can
deliver for them in the long term. It is also valued
by our supply chain who want prompt payment and
forward visibility of work, and employees for whom
job security is key. Balance sheet strength means we
can invest in our business, people and technology
and gives us the agility and ability to react quickly to
strategic opportunities when they arise. Once again,
it reinforces our strategy to remain selective about
the work we take on.
Delivering
Sustainable
Growth
We are proud to be one of the
UK’s largest construction companies,
and are passionate about our role
in delivering vital social and economic
infrastructure across the country,
making a real difference to
people’s lives.
Where we are going
We are demonstrating a track record of improving,
consistent and predictable financial results. Having
delivered increased revenue and divisional operating
margin and progressed our original 2026 strategic
targets ahead of plan, our updated Sustainable
Growth Strategy to 2030 targets further growth
across core and adjacent markets, retaining a strong
balance sheet and cash position, and delivering
sustainable returns for shareholders.
See our Sustainable Growth Strategy to 2030 on page 14.
1
Financial statementsGovernanceStrategic report
Bill Hocking
Chief Executive
One of the
UK’s leading
construction
groups
Business overview
What we do
We are a major construction
group, operating predominantly
as Galliford Try in England and Wales,
and Morrison Construction in Scotland.
Our business is organised into three
areas: Building, Infrastructure and
Investments, which cover our core
markets. We have growing capabilities
in higher margin Specialist Services.
Our network of regional offices is
a key advantage, offering clients
the benefit of national strength
with local relationships.
See more on page 4.
2 Galliford Try Annual Report and Financial Statements 2024
What we believe
Our purpose
To improve people’s lives by building the
facilities and infrastructure that communities
need, while providing opportunities for our
people to learn, grow and progress; working
with our supply chain to promote the very
best working practices; and caring for the
environment in which we work.
Our vision
To be a people-orientated, progressive
business, driven by our values to deliver
for our stakeholders and the communities
we work in.
Our
values
Excellence
Striving to deliver
the best.
Passion
Committed and
enthusiastic in all we do.
Integrity
Demonstrating strong
ethical standards with
openness and honesty.
Collaboration
Dedicated to
working together
to achieve results.
Scan the QR code to watch
our What we do video.
3
Financial statementsGovernanceStrategic report
Our business model
What we do
Building
Operates across the UK, designing, constructing
and refurbishing assets across markets where
we have significant expertise and opportunities,
particularly the education, health, defence, custodial
and affordable homes sectors. In addition, we
work with carefully selected blue-chip clients in
the commercial sector. Our Facilities Management
business works with Building, predominantly in the
education and health sectors. Its capabilities include
delivering high-quality, full life-cycle solutions and
green retrofit solutions to enhance the sustainability
performance of client assets.
Infrastructure
Carries out vital civil engineering projects
across the UK. It comprises:
Environment covering the water and sewage
sectors, where we are one of the largest
contractors in the market, carrying out capital
design and delivery, alongside maintenance,
and asset optimisation.
Highways where we contribute substantially
to the national road network and carry out
major project delivery of large-scale schemes
for local authorities, as well as active travel,
maintenance work and urban, multi-modal
transport schemes.
Investments
Has expertise in leading bid consortia and
arranging finance to devise and secure the right
solution for our clients on an individual basis.
We specialise in managing construction through
to operations for major building projects via public
private partnerships. These skill sets are used to
progress co-development opportunities, with
a focus on the Private Rented Sector (PRS).
Specialist Services
In addition to our three main businesses,
we are growing our Specialist Services businesses
including our fire-protection and façade
remediation specialists Oak Specialist Services;
our active security business Asset Intelligence;
and our Digital Infrastructure business which
offers property access, installation of telecoms
infrastructure for the Radio Access Network
market and is expanding into sectors such as
defence and private 5G networks.
A progressive
UK construction
business
We are proud to deliver vital
buildings and infrastructure across
the country that make a real difference
to people’s lives.
We are one of the UK’s tier one contractors. We lead
the overall management of a project, liaising with
designers, and hiring and managing subcontractors
to carry out the works under our direction.
Galliford Try Annual Report and Financial Statements 20244
Who we work with
We primarily work with clients in the public and regulated
sectors, where we have core strengths and a track record,
based on a strong understanding of client requirements,
the market and risk profile. In Building, this includes major
public sector bodies including the Department for Education,
the Ministry of Defence, the Ministry of Justice, the
Department for Health and Social Care, and Homes
England. In our Environment business, we work with all
13 of the UK’s largest water and sewerage companies.
Our Highways business partners with National Highways as
well as local authorities across the country, and Investments
works with major investment funds and PRS businesses.
Financial statementsGovernanceStrategic report
5
Our business model continued
How we do it
1
Identifying opportunities
We seek opportunities within our chosen markets
and only pursue those where we have the skills,
expertise and resources to successfully complete
the work safely, profitably and to a high quality. We
work with clients who value a collaborative approach
and long-term relationships, often by working
under frameworks (page 53). These are multi-year
procurement vehicles which public and regulated
sector clients use to procure goods and services from
a list of pre-approved contractors, with agreed terms
and conditions. Once awarded, frameworks typically
run for one to four years and provide opportunities
for deeper, collaborative working and support the
achievement of wider strategic and social goals,
better understanding between parties, early
mitigation of risk and repeat business.
2
Alignment to risk appetite
Our businesses follow a well-established contract
selection process to ensure all aspects of a contract’s
terms and conditions satisfy our strict criteria.
Initial selection considers factors such as the type
of work, our geographical presence, local sensitivities,
client, size of the project, technical complexities,
our experience of similar projects and resource
availability in that area. Contracts meeting this criteria
are considered by our teams and subjected to a
rigorous assessment of risk. All contracts with a
value exceeding £25m, or specific risk parameters
require Executive Board review before proceeding.
It speaks to our culture that very few projects reach
Board level that are not subsequently approved,
demonstrating cross-company alignment to the
Board’s strict risk appetite.
3
Assembling a team and procuring
products and services
Delivering a construction project requires different
disciplines, some of which are specialist. Our role
includes assembling the right team, including
subcontractors and sometimes consultants,
who have the skills, knowledge, experience and
organisational capability to carry out the required
works, such as mechanical and electrical work.
Because the majority of the construction phase
is delivered with our supply chain, we align key
supply chain members with our culture and develop
collaborative relationships using our Advantage
through Alignment programme. We choose our
partners based on their ability to deliver the work
and improve social, environmental and economic
outcomes for us and our clients.
Our reputation as a prompt payer and collaborative
client who seeks mutually beneficial relationships
works to our advantage when selecting supply chain
partners, particularly in times of high demand or
skills shortages.
4
Planning and managing construction
We plan, manage, monitor and oversee the project’s
construction phase, subcontracting packages of
work to specialist trade supply chain partners.
Pre-construction and planning activities are an
essential part of managing a construction project
and we look to start as early as possible to influence
design decisions. During these phases, we identify and
resolve risks such as those relating to health and safety,
resources and build conditions, presence of asbestos,
underground or overhead services, site restrictions,
ground conditions and logistical challenges.
In the construction phase, we carry out the agreed
work managing and monitoring safety, time,
budget, quality and sustainability requirements.
We co-ordinate with the client, designer and all
contractors and workers involved, and supervise
the overall works to track progress, resolving any
challenges including unforeseen events and make
any required adjustments.
5
Handover
Before handover, we check the project against
contractual requirements and ensure all final
installations and outstanding deliverables have
been completed. This includes resolving any
potential issues or deficiencies identified during
final quality inspections.
The project is then approved by the client and
a final completion certificate is typically issued,
confirming the project has been handed over in
a satisfactory manner. In some instances, we may
also take on the maintenance of the asset through
our Facilities Management business.
Galliford Try Annual Report and Financial Statements 20246
How we generate profit
The quality of our order book and contract
portfolio continue to be drivers of our margin
improvement strategy.
We operate in our selected core markets which
we know and understand, and we are targeting
growth in adjacent markets, that are within
our risk appetite and typically earn a higher
margin (page 14). In addition, we earn revenue
and profit from our Investments and FM
businesses, which offer lower-risk annuity
type income and margin accretion.
Our clients are increasingly scoring our tenders
on a quality basis, as seen in the pie chart.
We win work on quality outcomes such as our
ability to deliver safely and to a high-quality,
while meeting criteria including social value
and carbon commitments. This procurement
method provides a far more mature,
sustainable contract environment with higher
levels of collaboration between all parties
and a more equitable allocation of risk.
Typical work winning criteria
Non-financial criteria
Management 20%
Project delivery 19%
Health, Safety
and Environment 6%
Quality 9%
Sustainability and carbon 8%
Social value 8%
Contract management 10%
Typical scoring criteria
Non-financial 80%
Financial 20%
We typically use target cost/cost
reimbursable, two-stage or negotiated
tendering methods to win work, which are
lower risk:
Target cost/cost reimbursable contract
An overall target contract value is agreed
with the client, including margin, risk and
inflation contingencies, and the actual cost
of the work plus an agreed fee is paid by
the client. Any cost savings or overspends
against the target are shared.
Two-stage tendering
An initial information stage facilitates early
collaboration between client and contractor,
helping to ensure design, cost certainty and
project timescales. This initial phase allows
us to submit details under a pre-construction
agreement and includes aspects regarding
project preliminaries, method statements,
design, overheads and profit. The second stage
of the process is a package pricing exercise,
using the criteria agreed in the first stage,
and where the contract is negotiated by us,
subject to the approval of the design team.
Negotiated tendering
The client approaches us and the terms of
the contract and price are then negotiated.
Under single-stage tendering, projects are priced
with margin, risk and inflation contingencies,
with all the relevant information provided by
the client at the point of issue. This procurement
route means that clients are unable to benefit
from early contractor engagement.
Order book procurement route
Target cost/
cost reimbursable 48.7%
Two-stage 42.5%
Negotiated 7.9%
Single-stage 0.9%
Our focus on quality and digital drives margin
by saving the time and cost of redoing work and
waste created, taking a ‘Right first-time approach’.
This is driven by our Business Management
System (BMS) which sets out the processes and
templates required to provide quality assurance
at every step of a project’s journey.
We are increasingly taking a digitised approach
to project delivery to improve safety, quality and
collaboration, drive down carbon and reduce
errors and waste in construction (page 43).
Modern Methods of Construction such as
off-site construction techniques and factory
assembly, as alternatives to traditional building,
similarly improve our efficiency and margins
by speeding up delivery, reducing labour costs,
eliminating unnecessary waste and improving
quality (page 13).
Financial statementsGovernanceStrategic report
7
A strategy for continued sustainable growth
In May 2024, we announced our updated strategic targets
to 2030, having consistently delivered increased revenue
and divisional operating margin, and progressed the growth
strategy we set out in 2021 ahead of plan.
Despite macro-economic headwinds including a global
pandemic; inflation shocks; the cost of living crisis and
supply chain constraints in the wider economy over that
period, the Group has delivered on its plan to establish
Galliford Try as a leading construction group, delivering
controlled margin and revenue growth, through a focus
on risk management. Furthermore, it is a hallmark of
Chief Executive Bill Hocking’s leadership and commitment
to being a people-orientated and progressive company
that this success has been achieved with the passion and
commitment of the 4,000 plus strong team at Galliford Try,
as reflected in the high employee advocacy scores received
in the employee survey.
Driving
shareholder
returns
Our strategy to 2030 is designed
to continue our disciplined growth
and provide long-term sustainable
value for our stakeholders.
Alison Wood
Chair
Chair’s statement
8 Galliford Try Annual Report and Financial Statements 2024
The plan for the future was set out at a Capital Markets
Event in May this year, where management outlined
Galliford Try’s ambitions for growth and margin expansion
over the period to 2030. The strategy is an evolution of
what the Group has already been doing, successfully,
to grow in core and adjacent markets, and is built on the
same fundamentals that have served well over the past
four years. You can read more about these plans in the
Chief Executive’s review on page 18 and Strategic Report,
as well as the Board decision-making on updating the
strategy on page 78.
The importance of culture and engagement
It is my responsibility, as Chair, to monitor and assess
our culture; how we engage with our stakeholders, their
interests and how we manage ESG (Environment, Social
and Governance) matters. These items are built into the
Group’s strategy, as construction by its nature must take
into consideration ESG, and being sustainable helps the
Group to win work and engage employees. Demonstrating
good ESG is often a requirement of the Government
procured frameworks we pursue. These are therefore
important themes for the Board, and our ESG Committee
and Employee Forum provide valuable insights into what
is most important to our people and stakeholders to
inform decision-making. More detail is provided in the
Governance review.
Experienced leadership
I am pleased to say that we have an experienced team
in place that enables us to draw on different skills and
expertise that will support the delivery of the updated
strategy. On 1 March 2024, Kevin Boyd joined the
Board as a Non-executive Director of Galliford Try and
on 2 September 2024, Kris Hampson joined the Board as
our new Chief Financial Officer (CFO). Andrew Duxbury,
Finance Director, resigned from the Board in May 2024
and we wish him every success in his new role.
Kevin and Kris bring strong financial and strategic
expertise to the Group which will complement existing
skill sets and support the Group with the delivery of the
updated strategy. Kris, for example, has considerable
financial experience with a FTSE 100 company, and his
interest in ESG will play a key role in delivering the Group’s
future growth plans on a day-to-day basis. We have an
excellent breadth of experience and capabilities in the
Board composition as we move forward.
Increasing shareholder value
Generating attractive returns and rewarding shareholders
must be a priority if we wish to deliver on our strategy.
Our strategy to 2030 targets sustainable dividends with
earnings cover of 1.8x. The full dividend for the year
increased by 47.6% to 15.5p (2023: 10.5p).
The Board monitors the Group’s cash position, and
considers, where appropriate, additional capital returns.
On 3 October 2024, we announced a further share buyback
programme of a maximum of £10m, reflecting both
a corporation tax refund and our confidence in future
cash generation.
I have enjoyed hearing from our shareholders and
understand what they want to see from our business;
their interests have been considered with due attention
in the development of our strategy to 2030.
I look forward to meeting with shareholders at our AGM
in November to share our performance, hear their views
and answer their questions.
Alison Wood
Chair
Engaging senior leaders
Management plays a crucial role in organising,
influencing, motivating and leading people within an
organisation. Our Leadership Conference brought
together our most senior leaders to hear about our
progress, opportunities and future challenges through
a series of informative and interactive sessions and
networking, preparing them for the next phase of
the strategy and providing renewed motivation.
9
Financial statementsGovernanceStrategic report
192
of our senior management team
were brought together for our
Leadership Conference
Non-cyclical,
long-term
demand for
our services
The new Labour Government has
committed to kickstarting economic
growth with a 10-year infrastructure
strategy to set national priorities
and oversee the design and delivery
of projects.
The new Government has
emphasised the importance of
kickstarting the economy and
to “get Britain Building again”.
The UK Government has committed to
revolutionising the built environment, overseen
by a new National Infrastructure and Service
Transformation Authority (Nista) that will reset
how infrastructure is delivered, and public services
are upgraded. Nista will be given new powers to
drive more effective delivery of major projects and
infrastructure across the country. This will include
forging ahead with new roads, railways, reservoirs
and other nationally significant infrastructure,
as well as to fulfil the ambition of full gigabit and
national 5G coverage by 2030.
Established operations in growth markets: we are
a key contractor for the Government working across
sectors including roads, water, education, health,
custodial, defence and digital infrastructure, which
form the backbone of the country. A significant 91% of
our order book is in the public and regulated sectors
and 86% of our order book is in frameworks, which are
a key procurement route for the delivery of national
infrastructure projects.
National presence and local relationships: we have
a national presence from the Highlands in Scotland,
to Plymouth in the South West of England. Our local
relationships position us well to help the Government’s
aim to tackle geographic disparities in key services and
outcomes such as health, education, jobs, and improving
lives by bringing more places across the UK closer to
opportunity through infrastructure.
Link to strategy: growth via core and adjacent markets.
Market opportunity How our approach responds to the market
Market review
10 Galliford Try Annual Report and Financial Statements 2024
Prime Minister Sir Keir Starmer, Deputy Prime Minister Angela Rayner
and Mayor of London Sadiq Khan visit our project at Plot 14,
Brent Cross Town development, on behalf of Related Argent during
the election campaign, setting out the Labour Party’s manifesto.
Market opportunity How our approach responds to the market
National presence and scale of activity: we are now
one of the biggest contractors in the sector and have
48 frameworks covering 13 water and sewerage clients
and are positioned well to serve their current and future
needs across spend cycles.
We have evolved our capabilities to include capital
maintenance and asset optimisation through the
acquisitions of nmcn’s water operations, Lintott, MCS
Control Systems, Ham Baker and more recently AVRS.
This also gives us a ‘Source to Sea’ approach which enables
us to work across the life cycle of client assets, to improve
asset efficiency, resilience and optimisation.
Our investment in digitalisation, including digital twins
and AI, is enabling optimisation of processes. It allows for
benchmarking and real-time analysis and decision-making
by multi-disciplinary, dispersed teams via technology.
Our carbon capabilities are enabling our clients to meet
both their net zero carbon ambitions, and their objectives
to deliver value for customers in the long run.
Link to strategy: growth via core and adjacent markets.
Our water sector clients are
facing unprecedented, widely
publicised challenges which are
driving urgent investment.
Long-term underinvestment in water infrastructure
has resulted in an ageing asset base that requires
more frequent maintenance or is in need of replacing.
The resilience of this infrastructure to manage the
effects of increased storm events and severe weather
is exacerbated by poor asset condition.
There is also increasing focus on asset optimisation to
extend the operational lifespan of existing facilities
and more clients are seeking a full-service offering
covering design, build, operation and maintenance.
This is taking place against a backdrop of increasingly
stringent environmental and carbon regulations
such as The Environment Act 2021, which introduced
targets to improve biodiversity, tackle pollution,
reduce waste and to deliver a supply of clean and
plentiful water for all. In addition, the Government’s
new Water (Special Measures) Bill seeks to cut
sewage spills and attract investment to upgrade
infrastructure.
As a result, the expenditure proposed by the water
and sewerage companies for the Asset Management
Programme (AMP) 8 totals £96bn, almost doubling
the previous period’s planned value of £51bn.
Scotland has a different regulatory period spanning
2021 to 2027. Its planned value is £5.8bn and, again,
it is anticipated that this will double in the next
spending review period starting in 2027.
We already have good local authority and housing
association relationships, and are seen as a partner
of choice.
Establishing ourselves in this sector will generate
higher margin and increased revenue as part of our
2030 strategy.
Our experience coupled with our established supply
chain allows our business to deliver the mid-rise housing
schemes that are key to regeneration in our towns
and cities.
Since 2020, we have been building our reputation for
high-density urban schemes and have delivered more
than 3,000 homes.
Link to strategy: growth via adjacent markets.
There is significant, long-term
demand to deliver affordable
homes in the UK.
In July 2024, the Deputy Prime Minister recognised
the under-delivery of 130,000 affordable homes that
need to be delivered per annum and announced the
biggest boost to affordable housing in a generation,
with more investment.
The Government committed to reform planning
to accelerate delivery, and set mandatory housing
targets for all councils.
The National Housing Federation and charity
Crisis have long estimated the level of housing
need at 145,000 affordable homes a year.
Market opportunity How our approach responds to the market
Scan the QR code to watch Ian Wardle, CEO of A2Dominion, a London
housing association, outline the urgent need for contractors in the
affordable homes market, and the welcome re-entry of Galliford Try.
11
Financial statementsGovernanceStrategic report
Market opportunity
Market opportunity
How our approach responds to the market
How our approach responds to the market
Our Oak Specialist Services business provides cladding
remediation, passive fire protection, fire maintenance,
risk assessments, building fabric surveys, new-build
facades and green retrofit. The business forms part of
our Specialist Services business.
Expand our operations using existing bases: we see an
opportunity for our Oak Specialist Services business to
provide a nationwide service to our clients who have a
portfolio of property with different suppliers in different
regions. Oak is currently London centric. As part of
our growth strategy, we plan to grow our geographical
presence utilising the current UK-wide Galliford Try office
footprint and expanding our workload by cross-selling
services to our existing client base.
With repeated services such as inspections required,
the market represents long-term higher margin annuity
type revenue.
Link to strategy: growth via adjacent markets.
Investing in knowledge: we are upskilling our teams to
better understand how we can design, build and maintain
low carbon infrastructure and buildings through selection
of materials and construction methodologies, operational
energy consumption and, where relevant, end-of-life
decommissioning, which is increasingly enabling our
clients to achieve their carbon goals.
Asset optimisation and retrofit capabilities: our
capabilities in asset optimisation and retrofit enable our
clients to reduce carbon emissions, increase the lifespan
of their facilities and to optimise their performance
including environmental credentials.
Digitalisation for efficiency: our approach to digitalisation
and adoption of new technologies such as design
rationalisation using our Building Information Modelling
(BIM) tools and experience helps us avoid over-specification
and reduce materials consumed and waste created.
Adopting Modern Methods of Construction (MMC)
such as off-site manufacture helps to minimise waste
and uses materials more efficiently.
Our journey to net zero: our record of reducing our
own carbon emissions and commitment to achieving
net zero carbon is attractive to existing and potential
clients, as well as being important to employees who
want to work for a company that does the right thing.
Link to strategy: operate in a socially and environmentally
responsible way.
Changes to
fire safety.
The Building Safety Act came into law in
January 2022 and sets out safety requirements
for landlords and building owners of higher-risk
buildings, with new requirements on fire safety.
It is driving a huge focus on fire safety across
the built environment in the UK across both
new build and existing stock. However, the market
is fragmented.
Drive for decarbonisation
and action on climate change.
In Labour’s 2024 party manifesto, the climate
and nature crisis was described as “the greatest
long-term global challenge we face”. This is
emphasised by the fact that the UK is committed
to achieving net zero carbon by 2050.
According to the Construction Industry Council,
the built environment is responsible for
approximately 38% of global carbon emissions,
therefore construction has a major role to play
as an enabler of change.
38%
The built environment
is responsible for
approximately 38% of
global carbon emissions,
but can also be an enabler
of change.
12 Galliford Try Annual Report and Financial Statements 2024
Market review continued
Market challenge How our approach responds to the market
Employer Value Proposition (EVP): over the last 18
months, we have invested in our EVP – the unique set of
benefits that our people receive in return for the skills,
capabilities and experience they bring to our business
so that we can encourage retention and attract the
right talent.
Our people-orientated culture, including initiatives
such as agile working and our focus on wellbeing, support
retention and make Galliford Try a more attractive
employer, helping us to appeal to a diverse audience,
and broadening our pool of potential recruits.
Investment in our people’s learning and development
ensures we have the skills we need to carry out our
operations and is seen as an attractive benefit to existing
and potential talent.
Building talent pools: our graduate, trainee and
apprentice programmes allow us to build our own talent
pool. In addition, we actively promote our industry to
school and college leavers, as well as graduates through
social media use, presentations, visits to our sites and
careers exhibitions, which help to encourage a career in
construction for future generations. Our approach breaks
down stereotypes of the industry and presents it as an
important enabler of the UK’s plans for the future.
Succession planning: a structured approach to succession
planning enables us to meet the future needs of our
business with less likelihood of disruption to operations.
Benefits: we continue to monitor and enhance our
rewards package to improve our EVP. As well as salary
and bonus, this extends to company car or car allowance,
paid volunteering days, employee assistance programmes,
private healthcare and discount schemes.
Link to strategy: champion a people-orientated and
progressive approach.
Skilled and experienced
people are in high demand
across the UK.
As investment in construction projects starts to
grow, demand is highlighting the lack of skilled
professionals in the market. These labour
and talent shortages could significantly impact
the delivery of the UK’s infrastructure.
13
Financial statementsStrategic report Governance
Using Modern Methods
of Construction for safer,
faster delivery
We are adopting MMC to drive efficiency across
the design and construction cycle.
In the example of a prison project seen on the right, precast
modules were manufactured in a factory complete with security
windows, electrical wiring and plumbing. Once built, they were
delivered to site for assembly and grouted into their permanent
position floor by floor. This method insulates against weather
conditions, improves quality and gives greater programme
certainty. It requires fewer people on site, is faster and safer
to construct, and reduces defects and rework.
Case study
Delivering
Sustainable
Growth
Our strategy is to target sustainable
growth by championing a people-
orientated, progressive culture, operating
in a socially and environmentally
responsible way to deliver high-quality
buildings and infrastructure through
a focus on quality and innovation, and
provide sustainable financial returns.
Growth via core markets
Building Highways Environment
Growth via adjacent markets
Private Rented
Sector (PRS)
Capital
maintenance and
asset optimisation
within the existing
Environment sector
Green
retrofit
Affordable
homes
Specialist
Services
14 Galliford Try Annual Report and Financial Statements 2024
Our Sustainable Growth Strategy
Our Sustainable Growth Strategy
was introduced in 2021 to ensure we
develop our business in a sustainable
and profitable way. Having progressed
our 2026 targets ahead of schedule,
we have set ourselves updated targets
for the next strategy period to 2030.
The updated plan will see us aim to increase revenue to
in excess of £2.2bn (up from the 2026 target of £1.6bn);
and grow divisional operating margin to 4.0% (up from the
2026 target of 3.0%), while providing long-term sustainable
value for our stakeholders. This growth will be delivered in
existing and adjacent markets as outlined below.
How we will deliver growth Why we want to do it
We will grow revenue and
margin in our core markets
of Building, Highways
and Environment.
As well as organic growth, we will leverage
our national footprint, core capabilities,
excellent client, supplier and community
relationships to increase volumes which will
drive revenue growth. Margin improvement
will be driven by contract selection,
embedded margins and operational
excellence including digitalisation and MMC.
We will grow our higher
margin businesses, including
within Environment where
we have recently undertaken
several acquisitions; in our
Specialist Services business;
and we will re-establish an
Affordable Homes offering
within our Building division.
See Market review on page 10.
There is resilient, long-term demand
across our core sectors providing
opportunity for growth.
We understand these markets and their
risk profiles and are already working in
these sectors, with excellent teams and
great client and supplier relationships.
Many of these markets are higher margin,
but they are fragmented, and clients struggle
to find national contractors who can deliver
across their portfolios.
The nature of the work is complementary
to our existing capabilities and closely related
to those we are already established in. We
have the ability to leverage the competencies
and strengths from our existing markets and
apply them here for more significant profits.
Scan the QR code to watch our Capital Markets Event,
where we presented our strategy update.
15
Strategic report Financial statementsGovernance
Our Sustainable Growth Strategy continued
Our Sustainable Growth Strategy is to:
Strategic priority Objective KPI Ambition FY23 FY24 Progress
Champion
a people-
orientated,
progressive
culture.
Page 24
Health
and safety
Prioritising health, safety and wellbeing
and ensuring no harm to anyone linked
with our operations.
Lost Time Frequency Rate
(LTFR)
No harm 0.20 0.14 We saw improvement in the LTFR and AFR over the period.
Additionally, 96% of employees said we give health and
safety high priority in our employee survey.
Accident Frequency Rate
(AFR)
No harm 0.09 0.04
Our people
1
Creating an inclusive environment and
progressive culture that enables all
individuals to reach their potential.
Employee advocacy score >80% 86% 87% We increased our already high employee advocacy score of
how likely employees are to recommend us as a great place to
work to 87%. Engagement and participation were significantly
higher than UK benchmarks.
We made moderate increases in the proportion of early careers
population and women in our business.
Early careers as a %
of total employees
>9.0% 10.0% 10.2%
Women as a %
of total employees
Year-on-year
increase
21.6% 22.5%
Operate in a
socially and
environmentally
responsible way.
Page 31
Environment and
climate change
2
Adopting sustainable resourcing and
consumption practices and taking
measures to mitigate carbon production
and climate change to protect our
environment and biodiversity.
Scope 1 and 2 carbon
emissions – market-based
(CO
2
e tonnes)
Net zero by
2030
10,751 10,486 Since 2012, we have reduced our scope 1 and 2 carbon
emissions (market-based) by 71% when adjusting for
acquisitions and disposals.
Following our initial full Scope 3 footprinting exercise,
we are now focusing on developing a quantity based
approach to estimating emissions and have therefore ceased
reporting of estimated full Scope 3 emissions using the spend
based methodology.
Scope 3 carbon emissions
(CO
2
e tonnes) – estimated
Net zero by
2045
477,000 Not reported
Waste intensity
(tn/£100k revenue)
Year-on-year
reduction
21.8 17.7
Communities
Making a positive impact in communities
where we operate by delivering greater
social value and improving lives.
% of completed projects
delivering >25% Social and
Local Economic Value (SLEV)
as a % of contract value
>60% 94% 79% We continued to exceed our SLEV target performance level,
which is aligned to the industry average.
We continued to achieve an above sector average score from
CCS which benchmarks our sites on their local impact.
Considerate Constructors
Scheme (CCS) performance
>39 and above
industry average
43.4 (industry
ave. 40.0)
42.9 (industry
ave. 40.7)
Deliver
high-quality
buildings and
infrastructure.
Page 39
Clients
Delivering lower carbon, superior
buildings and infrastructure with a better
social footprint for clients in our chosen
markets through a focus on innovation,
digitalisation and quality.
% of repeat business in our
order book
>80% 87% 93% We maintained a high level of repeat business, demonstrating
our continued levels of client satisfaction.
We have secured 92% of our work for the next financial
year giving us forward visibility and reinforcing our selective
approach to the contracts we pursue.
% of full year planned revenue
secured at the start of the
financial year
>85% 92% 92%
Supply chain Aligning our supply chain with our culture
and creating collaborative relationships
that deliver best practice, innovation
and sustainable outcomes for clients,
communities and the environment.
% of Business Unit
core trades spend with
Aligned subcontractors
70%–80% 58% 61% We increased % spend with core trades.
We continued to maintain high levels of prompt payment
despite the transition to a new Enterprise Resource
Planning platform during the year.
Prompt payment: % of
invoices paid within 60 days
>95% 98% 96%
2030 target FY23 FY24 Progress
Provide
sustainable
financial
returns.
Page 47
Divisional
operating margin
Focus on both top and bottom line growth and accelerated growth in our
higher-margin adjacent market businesses.
4.0% 2.4% 2.5% Divisional operating margin increased to 2.5%.
Revenue Maintaining disciplined contract selection and robust risk management in
resilient market sectors.
>£2.2bn £1.4bn £1.8bn Revenue for the year increased by 27% reflecting
continuing growth.
Average
month-end cash
Retain a strong balance sheet and operating cash generation. Operating cash
generation
£135m £155m Strong cash generation and well-capitalised debt-free
balance sheet.
Dividend cover Sustainable dividends with earnings cover of 1.8x. 1.8x earnings
cover
1.8x earnings
cover
1.8x earnings
cover
Full year dividend of 15.5p.
Special dividend to shareholders of 12.0p per share was
paid in October 2023, as previously announced.
16 Galliford Try Annual Report and Financial Statements 2024
Strategic priority Objective KPI Ambition FY23 FY24 Progress
Champion
a people-
orientated,
progressive
culture.
Page 24
Health
and safety
Prioritising health, safety and wellbeing
and ensuring no harm to anyone linked
with our operations.
Lost Time Frequency Rate
(LTFR)
No harm 0.20 0.14 We saw improvement in the LTFR and AFR over the period.
Additionally, 96% of employees said we give health and
safety high priority in our employee survey.
Accident Frequency Rate
(AFR)
No harm 0.09 0.04
Our people
1
Creating an inclusive environment and
progressive culture that enables all
individuals to reach their potential.
Employee advocacy score >80% 86% 87% We increased our already high employee advocacy score of
how likely employees are to recommend us as a great place to
work to 87%. Engagement and participation were significantly
higher than UK benchmarks.
We made moderate increases in the proportion of early careers
population and women in our business.
Early careers as a %
of total employees
>9.0% 10.0% 10.2%
Women as a %
of total employees
Year-on-year
increase
21.6% 22.5%
Operate in a
socially and
environmentally
responsible way.
Page 31
Environment and
climate change
2
Adopting sustainable resourcing and
consumption practices and taking
measures to mitigate carbon production
and climate change to protect our
environment and biodiversity.
Scope 1 and 2 carbon
emissions – market-based
(CO
2
e tonnes)
Net zero by
2030
10,751 10,486 Since 2012, we have reduced our scope 1 and 2 carbon
emissions (market-based) by 71% when adjusting for
acquisitions and disposals.
Following our initial full Scope 3 footprinting exercise,
we are now focusing on developing a quantity based
approach to estimating emissions and have therefore ceased
reporting of estimated full Scope 3 emissions using the spend
based methodology.
Scope 3 carbon emissions
(CO
2
e tonnes) – estimated
Net zero by
2045
477,000 Not reported
Waste intensity
(tn/£100k revenue)
Year-on-year
reduction
21.8 17.7
Communities
Making a positive impact in communities
where we operate by delivering greater
social value and improving lives.
% of completed projects
delivering >25% Social and
Local Economic Value (SLEV)
as a % of contract value
>60% 94% 79% We continued to exceed our SLEV target performance level,
which is aligned to the industry average.
We continued to achieve an above sector average score from
CCS which benchmarks our sites on their local impact.
Considerate Constructors
Scheme (CCS) performance
>39 and above
industry average
43.4 (industry
ave. 40.0)
42.9 (industry
ave. 40.7)
Deliver
high-quality
buildings and
infrastructure.
Page 39
Clients
Delivering lower carbon, superior
buildings and infrastructure with a better
social footprint for clients in our chosen
markets through a focus on innovation,
digitalisation and quality.
% of repeat business in our
order book
>80% 87% 93% We maintained a high level of repeat business, demonstrating
our continued levels of client satisfaction.
We have secured 92% of our work for the next financial
year giving us forward visibility and reinforcing our selective
approach to the contracts we pursue.
% of full year planned revenue
secured at the start of the
financial year
>85% 92% 92%
Supply chain Aligning our supply chain with our culture
and creating collaborative relationships
that deliver best practice, innovation
and sustainable outcomes for clients,
communities and the environment.
% of Business Unit
core trades spend with
Aligned subcontractors
70%–80% 58% 61% We increased % spend with core trades.
We continued to maintain high levels of prompt payment
despite the transition to a new Enterprise Resource
Planning platform during the year.
Prompt payment: % of
invoices paid within 60 days
>95% 98% 96%
2030 target FY23 FY24 Progress
Provide
sustainable
financial
returns.
Page 47
Divisional
operating margin
Focus on both top and bottom line growth and accelerated growth in our
higher-margin adjacent market businesses.
4.0% 2.4% 2.5% Divisional operating margin increased to 2.5%.
Revenue Maintaining disciplined contract selection and robust risk management in
resilient market sectors.
>£2.2bn £1.4bn £1.8bn Revenue for the year increased by 27% reflecting
continuing growth.
Average
month-end cash
Retain a strong balance sheet and operating cash generation. Operating cash
generation
£135m £155m Strong cash generation and well-capitalised debt-free
balance sheet.
Dividend cover Sustainable dividends with earnings cover of 1.8x. 1.8x earnings
cover
1.8x earnings
cover
1.8x earnings
cover
Full year dividend of 15.5p.
Special dividend to shareholders of 12.0p per share was
paid in October 2023, as previously announced.
Financial statementsGovernance
17
Strategic report
1 We have revised the methodology used to calculate our early careers numbers to align to the methodology used by The 5% Club, of which we are a Platinum member.
This now includes sponsored students on work placement as well as graduates, apprentices and trainees as at 31 July for the respective year. Historic numbers have
been restated to reflect this.
2 Carbon emissions are reported on a calendar year basis, therefore FY24 represents calendar year 2023 emissions. Emissions relating to the Rock & Alluvium
business, which was sold in November 2023, have been excluded from FY24 emissions. FY23 emissions have been restated to exclude emissions for Rock & Alluvium.
18 Galliford Try Annual Report and Financial Statements 2024
Continuing
profitable
growth
All our businesses delivered
an excellent performance during
the year and, having updated the
targets of our Sustainable Growth
Strategy to 2030, we are encouraged
by the momentum in the business.
Bill Hocking
Chief Executive
Chief Executive’s review
19
Financial statementsGovernanceStrategic report
A strong performance in the year
We continue to demonstrate a strong track record of
increasing revenue and margin growth.
Revenue increased 27% from £1.4bn to £1.8bn
in the year. Divisional margin increased from 2.4% to
2.5% resulting in pre-exceptional profit before tax of
£32.7m up 58.7% from £20.6m last year. Average month-
end cash was £155m (£135m). We have a high-quality
£3.8bn order book (2023: £3.7bn) which provides visibility
and security of future workloads. During the year, our
Building, Infrastructure and Specialist Services businesses
continued to perform well. We successfully completed
the acquisition of AVRS and the strategic disposal of piling
business Rock & Alluvium.
The market remains extremely resilient, and this is
demonstrated through our long-term order book with
92% of work secured for the next financial year.
As a result of the strong performance in the financial year,
we declared a final dividend of 11.5p to give a full year
dividend of 15.5p, up 47.6% on last year.
Our balance sheet remains very strong with £155m of
average month-end cash, PPP assets of circa £42m,
no bank debt and no pension liabilities. As highlighted
in the Chair’s review, the Group’s capital allocation
policy recognises the importance of capital returns to
shareholders, and on 3 October 2024, we announced
a further share buyback of up to £10m, reflecting both
a corporation tax refund and our confidence in future
cash generation.
Our excellent progress towards our 2026 targets, well
ahead of plan, enabled us to update our Sustainable Growth
Strategy to 2030 at a Capital Markets Event in May 2024.
Embedded ESG
Our sustainability commitments are an integral part of our
growth strategy, improving our business and delivering
long-term value for all our stakeholders. We track our
performance against several key measures which are
discussed in detail on pages 22 to 45.
A people-orientated, progressive culture
Our priority is to ensure no harm to anyone linked with
our operations. Our AFR (Accident Frequency Rate)
reduced to a record low of 0.04 in the year (2023: 0.09)
and we continue to take a pre-emptive approach to
improving health and safety by focusing on leading metrics
which help us avoid situations where people may be put
at risk and hence drive better outcomes.
UK leading
employee advocacy
We are leading the sector and UK for employee
engagement, with the results from our 2024 Employee
Survey placing us 9% above the UK company benchmark
and 8% above the UK construction benchmark.
During the year, we increased our already high
employee advocacy score of how likely employees are
to recommend the Group as a great place to work to
87% (2023: 86%). This score, along with the engagement
score of 74% and participation of 79%, was achieved
against the UK backdrop of a downward trend for
both participation and engagement levels in employee
surveys, in what has been described as a “turbulent
period” for employee engagement by survey provider
CultureAmp, a market-leading employee experience
platform and organisation.
A total of 3,393 employees participated in the survey and
more than 10,000 comments were provided. Analysis of
the survey results by CultureAmp found that Galliford
Try employees feel “valued, respected, and supported”
by colleagues and managers. This is encouraging for the
Board in ensuring the Group has the right teams who
are motivated to deliver on our growth plans.
Strategy in action
20 Galliford Try Annual Report and Financial Statements 2024
We have been planning for growth in our business for
a number of years, establishing our approach to retain
and develop the existing talent in our business and attract
new talent needed to meet our objectives in the future
(page 28). We are establishing a reputation as a destination
employer which will serve us well as competition for high-
quality people continues across the UK. We have increased
our already high employee advocacy score from 86% to
87% and maintained our engagement score of 74%. We
were named the top employer in the sector for apprentices,
and number two for graduates which also makes us an
attractive employer and is helping us to grow our talent
from within. Our churn levels remain low at 11.4%.
Operating in a socially and environmentally
responsible way
The climate crisis continues to be a challenge for the UK,
which provides an opportunity for our business. In February
2024, we achieved a CDP score of B, an upgrade on the
C achieved in 2022, in recognition of our commitment
and action to address climate change.
Additionally, in recent years, we have built up an in-house
team of experts who specialise in carbon reduction methods
and are providing an invaluable source of knowledge for
our clients and the industry alike.
Delivering a legacy of positive social value outcomes is the
right thing to do as a responsible business and remains an
important priority for our clients. Since we began reporting
social value in 2022, we have delivered circa £935m in
social and local economic value through a combination of
providing work for the local supply chain and providing
opportunities for training and apprenticeships.
Delivering quality
Providing excellent service for our clients includes the
ability to unlock new and innovative methods to deliver
high-quality, low carbon, value for money projects. Our
approach is reflected by the fact that 93% of our order book
is repeat business, and we continue to win accolades for
leading the sector with excellence in construction.
Highlights include being named Contractor of the Year
for the third time at the Education Estates Awards and
several awards for the operationally carbon neutral
National Manufacturing Institute Scotland.
Supplier engagement remains key to our ability to deliver
for our clients, particularly during times of high demand,
and our Advantage through Alignment programme
(page 44) provides key suppliers with access to training
and education and greater visibility of future workload.
Similarly, a record of prompt payment, exceeding the target
of paying 95% of invoices within 60 days helps to ensure
we have strong relationships and a reliable supply chain
to help deliver our projects.
Strategy to 2030
Our strategy to 2030 is an evolution of our previous
strategy which has worked well. It builds on the solid
foundations and performance we delivered over the last
four years in a market where long-term investment in social
and economic infrastructure is an imperative to maintain
and enhance the UK’s productivity and competitiveness.
We will continue to grow revenue and margin in our core
businesses of Building and Infrastructure, and design and
build frameworks in water. We are expanding our higher
margin adjacent markets through our Specialist Services
businesses in both Building and Environment and have
re-entered the affordable homes market.
We have the people, supply chain and UK coverage to
expand our operations on a national basis, increasing
revenue and margin by leveraging our geographic presence,
framework positions and client relationships.
Chief Executive’s review continued
Sustainable Growth to 2030
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.
21
Financial statementsGovernanceStrategic report
We are targeting revenues of at least £2.2bn per annum
in 2030 with strong cash generation and an operating
margin of 4.0%, with a higher proportion of higher margin
work delivered through the Specialist Services businesses.
Our performance in the year, our strong balance sheet
and the excellent positions we have in frameworks across
all our chosen sectors provide a solid foundation for our
future growth.
Executive Board
David Lowery was promoted to the Executive Board
in July 2024 as Managing Director, Infrastructure, which
includes Highways and the Environment businesses.
David was promoted following his successful tenure
as Managing Director for Highways, and will be an
excellent addition to our Executive team.
As previously announced, Kris Hampson joined
Galliford Try as Chief Financial Officer on 2 September
2024 from Rentokil Initial where he was Group
Financial Controller.
Outlook
I am pleased with our performance in the year which has
positioned us well at the start of our new strategy period.
The UK’s planned, and required, investment in economic
and social infrastructure continues to underpin growth
in our chosen markets and our confidence in the Group’s
future outlook is supported by our high-quality order book
as well as the robust and resilient pipeline of opportunities
we see across our chosen sectors.
I continue to be impressed by our people, their
professionalism and work ethic, and thank all of our teams
and supply chain partners for their ongoing contributions.
We are excited about the future and the opportunity
to deliver further strong performance and long-term
sustainable value for all stakeholders.
Bill Hocking
Chief Executive
Delivering greater
social value
The Construction Playbook states that central
Government tenders must include a minimum of 10%
of their evaluation criteria dedicated to social value.
Delivering a legacy of positive social value outcomes
is therefore a key part of our strategy.
As an example of this, we hosted a Supplier Day for the
Ministry of Justice (MOJ) at the HMP Rye Hill project
for 100 delegates involved in the construction of new
custodial facilities for the MOJ to discuss how they can
assist the ultimate aim of rehabilitating offenders and
provide them with routes back into meaningful careers
following their release.
Among the discussions was a presentation about our
award-winning Construction Mentoring Partnership
Scheme, which saw prisoners employed on our HMP
High Down project, which has led to individuals involved
in the scheme obtaining full-time work on their release.
Strategy in action
22 Galliford Try Annual Report and Financial Statements 2024
Operating sustainably
Sustainability
is central to
our strategy
Operating sustainably helps us to win
work, engages our employees, benefits
communities and the environment,
and makes us more efficient. This is
why ESG remains an integral part of
our updated strategy, and at the core
of how we deliver stakeholder value.
Oversight of ESG
The Executive Board has overall responsibility for setting
policy and monitoring our sustainability performance.
Main plc Board oversight of sustainability is maintained
through several means. We have a dedicated ESG
Committee which meets three times a year. The committee
is chaired by a plc Board director and comprises the
Director of Sustainability, and senior representatives
from our operating divisions and relevant support
services functions including Supply Chain, Low Carbon
Construction, Environmental, Communities and Social
Value, Human Resources, and Pre-construction.
In addition, progress reporting with KPIs, and presentations
from subject matter experts provide oversight of this area
to the Board.
Stakeholder materiality assessment
We are committed to publicly reporting our progress
across six areas: health and safety, our people, environment
and climate change, communities, clients and supply
chain. When developing our initial Sustainable Growth
Strategy in 2021, we performed an assessment of the
relative materiality of sustainability priorities for different
stakeholder groups across these areas. The assessment and
related KPIs are reviewed annually by the ESG Committee
to ensure that they continue to reflect the priorities of our
key stakeholders.
This year, the main change was to add quality to the client
pillar to reflect the importance of construction quality
to clients and other stakeholders. We have also revised
a number of the relative importance assessments, as
indicated by the arrows in the table to the right to reflect
our ongoing engagement with stakeholders.
A summary of the updated priorities is outlined to the
right and guides our sustainability priorities and targets,
as detailed in this section.
Dealing with
increased rainfall
This 25m deep by 25m wide concrete-lined tank
in Stroud, Gloucestershire is a key part of Severn
Trent’s £25m project to upgrade Stroud’s largely
Victorian-built sewer network and also includes
installing four miles of new enlarged pipes, as well
as separating surface water from the waste network.
The mega-tank has a capacity of 7,400m
3
– the
equivalent of three Olympic-sized swimming pools or
over 24,500 bathtubs of water. The increased capacity
for storm overflow will protect residents from potential
flooding – and boost river health by preventing spills.
Strategy in action
23
Strategic report Financial statementsGovernance
Our key ESG ratings
AAA B
Management
(Taking co-ordinated
action on climate issues)
A
Leadership
(Implementing current
best practices)
Strategic
priority
Sustainability
pillars Priorities
Key stakeholder groups
Clients Investors Employees Supply chain Communities Regulators
Champion
a people-
orientated,
progressive
approach
Health
and safety
Page 25
Physical health
and safety
Mental health
and wellbeing
People
Page 28
Equity, diversity
and inclusion
Human rights
Talent and
development
Operate in a
socially and
environmentally
responsible way
Environment
and climate
change
Page 32
Carbon emissions
Waste
Water
Biodiversity
Communities
Page 36
Employment
Economic growth
Disadvantaged or
underrepresented
groups
Community
engagement
Deliver
high-quality
buildings and
infrastructure
Clients
Page 40
Innovation
and efficiency
Energy efficiency
of built assets
Quality
Supply
chain
Page 44
Responsible
sourcing
Prompt payment
Relative importance
High Moderate Low
Movement in the year
Increased Unchanged Decreased
A people-
orientated
progressive
culture
The right culture is key to achieving our
aspirations so we place great importance
on how we achieve that – from prioritising
the health, safety and wellbeing of our
people, to creating an environment where
they are enabled to give their best.
98%
of people said they understand
their role in keeping their
colleagues safe
(2023: 98%)
96%
of employees believe
we give health and
safety a high priority
(2023: 95%)
87%
of employees would
recommend us as
an employer
(2023: 86%)
82%
of people believe their
manager genuinely cares
about their wellbeing
(2023: 83%)
24 Galliford Try Annual Report and Financial Statements 2024
25
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Health
and safety
Our objective is to prioritise health,
safety and wellbeing and ensure
no harm to anyone linked with our
operations. We achieve this through
placing a priority on our suite of
Lead Indicators, our behavioural
safety programme Challenging
Beliefs, Affecting Behaviour and
our wellbeing initiative, Be Well.
Performance against our KPIs
Our commitment to health and safety extends to all people
on our sites and offices and therefore the KPI calculations
on this page include our own employees, subcontractor
employees and visitors.
AFR
Our AFR (Accident Frequency Rate), which measures the
number of injuries resulting in more than seven days away
from work or those listed as RIDDOR specified, reduced
to 0.04 during the year (2023: 0.09). In addition, 13 out
of 19 business units recorded an AFR of zero.
LTFR
We also reported a further reduction in our LTFR
(Lost Time Frequency Rate), which measures every
incident that results in more than a day away from work,
and fell to 0.14 during the year (2023: 0.20).
FY24FY23FY22
Ambition
No harm
0.26
0.20
0.14
KPI
Lost Time Frequency
Rate (LTFR)
0.14
FY24FY23FY22
Ambition
No harm
0.06
0.09
0.04
KPI
Accident Frequency
Rate (AFR)
0.04
26 Galliford Try Annual Report and Financial Statements 2024
Lead Indicators
While AFRs remain the industry standard measure of
safety performance, internally, we use Lead Indicators to
drive improvement in safety culture and behaviour as they
enable a proactive approach to the management of health
and safety. Our Lead Indicators span six areas: leadership,
communication, competence, culture, contractors and
planning. Highlights from the period include:
Achieved 95% average monthly compliance with our
stringent Back to Basics requirements which test that
we have the right person, planning, equipment and
workplace for each activity.
100% completion of SSERs (Site and Safety Environmental
Reviews), which provide a comprehensive overview
of how each site is running, are attended by the senior
project team, demonstrating visible leadership on safety.
Conducting 1,276 director tours (2023: 1,332) and
60,491 Safe Behaviour Discussions (2023: 60,019).
These activities continue to provide visible leadership
and an open dialogue with our site teams. They are
a powerful way for management to promote and
maintain safe behaviours on site by engaging with
operatives to reaffirm positive behaviour.
We did not receive any prohibition or improvement notices
during the year.
Areas of focus during the year
Challenging Beliefs, Affecting Behaviour
Our safety culture is embedded through Challenging
Beliefs, Affecting Behaviour (CBAB), a programme based
on awareness, training, coaching and visible leadership,
which has formed the backbone of our approach since its
inception in 2012. We continue to develop our approach
as we strive to achieve our ambition of no harm.
During the year, we launched an update to the leadership
module within CBAB to reinforce the link between safety
in construction and safety in use. This approach allows us
to use our strong culture surrounding Health and Safety
and apply it with a quality focused mindset.
To support our growing business, we have also created
a CBAB Ambassadors working group featuring
representatives from all divisions. Led by our Behavioural
Safety Manager, the Ambassadors are upskilled to
adopt, adapt and deliver the programme in a way that
is sustainable and relevant in their area of the business,
helping us to ensure the programme remains the bedrock
of Health and Safety for years to come and support us in
our no harm objective.
Health and safety continued
Promoting safe lifting
One of the consistent hazards across our industry
is lifting. We came together with the sector
to develop a new standard of load lifting:
Hands Off – Step Away – Safe Space.
This standard very much aligns to our own Back to
Basics approach of Right Person, Right Planning,
Right Workplace and Right Equipment, and will
limit interaction between people and loads.
To promote the message, we marked Global Lifting
Awareness Day with a week dedicated to increasing
safety and best practice around load lifting among
our people and supply chain.
We held daily Lunch and Learns focusing on safe lifting,
supported by increased KPI tours including visits by our
Chief Executive, videos, toolbox talks and a dedicated
app to share industry best practice. Initiatives like this
focus on high potential events and help us achieve our
safety goal of no harm.
Strategy in action
Scan the QR code to watch how we used digital tools
on our Melton Mowbray Distributor Road scheme
to undertake precision lifting and reduce safety risk
during a major load lifting operation
17%
of all non fatal injuries
to UK employees
relate to lifting,
handling or carrying.
(Source: Health and
Safety Executive)
85%
of the industry
believe the sector
can make improvements
to lifting practices.
(Source: Industry
Lifting Lead Appointed
Person Group)
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Digitising safety with MSite
We have continued the adoption of ‘MSite’, a digital
workforce management solution to support site access
control and inductions. Through the platform, employees,
our supply chain workforce and visitors to our sites and
offices complete an online induction and competence
assessments before arrival on our sites, ensuring our
workforce understands our objectives, are qualified to do
the job they are tasked with, and have received the correct
and consistent induction and training. During the year,
we focused on developing the information included in the
induction presentations to ensure that the process is as
efficient as possible for staff and subcontractors, while
providing the key messages in a consistent way.
Occupational health
Similarly, we continue to develop our approach to
occupational health, building on the learnings from the
review performed last year. One of the key initiatives this
year was the appointment of third party occupational health
specialists Medigold to perform individualised employee
screening to ensure our people are medically fit for their
role, that they have the right support in place to perform
effectively and additionally, help minimise the likelihood
of future sickness absence.
Following an initial role-based risk assessment,
Medigold perform a detailed occupational health
screening assessment which is helping us to:
Identify whether an individual has any health problems
that could be adversely affected by the work they
will be conducting, or which may affect their ability
to perform the role effectively.
Access expert clinical advice on any workplace
adjustments required for employees who declare
a medical condition.
Demonstrate our commitment to employee wellbeing.
Remain compliant with the Equality Act 2010.
Other focus areas
In addition to the broader initiatives to drive continuous
improvement in safety culture and behaviour, we continue
to identify focus areas where we can make targeted
interventions to improve performance. During the
year, these have included managing plant-pedestrian
interfaces, better planning to avoid services, and
simplifying communications.
Looking forward
Alongside our peers in industry, we will focus
on and prioritise ‘fatal risks’ of works at height,
working with electricity, use of plant and vehicles,
and lifting operations.
Following a summit of our leaders, we will continue
to work to ensure that the HS&E section of our BMS
remains fit for purpose, simple to use and intuitive
across all parts of our diverse and growing business.
We received the Princess Royal Training Award for our Choose the Safe Path
Virtual Reality (VR) training initiative which focuses on the prevention of falling
objects and includes an interactive training package that offers employees
a real-life learning experience.
28 Galliford Try Annual Report and Financial Statements 2024
Our people
Our objective is to create an inclusive
environment and progressive culture
that enables individuals to reach
their potential.
Performance against our KPIs
Employee advocacy
Employee advocacy is a powerful indicator of how
engaged employees are, measuring how likely they are
to recommend our business as a great place to work.
In our 2024 employee survey, we achieved an employee
advocacy score of 87% compared to a sector average of
75%. Our employee engagement score, which is made up
of a number of factors including motivation, commitment
to our vision and pride in the company, was also above
the sector average at 74% compared to 66% for the
construction sector and 65% for UK companies. Analysis
by CultureAmp, our survey provider, indicates that
our people feel “valued, respected, and supported” by
colleagues and managers. This result has been achieved
against two years of a downward trend across the UK for
both participation and engagement levels, and what has
been described as a “turbulent” period for UK employees.
Data-led insights like this demonstrate we are earning
a place as a destination employer, not only within the
industry but across the UK.
Retaining, gaining and developing talent continues
be a focus of our people strategy. We have continued
to invest in our Employee Value Proposition (EVP)
‘Grow Together’ which delivers on our promise to be
a people-orientated, progressive employer driven by
our values. In support of this, we continued to promote
our internal mobility programme Explore page (30);
delivered training on Equity, Diversity and Inclusion
(EDI), made improvements to our learning and
development offer, as outlined on the following pages
and launched a dedicated Careers website to better
showcase the opportunities we have on offer. Reward
and benefits are a key part of our EVP, and, in response
to feedback about car benefits, we started a new
partnership with industry experts, Car Benefit Solutions
to offer eligible employees more extensive and flexible
options when selecting a car benefit.
Testament to our approach we placed 69 people internally
using Explore, and promoted 352 employees.
FY24FY23FY22 Ambition
8.0%
10.0%
10.2%
>9%
KPI
Early careers as a %
of total employees
1
10.2%
FY24FY23
FY22
Ambition
85%
86%
87%
>80%
KPI
Employee
advocacy
87%
FY24FY23
FY22
KPI
Women as a %
of total employees
Ambition
YoY
increase
21.2%
21.6%
22.5%
22.5%
1 We have revised the methodology used to calculate our early careers
numbers to align to the methodology used by The 5% Club, of which we
are a Platinum member. This now includes sponsored students on work
placements as well as graduates, apprentices and trainees as at 31 July for
the respective year. Historic numbers have been restated to reflect this.
29
Financial statementsGovernanceStrategic report
Early careers
Early careers roles (apprentices, trainees, graduates and
sponsored students) remain a key area of focus for both
retention and recruitment as these roles help us to grow
our own talent, shape our leaders and influence the
skill sets and composition of our future workforce,
including diversity.
We grew our early careers roles from 10.0% to 10.2%
of our workforce.
We were voted the number one place for apprentices
to work and number two for graduates in TheJobCrowd’s
list of Top Construction and Civil Engineering
Companies. In addition, Galliford Try ranked seventh
for apprentices and 26th for graduates UK-wide
out of more than 600 companies across all sectors.
We were among 20 companies out of a total of 600 to be
awarded the new Platinum membership of The 5% Club’s
Employer Audit Scheme in its first year of introduction.
Platinum members are participants who have achieved
Gold Membership for three consecutive years, and who
in their third year have 10% or more staff members in
‘earning and learning’ roles such as apprenticeships,
graduate schemes, sponsored students on work
placements or those studying for qualifications.
Gender diversity
Gender split of males and females across our
business at 30 June 2024
Gender
1
Female Male
plc Board 3 3
Senior grades (A-D)
2
85 609
Total company including plc Board 944 3,254
1 Gender figures are based on employee numbers at year-end.
2 Senior grades are defined as job grades A–D which encompass
senior managers and directors, excluding Board directors.
Employing more women in our business is key to accessing
diverse skills and talent.
This year, the proportion of females across Galliford Try
increased slightly to 22.5% from 21.6% last year.
We continue to use the voices and stories of women
in our business to provide role models both in our
business and beyond. In 2024, we held a podcast
with three senior women, who make up 40% of our
Infrastructure Leadership Team, talking frankly about
their wide and varied experience, including their
different routes into construction, the challenges
women face in the sector, and the progress the
industry is making in being more inclusive.
We launched a pilot programme titled ‘Mentoring
the Next Generation’ (page 37) specifically to spark
an interest in the construction industry for young
women in education, their parents, carers and teachers.
Five schools and circa 50 individuals have signed up for
the first year.
Since 2020, we have reduced our mean gender pay gap
from 28.8% to 22.5%, and our median gender pay gap
from 32.2% to 25.8%.
To further help women establish long-term, flexible
careers with us, we have commenced research into the
barriers to career progression for women across all
industries, the specific barriers for women in operational
roles in construction, the stages of women’s careers
these derailers take impact, and the areas we need to
target to make progress within our own business.
Areas of focus during the year
Learning and development
We use the 70:20:10 learning model, based on the
principle that 70% of learning happens through on-the-job
experience, 20% is learning from others and 10% of learning
happens via formal training experiences.
Our approach is delivered through the GT Academy,
a platform that brings together resources, training and
guidance with our own structured programmes and
extensively developed Career Paths that define the core
learning needed for various roles and the path to get there.
We have redefined our career development proposition to
enable us to establish a learning culture, ‘Careers without
Compromise’, across Galliford Try. Training materials have
been developed for both our line managers and employees
to encourage and support them to achieve better career
outcomes through active management of their careers.
We delivered 19,935 training days during the year (2023:
13,528), equivalent to 4.8 days per employee (2023: 3.6).
Promoting an inclusive culture
Our ED&I team is working with The Clear Company, a global
diversity and inclusion specialist, so that we continue to
embed the most inclusive practices across our organisation
on the back of our accreditation to their Bronze level in our
first ever EDI review in 2023.
Key developments in this area have been the design and
commencement of Inclusive Leadership awareness sessions,
which aim to equip senior management with knowledge
of how EDI influences business performance, and provide
them with skills to progress a culture of inclusion that
contributes to high performance.
We have reviewed and enhanced our family-friendly
offering (maternity and paternity pay) to ensure we deliver
on our promise to be a progressive, people-orientated,
inclusive employer and continue to offer a competitive
benefits package. Enhancing these benefits is likely to have
a positive impact on our ability to retain and gain women.
We also continued our series of education with in-depth
interviews with minority communities covering topics
including Pride and disability awareness.
As outlined on the left, we are also taking steps to
understand the potential barriers to the employment
and progression of women in our industry.
30 Galliford Try Annual Report and Financial Statements 2024
Our people continued
Retaining talent through
internal mobility
The challenge: in a market where there is fierce
competition for talent, we want to retain the skills
and expertise we have nurtured.
Our response: our ‘Explore’ programme encourages and
empowers employees to review opportunities within our
Group should they wish for a change in career, location,
discipline or working pattern. The programme heavily
advocates leadership support for moves within the
business and features videos, guidance and dedicated
resource to support managers and employees to take
advantage of the programme, while also showcasing
employee and line manager testimonials from recent
internal moves.
Benefits of Explore include:
Retention of high-quality talent that has been
invested in and already aligns to our culture.
Time and financial savings on costs otherwise
incurred by recruitment activities such as advertising
and managing applications.
Encouraging diversity by reskilling people
or reshaping pathways for growth within the
organisation, including leadership.
Boosting employee morale by supporting employees’
personal circumstances.
Building our brand by increasing employee satisfaction.
We continue to promote our agile and flexible working
practices, which are attractive to people with different
needs and support inclusion, offering flexibility to suit
individual needs including staggered start and finish times,
job shares, compressed hours, sabbaticals and return to
work programmes as well as remote working.
Enterprise Resource Planning (ERP)
We continue to embed and drive efficiencies via
‘Orbit’, our cloud-based ERP system with a key focus
on using data and insights to support informed
decision-making across the organisation.
Looking forward
Our focus for the next year will be to:
Continue to strengthen our employer brand
and EVP to raise awareness of Galliford Try in
the employment market.
Develop our induction experience to give our people the
best new starter experience with effective delivery of
core knowledge, key training and orientation areas and
promoting our culture.
Review and update our Career Paths.
Enhance the inclusivity of our recruitment practices
including our focus on outreach to untapped talent pools.
Continue to work with the Clear Company
to progress our Clear Assured accreditation.
Launch our Hiring for Potential programme which
focuses on selecting candidates based on their capacity
to grow, develop, and excel in a role, rather than solely
focusing on their past experience or existing skill set.
Strategy in action
69
placements provided
internally since the
introduction of Explore.
£303m
of Social and Local Economic Value
created through the work we do.
2030
verified science-based target
to reduce carbon emissions
by 42% compared to 2021.
Financial statementsGovernanceStrategic report
Socially and
environmentally
responsible
delivery
Our approach to protecting the environment
and biodiversity, tackling climate change and
being a valued member of the communities
we work in is key to achieving our aspirations.
31
32 Galliford Try Annual Report and Financial Statements 2024
Environment
and climate
change
Our objective is to adopt sustainable
resourcing and consumption practices
and take measures to mitigate
carbon production and climate
change to protect our environment
and biodiversity.
CY23CY22
CY21
Ambition
Net zero
by 2030
9,315
10,751
10,486
KPI
Scope 1 and 2
carbon emissions
1,2
(market-based)
(CO
2
e tonnes)
10,486
CY23CY22
CY21
Ambition
Net zero
by 2045
5,829
8,545
7,128
KPI
Scope 3 verified
carbon emissions
1,2
(CO
2
e tonnes)
7,128
CY23CY22
CY21
Ambition
YoY
decrease
21.0
21.8
17.7
KPI
Waste intensity
1,2
(tn/£100k revenue)
17.7
1 Carbon dioxide equivalent emissions and waste intensity are reported by Calendar Year (CY), therefore the emissions reported for FY24 relate to the
calendar year 2023. Since 2014, our reported emissions have been externally verified to the ISO 14064-3 assurance standard.
2 Emissions relating to the Rock & Alluvium business, which was sold in November 2023, have been excluded from CY23 emissions. CY22 and CY21 emissions
have been restated to exclude emissions for Rock & Alluvium.
Our project at Ascot Sewage Treatment Works provides a major increase in treatment capacity and improvements to river health.
33
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Performance against our KPIs
Scope 1 and 2 carbon emissions
Our Scope 1 emissions predominantly relate to fuel use in
company cars and vans, and on-site plant and equipment.
Our Scope 2 emissions relate to consumption of electricity
across our sites and permanent offices.
In 2023, our scope 1 and 2 emissions demonstrated
a continued transition from fossil fuels to electricity.
Emissions relating to the use of diesel on our sites were
down 9.1%, and emissions relating to company cars and
vans were down 6.9%. This was offset by an increase in
emissions relating to electricity consumption which is
driven by a number of factors, including:
Company car business mileage claims transitioning from
diesel/petrol cars to Electric Vehicles (EVs).
The increased number and usage of EV chargers at our
sites and offices, some of which relates to personal use
in addition to business use.
More people in the office more often, resulting in greater
use of electricity.
Because electricity represents an increasing proportion of
our scope 1 and 2 emissions, and we purchase 86% of our
electricity on renewable tariffs (2022: 84%), we are now
using market-based Scope 2 emissions within our headline
scope 1 and 2 emissions KPI. This also aligns with our
science-based target which is based on market-based Scope
2 emissions. The market basis uses emissions factors that
reflect our actual electricity supply contracts and therefore
allows us to demonstrate the impact of purchasing our
electricity on renewable tariffs. The location basis uses
the average generation mix for the UK and as such, is
susceptible to changes that are outside of our control.
On a market basis, our total scope 1 and 2 emissions
have reduced by 2.5% year on year, but have increased
by 0.4% on a location basis.
Growth of the business has a significant impact on both
scope 1 and 2 emissions. We therefore monitor emissions
intensity, measured in tonnes (t) of carbon dioxide (CO
2
)
equivalent (tCO
2
e) per £100,000 of revenue in the
corresponding calendar year, to provide a clearer picture
of the impact of our emission reduction initiatives.
Our scope 1 and 2 (market-based) emissions intensity
reduced by 16% from 0.82 in 2022 to 0.69 in 2023. This
demonstrates that we continue to make good progress
in reducing the carbon intensity of our operations.
We have now reduced our reported scope 1 and 2
emissions by 66% since 2012, and by 71% on a like-for-like
basis, adjusting for acquisitions, disposals and changes to
methodology. We remain committed to achieving our
target of achieving net zero by 2030.
Scope 3 – verified emissions
We include certain categories of Scope 3 emissions
within the boundary of the external verification
where we have sufficiently reliable source data, such as
business travel expense claims, and information regarding
employee commuting to calculate emissions using a
distance-based method.
Our verified Scope 3 emissions reduced by 16.6% from
8,545 tCO
2
e in 2022 to 7,128 tonnes in 2023. The biggest
contributor to this reduction was a 34% fall in emissions
relating to employee commuting. These emissions are
estimated using responses from an employee commuting
survey and the reduction is driven by more accurate
information as a result of a higher survey response rate
and improved data quality.
Estimated full Scope 3 emissions
In 2022, we estimated our full Scope 3 emissions using
a spend-based approach. This involved analysing our
expenditure by type of products and services, mapping
those items to industry categories, and then applying
generic spend-based emissions factors for those industries
to estimate emissions.
This method is supported by the GHG Protocol Corporate
Accounting and Reporting Standard for initial carbon
footprinting while working on improving data quality
and accuracy, and gave us the following insights:
Scope 3 emissions represent circa 98% of our total
carbon footprint.
Emissions relating to the materials and subcontract
services that go into our projects represent circa
89% of our total carbon footprint.
Concrete and steel are by far the largest source of
emissions, due to the volume of these materials that
we use, and their high carbon intensity.
However, weaknesses in the spend-based methodology,
as acknowledged in the GHG Protocol reporting standard,
limit its effectiveness as a methodology to monitor carbon
reduction progress. For example, in 2023, our Morrison
Construction team began using Electric Arc Furnace
(EAF) steel on all educational projects. The manufacturing
method of EAF steel significantly reduces the use of fossil
fuels, delivering a circa 77% saving on carbon, compared
to traditional manufacturing processes. However, using
the spend-based methodology, the estimated emissions
associated with using this steel would show no carbon
saving and may even result in higher emissions depending
on the market price of the material.
Therefore, having completed our initial full Scope 3
footprinting exercise, we are now focusing on developing
a quantity-based approach to estimating emissions and
have ceased reporting of estimated full Scope 3 emissions
using the spend-based methodology.
We are currently working with our supply chain and
technology partners to develop and trial technology
solutions that allow us to estimate our supply chain
carbon emissions using actual quantities and product-
specific emissions factors. We are working with Causeway
Technologies and a group of tier 1 contractors and suppliers
to develop an automated, real-time carbon reporting
solution which extracts actual volumes and specifications
of materials purchased from invoices processed through
the Tradex electronic invoicing system, and applies supplier
specific emissions factors to calculate the associated carbon
emissions. Our Infrastructure business is trialling Qflow,
a tool that estimates embodied carbon based on delivery
tickets, as outlined below.
34 Galliford Try Annual Report and Financial Statements 2024
Waste intensity
Our waste intensity decreased from 21.8 tonnes per
£100,000 of revenue in calendar year 2022 to 17.7 tonnes
per £100,000 of revenue in calendar year 2023. Waste
continues to be an area of focus, with increased use of
Modern Methods of Construction, especially off-site
manufacture, which can reduce the volumes of waste
produced. Our focus on Right First Time also reduces
waste through increased accuracy of materials required.
We also manage our waste streams to maximise recycling
and minimise waste to landfill, with 95.3% of our waste
diverted from landfill (2023: 94.5%).
Areas of focus in the year
Net zero route map
In support of our science-based and net zero carbon targets,
we have developed and published our first net zero route
map. The route map identifies 16 activities where action
is required if we are to achieve our emission reduction
targets. These include: the use of diesel, company vehicles,
site compounds, permanent offices, business travel, design,
construction materials, emissions measurement, internal
carbon charging and offsetting.
For each of the activities, the route map outlines the
timeline of the actions we have already taken or are
underway, the actions we still need to take, and our
ultimate ambition.
For the activities that contribute towards our scope 1 and
2 net zero by 2030 target, the actions are more specific
because we have a greater degree of control over these
activities, we have better data, and the target year is closer.
For the activities that contribute towards our Scope 3 net
zero by 2045 target, the actions through to the target year
are less well-defined, and will continue to evolve as we
develop more accurate emissions measurement techniques
and engage with our clients and supply chain partners on
low carbon materials and construction methods.
The route map is intended to be a guide for our teams across
the business to understand the actions they need to be
taking and when. It also is a means of communicating to our
clients, supply chain and other stakeholders the journey
we collectively are on and the role we need them to play.
Energy saving opportunities
During the year, we performed a programme of site
energy audits as part of our compliance with the Energy
Savings Opportunity Scheme (ESOS) Phase 3. As a result
of this exercise, we have identified opportunities to save a
total of 12 million kWh of energy per annum, representing
a 24% saving on 2023 energy use. The largest of these
opportunities relate to electrification of our commercial
vehicle fleet, widespread adoption of more energy efficient
hybrid generators and greater use of telematics to monitor
how we use equipment and drive behavioural change. These
opportunities have now been incorporated into our Green
Site Set Up guide and will be rolled out across the Group
during 2024/25.
Environment and climate change continued
Using Qflow to capture
data-led insights into
decarbonising our operations
The challenge: the materials and subcontract services
that are used on our projects represent some 89%
of our total carbon footprint. However, collecting data
and Goods Received Notes (GRNs) from a diverse
supply chain is acknowledged as one of the most
challenging areas of reporting embodied carbon in
the construction industry.
The solution: on our Melton Mowbray Distributor
Road project, we have adopted Qflow to automate data
capture through photos and processing by extracting
information from both paper and digital delivery and
waste tickets, using Artificial Intelligence technology.
This allows us to generate data-driven insights to
enable decision-makers to make choices that
improve decarbonisation.
Strategy in action
35
Financial statementsGovernanceStrategic report
Environmental incident reporting
Environmental incidents, such as silt pollution of
watercourses or other disturbance of sensitive ecology
can have a significant detrimental impact on the natural
environment but can be difficult to identify. To raise
awareness of these issues and improve our performance,
we are rolling out a training programme using Institute
of Environmental Management and Assessment (IEMA)
accredited trainers and resources. All site-based staff
undertake the one-day Site Environmental Awareness
Training Scheme (SEATS) training, with management roles
also undertaking the IEMA Management training. As a
result of the raised awareness, we have developed greater
visibility and a better understanding of risks and develop
pre-emptive actions to mitigate the physical risks to the
natural environment.
Water management
The effective management of water resources is of growing
importance both in terms of managing our operational
risk and protecting the natural environment. More regular
intense rainfall events increase the risk of run-off from
our sites, while periods of high temperatures and drought
conditions can put restrictions on activities that require
water usage, such as dust suppression and use of welfare
facilities. Our project environment plans already include a
water management section which addresses management
of consents for water abstraction and discharge, and water
course pollution control. However, we also recognise the
importance of responsible use of water resources, including
measures to reduce water consumption. Therefore during
the year, we have started recording water consumption
data as part of our environmental reporting and will use
this to establish baseline performance and to inform the
development of water reduction targets.
Carbon Disclosure Project (CDP)
We continue to participate in the CDP, a global disclosure
system for organisations to manage their environmental
impacts. In 2023, we achieved an improved score of B
‘Management level’, (2022: C ‘Awareness level’), recognising
the progress we are making in embedding climate action
into our governance, strategy and operations.
Streamlined Energy & Carbon
Reporting (SECR)
The data included in the table to the right together with
the scope 1 and 2 emissions intensity ratio disclosed on
page 33 covers the reporting requirements detailed in the
SECR regulations. As we report our carbon and energy
data in calendar years, the following section represents
our carbon and energy performance for Galliford Try for
the calendar years 2023 and 2022.
Emissions source
Tonnes of CO
2
e
2023
1
2022
Emissions from combustion of gas
(Scope 1) 233 176
Emissions from combustion of fuel
for transport purposes (Scope 1) 4,493 4,824
Emissions from fuel oil supplies ie
diesel consumed (Scope 1) 4,612 5,073
Fugitive emissions from office
facilities ie air conditioning
systems (Scope 1) – 51
Emissions from purchased
electricity (Scope 2, location-based) 2,021 1,192
Emissions from purchased
electricity (Scope 2, market-based) 1,148 626
Emissions from fuel and
energy-related activities (Scope 3) 3,019 2,851
Emissions from business travel
(Scope 3) 791 645
Emissions from employee
commuting (Scope 3) 3,318 5,049
1 Emissions relating to the Rock & Alluvium business, which was sold in
November 2023, have been excluded from 2023 emissions. 2022 emissions
have been restated to exclude emissions for Rock & Alluvium.
Methodology and conversion factors
Carbon dioxide equivalent emissions (tCO
2
e) are
calculated using the GHG Protocol Corporate Accounting
and Reporting Standard and the UK Government GHG
Conversion Factors and Methodology for Company
Reporting 2022. The emissions included in the table above
have been externally verified to the 14064-3 standard by
the Carbon Trust. Emissions cover all those arising from
our fleet, gas and electricity in all offices and sites and all
other fuel used directly (for example diesel on site) including
our share of emissions from joint ventures. Where data
is obtained in litres used and distance travelled, these
conversion factors have been used to convert to kWh.
Annual energy usage
Our total energy use, calculated from Defra 2023
conversion factors, for all our UK activities increased by
4.3% in 2023 to 51,001,569 kWh (2022: 48,790,886 kWh).
This increase reflects the growth of the business, which
has been partially mitigated by energy efficiency measures,
including the transition to renewable energy.
Energy consumption is calculated using the same reporting
boundary (operational control) that we use to calculate
our carbon emissions. This increase reflects the growth of
the business, but has been minimised by energy efficiency
measures, including the transition to renewable energy.
Looking forward
Implement the energy saving opportunities identified in
the ESOS energy audits.
Develop water consumption reduction targets.
Develop embodied carbon reporting technology solutions
and incorporate them into our Scope 3 methodology.
36 Galliford Try Annual Report and Financial Statements 2024
Communities
Our objective is to make a positive
impact in communities where we
operate by delivering greater social
value and improving lives.
Performance against our KPIs
Social and local economic value
Delivering a legacy of positive social value outcomes
is a key part of our strategy. This is the right thing to do
as a responsible business and is also an increasingly
important priority for our clients. The Construction
Playbook states that central Government tenders must
include a minimum of 10% of their evaluation criteria
dedicated to social value, and the priority themes and
outcomes are set out in 2020’s Procurement Policy
Note (PPN) 06/20 – Taking Account of Social Value
in the Award of Central Government Contracts.
We measure the community impact we deliver on our
projects using the Social Value Portal (SVP), a tool which
is backed by the National TOMs (Themes, Outcomes
and Measures) Framework, and helps organisations
measure, report and enhance their social value. On the
24 projects (2023: 35 projects) over £5m completed
during the year, we delivered £303m in Social and Local
Economic Value (SLEV), with 79% of projects exceeding
our benchmark of 25% of project value (2023: 94%).
Considerate Constructors Scheme
The Considerate Constructors Scheme (CCS) is an industry-
wide organisation that strives to improve the image of the
construction industry and leave a positive legacy through
implementation of best practice in the areas of community
engagement, the environment and workforce wellbeing.
CCS scores and benchmarks construction sites in terms of
their positive impact within their locality. We maintained
an above target high score of 42.9 (2023: 43.4) out of 50,
which remains above the industry average of 40.6.
Our project teams from across Galliford Try and Morrison
Construction received 15 awards at this year’s CCS
National Site Awards, including four gold, three silver
and eight bronze. The CCS National Site Awards recognise
exceptional projects that demonstrate commitment
to support and drive positive changes within the
construction industry.
We are also a member of the CCS Social Impact Group
which has been formed to help standardise social impact,
increasing understanding, engagement, and communication
of social value for the supply chain and stakeholders.
FY24FY23
FY22
Ambition
50%
94%
79%
>60%
KPI
% of completed projects
delivering >25% SLEV
1
as a % of contract value
79%
FY24FY23
FY22
Ambition
41.8
43.4
42.9
>39
KPI
Considerate
Constructors Scheme
(CCS) performance
2
42.9
1 SLEV (Social and Local Economic Value) is a measure for the social
contribution made to society, in particular to the local community,
estimated using the National TOMs (Themes, Outcomes, and
Measures) Framework. The threshold of 25% was selected based on
the SVP’s (Social Value Portal’s) 2021 Social Value Benchmarking
Report. The SVP’s analysis of 1,480 UK construction projects
completed in the seven years to 2019 identified that the average
SLEV as a percentage of project value was 24.67%. In its 2023 report,
SVP reported that in 2023, the average SLEV% was 23.6%.
2 The maximum achievable score is 50, if full innovation points
are awarded. Our target is to be greater than 39.0, which is the
minimum score to achieve the ‘Excellent’ performance level.
37
Financial statementsGovernanceStrategic report
Mentoring the
Next Generation –
encouraging young
females into construction
The challenge: while women make up 23% of our
business, we are not representative of the wider
construction industry where only 15% of employees
are women.
Showcasing construction as a rewarding career
is important to attracting future talent. Often
misconceptions about career opportunities, disciplines,
role types and the working environment can negatively
influence the way students, parents, carers and teachers
may consider our industry.
Our response: we have launched a pilot mentoring
scheme aimed at encouraging the next generation
of women into construction by teaming up initially
with five schools in the East Midlands. Mentors from
our business have been paired with students over a
three-year programme that will showcase the vast
and rewarding opportunities in the sector. Individuals
on the programme will benefit from upskilling their
communication skills for the workplace, career matching
to their interests, and guidance with CV writing and
interviewing. They and their educators will gain
insights into construction alongside STEM activities
and teamwork from people who have carried out roles
they are interested in. The final year will culminate in
career pathways into Galliford Try, where individuals can
choose a role they are interested in, and be supported
with preparation for interviews to kickstart their careers
with Galliford Try.
Scan the QR code to watch the video.
Areas of focus during the year
Outreach to ex-offenders
Following on from our participation in the ‘Unlocking
Construction’ programme in 2023, we have continued our
programme of outreach to the ex-offender community.
Our Outreach Partner is building relationships with
prisons to promote careers and opportunities within the
construction industry to prison leavers. As well as helping
the sector fill skills gaps, we aim to promote positive change
for ex-offenders, reducing the likelihood of repeat offending
and benefiting wider society. We are now engaging with
20 prisons across the country, delivering a range of
activities including employability workshops and other
recruitment events that provide prison leavers with the
knowledge and support required in preparation for release
on temporary licence and permanent work opportunities.
Institute of Corporate Responsibility
and Sustainability
Our community and social value activities are delivered
locally by our project teams and supply chain partners,
and are co-ordinated by our network of Social Value
Managers (SVMs). This year, to support our SVMs,
we became organisational members of the Institute
of Corporate Responsibility and Sustainability. Through
this membership, which is integrated into our GT Academy
learning and development platform, our SVMs now have
access to a range of resources, including a competency
framework to support their ongoing professional
development, and access to peer networks to share
good practice.
Strategy in action
3
year mentoring
programme
Scan the QR code to
watch a video from
some of our mentors.
38 Galliford Try Annual Report and Financial Statements 2024
Open Doors
We took part in the Open Doors initiative again this year,
with 251 students visiting 12 sites to gain insights into
how we operate our sites, how we work alongside our
subcontractors and supply chain, and what a career in
construction can offer. We delivered presentations about
possible career paths, the work we participate in, and gave
attendees the opportunity to take part in site tours and see
how a live site operates. This work forms part of our early
careers commitment and is part of the broader engagement
with the communities in which we operate.
Volunteering and charitable donations
One of the most tangible ways in which we create a positive
legacy in the communities we work in is through our staff
and supply chain volunteering their time and resources to
support community projects and causes. During the year,
our own staff recorded 3,056 hours of volunteering time.
However, as it is difficult to capture all volunteering time,
including that of our supply chain partners, we know the
true amount is significantly higher. To embed a volunteering
culture, volunteer days are incorporated into our graduate
training programme, and all employees are able to take up
to two days of paid leave to undertake voluntary activities.
In addition to volunteering hours, we donated time,
materials and money to the value of £365,000
(2023: £347,000) to charitable and community causes
including Crash, the UK construction industry charity
for the homeless, which we remain a patron of.
Looking forward
We plan to:
Continue the roll out of Mentoring the Next Generation,
including promotion of the programme to a wider range
of schools to recruit the 2025 cohort.
Further promote community engagement and
volunteering and better capture volunteering time.
Enhance the alignment of our existing processes to the
Considerate Constructors Scheme audit checklist.
Communities continued
A community legacy
Our team at the Brent Cross project supported the
creation of a kitchen garden and outdoor learning
environment for children at the nearby Claremont
Primary School.
The school already had a permanent canopied space
outside, where they distribute foodbank donations to
the children’s families on a weekly basis.
Volunteers from our team, the supply chain and beyond
gave a combined 238 hours over six days, with over
£700 in donations and almost £2,000 in materials.
Together, we used former materials to build bench
seating, workstations, raised beds and box-planters,
we revamped the existing storage, and provided
bedding plants such as herbs, vegetables and flowers
to attract pollinators.
The new facility provides an opportunity for children
to learn how to grow and nurture food, and for families
to prepare the fresh produce and have social cook-outs
using the ovens provided by the school.
Strategy in action
238
hours of time given to
create the kitchen garden
£2.7k
in donations
and materials
Quality and
innovation
We deliver excellence for our clients
by providing high-quality products
and services, and by engaging and
upskilling our supply chain to gain
the best from them.
93%
of our work is repeat business.
92%
of work secured for FY25.
Financial statementsGovernanceStrategic report
39
40 Galliford Try Annual Report and Financial Statements 2024
Clients
Our objective is to deliver superior
buildings and infrastructure with
a better social footprint for clients
through a focus on innovation,
digitalisation and quality.
Performance against our KPIs
Repeat business in our order book
Our performance is driven by understanding client
priorities, building trusted relationships, providing
technical expertise to solve client challenges and delivering
high-quality buildings and infrastructure. This is reflected
by the fact that 93% of the work in our order book is repeat
business, with clients who we know and have collaborative,
long-term relationships with, based on a track record of
delivering a high-quality product.
Revenue secured at the start of the financial year
We continue to have a strong pipeline of work in our chosen
markets, with 92% of FY25 revenue already secured.
Areas of focus during the year
Strategic partnering through frameworks
Our focus on delivering quality outcomes and building
trusted relationships with our clients is reflected by the fact
that 86% of our order book is in frameworks. Frameworks
are a vehicle for the public and regulated sectors to procure
projects in a collaborative manner, forming long-term
relationships, improving quality and creating efficiencies.
Securing positions on frameworks is our preferred route
to market as it provides us with greater certainty and the
ability to act more strategically. Key benefits include:
Aligned objectives with acceptable risk.
Established and well-understood terms and conditions
with predictable behaviour.
Transfer of knowledge from project to project, creating
an environment of continuous improvement.
Efficient and streamlined procurement processes.
The development of long-term strategic relationships.
Long-term visibility of opportunity pipeline.
FY24FY23
FY22
Ambition
94%
87%
93%
>80%
KPI
% of repeat business
in our order book
93%
FY24FY23
FY22
Ambition
90%
92%
92%
>85%
KPI
% of full year planned
revenue secured at the
start of the financial year
92%
Chief Executive Bill Hocking at the signing ceremony for the Defence Estate Optimisation portfolio partners.
41
Financial statementsGovernanceStrategic report
Example of our framework visibility
Highways
Environment
Defence
Education
Health
FM
Commercial
& other
Midlands Highways Alliance + Midlands Highways Alliance +
YORcivil3
National Highways RDP
National Highways IDF
CCS Residential
CCS Residential
National Highways Pavement Delivery Framework
CCS framework for Security
– Physical, Technical and Support Services
NHS NOE CPC Specialist Estates
Engineering & Maintenance Services (Hard FM) Framework
Long Term PPP Hard FM and Lifecycle contracts
National Highways Scheme Delivery Framework
Dwr Cymru Welsh
Water AMP7
Severn Trent
Water AMP7
Severn Trent Water AMP8
Thames Water
AMP7
Thames Water AMP8
Wessex Water AMP8
Yorkshire Water AMP8
Northumbrian
Water AMP7
Dwr Cymru WelshWater AMP8
South West Water AMP8
Northumbrian Water AMP8
Southern
Water AMP7
Wessex
Water AMP7
Yorkshire
Water AMP7
South West
Water AMP7
Southern Water AMP8
Scottish Water DV2
Scottish Water SR21/DV1 Scottish Water SR27/SR33/DV4
Crown Commercial Services (CCS) CCS
CCS
CCS
Ministry of Justice Constructor Services Framework
Defence Estate Optimisation Portfolio
NHS North of England Commercial Procurement Collaborative
(NOE CPC) Specialist Estates Engineering & Maintenance
Services (Hard FM) Framework
Department for Education
(DfE) Construction Framework
DfE Construction Framework
Scottish Hub Programme
NHS England (NHSE) ProCure23
NHSE ProCure24
CCS Facilities Management
and Workplace Services framework
Constructing West Midlands Constructing West Midlands
Procure Partners
hips
Southern Construction Framework
2024Sector
2025 2026 2027 2028 2029
2030
Custodial
Asset Security
Affordable
Homes
Communities & Housing Investment Consortium Newbuild Development Framework
Homes England Dynamic Purchasing System
Secured Projected
42 Galliford Try Annual Report and Financial Statements 2024
Gold Standard frameworks
In March 2024, we were awarded a place on the
Communities & Housing Investment Consortium (CHIC)
New Build Development Framework for affordable
housing, one of the first frameworks to be verified as
the ‘Gold Standard’ of construction.
‘Constructing the Gold Standard’ is an independent
verification scheme that sets out 24 recommendations to
help clients identify what questions they should ask when
creating and implementing construction frameworks and
alliances, what answers they should expect, and guidance
on how they can make informed decisions.
Securing a place on this framework supports our strategic
objectives in the affordable homes sector and will ensure
that we collectively adopt urgent recommendations for
improved value, reduced risks and achievement of net zero
on construction projects procured through this route.
Low carbon construction
Our ability to support clients in achieving their carbon
reduction objectives, and demonstrate how together we
can meet the Government strategy for net zero carbon,
alongside our own net zero commitment by 2045 is key
to our success.
Examples of some of the low carbon projects we have
delivered during the year include:
Greenhead College
The Greenhead College sixth form building, is part
of the first wave of the Department for Education’s
School Rebuilding Programme, which is funding the
rebuilding and refurbishment of 500 schools and colleges
across the UK. The design removes the use of fossil
fuels and adopts a fabric-first approach to improve
the envelope of the college, reducing energy demand
through passive design methods, and helping achieve
net zero carbon in operation, based upon the target
2050 grid carbon factor.
Catherine School
The £14m new building, built on behalf of the
Department for Education, features a high-performance
envelope and insulation, air source heat pumps,
photovoltaic panels, heat recovery and solar-powered
wind catchers, alongside a natural ventilation system,
to achieve its net zero carbon in operation target.
Shireland Academy
A five-storey office building in Sandwell has been
completely remodelled internally, providing facilities
for 870 students, including a triple height performance
hall within an existing atrium leaving the main structure
of the building untouched, including the existing fabric,
external cladding and internal stairwells. The open plan
office space surrounding the original atrium has been
refitted and repurposed, while the car park has been
turned into an outdoor social space for students. The
repurposing of an existing building has also delivered
significant embodied carbon savings compared to an
equivalent new build project.
Looking forward
We plan to:
Maintain and develop our presence on frameworks.
Maintain ISO44001 Collaborative Relationship
Standard in support of our collaborative relationships
with our clients.
Clients continued
Greenhead College in Yorkshire.
43
Financial statementsGovernanceStrategic report
How digitalisation will drive
our strategy for margin and
revenue growth
Digital tools are driving our performance by creating
a more efficient approach to project delivery. They are:
Improving safety by reducing the need to be on site.
Enhancing quality by accurately relaying live
data to enable informed decisions, reducing errors
and rework.
Enabling collaboration by facilitating simultaneous,
real-time adjustments by multiple parties remotely.
Improving visualisation by enabling the visualisation
of 3D models in a life-like environment, making it
easier to identify potential design flaws.
Supporting training with lifelike Virtual Reality,
reducing the risk of accidents and injuries.
Lowering carbon and saving time by reducing waste
through increased accuracy and reducing the need
for travel.
Driving down costs by speeding up processes and
freeing up employees to carry out higher value work.
Examples in our business include:
Digital twins: we have developed the capability
to produce digital replicas of water assets to allow
engineers to remotely monitor and optimise plant
performance. This enables us to deploy the knowledge
of skilled experts who are in short supply nationwide.
Digital mapping: we are combining advanced
technology laser scanning with traditional surveying
practices to efficiently capture and create accurate
representations of physical spaces. This mapping
enables teams to share information and collaborate
on design and operational management issues of
client assets in real-time, enabling effective triage
of issues and better planning.
Augmented Reality: we are using software to overlay
3D design models with augmented reality to simulate
the next sequence of activity, highlighting potential
issues before they happen and creating efficiencies.
Artificial Intelligence is being used to take into
account factors such as productivity, waste
management, lean construction, sustainability, and
health and safety to lead to improved performance
and create cycles of continuous improvement.
Virtual Reality is being used to train our people on
high potential health and safety issues so they can
visualise risks in real locations and scenarios from
Galliford Try.
Digital photo records: we are using software to
capture regular 360 degree images and videos of
the live construction phases we build, which provides
progressive assurance to our clients and means that,
there is ‘as-built’ documentation of buildings for
future reference.
Strategy in action
44 Galliford Try Annual Report and Financial Statements 2024
Supply chain
Our objective is to align our supply
chain with our culture and create
collaborative relationships that
deliver best practice, innovation and
sustainable outcomes for clients,
communities and the environment.
Performance against our KPIs
Aligned subcontractors
We continue to focus on developing collaborative, long-
term relationships with our supply chain partners through
our Advantage through Alignment (AtA) programme.
AtA is designed to enable deep collaboration and provide
support to Aligned subcontractors through training and
education, by sharing our working practices, values and
our vision and by giving access to our behavioural safety
programme, Challenging Beliefs, Affecting Behaviour,
BIM training and Continuing Professional Development.
During the year, our core trades spend with Aligned
subcontractors was 61% (2023: 58%).
FY24FY23
FY22
Ambition
60%
58%
61%
70-80%
KPI
% of business unit core
trades spend with
Aligned subcontractors
61%
FY24FY23
FY22
Ambition
98%
98%
96%
>95%
KPI
Prompt payment:
% of invoices paid
within 60 days
96%
Prompt payment
As a signatory of the Prompt Payment Code, we are
committed to paying 95% of supply chain invoices
within 60 days. We continue to outperform this target,
with 96% of invoices paid within 60 days in the year to
30 June 2024 (2023: 98.1%) and the average days to pay
remains low at 26 days (2023: 26 days).
The implementation of a new ERP system during 2024,
had a short-term negative impact on performance, including
against the target of paying 95% of invoices from suppliers
with fewer than 50 employees within 30 days, with 79%
paid within 30 days (2023: 88%). We expect this metric
to improve again in the next financial year.
Areas of focus in the year
Group Supply Chain & Procurement Director
During the year, we appointed a Supply Chain &
Procurement Director. This is a new role, with the remit
of developing our strategic approach to supply chain
management, supporting the development of a strong
and Aligned supply chain to enhance delivery performance
and support the business’s future growth plans.
Our new director has been appointed as a Board member
of the Supply Chain Sustainability School which will drive
greater engagement with the School and help us leverage
the learning and development and other resources within
our own organisation, and across our supply chain.
Supplier onboarding
We have successfully upgraded our on-boarding platform.
One of the major new additions to the platform is
a Risk Radar which enables us to monitor live updates
on a company’s:
Financial health score.
Event incident data from the Health and Safety Executive.
Event incident data from the Environment Agency.
Information held by the UK Employment Tribunal.
Tax case information.
CIPS Corporate Ethics Mark
Our Infrastructure business has been awarded the
Chartered Institute of Procurement and Supply (CIPS)
Corporate Ethics Mark in recognition of its commitment to
ethical procurement and supply practices. To obtain this
recognition, organisations must have taken proactive steps
in the last 12 months to safeguard against unethical conduct
in procurement and supply management, including ensuring
that staff who select and manage suppliers are trained in
ethical sourcing and supplier management.
We intend to replicate the good practices developed within
our Infrastructure business across our other businesses
and achieve Group-wide accreditation in the future.
45
Financial statementsGovernanceStrategic report
Net Zero Partners
We continue to engage with our supply chain through
our Net Zero Partners initiative to support and learn
from our wider supply chain to accelerate our own net
zero journey and that of the wider industry. We have
undertaken regional supply chain and client engagement
sessions, project specific opportunity workshops and
one-to-one discussions with our major suppliers. We are
also participating in industry-wide events and working
groups to play our part in driving the industry towards
a net zero future. Examples of tangible carbon benefits
delivered through greater engagement with our supply
chain partners include:
Wernick Hire
We have been trialling their GreenSpace ECO cabin
which has achieved an A rated energy performance. The
cabin combines smart sockets, battery energy storage,
solar panels and enhanced draft sealing. Based on a
canteen, two changing rooms, an office and meeting
room/office this has provided us with energy savings of
466,000 kWh and a carbon saving of 85,000 kg CO
2
e.
Ainscough
We have continued to work closely with Ainscough
Crane Hire not only for their exemplary approach to
health and safety but also their ability to run their fleet
of mobile cranes on Hydrotreated Vegetable Oil. This
has assisted the business to reduce emissions and saved
circa 69,000kg of CO
2
e during our last financial year.
Looking forward
We plan to:
Enhance our digital capability across the Group to enable
more connected data and allow for even more visibility
of procurement activities, thus ensuring we can leverage
best value and take wider informed strategic approaches.
Alongside Advantage through Alignment, continue
developing our category management strategies
across our core supply chain activities. This will give us
enhanced closer relationships with our key strategic
supply chain partners, increase our management of risk
and ensure we continue to secure the right capacity
and capability to deliver our pipeline.
Implement ISO 44001: Collaborative Business
Relationships with our key supply chain.
Update and improve our supplier performance
management programme, ensuring that we cover all
areas of performance including new requirements for
aligned metrics, carbon and sustainability.
Hold a Group Supply Chain Conference to bring together
our Aligned supply chain from all areas of the business,
to ensure we cascade key messages around our business
plan, upcoming pipeline, sharing any key delivery
messages, and celebrating success.
Collaborating to drive
sustainability and innovation
The challenge: the design of the embankments on a
7.1 km section of the Melton Mowbray Distributor Road
scheme would have required the project team to import
8,829 tonnes of stone via 444 HGV movements. They
therefore sought a value engineering solution to reduce
time, cost and carbon emissions.
The solution: working with underground drainage
specialists Burdens and other project stakeholders,
we explored alternative solutions, leading to a new
innovation: Fildrain, an approved geocomposite drainage
layer that significantly reduced the volume of stone
required and avoided the associated vehicle movements.
This solution resulted in a 66% reduction in carbon
emissions and 50% decrease in construction time.
Strategy in action
66%
reduction in
carbon emissions
50%
saving in time
46 Galliford Try Annual Report and Financial Statements 2024
Human rights and modern slavery
Ensuring human rights
We are committed to upholding human rights and we take steps to prevent
slavery and human trafficking from taking place in our business and supply
chain. We fully support all UK legislation for human rights, recognising modern
slavery and human trafficking to be the most significant human rights risks
to UK construction businesses.
Action and performance
Since the Modern Slavery Act came into force, we have
run awareness campaigns comprising posters, videos and
educational material aimed at helping people to recognise
the typical signs of modern slavery.
We ask suppliers of equipment and materials to our
businesses to consider the risk of modern slavery and
to ensure that there is no slavery or trafficking in their
supply chain.
During the year, we established a Modern Slavery Working
Group to identify and oversee further action we can take
to minimise the risk of forced labour and modern slavery
within our operations and supply chain. Actions that we
have taken in the year include reviewing our Modern
Slavery statement and performing audits of our preferred
supplier labour agencies.
Our independent and confidential whistleblowing
procedure encourages employees and third parties
to raise any potential concerns.
Anti-bribery and corruption
Policy and management
On joining, and every three years, all employees must
complete an online course regarding the Bribery Act.
Twice a year, every Business Unit managing director and
head of support function is required to sign a declaration
that their respective teams are aware of the policy and the
Code of Conduct, comply with their contents, and that any
issues have been reported.
Performance
No material issues were reported or identified.
Non-financial and sustainability information statement and non-financial key performance indicators
The information required to be included in our non-financial and sustainability information statement, under sections
414CA and 414CB of the Companies Act 2006, can be found in the following places in the Strategic report:
Area Key policies – available on our website
Further information on related risks,
KPIs and performance
Employees Health and Safety Policy Statement Pages 24 to 30
Employee Wellbeing Policy
Flexible Working Policy
Maternity Leave Policy
Paternity Leave Policy
Adoption Leave Policy
Shared Parental Leave (Birth) Policy
Shared Parental Leave (Adoption) Policy
Environmental matters and
climate-related matters
including TCFD disclosures
Energy Policy Pages 31 to 35 and 61 to 72
Environmental Policy Statement
Responsible Sourcing Policy
Sustainability Policy
Biodiversity Policy
Carbon Reduction Plan
Human rights Modern Slavery Statement Page 46
Social matters Code of Conduct – Doing the Right Thing Page 46
Anti-bribery and corruption Policy and Guidance on the Prevention of Corruption and Fraud Page 46
Tax s trategy
Corporate Criminal Offences Policy
Business model n/a Pages 4 to 7
Principal risks Risk Management Policy Pages 56 to 60
Sustainable
financial returns
This cornerstone of our Sustainable
Growth Strategy revolves around
delivering strong, predictable cash flows
and margin improvement and generating
increasing sustainable returns.
Financial statementsGovernanceStrategic report
47
Delivering
sustainable
growth
The Group has delivered another
strong financial performance, a year
of revenue, profit and margin growth,
alongside excellent shareholder returns,
and a stronger balance sheet. 2024
represented our fourth consecutive
year of forward momentum as we start
to deliver against our updated 2030
strategic targets.
Financial review
Financial performance
1,2
Revenue
£1,772.8m
(2023: £1,393.7m)
Divisional operating margin
1,2
2.5%
(2023: 2.4%)
Operating profit
before amortisation
1,2
£29.6m
(2023: £19.1m)
Profit before tax
2
£32.7m
(2023: £20.6m)
Statutory profit
before tax
£30.9m
(2023: £10.1m)
Full year dividend per share
15.5p
(2023: 10.5p)
Average month-end cash
3
£154.8m
(2023: £134.7m)
PPP portfolio
£41.8m
(2023: £44.6m)
1 See note 32 for a reconciliation of statutory numbers to
Alternative Performance Measures.
2 Pre-exceptional items unless otherwise stated.
3 Average month-end cash is a non-statutory measure the Group refers to,
being the average month-end cash balance over the financial year.
Revenue
Revenue increased by 27.2% from £1,393.7m in the last
financial year to £1,772.8m, with strong performances
in both Building and Infrastructure.
Building recorded increased revenue of £938.3m (2023:
£797.1m), up by £141.2m, primarily reflecting ongoing
organic growth supported by the delivery of the work that
was previously communicated as delayed by the macro
inflation and public sector procurement challenges in 2022.
Infrastructure contributed revenue of £819.8m (2023:
£590.8m), which is an increase of £229.0m, with our
Environment business benefiting from strong AMP7
demand. We are pleased to say the early contract awards
on the much larger AMP8 have started well, and we are
encouraged as to their long-term contribution to our
2030 targets.
Investments’ revenue was up significantly at £14.7m
(2023: £5.8m). This included initial development fees
related to the financial close of the division’s first Private
Rented Sector (PRS) scheme, in Cardiff, as well as the
ongoing project management fees associated with the
construction of the scheme itself.
48 Galliford Try Annual Report and Financial Statements 2024
Kris Hampson
Chief Financial Officer
Operating profit before amortisation
Our pre-exceptional operating profit before amortisation,
excluding the impairment of financial assets in 2023, was
up from £21.9m (£19.1m including the £2.8m impairment
of financial assets) to £29.6m resulting in an improved
divisional operating margin of 2.5% (2023: 2.4%).
Of this total, Building generated profit of £24.0m (2023:
£18.5m), representing a margin of 2.6% (2023: 2.3%), and
Infrastructure generated profit of £20.1m (2023: £14.5m),
representing a margin of 2.5% (2023: 2.5%).
Further details of divisional performance are set out
in the Operating review.
Pre-exceptional operating costs were £14.5m in aggregate
across Investments and Central Costs (2023: £11.1m),
while the comparative period included a £3.6m one-off
profit on the disposal of an interest in a joint venture entity.
Central Costs were £13.5m (2023: £12.5m).
Exceptional items
Exceptional items of £2.6m that were incurred in the
year (2023: £10.5m), as set out in note 4 to the financial
statements related to our investment in cloud-based
Enterprise Resource Planning (ERP) finance and commercial
systems as part of our investment in our digital and data
capabilities. The new system, Orbit, went into operation
in September 2023, and is driving efficiency by joining up
processes across our people, pre-construction, commercial,
finance and procurement processes and supporting
decision-making with its data and insights. Investing in
systems such as Orbit enables us to continuously improve
and optimise our processes ensuring we have a modern
solution that is fit for the future. We do not expect any
further exceptional items relating to the Orbit investment.
Details are set out in note 4 to the financial information.
The exceptional tax credit of £9.6m and associated interest
of £0.8m arises following amendments to company tax
returns filed in March 2024 and agreed by HMRC for
the period ending 30 June 2019. The amended returns
incorporated accounting adjustments arising from the
outcome of a previous FRC standard review enquiry
(concluding in March 2020), with the associated corporation
tax impact being recognised in the first available open
period, being 30 June 2019. The £9.6m credit arises
from additional group relief claims being filed for the
period, resulting in a refund due from HMRC for overpaid
corporation tax. The tax refund had not previously been
recognised as it was still at an early stage of discussion
with HMRC, who had initially rejected the Group’s
submissions, and as such it was not considered probable
it would be received.
Net interest income
Pre-exceptional net interest income of £5.4m is higher than
last year (2023: £4.5m), with the increase largely a result of
improved interest rates partly offset by increased IFRS16
lease interest charges. The £0.8m exceptional interest
credit arises as a direct result of the £9.6m exceptional tax
credit being due from HMRC noted above.
Profit before tax
Pre-exceptional profit before tax was £32.7m (2023:
£20.6m). Exceptional items of £1.8m (2023: £10.5m)
have been incurred in the period, largely relating to
our investment in digital finance and commercial
systems. Post-exceptional profit before tax was £30.9m
(2023: £10.1m).
Taxation
The pre-exceptional tax charge for the year is £4.8m
(2023: £3.1m), which equates to an effective tax rate of
14.6% (2023: 15.1%) for the year to 30 June 2024, after
allowing for prior year tax adjustments, which compares
to the standard effective tax rate of 25.0%. In previous
years, our tax rate was lower than the standard UK rate
of corporation tax due to non-taxable income. The rate is
lower in 2024 due primarily to the recognition of deferred
tax assets on previously unrecognised brought forward
tax losses, on executive share-based schemes, and the
unwinding of prior corporate interest restrictions. As
expected, our rate will normalise towards the standard
corporation tax rate in future years. The post-exceptional
tax credit is £5.3m (2023: £1.0m charge).
We have a constructive and open relationship with HMRC
and look to comply with both the letter and spirit of relevant
regulations and to pay our fair share of tax. Our tax strategy
is available on our website at https://www.gallifordtry.
co.uk/about/governance-and-policies/.
Earnings and dividends per share
We recorded pre-exceptional earnings per share for the
year of 27.9p (2023: 16.6p). The post-exceptional earnings
per share in 2024 were 36.2p (2023: 8.7p).
The Board declared an interim dividend of 4.0p per share
(2023: 3.0p), which was paid to shareholders on 12 April 2024.
For the financial year to 30 June 2024, the Board has
proposed a final dividend of 11.5p per share (2023: 7.5p),
bringing the total dividend for the financial year to
15.5p per share (2023: 10.5p), up by 47.6%. The full year
dividend in 2024 is covered 1.8 times (2023: 1.8 times)
by pre-exceptional earnings.
In its announcement on 8 June 2023 following settlement
of its longstanding dispute, the Group announced that the
Board had decided to declare a special dividend of 12.0p
per share, payable following publication of the Group’s
results for the financial year ending 30 June 2023.
The special dividend was paid on 27 October 2023 to
shareholders on the register as at 6 October 2023.
The ex-dividend date was 5 October 2023.
At 30 June 2024, the Company had distributable reserves
of £110.4m (2023: £115.0m).
49
Financial statementsGovernanceStrategic report
Financial position
Our strategy is focused on continued revenue and margin
improvement, and our capital requirements remain low,
with strong operational cash generation.
All parts of the Group have potential, with growth biased
towards higher-margin adjacent markets and specialist
businesses, and while we have developed a proven track
record of successfully identifying, acquiring and integrating
companies, our new targets do not assume any further
acquisitions. However, our capital allocation framework
allows further investment should opportunities arise in line
with our strategic priorities.
Cash and working capital
Our strong balance sheet, supported by a robust cash
performance and valuable PPP assets, is important for
clients; provides confidence to our supply chain; and
continues to provide a strong underpin for our future plans.
The Group is well capitalised, maintaining its focus on
disciplined cash management in line with the Board’s key
capital allocation objectives.
The Group operates with daily net cash, no bank debt
facilities, and no defined benefit pension liabilities. At
30 June 2024, the Group had a cash balance of £227.0m
(2023. £220.2m), with average month-end cash balance in
the year of £154.8m (2023: £134.7m). This demonstrates
continued robust cash management throughout the year.
Strong operational cash leverage and tight working capital
management supported capital allocation in the form of
circa £4m M&A consideration and circa £29m (2023 circa
£20m) of cash returns to shareholders in the period via
share buybacks and dividends.
At 30 June 2024, net working capital employed was
£274.6m (30 June 2023: £268.5m). Total equity at the
year-end was £122.4m (2023: £118.6m).
The Group has recognised a material provision in respect
of the estimated future costs that will be incurred during
a defects liability period on a specific contract. The
provision has been estimated at £14.6m (2023: £16.9m)
with a reasonable range of outcomes between £7.3m and
£17.5m. The Group has engaged with experts to support
the basis and range of calculations. Given the range of
reasonably possible outcomes and the judgement involved
in determining whether a provision should be recognised,
it is considered to be a critical accounting estimate and
judgement. Further details are provided in note 1 and
note 20 to the financial statements.
We continue to be proud of our collaborative and open
approach with all our supply chain. Our performance under
the Prompt Payment Code remained high, with 96% of
invoices paid within 60 days (2023: 98%) and average days
to pay invoices of 26 days (2023: 26 days).
50 Galliford Try Annual Report and Financial Statements 2024
Good capital management
Cash generation: our business is typically cash generative, as we receive regular payments from clients as projects
progress, and convert revenue and profit into cash. We do not require significant investment in fixed assets or
working capital and deploy a modest amount of cash for ongoing investment in the business and for investing in
PPP or co-development projects. This supports predictable cash flow, margin improvement and shareholder returns
as well as giving us the agility to respond to any adverse market conditions or M&A opportunities.
Financial review continued
Strong balance sheet to support operations
Competitive advantage.
Gives confidence to clients and supply chain.
Support disciplined approach to project selection.
Mitigate against any adverse market conditions.
Reinvest in the business
Enables strategic and
bolt-on acquisitions to
enhance capabilities.
Accelerates adjacent
market opportunities.
Ability to invest in technology
and training to drive quality
and efficiency.
Sustainable dividend policy
Dividend will increase
with earnings growth.
Delivering sustainable
returns to shareholders.
Return excess cash
Consider cash requirements
for future growth.
Return excess cash to
shareholders when appropriate.
Investments
At 30 June 2024, the Group directors’ valuation of our PPP
portfolio was £41.8m (2023: £44.6m), reflecting a blended
7.6% discount rate (2023: 7.3%). These assets contribute to
our balance sheet strength and generated interest income
in the period of £3.8m (2023: £3.9m).
Capital allocation and dividends
The Board is committed to maintaining a strong balance
sheet, which provides the Group with competitive
advantage in its market and supports our growth strategy.
Our capital allocation priorities remain unchanged, as set
out below.
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
is 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 management of
past inflationary pressures demonstrates 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 acquisition
of AVRS Systems in November 2023, and the acquisitions of
nmcn’s water businesses, and Ham Baker and MCS Control
Systems in previous years. Our strong cash balance 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 led to an improved
dividend policy, announced in September 2023, 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 dividends 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 strategy and has sufficient funds to invest
in the business. In September 2022, having reviewed the
Group’s strong cash performance and ongoing capital
requirements the Group launched a share buyback
programme of up to a maximum of £15m of shares of 50p
per share. On 17 November 2023, we announced the
completion of the share buyback programme with a total of
8,404,148 shares repurchased and subsequently cancelled,
representing approximately 7.5% of issued share capital. In
addition to this, the Group paid a special dividend of 12.0p
per share (amounting to £12.5m) on 27 October 2023,
as announced on 8 June 2023. 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.
Alongside our full year dividend at 15.5p per share, up
47.6% on last year, the Group is announcing a further share
buyback programme of a maximum of £10.0m, reflecting
both the corporation tax refund and our confidence in
future cash generation, while maintaining flexibility for
M&A opportunities as they arise.
Contingent liabilities
The directors ensure that contingent liabilities are
appropriately assessed, documented and monitored.
More information can be found in note 28.
Going concern and Viability Statement
Our going concern statement, together with further related
information, can be found in the Directors’ report on page
130. Our Viability Statement can be found on page 73.
Critical accounting policies and assumptions
Our principal accounting policies are set out in note one
to the financial statements, together with a description
of the key estimates and judgements affecting the
application of those policies and amounts reported in
the financial statements.
We use alternative financial performance indicators to
monitor our performance, alongside standard measures,
which are designed to be useful to investors by providing
a balanced view of our operations. An explanation of
these measures and reconciliations to the corresponding
statutory measures are included in note 32.
Kris Hampson
Chief Financial Officer
51
Financial statementsGovernanceStrategic report
52 Galliford Try Annual Report and Financial Statements 2024
Operating review
A strong
performance
We delivered another strong set
of results during the financial year
in our Building, Infrastructure
and Investments businesses.
Performance
Building
Building (which includes our FM business) had
a revenue of £938.3m (2023: £797.1m), generating
an operating profit before amortisation of £24.0m
(2023: £18.5m), representing a margin of 2.6%
(2023: 2.3%).
2024 2023
Revenue (£m) 938.3 797.1
Operating profit (£m)
1
24.0 18.5
Operating profit margin (%)
1
2.6 2.3
Order book (£m) 2,294 2,249
1 See note 32 for a reconciliation of statutory numbers to
Alternative Performance Measures.
Building’s revenue was up by £141.2m to £938.3m
(2023: £797.1m). Revenue has grown, as expected,
as we now benefit from the volume of new work that
was delayed by inflation and public sector procurement
challenges in 2022. We continue to target margin
progression, with the improvement in the period
reflecting the performance of projects across the
business and our strategy of focusing on bottom
line growth.
Our FM business continues to complement our
operations by providing high-quality building
maintenance services. We continue to grow the
capabilities of this operation, with a specific focus
on decarbonising existing buildings through retrofit
and other interventions. Our new operations within
the Affordable Homes sector are also reported
within Building.
Building won contracts and positions on frameworks
worth over £989m, (2023: £999m). This included
the £3.2bn Communities & Housing Investment
Consortium (CHIC) Newbuild Development Framework
for affordable homes, the £72m remodelling and
refurbishment of Adelaide House in central London
for St Martin’s Property Investments Limited, a £52m
30-storey build to rent development in Cardiff, an
£87m build to rent development for Related Argent
and Invesco Real Estate at Brent Cross Town, £101m of
public sector building projects for the Ministry of Justice
and Defence Infrastructure Organisation and the new
£69m Paisley Grammar School Community Campus on
behalf of Renfrewshire Council.
Building’s order book stands at £2,294m, compared to
£2,249m last year including 28% in education, 19% in
defence, 14% in custodial, 14% in FM and 4% in health.
£938m
revenue
£24m
operating profit
53
Financial statementsGovernanceStrategic report
Building a high-quality order book
Our order book underpins our future plans and gives us excellent medium term visibility of pipeline, meaning that
no part of the business needs to take on inappropriate levels of risk.
Our confidence in the quality of the order book comes from the following.
Our focus on core sectors increases our
understanding of contract risk, our ability to put
appropriate mitigations in place, and our ability
to successfully deliver quality projects.
We actively target and maintain places on public
sector frameworks in the UK as they help mitigate risk
by enabling us to work within established and known
terms and conditions and provide consistent pipelines
of work.
At 30 June 2024, 86% of our order book was in
frameworks (2023: 82%).
At 30 June 2024, 91% of our order book was in the
public and regulated sectors (2023: 87%), and 9% in
the private sector (2023: 13%) with carefully selected
blue-chip clients.
High visibility of the following year’s revenue gives
us further confidence to bid with the appropriate
discipline and selectivity.
At 30 June 2024, 92% of planned revenue for the
2025 financial year was secured (2023: 92%).
At 30 June 2024, the average contract size in
Building’s order book was less than £20m.
Strong visibility of workload
Order book by sector
A
B
C
D
E
F
£2.3bn
£m %
Building
£m
A Education 634
B Defence 437
C Custodial 329
D Facilities Management 324
E Health 87
F Commercial & other 483
Total £2.3bn
A
B
Infrastructure
£m %
£1.5bn
£m
A Environment 905
B Highways 641
Total £1.5bn
Strategy in action
54 Galliford Try Annual Report and Financial Statements 2024
Operating review continued
Performance
Infrastructure
Infrastructure’s revenue was £819.8m (2023: £590.8m).
The increase in revenue reflects the particularly high
level of activity across our Environment business,
as a result of strong AMP7 demand.
2024 2023
Revenue (£m) 819.8 590.8
Operating profit (£m)
excluding contract
settlement
1
20.1 14.5
Operating profit margin (%)
1
2.5 2.5
Order book (£m) 1,546 1,464
1 See note 32 for a reconciliation of statutory numbers to
Alternative Performance Measures.
Infrastructure generated an operating profit before
amortisation of £20.1m (2023: £14.5m), which
represents a margin of 2.5% (2023: 2.5%).
Infrastructure won contracts and positions on
frameworks worth £889m (2022: £659m).
These include the £3.1bn AMP8 Southern Water Capital
Programme Strategic Delivery Partner Framework,
South West Water’s Tier 2 Delivery Partners MEICA
framework, the Scottish Government’s £600m public
sector civil engineering works framework, the £500m
Generation Five (Gen5) Civil Engineering, Highways and
Transportation Collaborative Framework 2024-2028
and £98m of Infrastructure projects, in South London
for Thames Water, the Netley Water Treatment Works
in Surrey and, in the redevelopment of the A629 route
into central Halifax.
The business had an order book of £1,546m compared
to £1,464m last year, including £641m for clients in the
Highways sector and £905m in the Environment sector.
During the year, we announced the promotion of
David Lowery, Managing Director of our Highways
business unit, to the newly-created position of Managing
Director of our Infrastructure business with effect from
1 July 2024. He was appointed to the Executive Board
to advance the Group’s Sustainable Growth Strategy
within the Environment and Highways businesses.
£820m
revenue
£20m
operating profit
55
Financial statementsGovernanceStrategic report
Performance
Investments
As outlined in our 2023 Annual Report,
Investments has continued to move its focus
towards co-development of Private Rented
Sector (PRS) projects.
2024 2023
Revenue (£m) 14.7 5.8
Operating profit/(loss) (£m) (1.0) 1.4
Net interest income (£m) 3.8 3.8
Directors’ valuation (£m) 41.8 44.6
Revenue was £14.7m (2023: £5.8m) with an operating
loss of £1m (2023: £1.4m profit). This includes the
recognition of initial development fees related to
the financial close of the PRS scheme referred to on
page 48, as well as the ongoing project management
fees associated with the construction of the scheme
itself. In 2023, operating profit included £3.6m relating
to the profit on disposal of our interest in a joint
venture arrangement.
At 30 June 2024, the Group directors’ valuation of our
PPP portfolio was £41.8m (2023: £44.6m), reflecting a
blended 7.6% discount rate (2023: 7.3%). These assets
contribute to our balance sheet strength and generated
interest income in the period of £3.8m (2023: £3.9m).
£15m
revenue
£42m
directors’ valuation
56 Galliford Try Annual Report and Financial Statements 2024
Risk management
Effective risk management
Our ability to identify, assess and
manage risks and uncertainties is
one of the key enablers to delivering
our Sustainable Growth Strategy.
It is vital that we understand the potential risks associated
with every project opportunity and ensure that we only
bid for projects that align to our risk appetite and our
ability to manage the risks. Our embedded culture of
risk awareness enables us to identify and manage the
risks associated with operating in a dynamic external
environment. It also helps us identify and monitor the
development of emerging risks, including the potential
impact of climate change – both the physical risks and
the risks associated with the transition to a low carbon
economy (see pages 61 to 72).
Our approach to managing risk is structured, pragmatic and
targeted, with key risk mitigation measures embedded into
management processes and activities. These include:
A Business Management
System with processes
and procedures designed
to give us control and
confidence in commercial
decisions.
Project level controls and
management oversight
of project forecasts.
Monthly cross-
disciplinary contract
review meetings on
all projects.
Standardised formats for
monitoring and reporting
project performance
and forecasts.
Comprehensive
commercial training.
A programme of
commercial ‘health
checks’ to provide an
independent assessment
of the project team’s
reported project
performance and
forecast outturn.
These activities are supported by a governance structure
that provides oversight of key risks from the plc Board
through to individual projects.
Audit Committee
Responsible for keeping
under review the adequacy
and effectiveness of our risk
management processes and
systems of internal control.
Responsible for reviewing
and approving statements
included in the Annual Report
concerning internal controls,
risk management and the
Viability Statement.
Risk and Internal Audit
Facilitates the identification,
reporting and management of
risk throughout the governance
structure. Provides a risk update,
including the updated principal and
emerging risks, to the Executive
Board and the plc Board at least
three times a year.
The Group’s risk management and
governance structure is designed
to facilitate both a bottom-up and
top-down view of principal and
emerging risks and is summarised
in the diagram opposite.
Our risk management process
plc Board
Has overall responsibility for setting the risk appetite of the business and maintaining
oversight of our processes for identifying, assessing, managing and reporting on
principal risks. Reviews principal and emerging risks at least three times a year.
Executive Board
Responsible for implementing the strategy and risk appetite set by the Board and
ensuring that appropriate risk management and internal control procedures are
embedded in our day-to-day operations. Reviews principal and emerging risks at
least three times a year.
Executive Risk Committee
Chaired by the General Counsel & Company Secretary and comprises the CFO,
Director of Risk and Internal Audit, representatives from each of Building,
Infrastructure and Specialist Services, and heads of sustainability, procurement,
HR and legal. Meets three times a year to review and update principal and emerging
risks, based on the risks reported up from the Business Units, and to consider any
emerging risks that may have an impact on the business in the longer term.
Business Unit Boards
Maintain a Business Unit risk register that records the key risks applicable to
that business, key mitigations and further actions required to manage the risk.
Risk registers are reviewed twice a year, with one of the reviews facilitated by
the Risk and Internal Audit team.
Project teams
Create a project Risk and Opportunity Register at the bid stage and maintain it
throughout the lifecycle of the project. Review the risk and opportunities at key
checkpoints and as part of the monthly contract review meetings.
57
Financial statementsGovernanceStrategic report
Principal risks
At a Group level, the Board monitors risk using the
following four principal risks, a detailed analysis of
which is provided below:
1
Work winning
2
Project delivery
3
Resources
4
Regulatory compliance
This approach facilitates a targeted focus on the
most significant risks and the actions being taken to
manage them.
At an individual Business Unit level, our risk management
process captures and monitors risks and mitigations using
more detailed risk themes. These are aligned to the four
principal risks so that we can take more targeted actions
to address issues that are specific to the regions and sectors
in which they operate.
Our principal risk areas remain largely unchanged for the
updated strategy, details can be found in each section,
where relevant.
Work winning
Risk description
We fail to secure an appropriate
pipeline of projects to
achieve our revenue and
profitability targets.
Key risk indicators
Percentage of planned
revenue secured.
Percentage of order book
in frameworks.
Order book by client type.
Percentage of
repeat business with
existing clients.
Link to our strategic priorities
Quality and innovation.
Sustainable financial returns.
Risk appetite Current risk environment Mitigations
We aim to secure a forward order
book that provides a high degree
of certainty of current year and
following year revenue, while
reflecting appropriate margin,
cash and risk attributes.
Maintaining discipline in the projects
that we take on is a fundamental
element of our internal control
framework. We will only accept
projects where we are confident
that we have the experience,
knowledge and supply chain to
deliver effectively and where the
client relationships and commercial
terms support a collaborative
approach to managing risk.
Potential causes of risk
A significant and sustained
reduction in Government
investment in building and
infrastructure projects reduces
the opportunity pipeline.
Increased costs make some
schemes economically unviable
leading to delays or cancellation
of projects.
Delays to and/or reduced levels
of private sector investment due
to macroeconomic conditions.
Failure to secure positions on
key procurement frameworks.
Failure to develop a competitive
low carbon construction capability.
Poor quality bid submissions.
Failure to maintain discipline
in project selection.
Insufficient resources to
support bid preparation.
Pipeline in our chosen markets remains strong,
supported by Government policy on infrastructure
spending and growing demand in the water sector.
Our growth into affordable homes presents an
opportunity to grow margins in the Building business
without taking additional excessive risk. These projects
will undergo the same diligent assessment that all other
prospective projects do.
Inflation returning to near the Bank of England target
and stable interest rates are giving clients and funders
greater cost visibility reducing the delays we have
experienced in moving from preferred bidder to
agreeing contract values, and ultimately project starts.
The long-term transition to low carbon buildings
and infrastructure is creating market opportunity,
including net zero new builds and energy-efficient
refurbishments and retrofits.
The Building Safety Act introduces additional regulatory
requirements which increases compliance risk and
therefore may deter some private sector developers
and investors. It will also create demand from building
owners who need to comply with regulation.
Emerging risks
We innovate or adopt new technologies too early,
incurring costs associated with being an early adopter,
or too late, losing market share.
Client attitudes to sustainability shift at differing rates,
leaving some clients focused on construction cost and
others on whole-life cost and carbon performance.
Changes to planning policy and regulations to deliver
the UK’s net zero ambition limit the ability of our
clients to pursue new build construction schemes.
We manage the potential impact
of an economic downturn by
building a high-quality order book
with projects that meet our strict
risk profile.
We concentrate on sectors
where we have core strengths and
clients with long-term growth
and profitability potential.
We focus on securing positions on
key procurement frameworks and
repeat business with key clients
through a centralised, dedicated
pre-construction team. This allows
for strategic planning, better
collaboration and reduced risk of
project failure.
Each time we bid for a contract,
we follow our internal “heat map”
process, identifying risks across
a range of criteria including the
client and their advisors, project
location and our local supply
chain, our technical experience,
our internal resources and
capacity, the procurement
method, contractual terms and
conditions, and price.
All contracts over £25m in value,
or which have a heightened risk
indicator on any other measure,
are reviewed by the Executive
Board prior to approval to bid.
We typically target lower-risk
contract types.
We carry out peer reviews of bids
where relevant to ensure robust
review and challenge of risks
and assumptions and to promote
knowledge sharing across
the business.
Adjacent markets strategy,
including PRS and the recent
acquisitions in our Environment
business, expand our target
markets in a risk-managed way.
58 Galliford Try Annual Report and Financial Statements 2024
Risk management continued
Principal risks
2
Project delivery
Risk description
We fail to deliver projects
safely, on time, in agreement
with contractual terms, or to
a high quality for our clients.
Key risk indicators
RIDDOR and AFR scores.
Safety Lead Indicators
(eg Director Safety Tours,
Safe Behaviour Discussions).
Forecast project margins.
Link to our strategic priorities
People-orientated,
progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite Current risk environment Mitigations
We prioritise health and safety
above everything else and believe
that nothing is so important that
we cannot take the time to do it
safely. We will not tolerate poor
quality and strive to deliver high-
quality buildings and infrastructure
for our clients that provide safe
environments for the occupiers
and users of the assets. We aim to
provide realistic and transparent
forecasts of project performance
with potential risks to programme
and margins identified and
addressed before they materialise.
Potential causes of risk
Changing regulations.
Non-compliance with health
and safety regulations and/or
poor safety behaviours.
Programme delays and
cost escalation.
Poor control of client and
subcontractor variations and
claims processes.
Contractual notices not given
as per contract requirements.
Poor record-keeping and
document management.
Poor design quality
and/or co-ordination.
Failure to comply with quality
control procedures.
Extended periods of adverse
weather conditions.
Poor subcontractor performance
and/or insolvency.
Unrealistic estimates, including
cost to complete, inflation
estimates, outcomes of disputes
and final value included in
project forecasts.
Material unavailability and
extended lead times.
Interest rate rises causing
investment and cashflow issues
within the supply chain.
Failure to manage the adoption
of new low carbon materials
and technology.
Health and safety remains our first priority and
our Lead Indicators approach is now established
in the business.
Staff shortages and cost of living pressures increase
the sense of workers feeling stretched which could
impact on safety and wellbeing.
High levels of recruitment to support strategic
growth plans require a greater focus on employee
onboarding and training.
Although we have experienced periods of extreme
heat and intense rainfall, they have not resulted in a
significant or widespread impact on our operations.
Additional quality checks implemented to comply
with the Building Safety Act have led to some minor
programme delays. However, this unintended
consequence is expected to subside as our project
teams implement learnings over time.
Emerging risks
We fail to adapt our processes to meet the
requirements of our clients to have better and
more reliable data about the assets we design
and build for them.
Future global pandemics, or indeed other
supply-side shocks, have a significant impact
on the construction industry.
Building designs and construction methodologies
fail to adapt to the physical effects of climate
change, including more regular and more extreme
weather events, leading to reduced productivity,
programme delays and cost overruns.
Materials availability will become more
challenging when demand from the housebuilding
sector increases.
We continue to reinforce our
behavioural safety programme
Challenging Beliefs, Affecting
Behaviours, and use Lead Indicators
which target no harm.
We take a values-driven approach
to project delivery focusing on close
collaboration and client satisfaction
to achieve end goals for both parties.
We undertake robust review and
approval of contractual terms,
pre-contract to ensure we do not sign
up to contracts with onerous terms.
This includes the employment of
margin thresholds and escalation to
the Board of any contracts that do
not meet our criteria.
We apply rigorous quality control in
our BMS policies and procedures and
adopt digitalisation to improve data,
quality and efficiency.
We carry out due diligence to
select competent designers and
subcontractors and use specialist
consultants at key review stages.
We provide comprehensive
commercial training.
We have standardised formats for
monitoring and reporting project
performance and forecasts.
We undertake monthly cross-
disciplinary contract review meetings
on all projects to enable a robust
assessment of programme status,
risks and commercial forecasts and
have upgraded our ERP systems.
We carry out a programme of
commercial ‘health checks’ to provide
an independent assessment of the
project team’s reported project
performance and forecast outturn.
Operational controls including
health and safety site risk
assessments are monitored through
a regular audit process.
Our Technical and Business
Support Forums drive process
improvements across health
and safety, digitalisation, carbon
reduction, procurement, design
management, mechanical and
electrical, and commercial activities.
Escalation processes respond promptly
and appropriately to incidents.
59
Financial statementsGovernanceStrategic report
3
Resources
Risk description
We fail to secure the right people
and other resources necessary
to deliver our projects and
manage our business.
Key risk indicators
Material and
trade shortages.
Voluntary staff churn rate.
Time to hire.
Prompt Payment Code
performance statistics.
Average month-end cash.
Subcontractors not paying
staff and suppliers promptly.
Link to our strategic priorities
People-orientated,
progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite Current risk environment Mitigations
We aim to recruit employees from
a diverse talent pool who are aligned
to our values and behaviours.
We seek to work with financially
resilient subcontractors, suppliers
and joint venture partners who
share our values in relation to
safety, quality and sustainability.
Potential causes of risk
We are unable to retain, develop
and/or attract the right staff to
meet our future needs, or we
mismatch our staffing levels to
peaks and troughs in activity or
lack diversity.
Lack of capacity in the supply
chain due to high levels of activity
in the construction sector.
Subcontractor and/or
client insolvency.
Failure to comply with fair
payment practices.
Lack of geographical coverage.
Material cost inflation has reduced as demand/
supply imbalances have stabilised and energy prices
have fallen. However, we continue to take sensible
measures to manage material cost inflation
(early procurement, supply chain engagement,
risk allowances in tenders etc).
Lead times for bulk items like steel and bricks are
returning to ‘normal’. However, contingency is factored
into our programmes and procurement planning to
mitigate any short-term delays.
Subcontractor insolvency remains a risk. We manage
this by being selective in who we work with,
monitoring our exposure and ensuring we pay our
suppliers promptly.
It remains a competitive market for talent. Large
infrastructure schemes and a mismatch between
skilled worker supply and demand continues to drive
up salaries and increases the risk of employees leaving
for higher reward packages. Our ‘Grow Together’
campaign is helping to engage our employees through
our Employee Value Proposition which is part of the
broader ‘retain and gain’ people strategy.
The results of our employee survey indicate that
we have high levels of engagement and satisfaction
within our employees and we continue to improve
the way we promote the business and develop our
employee offering.
Emerging risks
There is a generational shortage of skills as more
experienced staff retire and are not replaced in
sufficient numbers because the construction sector
cannot compete with other sectors in attracting talent.
Innovations in the use of technology will require us
to attract a workforce with a different set of skills.
Failure to embrace and successfully implement
Artificial Intelligence tools.
Depletion or increased scarcity of non-renewable
materials may lead to greater volatility in prices and
more regular disruption to supply.
The drive towards net zero construction may lead
to an increased risk of defects and quality issues as
we start to use new, low carbon materials whose
long-term performance is unproven.
Availability of lower carbon materials will become
more challenging as more main contractors look to
secure the same resources.
Our HR strategy is based on best
practice principles and relevant
legislation and includes the regular
review of remuneration and
benefits packages to ensure
we remain competitive as well
as focusing on wellbeing.
Our succession planning and
talent management processes
enable continuity and
identification of future leaders.
We support our people’s career
ambitions and provide them
with opportunities to progress.
We promote opportunities for
internal mobility through our
Explore programme.
We operate graduate, trainee and
apprenticeship programmes to
develop our own pipeline of talent.
We develop long-term
relationships with key suppliers
and subcontractors so we remain a
priority customer when resources
and materials are in short supply.
Our Advantage through Alignment
programme facilitates greater
engagement with our key supply
chain members and provides
them with greater visibility of our
pipeline of projects.
We are committed to paying 95%
of supply chain invoices within
60 days and achieving the Prompt
Payment Code standards, this is
reinforced by our strong balance
sheet and net cash position.
We carry out enhanced
supply chain checks and
monitor subcontractor
financial performance and
reputational risks.
Each business unit reviews its cash
forecast weekly and monthly, and
the Group prepares a detailed
daily cash book forecast for the
following eight-week period to
highlight any risk of intramonth
fluctuations. Forecasts are
reviewed at Business Unit,
division and Group level.
60 Galliford Try Annual Report and Financial Statements 2024
4
Regulatory compliance
Risk description
We fail to comply with the
requirements of the various legal
and regulatory regimes in which we
operate, resulting in a high-profile
breach and regulatory censure.
Key risk indicators
Number of external
enforcement cases.
Link to our strategic priorities
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite Current risk environment Mitigations
We have zero tolerance for non-
compliance with regulations.
We expect all employees and
subcontractors to be aware of all
regulations relevant to their role
and to comply at all times. We also
expect our people to speak up if they
observe or suspect non-compliance.
Potential causes of risk
Failure to update our procedures
to reflect changes to key
legislation and regulations.
Failure to provide sufficient and
effective training to all staff.
Failure to implement effective
compliance monitoring processes.
The Building Safety Act has provided greater
clarity on the requirements and responsibilities
in relation to building safety and is driving greater
quality in construction. The Act also has the potential
for consequences in relation to the extended period
in which certain defect claims can be made.
We continue to invest in cyber security tools,
recognising the potential risk of cyber-attacks,
especially linked to the conflict in Ukraine, and the
wider geo-political environment.
The regulatory landscape in relation to ESG
reporting is evolving quickly and requires us to
monitor and publish more information and comply
with new standards (ie those from the International
Sustainability Standards Board).
Emerging risks
Greater devolution may lead to very different
regulatory regimes between England and the
rest of the UK.
New legislation to combat climate change, such as
carbon taxes or a ban on the use of diesel could have
a significant impact on our operations.
Biodiversity and water use regulations may
become more stringent and result in increased
compliance costs.
The new Corporate Governance regime will require
enhanced internal controls disclosures.
Galliford Try has comprehensive
policies and guidance at every
level including our Code of
Conduct, mandatory regulatory
and cyber security e-learning
for all employees, an anonymous
and independent whistleblowing
helpline, regular legal updates
and briefings, six-monthly
compliance declarations, and
conflict of interest registers
and authorisations.
The Ethics and Compliance
Committee provides ongoing
monitoring and oversight of policy
and compliance activity in relation
to key areas of legislation.
Our information security
standards and procedures
are accredited to the
ISO 27001 standard.
Risk management continued
Principal risks
Financial statementsGovernanceStrategic report Financial statementsGovernanceStrategic report
Accelerating
our action on
climate change
We are taking action to ensure that
our business continues to adapt and
thrive in a changing climate.
The built environment is responsible for around 38% of
global carbon emissions, therefore as a business operating
in the construction sector, we have a responsibility to play
our part in reducing emissions. We have reduced our scope
1 and 2 carbon emissions by 71% since 2012 and have
set ambitious targets to achieve net zero scope 1 and 2
emissions by 2030 and across our value chain by 2045
(pages 32 to 35).
In accordance with LR 6.6.8G, in assessing our compliance
with the recommendations of the TCFD, we have taken
into account the guidance for all sectors in section C
of the 2021 version of the TCFD guidance ‘Implementing
the Recommendations of the Task Force on Climate-related
Financial Disclosures’. We have also reviewed the other
guidance documents referred to in LR 6.6.9G, and as we
have published net zero targets, we have particularly
focused on the TCFD guidance on metrics, targets
and transition plans. Based on this guidance, we have
made disclosures that are aligned with the TCFD
core element areas of Governance, Strategy, Risk
Management and Metrics and Targets and comply with
the 11 specific recommended disclosures, with the
exception of the following recommendation where
we are partially compliant:
Strategy recommendation b – we have not disclosed
quantitative assessment of the potential financial
impacts of the risks and opportunities identified
see Financial Impact section on page 65.
We have assessed the requirements of the Companies
(Strategic Report) (Climate-related Financial Disclosure)
Regulations 2022 and consider the disclosures we have
made in relation to TCFD to address these requirements.
This year’s TCFD disclosures reflect our increasing focus
on climate change and some of the key developments
and achievements during the year, including:
Ensuring that our Sustainable Growth Strategy
2030 continues to reflect climate-related risks
and opportunities.
Developing and publishing our net zero routemap,
in support of our net zero targets.
Enhancing our articulation of the key climate-related
risks and opportunities, particularly in relation to
extreme weather events.
Introducing new metrics and targets to enhance
our monitoring of emissions reduction and climate
transition risks and opportunities.
Achieving a CDP Climate Change score of B,
Management Level – ‘taking coordinated actions
on climate issues’.
Climate change considerations are embedded into our
existing governance and risk management framework.
Therefore to avoid duplication, the key disclosures in
relation to the 11 TCFD recommendations are included in
the relevant sections of the Annual Report, as indicated
in the table overleaf. In this section, we have provided
information on the disclosures that are not addressed
in other sections.
Task Force on Climate-related Financial Disclosures
(TCFD)
61
62 Galliford Try Annual Report and Financial Statements 2024
TCFD pillar Recommended disclosure How we addressed the disclosure
Governance
Disclose the
organisation’s
governance around
climate-related risks
and opportunities.
a. Describe the Board’s oversight
of climate-related risks
and opportunities.
See ‘Board and management oversight of climate-related issues’
on page 63.
For further information on management’s role in assessing
risk, please refer to our Risk Governance framework outlined on
page 56 and broader Governance framework outlined on page 91.
b. Describe management’s
role in assessing and managing
climate-related risks
and opportunities.
Strategy
Disclose the actual
and potential
impacts of climate-
related risks and
opportunities on
the organisation’s
businesses, strategy,
and financial
planning where
such information
is material.
a. Describe the climate-related risks
and opportunities the organisation
has identified over the short, medium,
and long term.
See ‘Our climate-related risks and opportunities’ sections on
pages 67 to 72.
Given that we operate exclusively in the UK construction sector,
a presentation of risks and opportunities by geography and sector
is not considered relevant.
b. Describe the impact of climate-
related risks and opportunities
on the organisation’s businesses,
strategy, and financial planning.
‘Environment and Climate Change’ is part of the ‘Socially and
environmentally responsible delivery’ cornerstone of our
Sustainable Growth Strategy. See Market review on pages 10
to 13 and our Sustainable Growth Strategy on pages 14 to 17.
See also ‘Managing climate-related risks’ on page 63 and
‘Financial Impact’ on page 65.
c. Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios, including
a 2°C or lower scenario.
We have performed a qualitative analysis of the effect of different
climate scenarios on our climate-related risks and opportunities.
See pages 63 to 64 for an explanation of the approach we have
taken and pages 67 to 72 for our summary conclusions for each
risk and opportunity.
Risk
management
Disclose how
the organisation
identifies,
assesses, and
manages climate-
related risks.
a. Describe the organisation’s
processes for identifying and
assessing climate-related risks.
The identification, assessment and management of climate-related
risks and opportunities is embedded within our broader risk
management structure and processes.
For further information on our risk management process,
please refer to the Principal risks section on page 57 to 60.
b. Describe the organisation’s processes
for managing climate-related risks.
See ‘Managing climate-related risks’ on page 63.
c. Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
Climate-related risks are considered as cross-cutting risks
that can have an impact on a number of the principal risk
themes we monitor at a Business Unit and Group level, such
as work-winning or project delivery. For further information
on our risk management process, please refer to the Principal
risks section on pages 57 to 60.
Metrics
and targets
Disclose the metrics
and targets used to
assess and manage
relevant climate-
related risks and
opportunities where
such information
is material.
a. Disclose the metrics used by
the organisation to assess climate-
related risks and opportunities
in line with its strategy and risk
management process.
See ‘Metrics and Targets’ section on page 66.
b. Disclose Scope 1, Scope 2, and,
if appropriate, Scope 3 greenhouse
gas (GHG) emissions, and the
related risks.
In 2023, we achieved a 2.5% reduction in our scope 1 and 2
GHG emissions compared to 2022.
More detailed information on our GHG emissions performance
and net zero targets are included in the Environment and
climate change section on pages 32 to 35.
c. Describe the targets used by
the organisation to manage climate-
related risks and opportunities
and performance against targets.
See ‘Metrics and Targets’ section on page 66.
Task Force on Climate-related Financial Disclosures (TCFD) continued
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Financial statementsGovernanceStrategic report
Board and management oversight of
climate-related issues
Governance over climate-related issues is embedded
into our governance and risk management processes
and structures. This approach allows us to assess
climate-related issues in the context of the broader risk
environment and allows us to factor climate-related issues
into strategic planning and decision-making, including in
relation to identifying target sectors and markets, setting
our risk appetite, investing in people and technology,
making strategic acquisitions and disposals, and setting
performance targets.
Board and management oversight over climate-related
matters is supported by the work of two sub-committees:
Executive Risk Committee
This committee is chaired by the General Counsel &
Company Secretary and comprises the CFO, Director of
Sustainability, and a representative from each division.
It meets three times a year to review and update principal
and emerging risks, including climate-related risks and
opportunities. During the year, the plc and Executive
boards have reviewed the detailed assessments of
climate-related risks and opportunities performed by
the Executive Risk Committee.
ESG Committee
The ESG Committee is chaired by the CFO, and is comprised
of representatives from across our different operational
divisions and support services functions. It meets at least
three times a year and reports its activities and outputs to
the Board, enabling Board oversight and influence across
all ESG areas, including climate-related matters. The
responsibilities of the ESG Committee include co-ordinating
and overseeing the various carbon reduction initiatives
being undertaken to achieve our net zero targets, and
monitoring performance of our key climate-related metrics.
The Director of Sustainability reports directly to the CFO
and has a fortnightly update meeting to review progress on
a range of sustainability matters, including climate-related
issues and carbon reduction targets and performance.
Our climate-related risks and opportunities
We continue to monitor our key climate-related risks
and opportunities along with our principal and emerging
risks, a process that is overseen by the Executive Risk
Committee, which meets three times a year. The March
meeting of the Committee focused on climate-related risks
and opportunities with the key output being a summary
of the key climate-related risks and opportunities which
is reviewed by the Executive Board and plc Board. The
Executive Risk Committee uses the Primary Climate
Related Risk and Opportunity Drivers within the CDP
framework to identify the risks and opportunities that are
most relevant to our sector, business model and strategy.
Given the inherent uncertainty in relation to the financial
impact of each risk and opportunity, the Executive Risk
Committee does not perform a quantitative assessment of
the size and scope of identified climate-related risks. The
risks and opportunities disclosed are those considered to
be most material to the business, based on a qualitative
assessment. The most significant risks and opportunities
are summarised on pages 67 to 72.
Climate-related risks are also considered during the
Business Unit risk review process. The approach we take
at a Business Unit level is to treat climate change as a cross-
cutting risk that can have an impact on a number of the
principal risk themes we monitor in the Business Unit risk
registers, such as work winning or project delivery. This is
the same approach we have taken to other cross-cutting
risks including Brexit and Covid. Business Units are required
to review and update their risk register twice a year.
Managing climate-related risks
The climate-related risks we face are managed through
our existing strategic and operational management
processes. For example, the risk and opportunity created
by the increased carbon reduction requirements and
expectations of clients is one of the key drivers of our
Sustainable Growth Strategy. This is supported by
operational responses, led by the Executive Board, to
deliver the strategy. These responses include investment in
new carbon reduction roles, creation of cross-disciplinary
working groups, development of new processes and
tools, and upskilling our own people and our supply chain.
Climate-related issues and opportunities do not serve as
a separate input to financial planning because they are
currently largely indistinguishable from business as usual
financial planning inputs.
Climate scenario analysis
We have developed three scenarios that are broadly
defined by the pace and extent of climate change mitigation
and the associated impact on the physical effects of
climate change.
In developing our scenarios, we have used the UK Shared
Socioeconomic Pathways (UK SSPs), that have been
developed by the UK Climate Resilience Programme and
are aligned to the global SSPs used by the IPCC in their
sixth Assessment Report. We have used SSPs as the basis
for our scenario analysis because they are grounded in
the socioeconomic context in which Government policy
and market responses to climate change will emerge and
therefore are particularly relevant to assessing transition
risks and opportunities. This context includes important
socio-economic drivers such as economic development,
demography, public attitudes and international relations.
64 Galliford Try Annual Report and Financial Statements 2024
Scenarios
UK-SSP
scenario
UK-SSP1
Sustainability
UK-SSP2
Middle of the road
UK-SSP5
Fossil-fuelled development
RCP scenario RCP2.6 RCP4.5 RCP8.5
Abstract The policy agenda is driven by
changing societal attitudes with
greater focus on equality and
environmental protections.
The policy agenda initially does
not change significantly, but
then requires radical reform
with increased reliance on
public-private finance.
The policy agenda is driven
by a focus on strong economic
growth and maintaining energy
and food security.
Key physical features
CO
2
e emissions
Global emissions falling to net
zero around 2075.
Global emissions remain at
current levels until mid-century,
then falling but not reaching
net zero by 2100.
Global emissions triple by 2075.
Estimate of global
warming by 2100
1.8 °C 2.7 °C 4.4 °C
Climate impacts
In all scenarios, the UK experiences milder, wetter winters and hotter, drier summers. More regular
extreme weather events such as heatwaves, droughts, flooding and storms are virtually certain in all
scenarios, and become more frequent and more extreme as estimated global warming increases.
Key transition features
Regulation
Strong environmental
regulations are introduced,
especially in relation to
carbon emissions and
environmental protection.
More stringent land use and
planning regulations are
gradually introduced to combat
the increasing degradation of
the natural environment.
Environmental legislation is
relaxed to support the focus
on economic development.
Investment
Increase in public spending on
infrastructure with a focus on
repurposing and transformation
of infrastructure, to drive energy
efficiency and wider access to
good quality public services in
education and healthcare and
other public infrastructure.
Initially increased investment
on connectivity and transport
infrastructure, then public
spending shifts to focus on
technology to support smart
cities, vertical agriculture, etc.
Public-private partnerships
result in slightly increased
investments in education,
health care and other
public infrastructure.
High levels of public spending
on infrastructure, health and
education are maintained,
funded by and in support of
economic growth.
Energy
Renewables, with significant
public and private investment in
wind and solar as well as nuclear
generating capacity.
Continued reliance on fossil
fuels, and renewables becoming
an increasing part of the energy
mix. The private sector finances
large-scale infrastructure
projects for renewable
energy (eg barrages).
Energy policy prioritises
development of North Sea
and shale gas reserves.
Investment in renewables
decreases due to lack of incentive
with renewables only remaining
when economically feasible.
We have used these scenarios to provide a qualitative assessment of how the climate-related risks and opportunities we have identified on
pages 67 to 72 may change under the different potential pathways.
Task Force on Climate-related Financial Disclosures (TCFD) continued
In assessing the likely timeline when
risks and opportunities will begin to
have an impact on the business, we
have applied the definitions below.
Although a risk or opportunity may
have been assessed as beginning to
have an impact in the short term,
the impact may, in some cases, extend
into the medium or long term.
Short term
(0–3 years)
Aligns to our current pipeline
of opportunities and projects
and reflects issues and trends
that are already having
some impact.
Medium term
(3–10 years)
Issues or trends that
are already visible,
but are not yet having
a significant impact.
Long term
(10–30 years)
Potential issues or trends
that are foreseeable, but
there is a high degree of
uncertainty on how they
develop and what impact they
will have on the business.
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The UK SSPs are particularly relevant to our business
model because in addition to being developed in the
context of the UK, they factor in considerations in
relation to future investments in sectors where we have a
strategic focus, including infrastructure, health, education,
affordable housing, and green technology. The SSPs have
been supplemented with Representative Concentration
Pathways (RCP) scenarios that are consistent with each
SSP and provide a recognised framework for assessing
the potential physical impacts of climate change under
different scenarios. The key features of each scenario
are summarised in the table on page 64.
Resilience of our strategy
The nature and scope of our activities and the commercial
environment in which we operate provide us with a number
of inherent advantages in terms of the resilience of our
strategy and our exposure to climate-related risks:
We do not have significant amounts of capital tied up in
production facilities or other assets that could be at risk
of stranding, ie their useful economic life being curtailed
due to the transition to a low carbon economy.
Our operations are entirely in the UK and therefore,
while still exposed to rising mean temperatures and more
severe weather events, we have limited exposure to the
climate extremes that are predicted to make human life
unsustainable in some regions of the world.
Our presence in sectors such as Environment position
us to deliver on the UK’s requirement to address the
impacts of climate change such as storm overflows.
At any given time, across the UK we have a
geographically dispersed portfolio of projects,
therefore we are not exposed to damage to a business-
critical facility, such as a factory or distribution centre,
due to extreme weather.
We are not exposed to rapid and unpredictable shifts
in consumer preferences and behaviour as our work is
for long-term repeat clients, largely in the public and
regulated sectors.
We are not exposed to the capital investment cost or risk
associated with developing new, low carbon alternatives
to existing product ranges as this is typically carried out
by our supply chain partners.
Where we have good visibility of rising costs, these can
be priced into our bids and recovered from clients.
The qualitative scenario analysis we have performed this
year provides further demonstration of the resilience of
our Sustainable Growth Strategy. The strength of existing
client relationships, our investment in developing our low
carbon construction capability and ongoing collaboration
with our supply chain position us well to manage the risks
and capitalise on the opportunities of a rapid transition
to a net zero economy. In the event of a slower or even no
transition to net zero, there will still be market demand for
construction services, albeit the investment drivers will
have a greater focus on climate change adaption rather
than mitigation.
Financial impact
In assessing the potential financial impacts of our
climate-related risks and opportunities, we have followed
the guidance in the TCFD’s document, Implementing the
Recommendations of the Task Force on Climate-related
Financial Disclosures. In accordance with the guidance,
we have performed a qualitative assessment and have
disclosed the category of financial impact for each of our
climate-related risks and opportunities set out on pages
67 to 72. We have also provided an assessment of the
relative level of potential financial impact, taking into
account the risk mitigations and opportunity realisation
measures, under each scenario.
While we have made qualitative assessments of financial
impact, as in previous years, we have not sought to quantify
the potential financial impacts. We continue to believe
that this is a pragmatic appropriate approach for a number
of reasons:
It is extremely difficult to disaggregate the impact of
climate-related risks and opportunities from other risk
factors. For example, although the failure to develop a
low carbon construction capability would have a negative
impact on our ability to win work, it is just one of a
number of factors that could affect this and is difficult to
disaggregate from the other expectations of our clients
and the broader market dynamics.
The commercial environment in which we operate
means that where additional costs associated with
climate-related risks are identified (eg carbon taxes
increasing the cost of carbon-intensive materials) those
costs are included in our tenders and recovered from
clients through project budgets.
Many of the risks and opportunities are interrelated and
therefore it would be misleading to quantify in isolation.
For the risks identified, we have mitigations in place to
manage the risk and minimise any potential financial impact.
In the absence of consistent and detailed guidance
on methodologies that should be adopted to quantify
financial impacts, there is a risk that we adopt a
quantification methodology that is not consistent
with other reporters.
Given the pervasive and ongoing challenges in
disaggregating the financial impacts of each climate-related
risk and opportunity, and our assessment that the resilience
afforded by our business model and mitigation measures
mean that any financial impact is unlikely to be material,
management is not devoting resource to developing
quantification methodologies. However, we remain
committed to providing the best qualitative guidance on
how physical and transition risks may have an impact on
our financial performance and position.
We also continue to consider the potential requirement for
any material financial impacts, such as asset write-downs,
increased capital investment requirements, or liabilities
for environmental remediation to be disclosed, and have
concluded that there are no material climate-related
financial impacts to be disclosed.
66 Galliford Try Annual Report and Financial Statements 2024
Metrics and targets
During the year, we have reviewed the TCFD guidance on metrics and targets and defined a number of additional metrics
and targets (highlighted in the table below) that are relevant to our business, using the cross-industry metric categories.
We have added an emissions intensity reduction target to align with our validated science-based targets, and to recognise
that as the business grows, we need to monitor emissions intensity, as well as absolute emissions, to provide a clearer
picture of the impact of our emission reduction initiatives.
We have also for the first time performed a classification of our revenue, using the FTSE Russell Green revenues
Classification System. This is a significant additional metric to help us monitor transition risks and opportunities as it
demonstrates the extent to which we are positioned to take advantage of the transition to a low carbon economy and
the limited reliance on non-green revenue generating activities.
Most of the metrics are existing KPIs and further information on our performance in the year is provided in the
‘Operating sustainably’ section of the report. We will look to develop additional metrics and targets that are more
closely aligned to the climate-related risks and opportunities we have identified over the next two to three years.
Metric category Metric
Calendar
year 2022
Calendar
year 2023 Target
GHG emissions
Scope 1 and 2 emissions –
market-based (tCO
2
e)
10,751 10,486 Net zero by 2030
(with a 43% reduction
compared to
2021 baseline)
Scope 1 and 2 emissions intensity
(tCO
2
e per £100K revenue)
1
0.82 0.69 0.60 tCO
2
e by 2030
(43% reduction
compared to
2021 baseline)
Scope 3 emissions –
verified (tCO
2
e)
2
8,545 7,128 Net zero by 2045
Full Scope 3 emissions (tCO
2
e)
3
477,000 Not reported
4
43% reduction by
2030 compared to
2021 baseline
Net zero by 2045
% of company car fleet
that is EV or PHEV
79% 93% 100% by 2027
% of purchased electricity
on renewable tariffs
84% 86% 100% by 2025
Waste intensity
Tonnes of waste
per £100k revenue
21.8 17.7 Year-on-year
reduction
Transition risks and
opportunities
CDP Climate Change score C B A
Green revenue as a
% of total revenue
5
Not calculated 59% >50%
Remuneration
% of Executive bonus linked
to emissions reduction
6
3% 3% 3%
Internal carbon price
Price per tCO
2
e (£) We do not currently
use internal
carbon charging
Introduce internal
carbon charging
by 2030
Notes:
1 Emissions relating to the Rock & Alluvium business, which was sold in November 2023, have been excluded from 2023 emissions. 2022 emissions have been restated
to exclude emissions for Rock & Alluvium.
2 Scope 3 verified emissions are those emissions that have been calculated and included in the scope of the external verification.
3 Scope 3 estimated emissions are those emissions that have been estimated, but not externally verified.
4 See Remuneration Committee section on page 104 for details of Executive bonus performance criteria.
5 Green revenue as a % of total revenue has been calculated through a self-assessment using the FTSE Russell Green Revenues Classification System. The target of
50% is aligned to the eligibility criteria to apply for the London Stock Exchange Green Economy Mark.
6 We are focusing on developing a quantity-based approach to estimating Scope 3 emissions and have therefore ceased reporting of estimated full Scope 3 emissions
using the spend-based methodology. See page 33 for further details.
Transition Plan
We have reviewed the disclosure framework and sector specific guidance published by the Transition Plan Taskforce (TPT)
and will work towards integrating the TPT disclosure framework guidance as we develop and publish our Transition Plan.
Task Force on Climate-related Financial Disclosures (TCFD) continued
67
Financial statementsGovernanceStrategic report
Fail to develop a competitive low carbon construction capability
Time horizon
Medium term
Potential impact on financial performance
Decreased revenues
Link to our principal risks
1
Work winning
Financial statementsGovernanceStrategic report
Risk description and potential impact on the business Risk mitigation
Our clients, in both the public and commercial sectors, are increasingly
required to operate low carbon buildings and infrastructure. They
expect us to have the capability to model embedded and operational
carbon, use lower carbon materials and extend the life
of their existing assets through retrofitting.
Planning policies and building regulations may also move towards
ensuring that embedded and/or operational carbon targets are
incorporated into the design and construction of buildings
and infrastructure.
If, together with our supply chain, we fail to develop these capabilities
quickly enough, we may not remain competitive and may not be able
to win positions on key frameworks, which may result in reduced
levels of revenue and profits.
We have committed to achieving net zero across our own
operations by 2030 and across all value chain operations by
2045. To do this, we have developed our net zero routemap
and are taking multiple actions to achieve our carbon reduction
targets including:
Working closely with our clients to understand their carbon
reduction ambition and targets, and developing solutions to
meet those objectives.
Investment in key low carbon construction roles.
Carbon literacy training for all staff.
Supply chain engagement and upskilling.
Development of carbon reduction management process.
Use of carbon calculators to model embodied and
operational carbon.
Development of systems and applications to improve
carbon data and reporting.
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of risk
The risk is greatest under the ‘Sustainability’ scenario, as client expectations in relation to low carbon construction will evolve more
quickly and across more sectors, driven by increased regulation and changing stakeholder sentiment. Under the other two scenarios,
this risk is much reduced as the regulatory and market drivers will not be focusing on low carbon construction.
Risks
Increased frequency of extreme weather events
Time horizon
Short term
Potential impact on financial performance
Increased direct costs
Link to our principal risks
2
Project delivery
3
Resources
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of risk
In all scenarios, the UK will experience milder, wetter winters and hotter, drier summers. More regular extreme weather events such as
heatwaves, droughts, flooding and storms are virtually certain in all scenarios, and become more frequent and more extreme as estimated
global warming increases.
Risk description and potential impact on the business Risk mitigation
A significant amount of construction activity happens outside and
therefore is exposed to the weather. The Met Office UK Climate
Projections (UKCP August 2022) predict warmer, wetter winters and
hotter, drier summers, along with an increase in the frequency and
intensity of extreme weather events including heatwaves, storms,
intense rainfall and flooding. Such events could lead to disruption to
our construction activities in a number of ways:
Prolonged, extreme temperatures, such as in heatwave conditions,
may require modifications to working practices to maintain worker
welfare which may increase costs and reduce productivity.
Intense storm events, including intense rainfall and high winds
may cause damage to works under construction and curtail
certain activities, such as crane lifts or earthworks, which could
result in project delays and additional costs.
High winds may increase safety risks for operatives and members
of the public for example through tower crane or scaffold collapses
or other structures and objects becoming unsecured.
Damage to transport and utilities infrastructure caused by severe
weather may make it more difficult for staff and deliveries to get
to sites.
Extreme drought conditions could result in restrictions on
water usage which may make it impossible to maintain site
welfare or restrict certain activities, such as concrete pouring
and dust suppression.
Extreme weather events in other parts of the world could lead
to supply chain disruption (unavailability, longer lead times and
increased costs).
As extreme weather events become more frequent, we may also
see clients look to transfer risk. Traditional contractual protections,
including force majeure clauses and definitions of what constitutes
‘exceptional’ weather, may be reviewed and challenged.
An increase in the frequency of material damage claims may lead
to higher insurance costs.
Changes in temperature extremes can also have an impact on the
resilience of building materials and therefore determine the materials
we are able to use and could lead to a greater number of latent defect
claims. Similarly, changes in climate may influence the heating and
cooling systems that we specify which may increase the costs of
the buildings and infrastructure we build.
As was demonstrated during the pandemic, we are experienced in
developing and amending site operating procedures in response
to specific health and safety risks. Examples of adaptations we
could make include:
Increased provision of welfare facilities, including access to
shade, water and sunscreen.
Flexible working patterns to limit work in the hottest part
of the day.
Increased use of off-site and other MMC to shorten
programmes and reduce the number of people on site.
Similarly, we are experienced in managing the impact of
unexpected events on construction programmes and have a
number of operational and contractual mechanisms to mitigate
the risks, including:
Resequencing of activities.
Staggering of shifts to extend the working day.
Securing extensions of time.
Insurance cover for damage to property.
We continually assess new weather norms and ensure that
adequate risk provisions are included in our tenders.
We remain vigilant to unreasonable risk transfer in contracts
and ensure that the terms we accept in our client contracts are
reflected in our downstream contracts.
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Risks
68 Galliford Try Annual Report and Financial Statements 2024
Task Force on Climate-related Financial Disclosures (TCFD) continued
Increased material costs make projects unaffordable
Time horizon
Short term
Potential impact on financial performance
Decreased revenues due to reduced demand for
products and services
Link to our principal risks
1
Work winning
3
Resources
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario as there will be the greater urgency to transition to low carbon energy and materials,
exacerbating the supply and demand imbalances. The extension of carbon pricing and other regulatory pricing incentives to reduce carbon
emissions is also more likely under the Sustainability scenario.
Risk description and potential impact on the business Risk mitigation
There are a number of climate-related drivers that may result in
sustained increases in materials costs in the construction sector.
This is driven through a combination of the market dynamics of supply
and demand imbalances, as well as Government policy to incentivise
carbon reduction. Our bidding disciplines and contractual protections
largely insulate us from the direct impact of cost increases. However,
the indirect consequence of rising construction costs could mean
potential projects becoming unaffordable for our clients, leading
to a reduction in opportunities or delays in project starts due to
clients’ budgets constraints.
Manufacturers are developing innovative, lower-carbon materials
all the time and this is vital if we are to reduce the embodied carbon
of the buildings and infrastructure we construct. However, as new
products come on to the market and establish credibility, demand for
these materials could grow more quickly than the production capacity,
resulting in higher material costs.
In the short to medium term, the supply and demand imbalances in
global energy markets are likely to be sustained as countries manage
the twin challenge of decarbonising electricity generation and
increasing security of supply. Energy prices will continue to have
a significant impact on the cost of materials that have energy intensive
manufacturing processes, such as steel, concrete, and glass.
In addition to the market imbalances, regulatory moves to use carbon
pricing to incentivise carbon reduction may add further upwards
pressure on the price of carbon-intensive materials. The introduction
of the UK Carbon Border Adjustment Mechanism (CBAM) from 2027
may increase the cost of importing carbon-intensive construction
materials such as steel. It is also possible that the UK-Energy Trading
Scheme is extended to other sectors considered to be carbon intensive,
including construction.
Maintain bidding and contracting discipline to protect
ourselves from short-term cost inflation and maximise
cost recovery.
Use of BIM and carbon calculators to optimise designs and
reduce the amount of carbon-intensive materials.
Increase the adoption of off-site manufacture and other
MMC to reduce costs through minimising waste and
shortening construction programmes.
Work with clients to support design solutions that minimise
the material requirements eg transitioning from new build
to retro-fitting and refurbishment.
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Risks
69
Financial statementsGovernanceStrategic report Financial statementsGovernance
70 Galliford Try Annual Report and Financial Statements 2024
Failure to manage the adoption of new low carbon materials and technology
Time horizon
Medium term
Potential impact on financial performance
Increased direct costs
Link to our principal risks
2
Project delivery
3
Resources
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario as there will be the greater urgency to deploy new technology, driven by regulatory
requirements and market expectations.
Risk description and potential impact on the business Risk mitigation
As the focus on embodied carbon increases, we expect to increasingly
be required to use lower carbon alternatives for construction
materials, especially carbon-intensive materials such as steel, concrete
and glass. There is a risk associated with the adoption of new materials
and using manufacturers and suppliers we have no experience of
working with previously. Without effective product and design
evaluation and robust quality assurance procedures, there is a risk
of increased defects, which in turn could result in the professional
indemnity insurance market responding through further increases
in premiums or restrictions/limitations in cover.
Similarly, to achieve our scope 1 and 2 net zero by 2030 target,
we will have to significantly reduce (if not eliminate) our use of
diesel-powered plant and equipment. The non-diesel alternatives,
such as Hydrotreated Vegetable Oil, electric and hydrogen, may
not be available in the volumes we require, at an equivalent cost,
or deliver sufficient safety and/or operational performance.
Response includes:
Development and implementation of digital tools to drive
quality such as FieldView, BIM and Dalux.
Investment in employee training including enhanced
Project Management Development Framework
(PMDF) modules.
Using our Technical and Quality, Research and Development
and Supply Chain teams to evaluate new materials, plant
and equipment and other new technology and support their
adoption across the business.
Quality alerts to share learning and information where
potential issues with particular products have been identified.
Engaging collaboratively with the supply chain to identify
and switch to lower carbon materials and solutions.
(See the Supply Chain section on page 44–45 for examples).
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Task Force on Climate-related Financial Disclosures (TCFD) continued
Risks
71
Financial statementsGovernanceStrategic report Financial statementsGovernance
Increased demand for low carbon buildings and infrastructure
Time horizon
Short term
Potential impact on financial performance
Increased revenues resulting from increased
demand for our products and services
Link to our principal risks
1
Work winning
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of opportunity
The opportunity is greatest under the ‘Sustainability’ scenario, as client requirements and expectations in relation to low carbon buildings
and infrastructure will evolve more quickly and across more sectors, driven by increased regulation and changing stakeholder sentiment.
Conversely, in the ‘Fossil-fuelled development’ scenario, the regulatory and market forces will be weakest and will not drive investment in
low carbon construction.
Opportunity description and potential impact on the business Opportunity realisation
In order to decarbonise the built environment in the UK, and meet
emerging energy efficiency standards, there is a need for our clients
to ensure that existing assets are either replaced with new, more
energy-efficient assets, or increasingly, ensure that they are modified
to extend their life and improve their energy efficiency. Demand
for both new build and retrofit of existing assets with low embodied
and operational carbon performance is likely to create a pipeline
of opportunities, particularly in sectors where we already have
a strong presence such as education and health.
The actions we are taking to realise the opportunities are similar
to the actions we are taking to mitigate the risk of failing to
develop our low carbon construction capability, ie:
Working closely with our clients to understand their carbon
reduction ambition and targets and developing solutions to
meet those objectives.
Investment in key carbon reduction roles.
Use of carbon calculators to model embodied and
operational carbon.
Developed our Carbon and Energy Property Pathway
Assessment (CEPPA) tool to assess the energy efficiency
of existing buildings and model the impact of investment
in improvements such as upgraded insulation, lighting or
renewable energy.
Develop capability to design and deliver more energy
efficient wastewater treatment processes.
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Opportunities
72 Galliford Try Annual Report and Financial Statements 2024
Climate resilience and adaption
Time horizon
Short term
Potential impact on financial performance
Increased revenues resulting from increased
demand for our products and services
Link to our principal risks
1
Work winning
More efficient use of resources
Time horizon
Short term
Potential impact on financial performance
Reduced operating costs
Link to our principal risks
2
Project delivery
3
Resources
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of opportunity
There is likely to be high demand for the construction of climate-resilient infrastructure in all scenarios. There is already a significant demand
within the water sector, driven by political and public sentiment, and this will only increase as the physical impacts of climate changes become
more severe.
Scenario analysis Sustainability Middle of the road Fossil-fuelled development
Level of opportunity
The incentives to reduce our consumption of fossil fuels, energy and other resources are likely to be much higher under the ‘Sustainability’
scenario, with higher energy prices and potential regulatory costs associated with carbon emissions. Therefore the potential cost savings
from more efficient use of resources will be greater under this scenario than under alternative scenarios where the regulatory and market
drivers will not be as strong.
Opportunity description and potential impact on the business Opportunity realisation
As we experience more regular and more extreme weather events,
such as prolonged heatwaves and intense rainfall events, there will be
a need to make our public infrastructure more resilient to the changing
climate. This is already a significant issue for the water sector where
the capacity of the existing sewerage and wastewater treatment
infrastructure is struggling to keep pace with the increasing demands
placed on it by more regular, intense rainfall events, greater run-off
from a more built up environment and population growth. As a result,
there is strong public and political support for significant investment
to improve the resilience of our water infrastructure, with a particular
focus on increasing wastewater storage and treatment capacity and
reducing combined sewer overflow discharges. There will also be the
need to increase the resilience of water supplies to deal with increased
demand and periods of drought, with associated investment in water
storage, transfer and treatment infrastructure.
We are already extremely well-positioned in the water
sector, working with all the water and sewerage companies in
England and Scotland. The actions we are taking to realise the
opportunities include:
Strategic acquisitions in adjacent markets, such as nmcn,
MCS Control Systems, Ham Baker and AVRS, to broaden our
capability and drive margins.
Growing capacity and capability in our Environment business
through targeted recruitment and national presence.
Working with our supply chain to develop new solutions to
address climate resilience issues, such as remote monitoring
of river quality.
Opportunity description and potential impact on the business Opportunity realisation
The drive to reduce carbon in our own operations also creates an
opportunity to realise the commercial benefits of greater resource
efficiency, for example through reduced levels of business travel,
lower energy and water consumption, and minimising waste.
We are already taking actions to achieve cost savings through
more efficient use of resources, with examples including:
Transitioning our company car fleet to electric and plug in hybrid only.
Using the most energy efficient welfare and office
accommodation cabins available.
Developing baselines and targets for water consumption
on our projects.
Combining battery storage with the latest generation of
diesel generators to minimise diesel consumption.
Level of risk
High – Has the potential to have a material financial impact Moderate – May have some financial impact, but unlikely to be material
Low – Unlikely to have a significant financial impact
Task Force on Climate-related Financial Disclosures (TCFD) continued
Opportunities
Opportunities
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Financial statementsGovernanceStrategic report
Viability Statement
As required by provision 31 of the UK Corporate
Governance Code, the Board has assessed the prospects
and financial viability of the Group, taking account of the
Group’s current position and the potential impact of the
principal risks to the Group’s ability to deliver its business
plan. The assessment of prospects has been made using
a period of five years. The assessment of viability has been
made using a period of three years, which aligns with our
budget period and provides reasonable visibility of future
revenue from the existing order book. Since the sale of the
housebuilding businesses and the recapitalisation of the
business in January 2020, the Group no longer has any
bank debt facilities and associated covenants, therefore
viability has been assessed in terms of the headroom
against available cash reserves.
Assessment of prospects
As outlined in our Strategic Report, the long-term prospects
of the business are supported by a strategy which builds on
our existing strengths and the growth opportunities in our
target markets. It is worth noting that the UK continues to
have one of the lowest levels of Government investment
of the G7 nations and with an ageing infrastructure
footprint and it is with this context that the budget was
prepared. The budget also recognised that the new UK
Labour Government has expressed its intent to increase
investment, which provides further support to the growth
assumptions in our modelling.
Our alignment to the UK’s continued investment in social
and economic infrastructure is a fundamental driver
of demand for our services and plays to our strengths
in the health, education, defence, custodial, highways
and environment markets. Our ability to achieve
sustainable growth within these markets is underpinned
by our position on the some of the most significant
procurement frameworks, our commitment to supporting
the decarbonisation of the built environment and our
investment in digital technologies to drive continuous
improvement in quality and productivity and therefore
higher margins.
Our people remain the key to our success and our focus on
attracting and retaining a more diverse workforce as well
as increasing the proportion of apprentices and graduates
help us access the skills and expertise required to deliver
on our sustainable growth strategy.
Assessment of Viability
The base case for the cash flow projections modelled in
our assessment of viability is the budget for the three
years from 1 July 2024 which incorporates appropriate
contingencies against plausible day to day downside risks,
primarily the Group’s principal risks as disclosed previously.
The base case shows strong levels of average month end
net cash and assumes that the Group continues to operate
without bank debt facilities.
Against this base case, we have stress-tested the latest
forecasts and modelled the impact on cash flow and
liquidity of a number of downside scenarios related to our
principal risks, particularly following the ongoing pressures
on public spending including a combined downside scenario
that includes a number of these sensitivities occurring
together. The scenarios modelled and their link to the
underlying principal risks are described in the table below.
Scenario 1 – Reduction in construction volumes
(Link to principal risks: Work winning)
Our cash performance is correlated with earnings growth
and therefore reliant on construction activity being in line
with our assumptions.
We have modelled a reduction in construction volumes
that would equate to a 10% reduction in monthly cash
receipts offset by a proportionate reduction in payments,
relative to our base case forecast.
Scenario 2 – Deterioration in working capital
(Link to principal risks: Resources)
We have modelled the impact of a deterioration in our
working capital, which could be caused by delays in
receiving payments from clients and/or earlier payments
to our supply chain.
Scenario 3 – Irrecoverable cost increases
(Link to principal risks: Project Delivery, Resources)
There is a risk of a prolonged period of materials
cost inflation and therefore we have modelled the
impact of failing to fully mitigate these cost increases
on our projects.
Scenario 4 – ‘Perfect storm’ (Link to principal risks:
Work winning, Resources, Project Delivery)
We also tested the unlikely but plausible scenario where
all of scenarios 1–3 combine at the same time.
As part of the viability assessment, the Board also
considered the mitigations and interventions available
to manage the impact of one or more of the downside
scenarios occurring. The base case already includes
contingencies, and the Board has considered further
mitigating actions that are available to it.
The directors do not expect the emerging climate change
risks to have a significant impact in the short and medium
term, particularly given the nature of the contractual
arrangements in place, although continue to monitor
this, as the Group adapts to the changing environmental
requirements and demands to deliver innovative solutions
through new technologies and methods of construction.
Based on the results of this analysis, the Board has
concluded that they have a reasonable expectation that
the Group will be able to continue in operation and meet
its liabilities as they fall due over the three-year period of
its assessment.
74 Galliford Try Annual Report and Financial Statements 2024
s172(1)
statement
Under Section 172 of the UK
Companies Act 2006, directors must
act in the way that they consider, in
good faith, would be most likely to
promote the success of their company.
In doing so, our directors must have
regard to stakeholders and the other
matters set out in Section 172.
Managing and addressing our stakeholders’ interests is
crucial to the long-term success of our business. Therefore,
the Group’s purpose (page three) and strategy (page 14),
put stakeholders at their core. They cover the interests
of employees, clients, suppliers, customers, communities,
the environment and shareholders. This section covers
our compliance with Section 172.
S172(1) (a) The likely consequences of
any decision in the long term
The Board recognises that the decisions it makes now will
have an impact on the long-term success of the Group.
The updates to the strategy were made by the Board on
the basis that the Group was on track to achieve its targets
earlier than anticipated and so the Board reviewed and
updated those targets in line with further growth potential
and risk appetite. They took into account the current
market landscape including macroeconomic factors
(see Market review) as well as the Group’s resources and
relationships. The strategy is intended to increase value
for all key stakeholders in line with their interests.
S172(1) (b) the interests of the
company’s employees
The Group’s strategy recognises that employees are core to
the business model and its success depends on the ability
to retain, develop and attract the talent required to
resource its plans. The Board seeks to ensure that the
workforce is first and foremost provided with a safe
environment in which to work, that its Code of Conduct is
adhered to and that fair rewards and benefits are awarded.
These form part of our Employee Value Proposition Grow
Together described on page 28.
Stakeholder engagement
S172(1) (c) the need to foster the company’s
business relationships with suppliers,
customers and others
See Stakeholder engagement below.
S1721 (d) the impact of the company’s
operations on the community and the
environment
See Stakeholder engagement below.
S172(1) (e) the desirability of the company
maintaining a reputation for high standards
of business conduct
We are committed to upholding high standards of business
conduct and our duty to behave responsibly, both morally
and legally, is outlined in our Code of Conduct – Doing the
right thing. This signposts our principles and policies, which
are periodically reviewed by the Chief Executive. The Board
monitors ethics and compliance with governance standards,
reviewing for example items such as the Gender Pay report
and Modern Slavery Statement.
S172(1) (f) the need to act fairly as between
members of the company
The Board seeks to act in a way that meets its stakeholders’
interests but recognises that those interests may not always
be in alignment across different members. It balances those
views to ensure the course of action taken best enables the
delivery of the strategy and its long-term ambitions.
Stakeholder engagement
Board level stakeholder engagement takes place through
a variety of channels, both through direct and indirect
interactions. The type of engagement is driven by the needs
of each stakeholder group to ensure they are communicated
in a way that is both effective and practical. Details of how
we engaged with key stakeholders, their interests and how
these influenced Board decisions during the year are set
out on the next pages.
In May 2023, the Board established an ESG Committee,
merging the activities of the Stakeholder Steering
Committee and Carbon Reduction and Social Value Forum.
The ESG Committee is chaired by the CFO and reports
directly to the Board. Its purpose is to review and oversee
relationships with the business’s key stakeholders, including
engaging with stakeholders, collating stakeholder views and
reporting these views to the Board to ensure stakeholder
views are considered in Board discussions and decisions.
The information obtained in the meetings complements
regular updates and presentations to the Board which
provide in-depth updates on key interests of our
stakeholders such as health and safety, human resources
matters, sustainability and client and supplier priorities.
These are complemented by site visits which enable
directors to gain a first-hand insight into our culture,
and meeting with investors and shareholders through
platforms such as the AGM.
Financial statementsGovernanceStrategic report
75
Our people
We are reliant on our people to achieve our purpose.
Key business and sustainability stakeholder interests identified in our Stakeholder Materiality Matrix
Health, safety and wellbeing.
Purpose and culture.
Inclusion.
Investment in learning and development.
Career progression.
Rewards and benefits.
Direct Board engagement
Designated Non-executive Director responsible
for ongoing workforce engagement.
The Board-level Employee Forum met twice to discuss
matters important to employees.
The designated Non-executive Director responsible
for workforce engagement additionally met with the
Group’s senior HR team including the HR director
in June 2024 to share insights into people matters,
strategic priorities and progress.
The Board carried out visits to two sites to monitor
in person our culture in action.
The Board received presentations from our
businesses including updates on our Employee Value
Proposition Grow Together from our HR Director.
The Chief Executive and Finance Director periodically
took part in delivering inductions to new starters
which outline our purpose, strategy, values, business
processes and give attendees the opportunity to ask
their questions.
The Chief Executive and Finance Director periodically
introduced our Challenging Beliefs, Affecting
Behaviour safety module to staff.
The Chief Executive regularly communicates directly
with employees through open dialogue, visits to
our sites and offices, videos, employee roadshows,
emails and videos to all staff.
Indirect Board engagement
The Group conducted a further Employee Survey
this year, where 79% of staff provided their views on
matters affecting their satisfaction in the workplace.
The Board typically receives at least 10 reports a year
featuring key employee statistics and trends, including
risks and opportunities where relevant, relating to
health, safety and wellbeing and employee matters.
Outcomes
0.14 Lost Time Frequency Rate and 0.04 Accident
Frequency Rate.
96% of our people believe we give Health & Safety
a high priority.
87% employee advocacy score.
Retained strong positions Top Graduate/Apprentice
status from TheJobCrowd.
76 Galliford Try Annual Report and Financial Statements 2024
Clients
Satisfied clients are essential for a
sustainable and profitable business.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Financial stability and ability to deliver.
Safety, time, cost and quality.
Carbon and sustainability objectives.
Creating greater social value.
Direct engagement
The Chief Executive and Finance Director met
with key clients during the year and attended
industry events.
Indirect engagement
The Finance Director chaired the ESG Committee
three times during the year which includes
representation from our lead for the client group.
The Board received presentations on our market
position and opportunity from the areas of
focus in our strategy to 2030 – ie our leads for
Affordable Homes, Building, Environment and
Specialist Services.
The Board reviewed information relating to
acquisitions that will extend our offering in areas
such as offsite build and asset optimisation which
are sought after by our clients.
The Board continued to monitor KPIs and progress
through Board reports.
Outcomes
Purchased AVRS during the year.
Sold Rock & Alluvium.
86% of our order book is in frameworks.
93% is repeat business.
Suppliers
The majority of our work is
delivered in partnership
with our supply chain so
they must be aligned to our
values and objectives.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Health, safety and wellbeing.
Fair treatment and prompt payment.
Pipeline of work.
Collaborative relationships.
Access to training, educational resources and
learning opportunities.
Direct engagement
The Chief Executive meets with members of the
supply chain during visits to sites.
Indirect engagement
The Finance Director chaired the ESG Committee
three times during the year which includes
representation from our Group Supply Chain
and Procurement Director, who is additionally a
Board member of the Supply Chain Sustainability
School, a leading platform dedicated to promoting
sustainable practices within supply chains.
The Group Supply Chain and Procurement
Director provides regular updates to the Chief
Executive on supply chain matters. Supply chain
risks and opportunities are also a key theme of
the fortnightly Senior Leadership Team meeting
chaired by the Chief Executive.
The Board continued to monitor KPIs and progress
through Board reports.
Outcomes
Appointed new Group Supply Chain and
Procurement Director.
61% of Business Unit core trades spend
with Aligned subcontractors.
96% of invoices paid within 60 days.
Gold member of Supply Chain Sustainability School.
Stakeholder engagement continued
77
Strategic report Financial statementsGovernance
Communities
We want to be welcomed in
the communities we operate in
and create greater social value
for them.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Health, safety and environment.
High-quality buildings and infrastructure.
Use of local labour, resources and employment,
educational opportunities and wider investment
in the community.
Direct engagement
The Chief Executive gave a presentation to a local
school on the opportunities in construction.
Indirect engagement
The Finance Director chaired the ESG Committee
three times during the year which includes
representation from our Head of Social Value.
The Sustainability Director reports to the CFO and
provides regular updates which include horizon
scanning, positional updates and progress and
future requirements.
The Board continues to support and encourage
the volunteering policy which offers two days per
year per person.
The Board continued to monitor KPIs and progress
through Board reports.
Outcomes
42.9 average CCS score.
79% of projects exceeded our target of delivering a
minimum of 25% of the contract value in social and
local economic value.
The Board approved the continued support of
Crash, the construction industry charity for
the homeless.
The Board approved sponsorship of Forces sailing
charity, Turn to Starboard, which supports veterans
who have been affected by life in service.
Shareholders
We want our shareholders to
have confidence in the long-term
success of our business.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
A sustainable business model and strategy.
Financial performance and dividend policy.
Corporate governance.
Risks to the business.
Direct engagement
The Chair, Chief Executive and Finance Director
hosted a Capital Markets Event in which analysts
and investors were invited to hear first-hand our
strategy update from Senior Leadership.
The Chief Executive and CFO engage with
shareholders through investor roadshows, face-to-
face meetings, video or telephone communications,
Capital Markets Days, results presentations and
webcasts, analyst briefings and AGMs.
Indirect engagement
The Chief Executive and CFO provide regular
updates to the Board from their meetings and
interactions with shareholders.
We issue important information about our business
through our Annual Report, trading updates,
Regulatory News Service announcements, investor
presentations, our website, press coverage and
social media channels.
Outcomes
15.5p full year dividend per share.
78 Galliford Try Annual Report and Financial Statements 2024
Stakeholder engagement continued
Approval of the Sustainable
Growth Strategy to 2030
Overview
In May 2024, Galliford Try announced its
Sustainable Growth Strategy to 2030.
When approving the strategy, the Board considered
the following factors:
The success of the Group’s existing strategy in relation
to the achievement of existing revenue, margin, cash and
dividend targets.
The Group’s capabilities, geographic presence, resource
levels and client and supply chain relationships required
to deliver the targets of the updated strategy.
The market risks and opportunities within each growth area.
Investor expectations.
The following stakeholder interests were considered:
Potential impact on existing employees and management in
terms of time and resources required to grow the business,
particularly in new areas.
Scale of demand from our existing and new clients and their
appetite for us to scale-up in the chosen markets.
Potential impact on existing clients and whether time would
need to be diverted from those operations.
Investor opinions on the chosen markets.
Who did the Board engage with in making
its decision?
The Board liaised directly with our leads from Building,
Environment and Specialist Services. It consulted with the
HR Director to ensure resource expectations were realistic.
The Chief Executive and Finance Director met with each
business unit managing director to take their input and set
achievable but ambitious targets that would support the
overall strategy.
Board decision-making in action
79
Financial statementsGovernanceStrategic report
Acquiring AVRS Systems
Overview
In November 2023, Galliford Try acquired
mechanical and electrical engineering
specialists AVRS Systems, as part of its
Sustainable Growth Strategy.
When deciding to make the acquisitions, the Board
considered the following factors:
The Group’s Sustainable Growth Strategy and
AVRS’ fit with the strategy to grow in adjacent
and complementary markets.
The specific capabilities of AVRS including its assets,
customer relationships and technical capabilities in relation
to how complementary they were to Galliford Try’s existing
operations or whether it would create duplication.
The revenue and profit of the businesses being acquired.
The purchase price, transaction costs, contractual liabilities
and commercial and legal terms.
The position and reputation of the business and any
potential investment needed.
The following stakeholder interests were considered:
The anticipated management resource taken to lead
integration of the business and the impact on the existing
people within the business.
Potential impact on existing clients and whether time
would need to be diverted from those operations.
The future of the employees within the acquired businesses.
Our ability to successfully deliver for our new clients.
Supply chain considerations.
Potential shareholder returns.
Broadening capabilities to serve clients and communities
nationwide as a result of the acquisition.
Who did the Board engage with in making its decision?
The Board liaised with a cross-section of stakeholder groups
including the Managing Director of the Environment business,
the General Counsel & Company Secretary, the HR Director
and external specialist advisors to consider all aspects of the
transaction, including the interests of existing employees,
clients and shareholders.
The Strategic report is approved
by the Board of Directors and
signed on behalf of the Board
on 3 October 2024 by
Kevin Corbett, General Counsel
& Company Secretary.
Board decision-making in action
80 Galliford Try Annual Report and Financial Statements 2024
Alignment with the 2018 UK Corporate
Governance Code (the Code)
Board leadership and
company purpose
p90
Division of
responsibilities
p90
Composition, succession
and evaluation
p94
Audit, risk and
internal control
p94
Remuneration p94
Delivering
sustainable
success for all
stakeholders
On behalf of the Board, I am pleased to present the
Company’s corporate governance report for the financial
year ended 30 June 2024.
At the heart of the successful execution of our strategy
is strong governance and our corporate governance
framework has ensured our Sustainable Growth Strategy,
announced in September 2021, is fully embedded, provides
a robust overview in which to monitor all key areas,
and supports the delivery of our strategic purpose and
objectives. Our strong financial performance over the
last three years, and with revenue and profit before tax
up 27.2% and 58.7% respectively for the financial year,
has allowed the Board to accelerate its financial objectives
and extend its targets to 2030.
The key Board activities carried out during the financial
year are detailed in our Corporate Governance report and,
among other activities, includes preparation for our Capital
Markets Event held in May 2024, following the Annual
Board Strategy Day; a review of our Board composition,
including the appointment of two new directors, and a
review of our senior leadership succession plans; site visits;
presentations by analysts; overview of our Environmental,
Health and Safety policies; employee engagement
(primarily through our Employee Forum) and the
methods by which we monitor our culture.
Strategic objectives reset to 2030
The Board considered the Group’s priorities and progress
towards its principal objectives in a strategic review at
its annual strategy meeting on 17 April 2024. The strong
financial performance, balance sheet, high quality order
book, together with the outlook and visibility of long term
opportunities, provided the confidence to revisit the
current strategic objectives, resulting in an updating of
our financial targets to 2030. The non-financial pillars
of the strategy were also reviewed and the Board is
satisfied the updated strategy continues to be appropriate,
fit for purpose and aligns with the values and purpose of
the Group.
More information regarding our strategy can be found on
pages 1 to 79.
Alison Wood
Chair
Chair’s review
Governance overview
“ Keeping stakeholders’ interests at the
forefront of all decisions, along with
the right strategy, risk management,
culture and a disciplined approach,
are fundamental to our strategic
objectives to 2030.”
81
Financial statementsGovernanceStrategic report
Board changes and succession planning
Board changes
There have been a number of changes to the Board during
the financial year, following the resignation of Terry Miller
in October 2023 and Andrew Duxbury in May 2024.
On behalf of the Board, I wish to thank both Terry and
Andrew for their significant contributions and service to
the Group. Terry served nine years on the Board, which
included being the Senior Independent Director, Chair of
the Remuneration Committee and Chair of the Employee
Forum. Andrew Duxbury served as Finance Director for
over five years, during which time he oversaw the disposal
of the Group’s housebuilding business in January 2020 and
several strategic acquisitions which helped grow the Group.
I, and the Board, wish both Terry and Andrew well in their
next ventures.
Following Terry’s resignation, Marisa Cassoni assumed
the role of Senior Independent Director and Sally Boyle,
who joined the Board on 1 May 2023, was appointed
Chair of the Remuneration Committee.
We welcome Kevin Boyd, who joined the Board as a
Non-executive Director on 1 March, and Kris Hampson,
our new Chief Financial Officer, who joined the Board
on 2 September 2024. Both have a strong financial
background; Kevin also has extensive listed public company
experience, which will further strengthen the Board’s
independence and provide added guidance in delivery
of strategy. Kris joins from a FTSE 100 listed global
business, having held several senior financial roles as
well as extensive acquisition experience.
In line with the Code, all current directors will stand for
re-appointment or re-election at the 2024 AGM. The
directors’ performance continues to be effective, and
they clearly demonstrate their commitment to the role.
Director biographies, their respective responsibilities and
their external directorships are set out from page 82.
Senior management succession planning
The Nomination Committee refreshed the succession
plans during the financial year for the Board and senior
management roles. Good progress has been made with
refining our leadership programme to target development
requirements and support individuals in their advancement
within the Group.
UK Corporate Governance Code changes
We welcome the changes to the UK Corporate Governance
Code in January 2024 and aim for early adoption. One of
the key revisions in the Code focuses on internal controls.
The Board evaluation process confirmed the Board’s view
that the Group’s system of internal controls operated
effectively during the financial year. The Board has tasked
a working group to review and strengthen the processes
already in place in time for when the Code requirements
come into effect.
Equity, diversity and inclusion (EDI)
The Financial Conduct Authority’s target is for at least
40% of Board members to be female, for a woman to
hold at least one of the senior board positions and for at
least one member of the Board to come from a minority
ethnic background. With 50% of the Board being female,
myself as Chair, Marisa Cassoni as the Senior Independent
Director, and Sally Boyle, Non-executive Director, the
Company exceeds two of these recommendations.
Further disclosures are made on pages 82 to 83.
Gender and ethnic diversity in both senior management
and the wider workforce remains a focus and the Board has
overseen a number of EDI initiatives in recent years and
continues to support this area to fully embed practices in the
Company culture. Initiatives include a range of agile working
and family-friendly policies to ensure our opportunities are
as accessible as possible to all to retain and attract the best
candidates. A new and dedicated inclusion team, introduced
last year, is rolling out a range of EDI programmes to senior
managers and across the business. In addition, we continue
to partner with Clear Company, a global diversity and
inclusion specialist, to evolve our progressive retention and
recruitment practices while striving to achieve the Clear
Company’s Silver accreditation. Please see our People
section on pages 28 to 30.
Carbon and climate change matters
The Board recognises that climate change and reducing
our carbon footprint is imperative to the long-term
sustainability of the business. We continue to prioritise
investment in reducing our carbon footprint and
enhancing our measurement and reporting. Progress in the
financial year includes publishing our net zero routemap,
collaborating with other contractors and our supply chain
to develop transaction-based Scope 3 reporting technology,
implementing a site emissions reporting tool, and trialling
innovative low carbon concrete.
Board performance review
The Code requires the Board to undergo an annual review
of its performance, composition, diversity and efficacy
to achieve its objectives. This year, the Board review was
carried out internally and concluded that positive progress
has been made on the findings from 2023, that the Board
continues to operate effectively, and works well together.
Details of the Board review can be found on page 88–89.
Annual General Meeting
The Company will hold its 2024 AGM on 28 November
2024 at the offices of Peel Hunt LLP, 7th Floor,
100 Liverpool Street, London EC2M 2AT at 11.00 am where
the Board will be pleased to welcome shareholders, answer
questions and encourage shareholders’ participation.
On behalf of the Board, we look forward to meeting with
shareholders at the AGM.
Alison Wood
Chair
Michael Topham
Non-executive Director
Board experience:
Appointment date: Michael was appointed to
the Board on 1 June 2023.
Skills and experience: Michael is the Chief
Executive Officer of UK waste management
group Biffa. Michael has held the position of CEO
since 2018, having previously served as Chief
Financial Officer and in various divisional roles.
Michael is a chartered accountant having trained
with PwC where he held positions in both the
audit and transaction services practices.
External appointments: Michael is the
Chief Executive of Biffa and Chair of the
waste industry’s trade association, the
Environmental Services Association.
Kevin Boyd
Non-executive Director
Board experience:
Appointment date: Kevin was appointed to the
Board on 1 March 2024.
Skills and experience: Kevin has extensive listed
public company experience and strong financial
and strategic expertise, having previously
worked as Chief Financial Officer of Spirax Group
plc and in a variety of other financial roles.
Kevin is also a Fellow of the Institute of
Chartered Accountants and the Institute
of Engineering and Technology.
External appointments: Kevin is the Chair and
Non-executive Director of Genuit Group plc
and Audit Chair and Non-executive Director
of Bodycote plc.
Alison Wood
Chair
Board experience:
Appointment date: Alison joined the Board
on 1 April 2022 and was appointed as Chair
on 21 September 2022.
Skills and experience: Alison has a background
in engineering, economics and management and
extensive corporate experience with leading
engineering companies. She spent nearly
20 years at BAE Systems PLC in a number of
strategy and leadership roles, including as Group
Strategic Director, and was the Global Director
of Strategy and Corporate Development at
National Grid PLC from 2008 to 2013. Alison
has previously held Non-executive Director
positions with BTG PLC, Thus Group PLC,
e2v PLC, Cobham PLC, Costain plc and Capricorn
Energy plc. Alison has also held positions
previously as a Non-executive Director and
Chair of the Remuneration Committee at the
British Standards Institution.
External appointments: Alison is a
Non-executive Director and Chair of the
Remuneration Committee at TT Electronics PLC
and is the Senior Independent Non-executive
Director and Chair of the Remuneration
Committee at Oxford Instruments PLC.
Bill Hocking
Chief Executive
Board experience:
Appointment date: Bill was appointed
as Chief Executive on 3 January 2020.
Skills and experience: Bill is a civil engineer
with more than 35 years of experience in the
construction industry. He has full day-to-day
responsibility for delivering the Group’s strategy,
having regard to the Group’s responsibilities
to its shareholders, customers, employees and
other stakeholders.
Bill joined Galliford Try as Managing Director
of Construction in September 2015. He was
previously at Skanska UK plc, which he joined in
1990 and where he held the position of Executive
Vice President on the Executive Management
Team from 2008. From 1 August 2016 until his
appointment as Chief Executive of Galliford
Try, Bill was Chief Executive of the Group’s
Construction & Investments division.
Sally Boyle
Non-executive Director
Board experience:
Appointment date: Sally was appointed to the
Board on 1 May 2022.
Skills and experience: Sally qualified as a solicitor
at Simmons and Simmons. After several years in
private practice as an employment law specialist,
she joined Goldman Sachs International as an
employment lawyer and she later became Head
of Human Capital Management for EMEA.
She was named Partner in 2010 and worked
as the International Head of Human Capital
Management, covering EMEA, India and APAC,
until she retired from Goldman Sachs. Sally was
on the Board of Goldman Sachs International and
its Management Committee and co-chaired the
EMEA Diversity and Inclusion Committee, whilst
also sitting on the global Diversity Committee.
Sally was also previously a Non-executive
Director of the Royal Air Force.
External appointments: Sally is a Non-executive
Director of Cambridge University Press and
Assessment and a Non-executive Director at
Evelyn Partners LLP.
Marisa Cassoni
Senior Independent Director
Board experience:
Appointment date: Marisa was appointed to the
Board on 1 September 2018.
Skills and experience: Marisa is a chartered
accountant with more than 40 years’ experience as
a finance professional. She has strong leadership
and commercial experience gained through her
various executive and non-executive roles. Her
early career was initially in audit but she progressed
into advisory services including corporate finance,
investigations and restructuring across a variety
of industries and jurisdictions. Marisa has over
20 years’ experience as an Executive Board
member and her previous executive roles include
Group Finance Director of the John Lewis
Partnership, Royal Mail Group, Britannic Assurance
Group and Prudential UK Group. Marisa also has
extensive experience in non-executive roles and
was previously a Non-executive Director of Skipton
Building Society, Ei Group plc, Severn Trent plc,
WSP LLP and a Non-executive Director and the
Senior Independent Director of AO World plc.
In addition, Marisa was a Member of the Board of
Trustees for the Peabody Trust, a member of the
Accounting Standards Board for six years and the
Competition Commission for six years.
Our Board
Directors and Executive Board
82 Galliford Try Annual Report and Financial Statements 2024
New plc Board member
Board experience:
Appointment date: Kris was appointed to the
Board on 2 September 2024.
Skills and experience: Kris is a senior finance
professional with significant experience in
listed B2B environments and acquisitions,
having held a number of finance roles with
Rentokil Initial plc, a FTSE 50 global company,
including that of Group Financial Controller
since 2020, and prior to that more than seven
years as Divisional Finance Director of the UK
operations. Before joining Rentokil Initial plc,
Kris spent eight years at Ford Motor company
in a range of senior roles. Kris is a prize-winning
chartered accountant and a member of the
Institute of Chartered Accountants.
Kris Hampson
Chief Financial Officer
David Lowery
Managing Director, Infrastructure
Board experience:
Appointment date: David was appointed to the
Executive Board on 1 July 2024.
Skills and experience: David is a chartered
construction professional and has nearly
25 years’ experience in the civil engineering
and construction industry, operating throughout
the UK and overseas during an extensive
multi-sector career. David joined the Group
and was appointed Managing Director of the
Highways business in 2021, having previously
worked as Executive Director of Eiffage in the
UK and Director of the Eiffage Kier Ferrovial
bam joint venture on HSE. David assumed
responsibility of the Infrastructure division
on 1 July 2024.
New Executive Board member
Vikki Skene
HR Director
Board experience:
Appointment date: Vikki joined the Executive
Board on 3 January 2020.
Skills and experience: Vikki is a senior HR leader,
with more than 20 years’ experience in both
Construction and HR and was previously UK
Employee Relations Director at Balfour Beatty,
where she held a number of senior HR roles.
She joined the Group in June 2016 as HR Director
of the Construction & Investments division.
Board experience:
Appointment date: Kevin joined the
Executive Board on 1 February 2012 and
was appointed General Counsel & Company
Secretary on 1 March 2012.
Skills and experience: Kevin is a solicitor
and chartered civil and structural engineer.
He was previously Chief Counsel Global for
AECOM. Kevin has significant corporate
law, risk management, insurance, finance,
governance, strategy and extensive UK and
overseas experience. He chairs the Executive
Risk Committee and has responsibility
for the management of Legal, Secretariat,
Communications and Property functions.
External appointments: Kevin is a Non-executive
Director of the Construction Industry Council
and the construction industry charity, CRASH.
Kevin Corbett CEng MICE MIStructE
General Counsel & Company Secretary
Ian Jubb
Managing Director, Building
Board experience:
Appointment date: Ian was appointed to the
Executive Board on 3 January 2020.
Skills and experience: Ian has nearly
40 years’ experience in the industry, with the
last 20 years including senior positions with
Miller Construction and Taylor Woodrow.
He joined the Group as Managing Director
for the North and Scotland Building division
on the acquisition of Miller Construction in
July 2014, subsequently taking responsibility
for all Building operations in May 2019.
Board experience:
Appointment date: Mark was appointed to the
Executive Board on 3 January 2020.
Skills and experience: Mark has a wealth
of industry and public private partnership
(PPP) experience, gained through a number
of senior roles spanning more than 20 years.
He joined the Group in February 2014 from
Miller Construction, taking on the responsibility
for the Group’s Investments division.
In March 2018, Mark additionally took on
responsibility for the Facilities Management
division and, in 2019, the specialist businesses
Rock & Alluvium and Oak Specialist Services.
In his career to date, he has held a number
of senior roles including Director for all
PPP activities at Miller Construction.
Mark Baxter
Managing Director, Specialist Services
Executive Board members
Board experience
Business ethics and integrity
Construction
Commercial
Finance
Governance
Human resources
Strategy and risk
Board Committee membership
Audit Committee
Nomination Committee
Remuneration Committee
Executive Board
Chair
plc Board composition
1
Board balance of roles
G
ender diversity
Executive
1
3
5
3
Non-executive
Male Female
Ethnic
diversity
6
0
White Ethnically diverse
L
ength of appointment (years)
2
4
0
3-5y0-2y
6-10y
1 As at 30 June 2024.
83
Financial statementsGovernanceStrategic report
84 Galliford Try Annual Report and Financial Statements 2024
Governance review
Key to stakeholders: Clients Shareholders People Suppliers Communities
Board activities during the financial year
The Board, supported by the General Counsel & Company
Secretary, ensures that meetings are carefully structured
to allow enough time for open discussion. The Board agenda
is structured between standing agenda items, governance
requirements and areas of operational and strategic
focus. The Board regularly reviews and discusses the
following topics:
Reports on the environment, health and safety
and sustainability.
The financial performance of the businesses.
Group strategy, progress against objectives and
operational reviews.
The performance of the Company’s share price.
Comments by market analysts, along with any
shareholder feedback, to ensure that the Board has
a full understanding of the views of major shareholders.
Insights from the Employee Forum and the
ESG Committee.
In addition, the Board receives regular presentations from
the businesses on operational matters, helping Board
members to stay up to date with specific operational and
sector-relevant issues. The Board also receives updates
from advisers, as and when required. Board members are
encouraged to undertake their own continuing professional
development. The non-executive directors’ roles on other
Boards also help them to develop a broad range of skills
and perspectives, from which the Group can benefit.
The information obtained in the meetings complements
regular updates and presentations to the Board which
provide in-depth updates on the key interests of our
stakeholders, such as health and safety, human resource
matters, sustainability and client and supplier priorities.
These are complemented by regular site visits, which enable
directors to gain a first-hand insight into our culture,
and meeting with investors and shareholders through
platforms such as the AGM.
Key areas of Board discussion during 2023/24
The Board held eight scheduled meetings during the financial year and also held ad hoc meetings in relation to
succession and strategic matters. The Board’s key activities and actions taken from the financial year are summarised
in the table below.
Stakeholders considered
Strategy and
implementation
Acquisitions and Disposals
Considered and approved the Group’s acquisition of AVRS Systems
Limited, a specialist design and build solutions business which brings highly
complementary skills into the Group, accelerating the growth of the asset
optimisation and capital maintenance strategy and strengthening the
Sustainable Growth Strategy.
Continued oversight of the integration of Ham Baker, MCS Control Systems
and nmcn into the Environment business following their acquisition in
November and July 2022 and July 2021 respectively.
Approved the sale of the Group’s non-core Rock and Alluvium business in
November 2023.
Received reports on other growth and M&A opportunities and market
updates from the Group’s financial advisers.
Received regular reports from the Company’s brokers and investor
relations advisers.
Sustainability
Oversaw the Group’s sustainability initiatives, including: ensuring that
our strategy continues to align with the sustainability priorities of our
key stakeholders, receiving updates from the ESG Committee, reviewing
our climate-related risks and opportunities, and supporting disclosures,
and approving our net zero map.
Received reports from the Chairs of the ESG and Ethics and Compliance
Committees, and the Employee Forum.
85
Financial statementsGovernanceStrategic report
Stakeholders considered
Culture,
resources
and people
Operational performance
Received and discussed Health, Safety and Environmental (HS&E) reports at
every meeting and received a presentation from the HS&E Director on the
Group’s HS&E performance in 2023/24.
Received regular divisional business performance reports and business review
presentations from the Group’s principal divisions throughout the financial year.
Visited projects at Dolphin Square, London, HMP Rye Hill, Rugby and the
Grantham Southern Relief Road.
Reviewed Prompt Payment Code performance.
Succession planning
Approved the appointment of Marisa Cassoni as Senior Independent Director.
Initiated and approved the appointment of Kevin Boyd and Kris Hampson
as Non-executive Director and Chief Financial Officer respectively on the
recommendation of the Nomination Committee.
Oversaw and approved the senior management succession plan.
Employees
Received updates from the Employee Forum Chair after each Forum meeting,
including observations on the Group’s culture.
Received an update on the result of the 2023 employee survey.
Approved publication of the Gender Pay Report.
Approved the 2024 Sharesave invitation.
Governance
Compliance
Received regular updates from the General Counsel & Company Secretary
on governance and regulatory developments.
Reviewed the various Board Committees’ terms of reference.
Considered the UK Audit and Governance Reforms by the Department for
Business and Trade (formerly BEIS) and possible implications and changes
required for the Group.
Monitored the implementation of a new internal management system.
Monitored measures to strengthen cyber security.
Board evaluation
Considered the output from the 2023 internally-facilitated Board evaluation
process, identified areas for improvement and agreed actions to be taken.
Approved the internally-facilitated Board Performance Review 2024.
Stakeholder engagement
Held the Capital Markets Event with shareholders and analysts to present the
acceleration of strategy and revised financial objectives to 2030 – see page 86.
Sought shareholder and institutional feedback at the half and full year results
presentations and at the 2023 AGM.
The Chief Executive, Finance Director, Chair and General Counsel & Company
Secretary communicated and met with major shareholders.
Held the 2023 AGM as a physical meeting in London. Shareholders were also
invited to submit questions ahead of the meeting.
Received reports from the Chair following each Committee meeting and
considered feedback from Committee members.
86 Galliford Try Annual Report and Financial Statements 2024
Governance review continued
Stakeholders considered
Financial
oversight
Financial resources
Approved the 2024 budget.
Reviewed financial performance against half and full year forecasts and
cash forecasts.
Declared a special dividend for 2022/23 of 12p per share, paid to shareholders
in October 2023.
Declared a final dividend for 2022/23 and interim dividend for 2023/24 of 7.5p
and of 4.0p per share, paid to shareholders in December 2023 and April 2024.
Approved the completion and winding-up of the share buyback programme.
Reporting
Reviewed and approved the Group’s half and full year results, following advice
from the Audit Committee.
Reviewed the trading statements issued in July 2023 and January 2024.
Reviewed and approved the 2024 Annual Report.
Risk
Received regular reports from the Director of Risk and Internal Audit on the
status of the internal audit programme.
Received and considered reports on the Group’s risk management approach
and reviewed proposed updates to the Group’s risk register.
Received reports from the Executive Risk Committee following each
Committee meeting.
Received reports from the Director of Risk and Internal Audit on the
Group’s principal and emerging risks.
Considered the Group’s insurance programme.
Capital Markets Event
The Board held a Capital Markets Event to provide a
detailed update to investors and analysts on the extension
of financial targets to 2030 and revisions to strategy. It
was agreed the Capital Markets Event would be similar
to the structure of the successful Business Briefing to
investors held in 2022, consisting of a face-to-face meeting,
in a central London location for ease of accessibility, with
presentations from management on key sectors of the
business. This format provided investors and analysts the
opportunity to hear first-hand of the revised strategy,
directly ask management questions on key topics and meet
members of the Executive and senior leadership team.
More than 20 investors and analysts attended the event.
A video of the presentation and questions and answer
session is available on the investors section of our website
at www.gallifordtry.co.uk/investors/.
The Chief Executive and Finance Director continued
to meet with existing and prospective institutional
shareholders throughout the financial year. Ninety-two
meetings were held with both shareholders and
non-holders. Meetings were held with 22 shareholders,
who together represented 49% of the share register,
as well as meetings with 25 potential investors. In addition,
the management team attended three investor conferences
in the financial year. Key areas of discussion included the
Company’s strategy and targets, dividend policy, capital
allocation, future pipeline and ESG factors, as well as
macro-economic factors such as inflation.
Management has also continued to focus on building strong
investor relationships, engaging with a third-party specialist
advisory business to schedule roadshows and provide
further research coverage, while Proactive Investors and
InvestorMeetCompany continue to create digital content
following news updates, focusing on retail investors.
Key to stakeholders: Clients Shareholders People Suppliers Communities
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Throughout the financial year, the Board as a whole
continued to consider the views of institutional
shareholders, in line with the Financial Reporting Council’s
UK Stewardship Code, on key matters of relevance to the
Group and its operations, such as governance, strategy,
remuneration or more general market themes. Specific
reports regarding shareholder views are provided
to the Board for analysis and discussion. Separately,
the Chair, Senior Independent Director and other
non-executive directors are available to attend meetings
with shareholders and address any significant concerns
that shareholders may have.
A further opportunity to meet shareholders, answer
their questions and encourage participation will be at the
2024 AGM – details of which can be found on page 81.
Monitoring our culture
The Board recognises the importance of closely monitoring
and assessing its culture, acknowledges that this is a
continuous process and is aware of the strengthening of
the Code in this area to ensure desired cultures become
embedded. The Board uses a range of methods to engage
with employees to develop a positive and progressive
culture and ensure that its policies, practices and desired
behaviours are aligned and support the delivery of its
strategy, values and purpose. This is achieved via:
Board site visits: During the financial year, the Board visited
three varied sites, each containing a different project type,
where they met site managers, had an opportunity to
discuss the project in detail, interacted with site employees
and saw firsthand the working operations and health and
safety procedures in place.
Management meetings: Held during site visits, the Board
met with a variety of senior managers, enabling the Board to
hear their views directly, strengthening their understanding
of the workplace environment and the impact of the policies
and procedures put in place by the Board.
Employee survey: Each year a group-wide employee
engagement survey is conducted with a range of key
questions sent to all employees, with answers anonymised
to enable full confidentiality. In general, the questions
are similar to past surveys to enable comparisons with
previous years and identify trends, however, they are also
updated where appropriate. The results of the survey are
presented to the Executive Board and the Board. An action
plan tailored for each business unit is then developed and
implemented and communicated to the staff.
Employee Forum: A forum, chaired by a Non-executive
Director, where employees meet to discuss workplace
polices and procedures – further details opposite.
Inductions and the Code of Conduct: ‘Doing the Right
Thing’ is the Group’s formal Code of Conduct which outlines
the values and behaviours the Group expects of its staff and
other stakeholders. This is also a focal point of the induction
process for all new starters to ensure the right approach
and expectations are set and the right behaviours become
embedded. Other initiatives to support such behaviours
include induction for new employees, management
presentations, e-learning and on-site training.
Oversight and reporting: The Board is also kept up-to-
date with regular reports and metrics on a range of key
areas relating to culture by receiving presentations and
reports directly and by receiving information via the
Chief Executive’s regular reports and other management
meeting minutes. These include: a Health and Safety
report showing key statistics, trends and any areas for
improvement; people-related data such as employee
turnover and sickness rates; whistleblowing and business
ethics matters are also reported and considered.
Bi-annually the Board receive analyst presentations
regarding the macro-economic environment, budget and
government policy to ensure the Board is fully informed
when making company policies which may impact company
performance and staff.
Informal channels are also used, such as the general
engagement and take-up of internal courses, feedback
on Group briefings and questions arising from the
Chief Executive roadshow.
Board engagement with our workforce
As a people-focussed company, our employees are
one of our greatest assets and the Board recognises
the value that a progressive and committed workforce
brings to the business. A combination of mechanisms,
including the Employee Forum, are used to engage
with the workforce and to ensure Board and staff
communications remain effective.
Employee Forum
The purpose of the Employee Forum is to gather the views
of staff with the aim of strengthening the ‘employee voice’
in the boardroom, enabling the Board to hear directly
from employees on key matters by providing a two-way
mechanism, while also gauging the impact of its employee-
related policies and processes. Overall, the Employee
Forum leads to better engagement with the workforce,
acts as a representative body for communications with
and feedback from employees about workplace policies
and procedures, strengthens the internal communication
process and supports good governance.
The Board has chosen one of the three methods suggested
under Provision 5 of the Code, namely to have a designated
non-executive director, Sally Boyle, to chair the Employee
Forum, which meets at least twice a year. Other senior
leaders also attend including the General Counsel &
Company Secretary, HR Director and Director of
Group Communications.
Employee representatives from a range of roles across
the Company make up the Employee Forum. Employee
membership is reviewed annually to ensure it remains fresh
and continues to be an appropriate representation of the
workforce. The matters raised are discussed at Executive
and Board meetings and the minutes of the meeting are
included in the Board packs.
88 Galliford Try Annual Report and Financial Statements 2024
Governance review continued
During the financial year, the Forum had an opportunity
to listen and discuss employee’s views on a range of
themes, including:
Business performance:
— Overview of business results and performance.
— Progress against the Group strategy in market sectors.
— Analyst views of business performance.
People updates:
— Salary review update.
— Results of an Employee Survey.
— Feedback on the Employee Value Proposition.
— Strengthening the internal Mobility Programme.
— Progression on equity, diversity and inclusion plans.
— The introduction of the new Company car policy.
— Feedback and concerns on the implementation of
the new internal cloud-based system.
Outcome:
Management considered employees views and feedback
and implemented some key initiatives:
Salary review – the Board was mindful of the ongoing
external pressures on the costs of living when carrying
out the salary review.
Company car review – the fleet scheme was recognised
as a valued benefit by staff and was reviewed with the
introduction of an external supplier. A new car scheme
was launched to make the process more competitive,
flexible, provide additional staff benefits and options.
The new scheme was rolled out in November 2023
supported by webinars and internal communications
and was well received by employees.
Board engagement with other stakeholders – see Strategic report
on pages 1 to 79.
Board performance review: 2024 update
and 2023 performance evaluation
In line with the Code, the Board reviews its own
effectiveness and that of its Committees each year,
with an externally-facilitated review at least every
third year (the last one being undertaken in 2022).
Overall, the performance review found that the Board
and its Committees were operating effectively.
2024 Board effectiveness review
The 2024 Board evaluation process was internally
facilitated by the Chair supported by the General Counsel
& Company Secretary and carried out throughout
March and April 2024, with the findings presented to
the May Board meeting.
Questions were reviewed in line with the Code and best
practice to ensure continued relevance and remain broadly
similar to previous evaluations to enable comparison of
results. Amendments were made in particular to: the
succession planning questions to reflect the wider-ranging
definition of diversity; the Board performance review
questions to reflect the change in language; the culture and
values questions to reflect the change in emphasis to embed
a desired culture. A commentary section is also included to
ensure opinions are captured.
The process of the internal effectiveness review involves
a detailed and comprehensive online questionnaire
securely sent to each individual director for completion.
Each director was asked to complete a questionnaire
specific to their Board and Committee responsibilities;
the completed questionnaires were then collated and
responses were reviewed by the Chair and General
Counsel & Company Secretary.
In line with best practice, the performance evaluation of
individual directors is conducted on an annual basis by the
Chair who holds one-to-one meetings with each Board
member and the General Counsel & Company Secretary
to discuss their performance, contributions, commitments
and any training and development needs. The Senior
Independent Director also meets with all Board members
and the General Counsel & Company Secretary to discuss
the performance of the Chair and then meets with the
Chair to provide feedback.
The findings of the evaluation exercise were presented
to the Board in May 2024. Overall, the Board and its
Committees achieved high scores and the evaluation
confirmed the Committees are continuing to operate
effectively. The results of the evaluation confirmed the
composition of the Board was appropriate for the size
and structure of the business.
The Board has identified the following recommendations in
relation to areas where it would like to make improvements
over the next financial year:
Recommendations arising from 2024
Board effectiveness review
Board – Focus on strategy, monitor progress
and development.
Board – Relationships: to continue to support new
appointees to encourage questions, challenge
senior management, ensure a culture of openness
and debate is continued and allow time to all to
evolve into their roles.
Board – Information: information on margin at
project level to be provided in the financial papers.
Audit – External auditors: to continue to work
collaboratively with the external auditors to
strengthen working relations, and to agree and
implement strategies for improvement.
Remuneration – strategy: review and consider the
appropriateness of the long term incentive plan
performance metrics.
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The 2023 Board effectiveness review
The 2023 Board evaluation exercise was internally-facilitated and the process followed those undertaken in previous
years. The findings were presented to the May 2023 Board meeting and, as shown below, the Board has successfully
addressed the actions arising from the effectiveness review in 2023:
Recommendation Actions taken
Meetings: more
discussions on strategy.
More regular and focussed discussion and consideration around adjacent
markets, company valuation and future strategy was carried out.
Composition: continue to
monitor the appropriate
skills, knowledge,
diversity and experience
to support the Company
as it evolves.
The likely needs of the Company as it evolves, along with the existing mix
of skills, knowledge, diversity and experience on the Board, were taken into
account when carrying out the search for the new Non-executive Director and
Executive Director. The skills and experience of the newly appointed directors
and how they would add value were also taken into account.
Succession planning:
continue to monitor
the development of
the wider leadership
team succession and
development plans
and continue to build
on inclusion and
diversity initiatives.
A presentation to the Board reviewing the wider leadership team and its
succession plans was carried out. A range of initiatives to improve equal
opportunities, inclusion and diversity were implemented including the
appointment of an internal inclusion lead manager and inclusion partner,
exercises with internal teams to strengthen awareness of inclusion matters
and a ‘lunch and learn’ webinar.
Cohesiveness: ensure
a culture of openness,
contribution, debate and
challenge continues as
new members join.
Thorough inductions were carried out with new Board members to promote
further understanding of the business on joining, and participation in boardroom
discussions is supported and actively encouraged by all.
External auditors:
continue to work
together to find ways in
which working relations
can be strengthened.
Several review meetings have been held, resulting in more detailed
timetables, and the exchange of information with external auditors earlier
than in previous years.
90 Galliford Try Annual Report and Financial Statements 2024
Governance review continued
UK Corporate Governance Code compliance
As a listed company, the Code sets the standards against which we measure ourselves. The Board confirms that
during the financial year ended 30 June 2024, the Board has applied the Principles and complied with all the
Provisions of the Code. The Board is aware of the revisions to the Code in 2024 and is taking these changes
into account to be fully reported on next year. Information on how the Code was applied is detailed below:
Board leadership and company purpose
The Board is collectively responsible for the long-term
success of the Company, including its relationship and
engagement with shareholders and other stakeholders, and
operates via a formal schedule of matters reserved for its
decision. The externally-facilitated Board and Committee
evaluation carried out in 2022 and subsequent internal
evaluations carried out in 2023 and 2024 have each
concluded the Board and its Committees were effective.
The schedule of matters reserved for the Board, which is
reviewed by the Board annually, provides that the Board
is responsible for establishing the values and strategy
of the Company. The Employee Forum chaired by Sally
Boyle, Senior Independent Director, remains a key element
in the Board’s oversight of culture and engagement
with employees. Our Code of Conduct also defines the
behaviours we expect of our people and the ethical
standards to which we adhere.
The Board reviews and agrees the annual budget in July
each year to ensure there are sufficient resources in place to
achieve its objectives. In addition, mature risk management
and governance processes are in place to identify, report
and manage risk. These are kept under review to ensure
they remain robust and appropriate. The Executive Risk
Committee assists the Board and Audit Committee in
monitoring and updating the Group’s principal and emerging
risks and regularly reports to the Board on its work.
The executive directors undertake regular meetings
with shareholders throughout the financial year and, this
year, the executive directors also held a Capital Markets
Event, which the Chair attended, to provide detailed
information regarding the financial targets extension to
2030. At each meeting the Board receives an investor
relations report. The Chair is available to carry out
engagements with shareholders on general matters and
matters of importance, as required, and invites questions
from shareholders at the AGM. The ESG Committee and
the Employee Forum, which oversees relationships with
key business stakeholders, continued to meet during the
financial year, collated stakeholder and employee views
and reported these to the Board.
The Code of Conduct ‘Doing the Right Thing’ sets out our
overall organisational policies and procedures and defines
expected behaviours. Group policies define our approach to
managing health, safety, environmental and social matters.
During the financial year, the Executive Board reviewed and
refreshed the policies, procedures and authority matrices
under which the central functions and businesses operate,
with certain key policies published on our website. There is
an independent and anonymous whistleblowing procedure
allowing any employee or third party to confidentially raise
concerns. The Audit Committee ensures the whistleblowing
procedure remains effective and that any matters reported
are appropriately investigated and resolved.
The Group operates a formal procedure for disclosing,
reviewing and authorising directors’ actual and potential
conflicts of interest, in accordance with the Companies
Act 2006. In addition, the Board reviews and authorises
conflicts of interest, as necessary, on an annual basis.
Division of responsibilities
The Chair is responsible for leading the Board, setting
the Group’s purpose, direction and values, and ensuring
the highest standards of corporate governance are
adhered to. In addition, the Chair facilitates constructive
Board relations and the effective contribution of all
non-executive directors and, in conjunction with the
General Counsel & Company Secretary, ensures that
directors receive accurate, timely and clear information.
The Chair’s performance is assessed through the annual
Board evaluation process and through a separate annual
meeting of the non-executive directors, led by the
Senior Independent Director without the Chair present.
In June 2024 the Senior Independent Director consulted
with all Board members to discuss and evaluate the
performance of the Chair and concluded the Chair
was performing effectively.
The roles of the Chair and Chief Executive are separate,
with a clear division of responsibility and with distinct
accountabilities and, along with the Senior Independent
Director, are summarised below. In general, the Chief
Executive is responsible for the day-to-day executive
leadership and management of the business through
defined delegated authority limits whilst the non-executive
directors provide an independent view on the running of
our business, governance and boardroom best practice.
They oversee and, where necessary, constructively
challenge management in its implementation of strategy
and Group performance.
The annual Board evaluation process continues to assess
the performance and effectiveness of all directors and their
commitment to meeting their Board responsibilities.
The General Counsel & Company Secretary ensures that
the Board receives high-quality papers in a timely manner.
He advises the Board on all governance matters, including
compliance with the Code. He works with the Chair and
Committee chairs to ensure that the right matters are
escalated to the Board and Committees at the appropriate
time and that sufficient time is devoted to strategic matters.
He oversees Board induction and evaluation arrangements
and supports succession planning and recruitment of new
non-executive directors.
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The Board
The Board promotes the Company’s long-term sustainable success for its stakeholders and is the key decision-making forum for all
strategic matters. It monitors progress against the Company’s strategic priorities and ensures there is a robust and effective control
environment, so that principal and emerging risks are appropriately assessed and managed. It sets the culture for the Company and
ensures good corporate governance procedures are in place and adhered to.
Audit Committee:
Oversees financial reporting matters; keeps under review the adequacy and
effectiveness of the Company’s internal control and risk management systems;
reviews the independence and effectiveness of the external audit process and seeks
to ensure the effectiveness of the Company’s whistleblowing arrangements for its
employees and contractors.
See page 99 for our Audit Committee report.
Executive Board:
Oversees the Group’s operational
management and implements its
strategy and policies, including the
Health, Safety & Sustainability,
financial, HR and risk policies,
as agreed by the Board.
See page 56.
Nomination Committee:
Oversees Board and Committee composition, succession planning for Directors
and other senior executives, and the Board evaluation, considering the Board’s
balance of skills, experience, independence and knowledge of the Company, its
diversity, how the Board works together as a unit, and other factors relevant to
the Board’s effectiveness.
See page 95 for our Nomination Committee report.
Executive Risk Committee:
Assists the Board and Audit
Committee in monitoring and
updating the Group’s principal,
emerging, and climate-related
risks. The Committee is chaired
by the General Counsel &
Company Secretary.
See page 56.
Remuneration Committee:
Designs remuneration policies and schemes for the Executive Directors and senior
management and reviews workforce remuneration policies, to ensure such policies
support the Group’s strategy and promote its long-term sustainable success.
See page 104 for our Remuneration Committee report.
ESG Committee:
The Board established an ESG Committee by merging its Stakeholder Steering Committee and Carbon Reduction and Social
Value Forum in April 2023. The Committee co-ordinates and oversees the Group’s activities in relation to the carbon reduction
initiatives; social value adding practices; and the Group’s relationships with its key stakeholders, ensuring their views are
considered in Board discussions and decisions. The Committee is chaired by the Chief Financial Officer, meets at least three
times a year and reports its activities and outputs to the Board, enabling Board oversight and influence across all ESG areas.
The Committee is comprised of representatives from across our operational divisions and support services functions and includes
the Director of Risk and Internal Audit and the Director of Sustainability, which ensures that the work of the ESG Committee is
aligned to our principal ESG risks, including climate-related risks.
Employee Forum:
The Employee Forum is chaired by Sally Boyle, Non-executive Director. The Employee Forum meets at least twice a year and
consists of employee representatives from a range of roles and departments across the Group. The Employee Forum provides
a valuable channel for the two-way communicating of policies which affect employees and communicating the views of our
workforce to the Board. Areas of discussion include company values, strategy, health, safety and wellbeing, benefits and rewards,
training, communication and other aspects that influence employee engagement.
See page 87.
Board Committees
The Board has delegated certain responsibilities to its Committees. Each Committee has its own terms of reference, available on
our website at https://www.gallifordtry.co.uk/about/governance-and-policies/. These are reviewed annually and updated where
necessary, to ensure they remain in line with best practice guidance.
92 Galliford Try Annual Report and Financial Statements 2024
Governance review continued
There is a clear division of responsibility between the Chair and the Chief Executive and the roles of the Chair,
Chief Executive and Senior Independent Director are set out in writing and summarised below. In line with the
Code, the Board reviewed these roles during the financial year. These documents can be found on our website at
https://www.gallifordtry.co.uk/about/governance-and-policies/.
Role Summary of responsibilities
Chair The Chair’s responsibilities include:
leading the Board, ensuring it is effective;
ensuring strong working relationships with all Board members, promoting a culture of openness,
debate and constructive challenge;
ensuring the Board has the right balance of diversity, skills, experience and independence, and
that non-executive directors have appropriate inductions and development;
setting the Board’s agenda, ensuring accurate and timely information is received and effective
decision-making processes are in place;
ensuring effective communications with all shareholders and other stakeholders, with any major
concerns considered by the Board;
ensuring a clear relationship between remuneration and the Company’s long-term success;
with the Chief Executive and the Chief Financial Officer, representing the Company in the
industry and financial community;
leading annual reviews of the performance of the Board and directors; and
ensuring the highest standards of corporate governance and full compliance with the Code.
Chief Executive The Chief Executive’s responsibilities include:
developing the Group’s objectives and strategies, taking into account the Group’s responsibilities
to its stakeholders, achieving objectives and executing the strategy approved by the Board;
preparing and meeting the budget and strategic financial plan, closely monitoring performance
across the Group and taking action where necessary;
examining all investment and major projects, executing acquisitions and disposals, approving
major proposals or bids, and identifying new business opportunities;
managing risk, including health and safety performance and ensuring the implementation of
Group policies;
ensuring effective communication with shareholders and other stakeholders; and
effective leadership of the senior executive team, including development and succession planning.
Senior
Independent
Director
The Senior Independent Director’s responsibilities include:
acting as a valued adviser and sounding board to the Board and Chair, and being available for
confidential discussions with the non-executive directors on any matter relating to the Board,
performance or strategy;
meeting with the non-executive directors (without the Chair present) at least once a year and
evaluating the Chair’s performance;
chairing meetings of the Nomination Committee when considering succession for the Chair
(unless the Senior Independent Director is a candidate for the role);
being an alternative point of contact for shareholders and attending sufficient meetings with
shareholders to understand their views; and
acting as an alternative point of contact for the executive directors and senior executive team.
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A non-executive directors’ role is to offer advice and
guidance to the executive directors and, when required,
constructively challenge the executive directors and Group
senior management on performance and strategy matters.
The roles and responsibilities of the non-executive directors
are specified in their letters of appointment. The letters of
appointment are available for inspection on request at the
Group’s registered office and will be available immediately
prior to and during the 2024 AGM.
When making a new appointment, the Board takes into
account other significant demands on a director’s time.
Any significant commitments must be disclosed prior to
appointment for consideration by the Board. Any additional
external appointments may then only be undertaken with
the Board’s written approval and if it is considered that
time and commitments allow. Executive directors require
the Board’s approval to accept any external appointments
as a non-executive director and retain any associated fees.
These measures are in place to ensure all directors have
sufficient time and capacity to focus on the work required
by the Company.
Delegated authorities
The Board continues to operate an established framework of financial, commercial and operational matters delegated to
management, which is reviewed annually. A summary of the matters reserved for the Board and the matters delegated to
management is set out in the table below.
Matters reserved for the Board Matters delegated to management
Group values and standards Operational management of the Group
Group strategy, business plans and annual budgets Implementation of Group policies
Acquisitions, disposals and contracts over a prescribed value Allocation of Group resources
Material contracts and joint arrangements Contracts up to a prescribed value
Approval of Group policies Management succession planning
Material changes to Group share capital Risk management
Group borrowing facilities
Approval of circulars and financial reports
2023/24 Board and Committee meetings attendance table
Number of meetings (attended/scheduled) Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
Alison Wood Chair 8/8 by
invitation
2/2 3/3
Bill Hocking Chief Executive 8/8 by
invitation
by
invitation
by
invitation
Marisa Cassoni Senior Independent Director 8/8 3/3 2/2 3/3
Sally Boyle Non-executive Director 8/8 3/3 2/2 3/3
Michael Topham Non-executive Director 8/8 3/3 2/2 3/3
Kevin Boyd
1
Non-executive Director 2/8 1/3 1/2 0/3
Kevin Corbett General Counsel & Company Secretary 8/8 3/3 2/2 3/3
Former Directors
Andrew Duxbury
2
Former Finance Director 8/8 by
invitation
n/a n/a
Terry Miller
3
Former Senior Independent Director 3/8 1/3 0/2 2/3
1 Kevin Boyd was appointed as Non-executive Director on 1 March 2024 and attended all scheduled Board and Committee meetings from this date to the year end.
2 Andrew Duxbury resigned on 31 May 2024 and attended all scheduled Board and Committee meetings during the financial year until his departure.
3 Terry Miller stepped down on 31 October 2023 and attended all scheduled Board and Committee meetings during the financial year until her resignation.
94 Galliford Try Annual Report and Financial Statements 2024
Governance review continued
Composition, succession and evaluation
As at 30 June 2024, the Board comprised the Chair,
four independent Non-executive Directors and the
Chief Executive. Kris Hampson joined the Board on
2 September 2024 as Chief Financial Officer following
the resignation of Andrew Duxbury on 31 May 2024.
This is considered to be the appropriate number of
members for the Board, given the current scale of the
Group’s operations. All Non-executive Directors, including
the Chair, are independent and provide challenge to the
executive directors, leadership team and senior managers
as appropriate
The Board followed a clear and formal process for
appointing directors, which was followed for the
recruitment of Kevin Boyd and Kris Hampson during
the financial year. These appointments were in line with
the Board’s succession plans, which were reviewed
and refreshed during the financial year. The Board and
Executive management recognise the importance of
succession planning to overall business performance.
Inclusion and diversity are key drivers to the Group’s
overall development plans.
The Nomination Committee regularly reviews the
balance, composition, diversity and structure of the Board,
as well as the length of service of each Board member.
The Nomination Committee also makes recommendations
on the re-appointment of non-executive directors and any
extensions to their term.
The Board conducts an annual evaluation of its own
performance and the performance of its Committees
and individual directors. This year the Board undertook
an internally facilitated Board and Committee evaluation
following the completion of an externally-facilitated
evaluation last year.
Audit, risk and internal control
The Board delegates detailed oversight of the Group’s
system of internal controls to the Audit Committee, to
ensure the integrity of the Group’s full year and half year
results and the Annual Report and Accounts. On the Audit
Committee’s recommendation, the Board reviewed and
approved the 2024 half year and full year results and the
2024 Annual Report. In addition, the Board evaluation
process together with reviews at the Audit Committee
meetings and the annual review in September confirmed
the Board’s view that the Group’s system of internal
controls had operated effectively during the financial year.
The Audit Committee reviews the effectiveness of the
external audit process on an annual basis.
The Audit Committee reviewed the 2023 Annual Report
and Accounts in September 2023 and was satisfied that it
presents a fair, balanced and understandable assessment
of the Group’s position and prospects. The Audit
Committee reported its findings to the Board.
The procedures for managing risk have continued to work
well during the financial year. Both the Executive Risk
Committee and Audit Committee continually monitor the
Group’s risk management and internal control systems on
the Board’s behalf. The Executive Risk Committee (chaired
by the General Counsel & Company Secretary) reviews the
Group’s principal and emerging risks and recommends any
changes to risk appetite to the Board. The Board regularly
reviews the Group Risk Register.
With regard to internal audit, a separate programme
of 10 internal audits was completed across the Group’s
operations, and progress checks were completed against
previous recommendations.
The Group has a suite of governance and risk management
policies, procedures, and training programmes, all of which
address the Group’s legal obligations. During the financial
year, the Executive Board reviewed and refreshed the
policies, procedures and authority matrices under which
the central functions and businesses operate.
Remuneration
Shareholders approved the current Remuneration Policy
at the 2023 AGM. The Remuneration Committee continues
to review remuneration policies and practices to ensure
they are aligned to the Group’s long-term success and
based on stretching performance metrics that reflect
shareholders’ interests.
The Remuneration Committee has continued to apply
robust procedures for determining executive remuneration,
in line with the policy approved by shareholders, and
operates in accordance with its terms of reference.
The remuneration of non-executive directors is a matter
for the Chair and the executive directors. In determining
executive director remuneration policy, the Committee
considers workforce remuneration, policies and incentives
linked to culture. No one can be involved in any discussion
or decision about their own remuneration.
The Remuneration Committee members are all
independent non-executive directors. The Committee takes
advice from external remuneration consultants and ensures
that remuneration for Board and senior management
is suitably structured to attract, retain and motivate
executives, and to link reward with corporate and individual
performance and all relevant internal and external factors.
95
Financial statementsGovernanceStrategic report
December
Monitor succession planning of
leadership roles at Executive and
key senior level below.
Review impact of Retain & Gain
strategies towards talent
pipeline, including:
– Equity, diversity and
inclusion strategies.
– Women in Construction,
Learning & Development,
and Early Careers initiatives.
Update on Chief Financial Officer’s
succession search.
Update on Non-executive Director
succession search.
May
Review appointment of new
Non-executive Director and monitor
effective induction programme.
Non-executive directors’
appointment review and
Committee Board membership.
Terms of reference review
and approval.
Board and Board Committee
performance review.
Executive Board performance review.
Monitor succession planning of
leadership roles at Executive and
key senior level.
Review impact of Retain & Gain
strategies towards talent pipeline.
March
Update on Chief Financial Officer’s
succession search.
Calendar of 2023/24 Committee activities and areas of focus
During the financial year, the Committee prioritised the key activities and areas of focus set out below:
Alison Wood
Nomination Committee Chair
The Committee’s main focus this year was Board succession
planning, following the stepping down of Terry Miller
as Senior Independent and Non-executive Director on
31 October 2023, having served nine years on the Board,
and the resignation of Andrew Duxbury, Finance Director,
who resigned on 31 May 2024. Both Terry and Andrew
have made huge and invaluable contributions to the Group
over their respective tenures and I would like to thank them
both for their commitment, knowledge and guidance to the
Board and this Committee and wish them well in the future.
As a result of a rigorous process, I am delighted to welcome
Kevin Boyd to the Board as Non-executive Director and
member of this Committee with effect from 1 March 2024
and Kris Hampson to the Board as Chief Financial Officer
with effect from 2 September 2024.
Composition and remit
The Committee’s membership is detailed on pages 82 to 83
and, at the financial year end, the Committee comprised a
majority of independent non-executive directors, complying
with Provision 17 of the Code. During the financial year,
the Committee reviewed its terms of reference in line with
best practice, requiring only minor changes, and the current
terms of reference can be found on the Group’s website
(www.gallifordtry.co.uk).
Membership of the
Nomination Committee
The UK Code provides that the majority of members
of the Nomination Committee should be independent
non-executive directors.
Alison Wood
Nomination
Committee Chair
Marisa Cassoni
Senior Independent
Director
Kevin Boyd
Non-executive Director
Michael Topham
Non-executive Director
Sally Boyle
Non-executive Director
Nomination Committee report
202420242023
N
96 Galliford Try Annual Report and Financial Statements 2024
Board appointment process
The Committee agreed a brief for each appointment based on the capabilities, skills, diversity and experience required
for the role, which would provide added value to the Board as a whole and which would support the Board to deliver its
business’s strategy. Below provides details of the process ‘in action’ as it was applied for the appointment of Kris Hampson:
Appointment process for new Chief Financial Officer – Kris Hampson
Background:
Andrew Duxbury, Finance Director, resigned from the Board.
Review:
The Nomination Committee reviewed the current Board structure, composition and skills of the Board and how these
align to delivering the Group’s strategic plan.
Process:
The Chair, Alison Wood, assisted by the General Counsel & Company Secretary, led the process to select
a new Chief Financial Officer. The executive search firm, Odgers Berndtson, was appointed to assist with the search
process. Odgers Berndtson has no other connection to the Company or its directors. The Committee requested the
search to include a diverse list of candidates in respect to gender, ethnicity and background, and agreed a brief based
on the capabilities, skills, experience and diversity required on the Board and which would support the business’s
strategy. This included:
track record of success in finance leadership for a major company or division of a large corporation,
with relevant experience of working in a multi-site environment within an industry with a similar risk profile;
capability to support the Chief Executive in commercial, operational and strategic leadership of the organisation;
a qualified accountant with strong technical finance experience;
good understanding of corporate governance;
the ability to work with external shareholders; and
strong ability to culturally lead the business alongside the rest of the executive leadership team.
Candidate
selection:
The executive search firm conducted a search and provided an extensive list of potential candidates, 32% of whom
were female. The Committee reviewed the list and instructed preferred candidates to be approached to participate
in the interview process.
Interview process:
Sixteen candidates were interviewed by the executive agency at longlist stage. After a shortlist discussion with the
Chief Executive and the HR Director, seven candidates were invited for first interviews by the Chief Executive and
outgoing Finance Director. Three candidates were progressed for a second interview, which included meeting the
HR Director, the Chair and a second meeting with the Chief Executive. The preferred candidates subsequently
met with three further non-executive directors. Detailed informal and formal references were obtained.
Outcome:
Having considered the specification for the new Chief Financial Officer, the strategic requirements of the business
and the skills and experience of the short-listed candidates, the Committee recommended the successful candidate,
Kris Hampson, to the Board for appointment. Kris met the search criteria due to his substantial experience in senior
management roles including that of Group Financial Controller at FTSE 50 Rentokil Initial plc, where he was previously
Divisional Finance Director in the UK and Rest of the World Division. He is an ACA qualified accountant. Kris has
experience in leading large and high performing teams across finance, in addition to other functions. He has vast
experience in driving growth in an operational finance leadership role, in addition to financial reporting in a listed
environment. Kris also has experience of leading on mergers and acquisitions, including integrating acquisitions into
a business, and has a good understanding of risk management.
Induction process:
A full and comprehensive induction programme is prepared for new directors. This includes a range of separate
internal meetings with each executive Board director, the General Counsel & Company Secretary, members of the
Executive Committee, as well as other members of the senior leadership team. Site visits are also planned to meet
local management and workforce and see the application of health and safety matters. Meetings with key external
advisers also take place.
Nomination Committee continued
97
Financial statementsGovernanceStrategic report
Board and Committee changes
Details of the members of the Nomination Committee
can be found on pages 82 to 83.
Senior leadership succession planning
Succession planning at senior levels below the Board also
remained a key priority for the Committee during the
financial year. A detailed update was received from the
HR Director on the progress of the implementation of
the Group’s succession plan, noting that stable leadership
teams were in place and identifying which key leadership
positions had internal successor candidates. The timescale
of the development of those coming forward, with coaching,
training and development opportunities were identified.
Initiatives to support a diverse talent pool of employees
who demonstrate a high potential for promotion were also
discussed. The Group’s ‘employee retain and gain’ people
strategy was further developed to ensure employees were
proactively engaged and trained to support and enable
staff retention levels. Other initiatives to widen diversity
included the Women in Construction and the Early Careers
programme as noted in the People section of our Strategic
Report page 28.
Review of the Board’s composition
The Committee reviews the composition of the Board
and its Committees at least annually as part of the Board
performance review process and, given the recent changes
to the Board, this was a particularly important exercise.
The Committee considered the balance of skills, experience,
knowledge and diversity of opinion of the non-executive
directors, their time commitments and succession plans
of the current Board, and the requirements sought for the
new candidates, to ensure the Board remained suitable
for the Group’s structure, strategy, objectives and future
organisational design. Given the size and structure of our
Group, and the new candidates in place, the Nomination
Committee found the composition and size of the Board
and its committees remains appropriate. Further details
on the Board evaluation and its outcomes can be found
on pages 88 to 89.
The Board and its Committees’
performance review
The Board and its Committees’ internally-facilitated
performance review was carried out during the
financial year and identified a small number of actions
for the Committee to undertake, including: continuing to
monitor closely the relationship with the external auditors
and the finance team, especially following the change in
Chief Financial Officer; overseeing the Board dynamics and
relations following the introduction of new members and
ensuring time is given to new members to grow into the
role; the need to maintain its approach to the monitoring
of the correct balance of skills, leadership succession and
development plans as strategy evolves. The Nomination
Committee performance review concluded the Committee
remains effective and met the performance requirements
of the financial year.
Culture of equity, diversity and inclusion
A key focus for the Committee is continuing to ensure
equity, inclusion and diversity (EDI) is embedded in the
Sustainable Growth Strategy to provide a supportive and
progressive culture for all. The Committee fully supports
the 2023 addition of inclusion and diversity disclosures in
the Listing Rules and ensures such matters are considered
in all its policies and practices.
During the financial year, the Committee considered
and monitored the further development of the new
EDI initiatives implemented last year. The outcomes of this
included: the roll-out of a planned EDI Inclusive Leadership
programme to senior leaders and business units following
the creation of a dedicated Inclusion Team within the
HR function in 2023, and continued working with Clear
Company, an external EDI and culture consultancy, whom
the Group have partnered with to gain objective and
constructive feedback and guidance on our retention and
recruitment practices, with the aim to remove any potential
barriers and continue our journey to an inclusive culture.
The Committee also considered an extensive range of
EDI working practices to ensure the Group is able to
attract the best candidates from as wide a section of the
population as possible which include: agile working and
hybrid working practices, taking part in industry initiatives
such as supporting the National Association for Women in
Construction and the Supplier Diversity Group. The Group
is also an accredited Disability Confident Employer. In 2023
the Women in Construction Research project was launched,
focusing on operational roles. Further information on the
EDI initiatives implemented can be found in the People and
culture section commencing on page 28.
Nomination Committee continued
98 Galliford Try Annual Report and Financial Statements 2024
Statement on compliance of Board and
Committee equity, diversity and inclusion
EDI is also a key consideration when assessing the
Board’s composition and that of its Committees to ensure
there are no barriers to attracting the best candidates or
developing a diverse pipeline for succession and creating
an inclusive environment. The Committee considers a broad
definition of diversity when setting policies and appointing
directors which includes: ethnicity, religion, socio-economic
background, gender and sexual orientation, age, disability,
partnership status, culture, personality and professional
experience. The Committee has worked hard to ensure
the Board is sufficiently diverse to support its future
strategic developments.
The Board confirms that as at 30 June 2024 (being the
reference date selected by the Board for the purposes
of this disclosure), the Company has complied with the
gender diversity targets of UKLR 6.6R(9)(a) (formerly
Listing Rule 9.8.6R(9)) and the FTSE Women Leaders
Review. Fifty per cent of the individuals on its Board are
women and so meets the rule of at least 40% of the Board
are female as well as holding two senior Board positions,
those of the Chair and the Senior Independent Director.
In order to collect the data for the gender and ethnic
diversity disclosures, the Board and its senior management
team were each sent a series of questions to complete
asking how they self-identify in each of the designated
categories under the Listing Rules disclosure.
The Company does not presently meet the UKLR 6.6.6R(9)
(a) (formerly Listing Rule 9.8.6R(9)) ethnicity target for
Board members and senior management of at least one
individual on its Board from a minority ethnic background
and acknowledges that further work is required to become
more ethnically diverse. In its most recent search for new
appointments to the Board, the Committee expressly
sought and took steps to identify candidates from a
minority ethnic background.
Alison Wood
Nomination Committee Chair
Board and Executive management gender identity table
As at 30 June 2024
Number
of Board
members
Percentage
of the Board
Number
of senior
positions on
the Board
(CEO, SID
and Chair)
Number in
Executive
management
1
Percentage
of Executive
management
1
Men 3 50 1 3 75
Women 3 50 2 1 25
1 Those included in the number in Executive management consist of those who make up the Executive Committee but who are not Board members.
Board and Executive management ethnic identity table
Number
of Board
members
Percentage of
the Board
Number
of senior
positions on
the Board
(CEO, SID
and Chair)
Number in
Executive
management
Percentage
of Executive
management
1
White British or other White
(including minority-white groups) 6 100 3 4 100
1 Those included in the number in the Executive management column consist of those who make up the Executive Committee but who are not Board members.
Marisa Cassoni
Audit Committee Chair
As Chair of the Audit Committee and on behalf of the
Board, I am pleased to present the Audit Committee
Report for the financial year ended 30 June 2024.
Composition of the Committee
The composition of the Committee continues to exceed the
requirements of Provision 17 of the Code as, at the financial
year end, all members were independent non-executive
directors, and the majority, specifically myself, Kevin
Boyd and Michael Topham, have extensive and relevant
experience in finance. Further, the depth of and significant
wide-ranging business backgrounds of all Committee
members ensures the Committee has the right balance of
skills, understanding and experience to carry out the role,
and all are highly competent in the sectors in which the
Company operates. In addition, the Committee continues
to ensure each member has sufficient knowledge and access
to training to stay up to date and contribute effectively to
the Committee’s work. Further details of the Committee’s
membership can be found on pages 82 to 83.
In addition to the members of the Committee, regular
attendees who join the meeting by invitation include
the Chair of the Board, the Chief Executive, the Chief
Financial Officer, the Director of Risk and Internal Audit
and the Group Financial Controller. The General Counsel &
Company Secretary, or his delegate, acts as secretary to the
Committee and provides support as required. The external
auditor also attends Committee meetings by invitation.
Remit and activities
The Committee met three times during the financial year,
which it deems appropriate to its role and responsibilities.
The Committee’s delegated authorities and calendar of
prioritised work have not changed substantially from those
disclosed in previous years and remain in line with the
Code’s requirements.
The Committee’s key responsibilities are:
delegated responsibility from the Board for
financial reporting;
monitoring external audit, internal audit, risk and
controls; and
reviewing instances of whistleblowing and the
Group’s procedures for detecting fraud.
The Committee also continues to meet with internal and
external audit teams without Executive management
present, in order to discuss any matters which the auditor
may wish to raise.
The Committee reviewed and updated its terms of
reference in line with best practice during the financial year,
requiring only minor changes, and the current
terms of reference can be found on the Group’s website
(www.gallifordtry.co.uk).
Internal management system
During the financial year, the Company finalised the
implementation of its new, cloud-based, resource planning
and human capital management system to modernise
our ways of working, simplify internal processes regarding
the people, commercial, financial and procurement
functions, provide added transparency of data and to drive
efficiency. The associated customisation and configuration
costs of the project were reported as exceptional items
in the current and prior financial year, as set out in note 4
to the financial statements.
Membership of the
Audit Committee
The Code provides that members of the Audit Committee
should be independent non-executive directors and have
a minimum membership of three.
Audit Committee report
Marisa Cassoni
Audit Committee Chair
Kevin Boyd
Non-executive Director
Michael Topham
Non-executive Director
Sally Boyle
Non-executive Director
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Financial statementsGovernanceStrategic report
A
September
Overview of contract
accounting judgements.
Committee review of 2022/23
full-year results, including external
auditor presentation, going concern
review and viability statement, and
approval of the ‘fair, balanced and
understandable’ process.
Review of draft 2023 annual
results statement.
Review of draft external audit opinion.
Review of risk, internal audit and
whistleblowing reports.
Consideration of the impact of BEIS
white paper on corporate reform of
internal controls processes.
May
Review and approve the internal
audit charter and internal audit plan
2024/25.
Review of the Group’s year end
planning and finance team structure.
Approval of the external audit plan.
External quality assessment update.
Anti-money laundering update.
Review of risk, internal audit and
whistleblowing reports.
Review of terms of reference and
non-audit fee policy.
Progress report of the working
group regarding upcoming corporate
governance reforms.
February
Overview of contract
accounting judgements.
Committee review of 2023/24 half
year results, including external auditor
presentation, going concern review
and approval of the ‘fair, balanced and
understandable’ process.
Reflections on the 2023 audit process.
Review of draft half-year 2024
results statement.
Review of risk, internal audit and
whistleblowing reports.
Calendar of 2023/24 Committee activities and areas of focus
FRC audit quality review
The Financial Reporting Council’s Audit review team (AQR)
selected BDO’s audit of the group’s financial statements
for the year ended 30 June 2023 as part of its routine
inspection cycle. This inspection has not yet been concluded
but the Audit Committee has been kept advised by the
auditors of queries raised by AQR and has discussed with
them the implications for the audit of the current and prior
years’ financial statements.
Committee evaluation
The operations, performance and effectiveness of
the Committee were reviewed as part of the internally-
facilitated Board evaluation process aimed at identifying
any areas for improvement. The Committee was deemed
to be operating effectively with a small number of actions
arising from the process.
Please see pages 88 to 89 for further information
on the Board and its Committees’ performance review.
Corporate governance reform
The Committee has been following the important work
of the Department for Business and Trade (formerly
the Department for Business, Energy and Industrial
Strategy), regarding restoring trust in audit and
corporate governance.
A summary of the anticipated changes, and their impact
on the Group, was reviewed at the Committee’s meeting
in September 2023. In May 2024, the Committee reviewed
an updated report that included further details of the
new UK Corporate Governance Code 2024, which was
published by the FRC in January 2024. This report included
a summary of the internal work that has commenced in
anticipation of the new Corporate Governance Code
becoming effective. The relevant working group is tasked to
undertake the scoping, project planning and testing of the
operating effectiveness of our internal controls, scenario
planning and stress testing for resilience and, where
necessary, strengthening the processes already in place.
100 Galliford Try Annual Report and Financial Statements 2024
2023 2024 2024
Audit Committee continued
External audit
The Company’s external auditor is BDO LLP (BDO) and is
led by the audit partner Edward Goodworth, who has been
a partner at BDO for 12 years. The appointment of BDO
followed an audit tender process undertaken in the second
half of 2018, was carried out to maintain independence and
ensure a fresh approach, and was subsequently approved
by shareholders.
During the financial year, the Committee formally met
with the external auditors as part of the interim review,
audit planning and year end audit findings. During the
planning phase of the audit, the Committee gave their
views on various elements, including the materiality, key
risks and the associated audit approach to those risks.
The Committee meets privately with the auditor, and the
Chair of the Committee speaks regularly with the audit
partner throughout the financial year.
Each year, the Committee assesses the independence,
objectivity and effectiveness of the external audit process,
which includes discussing feedback from the members of
the Committee and key senior management within the
Group and from regulatory sources. The Committee is
satisfied that the external audit relationship is effective and
that BDO remains sufficiently independent in accordance
with the relevant professional ethical standards.
A resolution is to be proposed at the forthcoming AGM
for the re-appointment of BDO as auditor of the Group,
with its terms of engagement and rate of remuneration
to be determined by the Committee.
Non-audit services
The Group has policies and review mechanisms governing
the provision of material non-audit services and
safeguarding the objectivity and independence of the
external auditor. These remained in force throughout
the financial year. The policy specifies: the types of
non-audit services for which the use of the external auditor
is pre-approved (ie approval has been given in advance
as a matter of policy); the services for which specific
approval from the Committee is required before the auditor
is contracted; and the services from which the external
auditor is excluded. In respect of pre-approved services and
following the non-audit policy review by the Committee,
the financial threshold in place was increased to £100,000,
applicable to individual and aggregated services in any
year, the increase being to take account of inflation and the
size and structure of the Group. Furthermore, should the
total value of non-audit service engagements exceed the
defined percentage of 50% of the total Group audit fee
for the previous financial year, the Committee shall
consider and give specific prior approval for any subsequent
non-audit service engagements in excess of £50,000.
During the financial year, and in line with previous years,
BDO provided a standard non-audit-related assurance
service for the half year review, details of the fees for
which can be found in accounting note 7. There were
no other non-audit services provided by BDO during
the period and the Committee is satisfied that the
non-audit-related assurance service provided does
not impair BDO’s independence and objectivity.
Internal audit
Each year, the Committee monitors and reviews the
effectiveness of the internal audit function, approves the
scope of work of the internal audit plan for the following
year, assesses the adequacy of the team’s resources and has
oversight of, and challenges as necessary, management’s
response to the findings of internal audits.
During the financial year, the Internal Audit team continued
to deliver its agreed internal audit annual plan and provided
commercial and risk management support across the
Group, at the request of the Committee, the Executive
Board and senior management. Results from the bi-annual
commercial health checks, based on a typical sample of
12 contracts from across the business, are reported to the
Committee. Projects included in the commercial health
checks provide a representative mix of business units,
project values, current commercial performance and
stage of completion.
Overall the Internal Audit function operated effectively
and contributed strongly to the Group’s overall
governance framework.
Risk management
The Executive Risk Committee reviews the Group’s
risks and reports to the Executive Board and the Board.
In addition, the Executive Risk Committee continues
to review the procedures in place to identify emerging
risks and its disclosure obligations. The Executive Risk
Committee has a standing agenda item at its meetings to
review and document emerging risk themes that could have
a significant impact on our business. The Executive Risk
Committee has also reviewed the climate-related risks
and opportunities, in support of our Task Force on
Climate-Related Financial Disclosures (TCFD).
In line with Provision 29 of the Code’s requirements,
the Board also undertook an annual assessment of
the appropriateness and effectiveness of the Group’s
risk management and internal control systems prior
to approving the full-year results. This review covers
material controls, including financial, operational and
compliance controls.
Following these reviews, the Committee concluded the
Company’s system of risk management and internal control
was effective and appropriate for the size and complexity
of the Group.
For further information regarding the management of risks,
please see pages 56 to 60.
101
Financial statementsGovernanceStrategic report
Internal control framework
The day-to-day management of our principal risks is
supported by an internal control framework which is
embedded in our management and operational processes.
The most significant elements of the Group’s internal
control framework have remained consistent with the
previous financial year and include the following:
Organisational structure: Each business unit is led by
a managing director and management team, providing
a clear hierarchy and accountabilities.
Code of Conduct: The Group promotes a culture of
acting ethically and with demonstrable integrity. Our
ethical standards and approach are set out in ‘Doing
the Right Thing’, our Code of Conduct. It is supported
by training modules and its themes and importance are
communicated to new starters as part of their induction.
Contractual review and commitments: The Group has
policies and procedures for entering into contracts which
apply across its business units and operations and are
enforced through the Group’s legal authorities matrix.
Operational activity: Site operations are performed
in line with established business management systems
and processes that incorporate all operational activities,
including health, safety and environmental procedures,
regular performance monitoring, quality management
and external accountability to stakeholders.
Financial planning framework: A detailed annual budget
is prepared for each financial year, which is approved
by the Board. This is supplemented by medium-term
strategic planning, which in 2024 supported the
formulation of the Group’s updated strategy to 2030.
Operational and financial reporting: An exacting
profit and cash reporting and forecasting regime is
in place across the Group. This emphasises cash flow,
income and balance sheet reporting, as well as health,
safety and environmental matters within monthly
operational reports.
Internal audit: The Internal Audit team develops and
delivers an annual programme of internal audits, which
includes business unit key control reviews, audits of
Group processes and other specific risk areas, and
reviews of significant change programmes.
Assurance provided by non-audit functions:
A number of other Group functions provide assurance
in areas including, but not limited to, health, safety and
environment, legal contract reviews and compliance,
and construction industry regulation.
Significant issues and other
accounting judgements
The Committee reviewed the integrity of the Group’s
financial statements and all formal announcements relating
to the Group’s financial performance. This included an
assessment of each critical accounting policy, as set out in
note 1 to the financial statements, as well as review and
debate on the following areas of significance:
Contract revenue and provisions: In conjunction with
the annual audit, the Committee continued to review
key judgments in respect of revenue recognition and
contract provisions, in relation to certain significant
long-term construction contracts.
Contract rectification provision: The Committee
considered whether a material rectification provision
as disclosed in the critical accounting estimates and
judgements in the Financial Statements appropriately
met the criteria for a provision and was appropriately
estimated and disclosed. The Committee also considered
the levels of other required provisions.
Going concern and viability: The Committee considered
key commercial, economic and other risks to the Group’s
going concern status and longer-term viability and
reported to the Board on its findings.
Significant transactions: The Committee has given
particular consideration to the accounting for and
presentation of individually significant transactions,
and areas where alternative performance measures
are required to ensure that the financial statements
give a fair, balanced and understandable view of the
Group’s performance, and that statutory measures are
equally clear and prominent. This specifically included
the presentation of the investment in cloud-based
commercial and accounting systems, which has been
reported as an exceptional cost, and disclosure of the
settlement of a long-running contract dispute.
PPP portfolio valuation: The Committee reviewed the
discount rate used to determine the fair value of each of
the Group’s PPP investments.
102 Galliford Try Annual Report and Financial Statements 2024
Audit Committee continued
103
Fair, balanced and understandable consideration
As requested by the Board and in line with its terms of reference, the Committee has reviewed the 2024 Annual
Report and financial statements and considered whether, in terms of the form and content of the strategic,
governance and financial information taken as a whole, it is fair, balanced and understandable and enables current
and prospective shareholders to assess the Company’s position with respect to its performance, business model
and strategy. The process which was followed was:
Financial statementsGovernanceStrategic report
The Board approved the Committee’s recommendation that the Fair, Balanced and Understandable statement
could be applied to the 2024 Annual Report and financial statements and this can be found in the Directors’ report
on pages 127 to 130.
Marisa Cassoni
Audit Committee Chair
Management prepare drafts of the Annual Report for internal consideration
by process owners and external advisors for comment and discussion.
External legal advisors review the Annual Report
Governance section draft to ensure compliance.
Management consider key judgements and significant changes,
and how such matters should be disclosed.
The General Counsel & Company Secretary and Finance Team take responsibility to ensure that the
balance of information provided is consistent with the balance of discussions at the plc Board.
Drafts of the Annual Report are provided to the Committee members
in advance for consideration and review.
Management prepared papers to the Committee setting out key judgements
in preparing the Annual Report, and how such matters are disclosed.
The Committee, once satisfied the requirements have been met, recommends that the Fair, Balanced
and Understandable review process is recommended for approval at its September meeting.
The Board considers the Committee’s recommendation that the Fair, Balanced and Understandable
statement be applied to the 2024 Annual Report and financial statements.
Sally Boyle
Remuneration Committee Chair
This is my first year as Remuneration Committee
Chair and, on behalf of the Board, I am pleased to
present the Directors’ Remuneration Report for
the financial year ended 30 June 2024.
The Remuneration Report is divided into three parts:
the Annual Statement; the Directors’ Remuneration
Policy; and the Annual Report on Remuneration,
which sets out how the Remuneration Policy was
applied during the financial year.
Remuneration and performance in 2023/24
The Group has achieved another year of strong operational
and financial performance and has a high-quality order book
to continue its growth plans. In May 2024 management
set out the Group’s updated strategy to 2030. In line with
the 2023/24 targets of the Annual Bonus Plan (ABP), the
Committee has approved payments for the financial year at
93.4% of maximum. For the Long Term Incentive Plan (LTIP),
the Committee has approved the vesting of awards granted
to the Chief Executive under the LTIP in September 2021.
Based on performance up to the financial year, 88.2% of the
September 2021 LTIP will vest on 7 October 2024, three
years after grant. All awards are made in accordance with
the Remuneration Policy approved by shareholders at the
Company’s AGM on Friday 10th November 2023. Further
details of remuneration can be found in the following pages.
The Committee also considered continued support to
employees during the high inflation period when making
an average annual salary award budget of 5% and reviewed
the appropriate ESG performance metrics to ensure
alignment to the Group’s updated strategic targets.
Finally, following the resignation of Andrew Duxbury,
the Committee determined his exit treatment and
subsequently the package for Kris Hampson who was
appointed as Chief Financial Officer on 2 September 2024.
Further details may be found below and details of the
appointment process for Kris Hampson can be found
on page 96 of the Nomination Report.
The Committee has continued to apply the
recommendations of the UK Corporate Governance
Code and decisions relating to remuneration matters
are set out in the relevant sections of this report. The
Committee is mindful of the changes which are being
brought in by the 2024 UK Corporate Governance
Code, and these will be implemented during 2025.
This report has been prepared in accordance with the
relevant provisions of the Companies Act 2006, The
Companies (Director’s Remuneration Policy and Directors’
Remuneration Report) Regulations 2019, the Large and
Medium-sized Companies and Groups (Accounts and
Reports) Regulations (Amended) 2013 and the Financial
Conduct Authority’s Listing Rules.
Board and Committee changes
On 8 November 2023 we announced the resignation of
our Finance Director, Andrew Duxbury. Since joining
the Company, Andrew has played a key role in building
high-performing teams while overseeing industry-leading
returns to shareholders during a period of strong growth.
His leaver treatment was in line with the Remuneration
Policy. Specifically, he received salary and pension up to
31 May 2024 while his bonus for 2023/2024 and his
unvested LTIP and deferred bonus awards have all lapsed.
Kris Hampson was appointed Chief Financial Officer on
2 September 2024. He will be eligible for a salary of
£380,000 and a pension contribution of 8% of salary,
which is aligned to the UK workforce. He will be eligible
for a 2024/25 bonus and a grant under the 2024 LTIP in line
with the Remuneration Policy. Kris’s base salary represents
a reduction against the outgoing Finance Director
but still remains in line with market competitive rates.
Details of the members of the Remuneration Committee can be
found on pages 82 to 83.
Membership of the
Remuneration Committee
The UK Code provides that all members of the
Remuneration Committee should be independent
non-executive directors.
Remuneration Committee report
Sally Boyle
Remuneration
Committee Chair
Alison Wood
Board Chair
Kevin Boyd
Non-executive Director
Michael Topham
Non-executive Director
Marisa Cassoni
Senior Independent
Director
104 Galliford Try Annual Report and Financial Statements 2024
R
July
Review of corporate governance
developments in executive
remuneration.
Performance metrics for LTIP 2023
grant of awards.
Update on 2022/23 annual bonus
forecast, performance and proposed
2023/24 annual bonus scheme.
Consideration of bonus discretion
and Committee guidance.
Long Term Bonus Plan (for roles
below Executive Board level)
and interim award 2023 proposals.
Review of draft 2023 Directors’
Remuneration Report.
February
2024 salary and benefits review
(effective 1 April 2024).
Review of terms of reference.
Employee Share Trust update.
Briefing from the HR Director on
remuneration and other considerations
for the wider workforce.
September
Consideration of 2023 Long Term
Incentive and Annual Bonus
Plan awards.
Review of 2022/23 annual bonus
performance to 30 June 2023.
Approval of the 2023 Directors’
Remuneration Report.
Approval of Employee Share Trust
purchase programme.
Calendar of 2023/24 Committee activities and areas of focus
Remuneration Policy
The Remuneration Policy was submitted to shareholders
for approval at the AGM held in November 2023, where it
was subjected to a binding vote and was overwhelmingly
approved by 99.3% of shareholders who voted. The
structure of the Remuneration Policy, which was largely
unchanged from the previous Policy, comprises base salary,
pensions, benefits, annual bonus and Long Term Incentive
Plans (LTIP) and has been adopted and implemented
throughout this financial year. The three-year life of the
Remuneration Policy will expire at the 2026 AGM, where
shareholder approval will be sought for a new binding
Policy. The full Policy is set out on pages 108 to 116.
Application of Remuneration Policy
in 2024/25
The key elements of the Remuneration Policy being applied
are set out below:
Base salaries: the Committee continues to monitor
and review pay and conditions across the Group and
the external market. Taking into account cost of living
and external market conditions, an overall salary budget
of 5.0% was approved for annual staff salary increases
across the Group from 1 April 2024. Bill Hocking’s salary
was increased by 4.73% from 1 April 2024. Due to
his resignation, there was no increase in salary for
Andrew Duxbury.
Annual Bonus Plan (“ABP”): the scorecard for the
Annual Bonus Plan for 2024/25 is in line with the
2023/24 scorecard and will continue to include ESG
metrics as introduced last year. All bonus awards
will be subject to the Committee’s discretion, taking
into account health and safety performance and the
underlying performance of the Group. 2024/25 targets
will be disclosed as usual in the 2025 Annual Report.
LTIP: no changes to metrics or structure are proposed
for the 2024 awards. The metrics will continue to
comprise earnings per share (“EPS”) and average
cash management.
There will be one advisory vote at the AGM in
November 2024, on the Directors’ Remuneration Report.
Sally Boyle
Remuneration Committee Chair
2023 2023 2024
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Remuneration at a glance
The following is a summary of
the Executive Directors’ remuneration
in 2023/24 and proposed application
of the approved Remuneration
Policy (“Policy”).
Remuneration Policy and framework
Our approach to remuneration and our Policy are set out on
pages 108 to 116 of this report. The elements of executive
directors’ remuneration are:
Fixed element: Comprises base salary, taxable benefits
(such as a company car or cash equivalent allowance,
private medical and permanent health insurance,
and life assurance), and contribution to a pension.
Variable element: Annual bonus, which incentivises and
rewards the achievement of stretching annual targets
(both financial and non-financial) that support the
Group’s annual and strategic objectives, with two-thirds
of any bonus earned in excess of 50% of salary required
to be deferred into restricted shares.
Long-term element: The LTIP incentivises the
achievement of sustained long-term financial and
operational performance over a three-year performance
period. Any share awards that vest are subject to
a two-year holding period.
Actual remuneration in 2023/24
The following table summarises the executive directors’ remuneration in 2023/24:
Director Role
Fixed
remuneration
1
£000
Variable
remuneration
2
£000
Total
remuneration
£000
Bill Hocking Chief Executive 548 1,403 1,951
Former Director
Andrew Duxbury
3
Finance Director 393 – 393
1 Comprises base salary, taxable benefits and pension contributions. See page 117 for further information.
2 Comprises annual bonus awarded and LTIP vesting with reference to performance during the financial year. See pages 118 to 119 for further information.
3 Andrew Duxbury resigned from the Board on 31 May 2024. The payment above reflects his time in the role of Finance Director to 31 May 2024. Details of his leaving
arrangements are set out on page 120. His outstanding LTIP and deferred bonus awards lapsed with immediate effect and no bonus is payable for 2023/24.
Variable pay outcomes
Annual bonus payments for 2023/24
The annual bonus payments made to the Executive Directors are summarised in the table below.
Director
Maximum
bonus
(% of salary)
1
Achieved
bonus
(% of salary)
1
Cash
£000
Shares
£000
Bill Hocking 120% 93.4% 350 208
Former Director
Andrew Duxbury
2
100% – – –
1 See page 118 for further information.
2 Due to his resignation in the financial year, no bonus was awarded to Andrew Duxbury.
106 Galliford Try Annual Report and Financial Statements 2024
LTIP outcomes
Vestings relating to 2021 to 2024 performance
The LTIP awards granted to Bill Hocking and Andrew Duxbury on 23 September 2021 were based on 75% underlying
EPS performance and 25% on average month-end cash as a percentage of annual turnover in the final year to 30 June 2024.
The September 2024 vesting is summarised below:
Stretch EPS
condition
Actual EPS
performance
Stretch
average
month-end
cash
1
condition
Actual average
month-end
cash
1
performance % Vesting
Value of award
vesting
£000
2
Bill Hocking 19.5p 27.9p 10% 8.7% 88.2% 845
Former Director
Andrew Duxbury
3
19.5p – 10% – – –
1 As a percentage of annual turnover.
2 Estimated based on the average share price over the three months to 30 June 2024.
3 Andrew Duxbury resigned from the Board on 31 May 2024. His outstanding LTIP awards lapsed with immediate effect.
Proposed application of the Policy in 2024/2025
Element Bill Hocking Kris Hampson*
Base salary £520,000 £380,000
Pension 8% 8%
ABP Maximum bonus opportunity of 120% of salary for the Chief Executive and 100% of salary for
other executive directors pro rata to time in the performance period.
LTIP Award of up to 150% of salary, with three quarters based on earnings per share and one quarter
on a cash performance metric, measured as an average month-end cash as a percentage of
revenue. For Kris Hampson this will be pro rata to time in the performance period.
Performance targets EPS: The target EPS to be achieved in the final year of the performance period (1 July 2026 to
30 June 2027) is 37.7p. Achieving 33.9p would generate 25% vesting and 41.5p would generate
100% vesting on a straight-line basis.
Cash: The target is average month-end cash in the final year of the performance period of
9% of annual turnover. Achieving 8% would generate 25% vesting and 10% would generate
100% vesting on a straight-line basis.
Holding period Any vested LTIP shares must be held for two years after vesting (after payment of tax).
Malus and clawback Malus and clawback apply in circumstances of error, material misstatement, misconduct,
reputational damage or corporate failure as a result of poor risk management.
* Kris Hampson joined the Board with effect from 2 September 2024 and the base salary shown above is his annual salary. Pro-rated to 30 June 2025, the base salary
received would be £316,654.
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Directors’ Remuneration Policy report
The Remuneration Policy Report
was subject to a binding shareholder
vote at the 2023 AGM and was passed
with 99.3% support. There have been
no changes to the Policy during the
financial year.
The main objectives of the Group’s Remuneration Policy
are to:
ensure that remuneration packages are appropriately
positioned and structured to promote a Sustainable
Growth Strategy for all stakeholders and which takes
into account pay and conditions and market practice;
engender an inclusive and progressive culture, which
enables all individuals to reach their potential and
positions Galliford Try as an employer of choice;
deliver a significant proportion of total executive pay
through performance-related remuneration and in
shares; and
ensure the achievement of strong and sustained
long-term financial and operational performance
with no reward for failure.
How the Remuneration Policy aligns with the UK Corporate Governance Code
The Code sets out principles against which the Committee should determine the Remuneration Policy for executives,
as follows:
Principle Committee approach
Clarity – remuneration arrangements should be
transparent and promote effective engagement with
shareholders and the workforce.
The Committee has operated a consistent approach which
is well understood internally and by investors. Consultation
with shareholders on the revisions to the Policy have been
undertaken and there were no material concerns.
Simplicity – remuneration structures should avoid
complexity and their rationale and operation should
be easy to understand.
The Committee has taken measures to ensure pay
arrangements are balanced, simple in their design with
a small number of relevant performance measures,
and clearly linked to strategy.
Risk – remuneration arrangements to ensure reputational
and other risks from excessive rewards, and behavioural
risks that can arise from target-based incentive plans,
are identified and mitigated.
Incentive plans are capped and are not high relative to
those in comparable companies. Incentive targets to be
set are those that the Committee believes to be stretching
and achievable within the risk-appetite set by the Board.
The Committee has discretion to override any formulaic
incentive outcomes if they are not considered accurate or
fairly reflect the underlying performance of the Group.
This ensures that malus and clawback provisions are
sufficiently wide-ranging and can be applied by the
Committee if deemed appropriate to do so.
Predictability – the range of possible values of rewards
to individual directors and any other limits or discretions
should be identified and explained at the time of approving
the policy.
The Committee maintains clear annual caps on incentive
opportunities and has used its discretion where necessary.
Proportionality – the link between individual awards,
the delivery of strategy and the long-term performance
of the company should be clear. Outcomes should not
reward poor performance.
The Committee ensures performance metrics continue
to be clearly aligned with the Group’s strategy each year,
maintaining an appropriate balance between base pay,
short- and long-term incentive opportunities.
Alignment to culture – incentive schemes should drive
behaviours consistent with company purpose, values
and strategy.
Bonus and incentive schemes are reviewed by the
Committee to ensure consistency with the Group’s purpose,
values and strategy.
108 Galliford Try Annual Report and Financial Statements 2024
The full Remuneration Policy is detailed in the table below and contains no material changes to the Policy agreed in 2023:
Component and link to strategy Operation
Framework to assess performance
and maximum opportunity
Salary
To provide a competitive
and appropriate level
of basic fixed pay, sufficient
to retain, motivate and
attract executive directors
of high calibre, able to
develop and execute the
Group’s strategy.
Normally reviewed annually, with any
changes typically taking effect from 1 April.
The Committee sets salaries at competitive
rates, taking into consideration pay
and employment conditions across the
Group, the economic environment, the
responsibilities and accountabilities of each
role, the experience of each individual,
his or her marketability and the Group’s
key dependencies on the individual.
Reference is also made to salary levels
among relevant construction peers and,
other companies of broadly similar size
and complexity.
The Committee reserves the right to reduce
salary levels (and has done so in the past)
if the circumstances warrant it.
When reviewing salaries, both Group and
individual performance are considered.
While there is no prescribed maximum,
the Committee’s policy on salary increases
for executive directors is for increases to
be broadly in line with the average across
the workforce, unless there is a promotion
or material change in role or business
circumstances in which case increases
may be higher.
Salaries for the year ahead are set out in the
Annual Report on Remuneration.
Benefits
To provide cost-effective
and market-competitive
benefits.
Benefits provided to executive directors
may include entitlements to a Company
car or cash equivalent allowance, private
medical and permanent health insurance,
and life assurance.
The benefits provided may be subject to
minor amendment from time to time by the
Committee and Executive Directors may
be allowed to participate in any new benefit
plan introduced for the wider workforce on
equivalent terms.
Where a director is asked to relocate,
relocation allowances or similar benefits
may be provided.
Executives may also be reimbursed for any
reasonable expenses (and any income tax
payable thereon) incurred in performance
of their duties.
The cost of benefit provision varies from year
to year, depending on the cost to the Group,
and there is no prescribed maximum limit.
Benefit costs are monitored and controlled to
ensure they remain appropriate and represent
a small element of total remuneration costs.
Pension
To provide a contribution
towards retirement.
The executive directors may each
receive contributions to a money purchase
pension scheme or salary supplement in
lieu of Company pension contributions
(or a combination of both).
The rate offered of 8% for the Chief Executive
and the Chief Financial Officer is in line with
that offered across the employee population.
Any new executive director would also
receive a pension contribution in line with
the wider workforce.
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Directors’ Remuneration Policy report continued
Component and link to strategy Operation
Framework to assess performance
and maximum opportunity
Annual Bonus Plan
Rewards the achievement
of stretching annual goals
that support the Group’s
annual and strategic
objectives.
Compulsory deferral
of part of the bonus into
shares provides alignment
with shareholders.
Executive directors and selected senior
management, subject to invitation and
approval by the Committee, may participate
in the Annual Bonus Plan.
For executive directors, two thirds of any
bonus earned in excess of 50% of salary is
required to be deferred into restricted shares.
Although beneficially held by the participants,
the restricted shares are legally retained by
the trustee of the Galliford Try Employee
Benefit Trust (EBT) for three years, and
are subject to forfeiture provisions, unless
otherwise agreed by the Committee. Subject
to continued employment, the restricted
shares are legally transferred to participants
on the third anniversary of allocation.
The Committee operates recovery and
withholding provisions within the Annual
Bonus Plan, which facilitate the retrieval of
payments made to directors and executive
management in circumstances of error,
material misstatement, misconduct,
reputational damage or corporate failure
as a result of poor risk management.
The maximum opportunity is 120% of salary
for the Chief Executive and 100% of salary
for other executive directors.
No more than half of the maximum
opportunity is earned for target performance.
For financial elements, bonuses normally start
to be earned from 0% of salary for achieving
threshold performance. The Committee
may apply a higher threshold where this is
appropriate given the nature of particular
performance objectives, but this will not
exceed 25% of the maximum bonus.
Vesting is dependent on achieving specified
financial (no less than 50% of the bonus) and
strategic or non-financial targets.
The Committee may, at its discretion, acting
fairly and reasonably, adjust bonus outcomes
if it considers the payout is inconsistent with
the Company’s underlying performance
during the year, taking into account factors
including safety and ESG.
The 2023/24 bonus target incorporates
a 12% target for ESG factors which include:
people, carbon emission, community and
supply chain metrics. For the avoidance of
doubt this can be 0% and bonuses may not
exceed the maximum levels detailed above.
Any use of such discretion would be
subject to shareholder consultation if
materially to the benefit of the executive
management and detailed in the Annual
Report on Remuneration.
110 Galliford Try Annual Report and Financial Statements 2024
Component and link to strategy Operation
Framework to assess performance
and maximum opportunity
Long Term Incentive
Plan (LTIP)
Rewards the achievement
of sustained long-term
financial and operational
performance and is
therefore aligned with
the delivery of value
to shareholders.
Facilitates share
ownership to provide
further alignment with
shareholders.
Making of annual awards
aids retention.
Executive directors may be granted awards
under the rules of the LTIP approved by
shareholders on 29 November 2019 and
adopted by the Company in January 2020.
The LTIP provides for awards of free shares
in the form of nil or nominal cost options or
conditional awards which vest dependent on
the achievement of performance conditions
and continued service.
Any share awards that vest (after allowing
for sales to cover any tax liabilities) are
subject to a two-year holding period during
which time they cannot be sold (unless
exceptional circumstances apply).
The LTIP provides clawback and malus powers
to the Committee, which can facilitate the
retrieval of payments made to directors and
executive management in circumstances of
error, material misstatement, misconduct,
reputational damage or corporate failure
as a result of poor risk management.
Dividends may accrue on LTIP awards
over the vesting and holding periods and,
subject to the discretion of the Committee,
be paid out either as cash or shares on
vesting, in respect of the number of shares
that have vested.
Performance metrics for FY24 comprise of
75% based on earnings per share and 25% on
a full year cash performance metric based on
average month-end cash as a % of turnover.
The Committee may vary the measures and
targets that are included in the plan and
the weightings between them from year to
year. Measures may be related to financial
performance, share price performance and
ESG. Any material changes to the choice of
measures would be subject to consultation
with the Company’s major shareholders.
The Committee may, at its discretion,
acting fairly and reasonably, adjust LTIP
vesting outcomes if it considers the payout is
inconsistent with the Company’s underlying
performance over the performance period.
For the avoidance of doubt, this can be to zero
and vesting may not exceed the maximum
levels detailed below. Any use of such
discretion would be subject to shareholder
consultation if to the benefit of the executive
management and detailed in the Annual
Report on Remuneration.
Under the LTIP rules, the maximum value
that may be granted in any financial year
to any individual is 150% of salary.
Up to 25% of the relevant part of
the award may vest for achieving
threshold performance.
All-employee schemes
To encourage employee
share participation.
The Group may from time to time operate
tax-approved or other share plans (such as
an approved Save As You Earn scheme for
the benefit of all staff) for which executive
directors could be eligible on the same
terms as other staff.
Schemes are generally subject to the
limits set by HM Revenue & Customs
(HMRC) and may be further limited at
the Committee’s discretion.
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Directors’ Remuneration Policy report continued
Component and link to strategy Operation
Framework to assess performance
and maximum opportunity
Shareholding guidelines
To ensure the interests
of the executive directors
are aligned to those
of shareholders.
The Group’s share retention policy requires
executive directors to build and maintain a
shareholding equivalent in value to at least
200% of basic salary.
Executive directors are required to retain
a minimum of half the after tax number of
vested share awards (deferred bonus and
LTIP) until the guideline is met.
On leaving the Company, executive directors
are required to retain the lesser of their
in-post shareholding guideline and their
actual shareholding on departure for two
years. This requirement applies to shares
earned from share awards granted to
executive directors following the 2020 AGM.
The Committee will assess the guideline
annually and take into account vesting
levels and personal circumstances when
assessing progress against the guideline.
–
Non-executive fees
To provide a competitive
and appropriate level of
fees sufficient to attract,
motivate and retain
a Chair and non-executive
directors of high calibre.
The Chair is paid a single fixed fee.
The remaining non-executive directors are
paid a basic fee. Non-executive director’s
chairing a Board Committee, the Senior
Independent Director and the Chair of the
Employee Forum are paid an additional fee
to reflect their extra responsibilities.
The level of these fees is reviewed periodically
by the Committee and Chief Executive for
the Chair, and by the Chair and executive
directors for the non-executive directors.
Fees are set taking into consideration
market levels in comparably sized FTSE
companies and relevant sector peers, the time
commitment and responsibilities of the role
and the experience and expertise required.
Non-executive directors, including the Chair,
are entitled to reimbursement of business
expenses reasonably incurred in performing
their duties (and any personal tax that may
become payable).
Non-executive directors cannot participate
in any of the Group’s annual bonus or share
plans and are not eligible for any pension
entitlements from the Group. The Chair
is eligible to participate in the Group’s
medical assurance plan.
The Committee and the executive directors
are guided by the general pay increase
for the broader employee population,
but on occasions may need to recognise,
for example, changes in responsibility
or time commitments, whether on a
permanent or temporary basis.
Current fee levels are disclosed on page 126.
112 Galliford Try Annual Report and Financial Statements 2024
Executive Director remuneration scenarios
Illustration of application of Remuneration Policy
Remuneration (£000s)
Notes to the policy table
Performance measure selection and approach to
target setting
Measures used under the ABP and LTIP are reviewed
annually to reflect the Group’s main short- and long-term
objectives and reflect both financial and non-financial
priorities, as appropriate.
Targets applying to the ABP and LTIP are also reviewed
annually, based on a number of internal and external
reference points. Performance targets are set to be
stretching but achievable, with regard to the particular
strategic priorities and economic environment in a given
year. Under the bonus, target performance typically
requires meaningful improvement on the previous year’s
outturn, and, for financial measures, targets are typically
in line with market consensus.
Discretions retained by the Committee in operating
incentive plans
The Committee may make minor amendments to the Policy
for regulatory, exchange control, tax or administrative
purposes or to take account of a change in legislation
without obtaining shareholder approval.
The Committee will operate the ABP and LTIP according
to their respective rules, the Policy set out above and in
accordance with the Listing Rules and HMRC rules where
relevant. The Committee, consistent with market practice,
retains discretion over a number of areas relating to the
operation and administration of these plans, subject to
any limitations set out in the rules of the applicable plan or,
in the case of executive directors, in the Policy set out on
pages 108 to 116.
These include (but are not limited to) the following:
who participates in the plans;
the timing of grant of an award and/or a payment;
the size of an award and/or a payment;
the choice of (and adjustment of) performance measures,
weightings and targets for each incentive plan in
accordance with the Policy set out above and the rules
of each plan;
discretion relating to the measurement of performance
in the event of a change of control or reconstruction;
determination of a good leaver (in addition to any
specified categories) for incentive plan purposes based
on the rules of each plan and the appropriate treatment
under the plan rules; and
adjustments required in certain circumstances (e.g. rights
issues, corporate restructuring, on a change of control
and special dividends).
Any use of the above discretions would, where relevant,
be explained in the Annual Report on remuneration and
may, as appropriate, be the subject of consultation with
the Company’s major shareholders.
The individualised potential Executive reward charts
have been prepared using the following assumptions:
For minimum remuneration: Only fixed salary,
benefits and pensions payments have been included.
For on-target remuneration: Fixed salary, benefits
and pension plus 50% payout of the ABP and 50% of
the LTIP (face value) awards have been included.
For maximum remuneration: Fixed salary, benefits
and pension plus full payout under the ABP and
full vesting of the LTIP (face value) awards have
been included.
For maximum plus share price growth: same
values as the maximum scenario plus a 50% increase
in the value of the LTIP (face value) awards have
been included.
Salary levels are based on those applying on 1 April 2024
and the value of taxable benefits is estimated based on
the cost of supplying those benefits (as disclosed) for
the year ended 30 June 2024. Executive directors can
choose to participate in all employee share schemes on
the same basis as other employees but, for simplicity,
the value that may be received from participating in
these schemes has been excluded.
Bill Hocking Kris Hampson
Minimum
Target
Maximum
Max +
50% share price
Minimum
Target
Maximum
Max +
50% share price
£568
£1,270
£1,972
£2,362
£414
£889
£1,364
£1,649
100%
45%
25%
32% 26%
30%
39%
50%
29% 24%
100%
47%
21%
28% 23%
32%
42%
52%
30% 25%
Fixed pay Annual bonus Long Term incentives
113
Financial statementsGovernanceStrategic report
Directors’ Remuneration Policy report continued
Policy on recruitment
In cases where the Group recruits a new executive director,
the Committee will align the new executive’s remuneration
with the approved Remuneration Policy. In arriving at
a value for individual remuneration, the Committee will
take into account the skills and experience of the candidate,
the market rate for a candidate of that experience and
the importance of securing the preferred candidate.
The Committee also has the discretion to meet certain
other incidental expenses (for example, relocation costs
and travel and subsistence payments) to secure recruitment
of preferred candidates. Further details of the Recruitment
Policy are set out in the table below.
Element General policy Specifics
Salary At a level required to attract the
most appropriate candidate.
Discretion to pay lower base salary with incremental
increases (potentially above the average increase across
the Group), as the new appointee becomes established
in the role.
Pension and
benefits
In line with the policy for existing
executive directors.
In line with the Policy, pension contribution rates will be
aligned with those offered across our employee population.
Relocation expenses or allowance, legal fees and other
costs relating to recruitment may be paid as appropriate.
ABP In line with existing schemes. Where a director is appointed part way through a financial
year, different performance measures could be introduced
to reflect the change in role and responsibilities. The
annual bonus limit remains at 120% of base salary for
a Chief Executive and 100% for other directors.
Pro-rating applies as appropriate for intra-year joiners.
Where an individual is appointed to the Board, different
performance measures from those for continuing directors
may be set for the period of time remaining in that
performance year.
LTIP In line with Group policies and
LTIP rules.
An award of up to 150% of salary may be made in
accordance with the Remuneration Policy. An award may
be made in the year of joining or can be delayed until the
following year. Targets would normally be the same as for
awards to other directors.
Other share
awards
The Committee may make an
incentive award to replace deferred
pay forfeited by an Executive leaving
a previous employer.
Awards would, where possible, be consistent with the
awards forfeited in terms of structure, value, vesting
periods and performance conditions.
The Committee reserves the right to award additional
remuneration in excess of the Remuneration Policy
at appointment, exclusively to replace lost rewards or
benefits. In determining the appropriate form and amount
of any such award, the Committee will consider various
factors, including the type and quantum of award, the
length of performance period, and the performance and
vesting conditions attached to each forfeited incentive
award. The maximum payment (which may be in addition
to the normal variable remuneration) should be no more
than the Committee considers is required to provide
reasonable compensation to the incoming director.
The Committee may make use of the flexibility provided
in both the Listing Rules and the approved Remuneration
Policy, to make awards outside the existing parameters of
the LTIP.
For internal promotions to executive director positions,
the Committee’s policy is for legacy awards or incentives
to be capable of vesting on their original terms (which may
involve participation in schemes that operate exclusively
for below Board employees) or, at the discretion of the
Committee, they may be amended to bring them into line
with the policy for executive directors.
For a new non-executive chair or non-executive director,
the fee arrangement would be set in accordance with the
approved Remuneration Policy.
114 Galliford Try Annual Report and Financial Statements 2024
Directors’ service contracts and policy for payments to departing executive directors
The service contracts and letters of appointment for the Board directors serving as at 30 June 2024 are detailed below:
Contract date
1
Notice period
2,3
(months)
Non-executive directors
Marisa Cassoni 3 January 2020 6
Alison Wood 1 April 2022 6
Sally Boyle 1 May 2022 6
Michael Topham 1 June 2023 6
Kevin Boyd 1 March 2024 6
Executive directors
Bill Hocking 3 January 2020 12
1 Date shown is the director’s contract as an executive or non-executive director of the Group. Executive directors have a rolling notice period as stated.
Non-executive appointments are reviewed after three years and their appointments are subject to a rolling notice period as stated. All directors will stand for
election or re-election at the 2024 AGM.
2 Kris Hampson, Chief Financial Officer, has a contract start date of 2 September 2024 and has a 12 month rolling notice period.
3 There are no contractual provisions requiring payments to directors on loss of office or termination, other than payment of notice periods. The Committee may seek
to mitigate such payments where appropriate.
4 Subject to the Nomination Committee’s recommendation, the Group’s practice is to agree notice periods of no more than six months for non-executive directors and
no more than 12 months for executive directors.
The executive directors’ service contracts and letters of
appointment for the non-executive directors are available
at the Group’s registered office and will be available for
inspection immediately prior to and during the 2024 AGM.
For executive directors, at the Group’s discretion, a sum
equivalent to 12 months’ salary and benefits may be paid in
lieu of notice. The contracts include mitigation provisions to
pay any such lump sum in monthly instalments, subject to
offset against earnings elsewhere. This will also be the case
for any future appointments.
An executive director’s service contract may be terminated
summarily without notice and without any further
payment or compensation, except for sums accrued up to
the date of termination, if they are deemed to be guilty of
gross misconduct or for any other material breach of the
obligations under their employment contract.
The Group may suspend executive directors or put them
on a period of gardening leave during which they will be
entitled to salary, benefits and pension.
For ‘good leavers’, bonuses may be payable pro rata for the
proportion of the financial year worked, at the Committee’s
discretion. Depending on the circumstances, the Committee
may consider additional payments in respect of an unfair
dismissal award, outplacement support and assistance
with legal fees.
Any share-based entitlements granted to an executive
director under the Group’s share plans will be determined
based on the relevant plan rules. The default treatment
is that any outstanding awards lapse on cessation of
employment. However, ‘good leaver’ status can be
applied at the Committee’s discretion, taking into
account the individual’s performance and the reasons
for their departure.
For ‘good leavers’, LTIP awards may vest at the normal
time (other than by exception) to the extent that the
performance conditions have been satisfied. The level
of vested awards will be reduced pro rata, based on the
period of time after the grant date and ending on the date
employment ceased relative to the three-year performance
period, unless the Committee, acting fairly and reasonably,
decides that such a scaling back is inappropriate in any
particular case. Deferred bonus shares of ‘good leavers’
vest on cessation of employment.
On a change in control, LTIP awards may vest based on
the Committee’s determination of the extent to which
the performance conditions have been satisfied based
on performance to date. The level of vested awards will
be reduced pro rata based, unless the Committee acting
fairly and reasonably, decides that such a scaling back is
inappropriate in any particular case. Deferred bonus shares
will vest in full. The overriding principle will be to honour
contractual remuneration entitlements and determine on
an equitable basis the appropriate treatment of deferred
and performance-related elements of remuneration,
taking into account the circumstances. Failure will not
be rewarded.
115
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Directors’ Remuneration Policy report continued
External directorships
Any additional external appointments can only be
undertaken with the Board’s written approval and if time
and commitments allow. Executive directors require the
Board’s approval to accept external appointments as
non-executive directors and retain any associated fees.
Shareholder consultation
Where appropriate, the Committee will consult
relevant institutional shareholders in advance of
substantial changes to the Policy or individual executive
director remuneration packages. Relevant institutional
shareholders were consulted ahead of the introduction
of the current Remuneration Policy, which was approved
at the 2023 AGM.
Wider workforce remuneration and how
the views of employees have been taken
into account
When setting pay for the executive directors, the
Committee considers remuneration structures elsewhere
in the Group, including the overall salary increase budget
and incentive structures. The Committee also takes into
account available market sector data obtained through
benchmarking, as well as Government policies and
advice from the Executive management team.
The total package on offer remains competitive at all
levels of the Group. The comprehensive range of benefits
includes flexible working arrangements, a minimum of
28 days’ holiday and the opportunity to purchase further
days, as well as a pension plan, paid volunteering days, car
allowance, a regular SAYE scheme and health insurance
plan. These wider benefits are communicated to staff
via Galileo, the Company’s intranet system, and via the
Employee Value Proposition, a summary letter to all
employees detailing the wider benefits available.
The Board does not consult employees on executive
remuneration but does ensure it understands employee
views on matters including rewards and benefits, which
are an agenda item for the Employee Forum. The Employee
Forum is chaired by Sally Boyle, Remuneration Committee
Chair and also discusses business updates and feedback
from employee representatives on key topics such as people
and engagement initiatives, communication and wellbeing,
as well as reward and benefits.
The Employee Forum ensures employees have a voice in
the Boardroom, strengthens internal communications,
enables employees to offer ideas, champions change
and supports good governance. It can also act as a
representative body for communicating with employees
and obtaining feedback about matters that may affect
their employment. Further information on the Employee
Forum can be found on page 87-88.
116 Galliford Try Annual Report and Financial Statements 2024
Annual report on Remuneration
This part of the Directors’
Remuneration report sets out
how the Remuneration Policy was
implemented over the year ended
30 June 2024. It will be put to an
advisory vote at the 2024 AGM.
Certain sections of this annual report
on remuneration have been subject
to audit.
The Directors’ Remuneration report has been
prepared in accordance with The Companies (Directors’
Remuneration Policy and Directors’ Remuneration Report)
Regulations 2019 (applying to financial years starting
on or after 10 June 2019), the Large and Medium-sized
Companies and Groups (Accounts and Reports) Regulations
(Amended) 2013 and the Financial Conduct Authority’s
Listing Rules. The auditor is required to report on the
remuneration data disclosed in the Directors’ Remuneration
report section and state whether, in its opinion, that part
of the report has been properly prepared in accordance
with relevant provisions of the Companies Act 2006
(as amended).
Directors’ remuneration and single-figure annual remuneration (audited)
The remuneration of the directors serving during the financial year, together with 2023 comparative figures, was as follows:
Salary and
fees
£000
Taxable
benefits
1
£000
Pensions
2
£000
Total fixed
remuneration
£000
Annual
bonus
7
£000
LTIP
£000
Sharesave
£000
Total variable
remuneration
£000
Total
remuneration
£000
2024
3
2023 2024 2023 2024 2023 2024 2023 2024 2023 2024 2023
4
2024 2023 2024 2023 2024 2023
Executive directors
Bill
Hocking 502 480 6 3 40 38 548 521 558 401 845 1,507 – – 1,403 1,908 1,951 2,429
Non-executive directors
Marisa
Cassoni 63 56 – – – – 63 56 – – – – – – – – 63 56
Alison
Wood 183 149 – – – – 183 149 – – – – – – – – 183 149
Sally Boyle 53 47 – – – – 53 47 – – – – – – – – 53 47
Michael
Topham 49 4 – – – – 49 4 – – – – – – – – 49 4
Kevin
Boyd
5
16 – – – – – 16 – – – – – – – – – 16 –
Former directors
Andrew
Duxbury
6
370 390 3 2 21 24 394 416 – 272 – 1,224 – – 394 1,496 394 1,912
Terry
Miller 21 69 – – – – 21 69 – – – – – – – – 21 69
Gavin Slark – 35 – – – – – 35 – – – – – – – – – 35
Peter
Ventress – 46 – – – – – 46 – – – – – – – – – 46
1 Includes the value of benefits such as car allowance and medical insurance.
2 This is a salary supplement paid to the directors in lieu of direct pension contributions.
3 Salaries for the non-executive directors increased by 4% and the salary for Bill Hocking increased by 4.73%. This is below the average salary increase budget across
the workforce of 5%.
4 The 2022 LTIP awards vested on 13 March 2023. The LTIP figures reported in 2022 and the corresponding single figure for that year were based on an estimated
share price, using share price over the three months to 30 June 2022. These have now been updated with the actual value at vesting of £884,000 for Bill Hocking
and £718,000 for Andrew Duxbury, using the share price as at the date of vesting of £1.70.
5 The fee paid to Kevin Boyd has been pro-rated to reflect that he joined on 1 March 2024.
6 Andrew Duxbury resigned from the Board on 31 May 2024. The payment above reflects his time in the role of Finance Director and Andrew did not receive a salary
increase during the year. Details of his leaving arrangements are set out on page 120. His outstanding LTIP and deferred bonus awards lapsed with immediate effect
and no bonus is payable for 2023/24.
7 The annual bonus figure quoted is the total bonus including the deferred share element associated with the performance conditions in that year. See page 110 for
further explanation of the rules relating to the Annual Bonus Plan.
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Financial statementsGovernanceStrategic report
2024 Annual bonus outcome (audited)
For the financial year ended 30 June 2024, the annual bonus measures, targets, weightings and performance are set out in
the table below.
Senior management was subject to similar targets, which were applied to their respective business performance.
Measure
Performance target
Weighting
Threshold (% of
maximum bonus)
On-target (% of
maximum bonus)
Maximum (% of
maximum bonus)
Actual
performance
Payout % of
bonus maximum
Pre-exceptional full year
Group profit before tax
45% £ 27.6m
(0%)
£29.0m
(22.5%)
£33.4m
(45%)
2
£32.7m 41.4%
Pre-exceptional half year
Group profit before tax
15% £11.7m
(0%)
£13.m
(7. 5%)
£15.0m
(15%)
£15.6m 15%
Group cash management 20% 95% of
budget (10%)
100% of
budget (10%)
110% of
budget (20%)
110% 20%
Construction order book 8% 83.0%
secured (0%)
85.0%
secured (4%)
87.0%
secured (8%)
92%
secured
8%
ESG
1
:
Employee: based on
employee advocacy
3% <80%
(0%)
>80%
(3%)
>80%
(3%)
87% 3%
Carbon emissions: based
on annual reduction of
scope 1 and 2 emissions
(marked based).
3% 5% reduction
(0%)
7.5%
reduction
(1.5%)
10%
reduction
(3%)
2.5%
reduction
0%
Community: based on CCS score 3% <38
(0%)
>38
(3%)
>38
(3%)
42.9 3
Supply chain: payment of supply
chain invoices within 60 days
3% <95%
(0%)
>95%
(3%)
>95%
(3%)
95.6% 3
Health and safety: based on
discretionary assessment of
H&S performance
Underpin Discretional
adjustment
Total payout
(% of maximum bonus)
100.0% 10% 54.5% 100% 93.4%
1 The ESG metrics are aligned to the Group’s published strategy with the targets based on industry guidelines, averages or the Group’s stated ambition.
The 2021 carbon comparative metric was re-instated in 2023 onwards to incorporate the operation of nmcn (acquired October 2021).
2 Pre-exceptional full year Group profit before tax excluding the loss arising on a one-off contract settlement.
The Group achieved a strong performance against targets set at the start of the financial year. Taking into account the
Group’s profitability and enhanced dividends to shareholders, the Committee determined that the bonus level produced by
the scorecard of 93.4% is an appropriate reward given the Group’s operational and financial performance. This treatment
is consistent with that applied for all participants of the ABP. The ABP 23/24 bonus target in 2023 onwards incorporated
a 12% target for ESG factors which include: people, carbon emission, community and supply chain metrics. Under the
approved Policy, the Committee may, at its discretion, acting fairly and reasonably, adjust bonus outcomes if it considers
the payout is inconsistent with the Group’s performance during the year, taking into account factors including safety and
ESG. In considering bonus awards the Committee took the Group’s health and safety performance and ESG initiatives into
consideration. The Group achieved an overall Accident Frequency Rate (“AFR”) of 0.04 for 2023/24, (AFR for 2022/23:
0.09) with 13 of the 19 business units achieving an AFR of zero during the year.
Annual report on Remuneration continued
118 Galliford Try Annual Report and Financial Statements 2024
The Committee determined that, in respect of the year to 30 June 2024, the resulting annual bonus awards were as follows:
On-target
bonus
(% of salary)
Maximum
bonus
(% of salary)
Actual bonus
payable for
2023/24
(£000)
Cash
(£000)
Shares
(£000)
Bill Hocking 93.4% 120% 558 350 208
Former Director
Andrew Duxbury
1
– 100% – – –
1 Andrew Duxbury resigned from the Board on 31 May 2024 and no bonus was paid for the 2023/24 financial year.
Two-thirds of the bonus earned in excess of the 50% of salary threshold is required to be deferred into restricted shares.
Although beneficially held by the participants, the allocated restricted shares are legally retained by the Employee
Share Trust and are subject to forfeiture provisions, unless otherwise agreed by the Committee. Subject to continued
employment, the restricted shares are legally transferred to participants on the third anniversary of allocation. Recovery
provisions apply at any time within the three-year period post-vesting or payment of cash bonuses in circumstances or
error, material misstatement, misconduct, reputational damage or corporate failure as a result of poor risk management.
LTIP awards vesting in September 2024 (audited)
The LTIP awards granted to Bill Hocking and Andrew Duxbury on 23 September 2021 were based on 75% underlying
EPS performance and 25% on average month-end cash as a percentage of annual turnover over the three years to
30 June 2024. In total, 88.2% of the maximum award vested as a result of the performance achieved. The Committee was
satisfied that this outcome reflected the true performance of the Group and no discretion was applied. The awards will be
subject to a two-year post vesting holding period in accordance with the existing Remuneration Policy. More details on
each of the performance conditions are set out below.
Threshold
EPS
condition
(25% vesting)
Stretch EPS
condition
(100%
vesting)
Actual
performance
Threshold
average
month-
end cash
condition
(25% vesting)
Stretch
average
month-
end cash
condition
(100%
vesting)
Actual
performance
% of overall
award
vesting
Value of
award
vesting
2
(£000)
Element
of value
attributable
to share
growth
2
(£000)
Bill Hocking 15.9p 19.5p 27.9p 8% 10% 8.7% 88.2% 845 238
Former Director
Andrew Duxbury
3
15.9p 19.5p n/a 8% 10% n/a – – –
1 As a percentage of annual turnover.
2 Estimated based on the average share price over the three months to 30 June 2024.
3 Andrew Duxbury resigned from the Board on 31 May 2024. Details of his leaving arrangements are set out on page 120. His outstanding LTIP awards lapsed with
immediate effect.
119
Financial statementsGovernanceStrategic report
Annual report on Remuneration continued
Directors’ share plan interests (audited)
Outstanding awards held by Bill Hocking and Andrew Duxbury during the year are detailed in the table below.
Director Plan Grant date
Share price
at grant
Number
of awards
outstanding
at 1 July
2023 Granted Vested Lapsed
Number
of awards
outstanding
at 30 June
2024
Value of
awards vested
during financial
year £000
Actual or
anticipated
vesting date
Bill
Hocking
LTIP
1
23.09.20 £0.80 843,750 – 820,125 23,625 – £1,935,495 23.09.23
LTIP 23.09.21 £1.788 385,067 – – – 385,067 – 23.09.24
ABP
3
23.09.21 £1.7694 118,684 – – – 118,684 – 23.09.24
LTIP 23.09.22 £1.61 442,546 – – – 442,546 – 23.09.25
ABP
4
28.09.22 £1.60 133,875 – – – 133,875 – 28.09.25
LTIP 25.09.23 £2.36 – 315,572 – – 315,572 – 25.09.26
ABP
5
27.09. 23 £2.349 – 46,462 – – 46,462 – 27.09.26
Former Director
Andrew
Duxbury
6
ABP
2
23.09.20 £0.8442 – 52,969 – – £124,424 23.09.23
LTIP
1
23.09.20 £0.80 685,593 – 666,396 19,197 – £1,572,695 23.09.23
LTIP 23.09.21 £1.788 312,919 – – 312,919 – – n/a
ABP
3
23.09.21 £1.7694 69,015 – – 69,015 – – n/a
LTIP 23.09.22 £1.61 359,627 – – 359,627 – – n/a
ABP
4
28.09.22 £1.60 – 77,708 – 77,708 – – n/a
LTIP 25.09.23 £2.36 – 256,461 – 256,461 – – n/a
ABP
5
27.09. 23 £2.349 – 22,335 – 22,335 – – n/a
1 Awards are based on a maximum percentage of salary. The number of shares shown in the table represents the maximum number of shares, ie 150% of salary.
2 In accordance with the rules of the Annual Bonus Plan, the average of the Company’s closing share price for the five business days following (and including)
the announcement of the annual results on 16 September 2020 was 84.42 pence.
3 In accordance with the rules of the Annual Bonus Plan, the average of the Company’s closing share price for the five business days following (and including)
the announcement of the annual results on 16 September 2021 was 176.94 pence.
4 In accordance with the rules of the Annual Bonus Plan, the average of the Company’s closing share price for the five business days following (and including)
the announcement of the annual results on 21 September 2022 was 160 pence.
5 In accordance with the rules of the Annual Bonus Plan, the average of the Company’s closing share price for the five business days following (and including)
the announcement of the annual results on 27 September 2023 was 234.90 pence.
6 The ABP and LTIP ‘inflight’ awards for Andrew Duxbury lapsed on the date of his resignation and departure from the Company on 31 May 2024.
Payments to former directors
Andrew Duxbury resigned and left the Group on 31 May 2024. Under the terms of his exit arrangements, he continued to
receive his salary and contractual benefits up to 31 May 2024. The total remuneration received amounted to £392,967.
He was not eligible for prorated annual bonus payment in respect of his time served during the 2023/24 financial year,
and his outstanding awards under the LTIP made in each of September 2021, 2022 and 2023 lapsed. His restricted shares
granted to him in respect of the Annual Bonus Plan for the financial years ended 30 June 2021, 2022 and 2023 also lapsed.
Terry Miller resigned from the Board during the year and, in line with Policy, received her fee up to 31 October 2023.
120 Galliford Try Annual Report and Financial Statements 2024
Awards granted during the year (audited)
On 25 September 2023, the following conditional LTIP awards were made to Bill Hocking and Andrew Duxbury. The award
to Andrew Duxbury has since lapsed.
Director Date of grant
Number
of shares
awarded Basis of award
Share price used
to determine level
of award £ Face value £
Bill Hocking 25 September 2023 315,572 150% of base salary £2.36 744,750
Former Director
Andrew Duxbury 25 September 2023 256,461 150% of base salary £2.36 605,248
The performance conditions attached to these awards made in September 2023 are as follows:
Date of grant Performance conditions
September 2023 Vesting of up to 75% of the award is based on underlying EPS. 25% of the element will vest for
28.6p, increasing to 100% vesting on a straight-line basis if 34.5p underlying EPS is achieved
during the final year of the three-year performance period (1 July 2025 to 30 June 2026).
Vesting of up to 25% of the award is based on average month-end cash as a percentage of annual
turnover in the year ending 30 June 2025. 8% would generate 25% of the element vesting and
10% would generate 100% vesting on a straight-line basis.
Any shares which vest will be subject to a two-year post-vesting holding period, in accordance with
the Remuneration Policy.
Malus and clawback apply at any time within a three-year period post-vesting, in the case of
material misstatement, misconduct, reputational damage or corporate failure as a result of poor
risk management.
Directors’ share interests (audited)
As at 30 June 2024, the Directors held the following beneficial, legal and unvested ABP interests in the Group’s ordinary
share capital.
Measure
Legally owned
1
LTIP
(unvested)
Deferred
bonus awards
(unvested)
Total % of salary held
under share
ownership
guidelines
2
30.6.24 30.6.23 30.6.24
Executive directors
Bill Hocking 826,221 391,555 1,143,185 299,021 2,268,427 498%
Non-executive directors
Marisa Cassoni – – – – – n/a
Alison Wood
3
– – – – – n/a
Sally Boyle
3
– – – – – n/a
Michael Topham
3
– – – – – n/a
Kevin Boyd
3
8,000 – – – – n/a
1 Either held by the individual or connected persons.
2 Under the current Remuneration Policy, the share ownership guideline for executive directors is 200% of base salary.
3 Alison Wood and Sally Boyle joined the Board on 1 April and 1 May 2022. Michael Topham joined the Board on 1 June 2023 and Kevin Boyd joined 1 March 2024.
4 Kris Hampson joined the Board on 2 September 2024 and held 6,250 shares in the Company on appointment.
There were no changes in the directors’ interests from 30 June 2024 to the date of this Annual Report.
121
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Annual report on Remuneration continued
Performance graph
The graph shows the TSR for Galliford Try shares over the last 10 financial years. It shows the value to 30 June 2024 of
£100 invested in the Galliford Try on 30 June 2014 compared with the value of £100 invested in the FTSE All-Share Index,
this being a broad-market index of which the Company has been a constituent over the full period shown.
The closing mid-market quotation for the Company’s shares on 28 June 2024, the nearest trading day to 30 June 2024 was
230.0p. The high and low during the year were 192.6p and 275.0p.
The total gross remuneration of the Chief Executive and the percentage achieved of the maximum ABP and LTIP awards
are shown in the table below for the past 10 financial years.
2024
2015
1
2016 2017 2018 2019
2
2020
3
2021 2022 2023 2024
Chair Chief Executive
Total remuneration (£000) 2,811 1,262 1,461 1,043 1,448 824 660 1,027 1,937 2,429 1,951
Annual bonus
(% of maximum) 79% 74% 74% 46.3% 86.5% 57.0 % 36.7% 100.0% 100% 70.4% 93.4%
LTIP (% of maximum) 63% 47% – 16.5% 36.6% 16.5% – – 89% 97. 2% 88.2%
1 Peter Truscott was appointed Chief Executive on 1 October 2015. His predecessor, Greg Fitzgerald, was Chief Executive until 21 October 2014, and Executive Chair
until 31 December 2015. Peter Truscott stepped down as Chief Executive and from the Board on 26 March 2019.
2 Graham Prothero was appointed Chief Executive on 26 March 2019, succeeding Peter Truscott. He stepped down from the Board and as Chief Executive following
the successful completion of the sale of the housebuilding divisions to Vistry Group plc on 3 January 2020.
3 Bill Hocking was appointed Chief Executive on 3 January 2020. A full-year remuneration figure based on the aggregate paid to Bill and Graham is shown here to
aid comparison.
Total Shareholder Return graph
Value (£) (rebased)
Source: Datastream from Refinitiv
0
100
200
500
400
300
Galliford Try FTSE All Share
Jun
23
Jun
24
Jun
22
Jun
21
Jun
20
Jun
19
Jun
18
Jun
17
Jun
16
Jun
15
Jun
14
122 Galliford Try Annual Report and Financial Statements 2024
CEO pay ratios
Under Option B (gender pay data), three employees have been identified as the best equivalents to represent the lower,
median and upper quartiles. Option B provides a clear methodology involving fewer adjustments to calculate full-time
equivalent earnings.
Year Method
CEO single
figure
All UK
employees Lower quartile Median Upper quartile
2019/20 Option B £660,587 Ratio 24:1 15:1 9:1
Total pay £27,4 07 £43,165 £74,351
Salary £25,500 £35,249 £61,057
2020/21 Option B £1,026,671 Ratio 27:1 19:1 14:1
Total pay £37,399 £54,374 £73,385
Salary £36,134 £43,781 £66,927
2021/22 Option B £1,936,788 Ratio 62:1 36:1 26:1
Total pay £31,128 £53,976 £73,920
Salary £ 27, 875 £44,720 £62,275
2022/23 Option B £2,428,970 Ratio 66:1 45:1 31:1
Total pay £36,562 £54,444 £79,638
Salary £29,411 £48,003 £65,950
2023/24 Option B £1,950,670 Ratio 44:1 35:1 27:1
Total pay £44,125 £55,120 £72,918
Salary £42,272 £49,554 £66,725
The Chief Executive figure includes earnings from the Long-Term Incentive Plan. Long-term incentives are operated for the
most senior Group employees only, namely, those responsible for strategy development and execution. The payouts from
such plans are expected to be volatile from cycle to cycle.
The Committee is comfortable that the resulting calculations are representative of pay levels at the respective quartiles
and that the applicable relativities are appropriate given the profile of the workforce.
123
Financial statementsGovernanceStrategic report
Annual report on Remuneration continued
Percentage change in remuneration of executive directors and non-executive directors
The table below shows the percentage change in salary or fee, taxable benefits and annual bonus of each individual director
in respect of the financial years ended 30 June 2024, 30 June 2023, 30 June 2022 and 30 June 2021:
Year ended 30 June
2024 2023 2022 2021
Salary
change
1
Benefits
change
2
Bonus
change
Salary
change
4
Benefits
change
Bonus
change
4
Salary
change
6
Benefits
change
Bonus
change
6
Salary
change
10
Benefits
change
Bonus
change
10
Executive directors
Bill Hocking 4.6% (31.3)% 65.8% 3.7% 50.0% (27. 2%) 2.9% 203.3% 2.0% 119.5% (85.5)% 449.8%
Non-executive directors
Marisa Cassoni 4.0% n/a n/a 3.7% n/a n/a 3.0% n/a n/a (1.1)% n/a n/a
Alison Wood
3
4.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Sally Boyle
3
4.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Michael Topham
5
4.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Kevin Boyd
7
0.0% n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a
Former directors
Peter Ventress n/a n/a n/a (77.7)% n/a n/a 1.9% n/a n/a 5.0% n/a n/a
Terry Miller
8
0.0% n/a n/a 3.0% n/a n/a 7. 5% n/a n/a 15.3% n/a n/a
Gavin Slark n/a n/a n/a (22.2%) n/a n/a 3.0% n/a n/a 5.0% n/a n/a
Andrew
Duxbury
9
n/a n/a n/a 3.7% 0.0% (27.1%) 2.6% (70.0)% 1.9% 4.9% (70.9)% 46.5%
P50 median
employee 3.2% (85.7)% 50% 7.3% 7.9% (52.4)% 2.1% (11.1)% 40.0% 24.2% 4.5% 50.0%
1 Salaries for the non-executive directors were increased by 4.0% with effect from 1 April 2024. The salary for Bill Hocking was increased by 4.73% on 1 April 2024.
There was no salary increase for Andrew Duxbury due to his resignation.
2 Benefits received include pension contributions (or cash equivalent), company car (or equivalent cash allowance), and private medical insurance. Executive directors
and senior management, subject to invitation and approval by the Committee, may participate in the ABP and LTIP.
3 The percentage change is not shown for Alison Wood or Sally Boyle in 2023 and 2022 as they were appointed to the Board on 1 April 2022 and 1 May 2022
respectively and there was no prior year remuneration to compare against.
4 Please see page 114 in our 2023 Annual Report for further information.
5 Michael Topham was appointed to the Board on 1 June 2023 so there is no information showing in 2023 or 2022 as no prior year remuneration to compare against.
6 Please see page 98 in our 2022 Annual Report for further information.
7 The percentage change is not shown for Kevin Boyd as he was appointed to the Board on 1 March 2024 and there is no prior year remuneration to compare against.
8 Terry Miller resigned on 31 October 2023.
9 Following the resignation of Andrew Duxbury on 31 May 2024, Andrew received no payments for loss of office.
10 Please see note 3 page 83 in our 2021 Annual Report for further information.
To allow for comparison, the Committee has elected to compare the total remuneration of the P50 median employee
(median) from this year (2023/24) with that used last year. The Committee continues to ensure that the wider total package
on offer to employees remains competitive at all levels.
Relative importance of spend on pay
2022/23 2023/24 Change
Total overall spend
on pay (£m) 256.7 284.2 27.5m
Dividends (£m) 9.6 24.2 14.6m
Share buyback (£m) 10.6 4.4 6.2m
Group corporation tax
charge (£m)
1
3.1 4.8 1.7m
Effective tax rate (%) 15.1 14.6 0.5pts
1 Pre-exceptional total tax.
The equivalent total overall spend on pay in 2023/24 is
disclosed in note 5 to the financial statements. The total
overall spend on pay equates to average remuneration per
staff member of £68,947 per annum as at 30 June 2024
(2023: £68,508).
124 Galliford Try Annual Report and Financial Statements 2024
Composition of the Remuneration
Committee and attendance
In addition to the Chair, Sally Boyle, the other Committee
members were Marisa Cassoni, Alison Wood , Michael
Topham and Kevin Boyd who joined on 1 March 2024.
The General Counsel & Company Secretary acts as
Secretary to the Committee. The Chief Executive has a
standing invitation to attend all Committee meetings,
although each meeting commences with the non-executive
directors meeting without Executive management
present. The HR Director attends certain meetings at the
invitation of the Committee. No director nor the General
Counsel & Company Secretary is present when his or her
own remuneration is being considered. Attendance at
Committee meetings is shown in the table on page 93.
The Committee is governed by formal terms of
reference agreed by the Board and is composed solely
of non-executive directors. The terms of reference
were reviewed during the year and are available on
the Group’s website (www.gallifordtry.co.uk).
Remuneration advice and advisers
The Committee is informed of key developments
and best practice in the field of remuneration and
obtains advice from independent external consultants,
when required. Mercer Limited (Mercer) was the
Committee’s remuneration consultant throughout
the year. Fees paid to Mercer during the financial year
were £13,300 (2023: £37,660).
Mercer does not provide any other services to the Group,
although Mercer is part of Marsh & McLennan Companies,
a subsidiary of which, Marsh JLT Specialty Limited, provides
insurance broking services to the Group. The Committee
is satisfied that these services do not impinge on Mercer’s
independence. Furthermore, Mercer is a signatory to
the Remuneration Consultants’ Code of Conduct, which
requires that its advice be objective and impartial.
The General Counsel & Company Secretary also advises
the Committee as necessary and, where appropriate, makes
arrangements for the Committee to receive independent
legal advice at the request of the Chair.
Employee Share Trust and dilution
The Employee Share Trust (“EST”) is the primary mechanism
by which shares required to satisfy the Executive incentive
plans are provided. Following the announcement of the
2023 full-year results in September 2023, the EST entered
into a six-month trading plan with the Company from
September 2023 to March 2024. The EST instructed Peel
Hunt LLP to acquire ordinary shares of 50 pence each in
the Company for the Trust. Purchases were made at the
best price. The shares are to be used to satisfy potential
future vesting(s) to be made to employees under the various
Executive share incentive schemes.
As at 30 June 2024, the EST held 3,824,949 ordinary shares
in the capital of the Company (3.68%) (2023: 3,705,343
shares). Under the terms of the Trust Deed, the Trust may
only hold up to a maximum of 5% of the issued shares in
the Company.
During the financial year, 1,323,592 new shares were issued
arising from share scheme-related activities under the SAYE
share option scheme. As at 30 June 2024, the total number
of shares outstanding under the SAYE share option scheme
was 2,806,642. The Group has complied with the dilution
guidelines of the Investment Association (“Guidelines”).
Applying the Guidelines, the Group has used 4.04% of the
10% headroom in 10 years’ rule and, on the basis that the
Group’s practice is that all awards granted pursuant to
discretionary plans are satisfied using shares purchased in
the market, the Group has not used any of the headroom
against the ‘5% in 10 years’ rule for discretionary plans.
Shareholder voting on the
Directors’ Remuneration Report
The Committee takes account of annual shareholder voting
trends in connection with the Directors’ Remuneration
report. Votes cast in support of the annual advisory
resolution to approve the Directors’ Remuneration report
during the past five AGMs are included in the chart below.
Votes cast
(%)
2019 2020 2021 2022 2023
85.73%
14.27% 35.57% 0.11% 0.14%
0.70%
64.43%
99.89%
99.86%
99.30%
The Board will continue to engage with shareholders to
ensure their views are fully understood and considered and
can be taken into account by the Committee in the future.
The Committee and Board are grateful to shareholders
for the strong support provided.
The current Policy was approved by 99.3% of shareholders
who voted at the 2023 AGM and the advisory vote on the
Annual Report on Remuneration was supported by 94.88%.
125
Financial statementsGovernanceStrategic report
Annual report on Remuneration continued
Forward-looking implementation of policy
Base salaries
The 2024/25 salary review was completed in April 2024.
The Committee carefully scrutinised pay and conditions
across the Group. Taking into account market conditions,
peer group comparisons and the Group’s overall
performance, the overall pay budget increased by 5.0%.
With effect from 1 April 2024, Bill Hocking’s annual salary
increased from £496,500 to £520,000, an increase of
4.73%, the increase being in line with the average pay
increase across the workforce. Andrew Duxbury was not
awarded an annual salary increase due to his resignation on
31 May 2024. Kris Hampson was appointed on a salary of
£380,000 on 2 September 2024.
ABP
For the financial year to 30 June 2025, the Committee
has determined that the existing bonus structure remains
appropriately aligned to corporate strategy. It will therefore
remain in its current form, with an opportunity of 120%
of salary for the Chief Executive, and 100% for other
executive directors.
Bonus outcomes will be subject to overall Committee
discretion, taking into account factors including health
and safety and the underlying performance of the Group.
The Committee intends to continue to include ESG annual
bonus measures in 2024/54 aligned to the Group’s strategy
on ESG, with an ESG target in total of 12%. The ESG
measures will comprise order book, employees, carbon,
community and supply chain.
LTIP
Any award granted to the executive directors in 2024
will be within the approved Remuneration Policy and
based on performance metrics, with 75% based on
earnings per share and 25% on average month-end
cash as a percentage of revenue.
Performance measures applied over a three-year
performance period to 30 June 2027 are:
25% of the EPS element will vest if underlying EPS is
33.9%, increasing to 100% vesting on a straight-line
basis if 41.5p is achieved.
25% of the cash element will vest if average month-end
cash is 8% of revenue, increasing to 100% vesting on
a straight-line basis if 10% is achieved.
Chair and non-executive directors’ fees
The Committee determined that the Chair’s fee for 2024/25 would be increased by 4%. In addition, and following
a review of the non-executive directors’ fees by the Board, it was agreed that the non-executive directors’ fees would
increase by 4.0%.
Accordingly, the annual fees effective from 1 April 2024 are as follows:
2024 2023
Increase/Change
%
Chair £190,190 £182,875
1,2
4.0%
Non-executive directors
Base fee £50,752 £48,803 4.0%
Additional fees:
Senior Independent Director £5,065
3
£4,870 4.0%
Chairs of Board Committees £9,545 £9,178 4.0%
Chair of Employee Forum £4,787 £9,178
4
4.0%
1 Alison Wood was appointed as Non-executive Director on 1 April 2022 and her salary on 1 July 2022 was £46,701. Alison Wood became the new Chair on
21 September 2022 after Peter Ventress had stepped down. As of 21 September 2022 the Chair’s basic fee was £175,000. Alison Wood received a 4.5% fee
increase on 1 April 2023 in line with the rest of the Board. Alison Wood received no other benefits in connection with her position as Chair.
2 On 1 April 2022 Peter Ventress was Chair and received a fee of £206,128. Peter Ventress received no benefits in connection with his position as Chair,
other than membership of the Group’s medical insurance plan.
3 On 1 November 2023, Marisa Cassoni became the Senior Independent Director, following the resignation of Terry Miller, and received an additional payment
of £4,870.
4 On 1 June 2023 Sally Boyle became Chair of the Employee Forum and received an additional fee of £4,600 pa. Terry Miller received the fee for Chair of the
Employee Forum and Stakeholder Steering Committee up to 1 June 2023.
For and on behalf of the Board
Sally Boyle
Remuneration Committee Chair
3 October 2024
126 Galliford Try Annual Report and Financial Statements 2024
Directors’ report
The directors present their Annual
Report and audited financial
statements for the Group for the
financial year ended 30 June 2024.
Principal activities
Galliford Try is a trading name of Galliford Try Holdings plc,
a leading UK construction group which has a commercial
category entity listing and whose shares are traded on the
London Stock Exchange. The Group operates as Galliford
plc, registered in England and Wales with company number
12216008, is the Parent Company of the Group.
More detailed information regarding the Group’s
activities is provided on pages 1 to 79. The Group’s
subsidiaries and joint ventures are shown in note 33
to the financial statements.
Strategic report
The Strategic report can be found on pages 1 to 79.
It contains an indication of the directors’ view on likely
future developments in the Group’s business. In addition,
and in accordance with the Companies, Partnerships
and Groups (Accounts and Non-Financial Reporting)
Regulations 2016, the Strategic report contains information
on employees, social and environmental matters, human
rights and anti-corruption and anti-bribery matters,
as well as a description of the Group’s policies and
where these are located.
In accordance with section 414CZA of the Companies
Act 2006, the Strategic report contains a section 172 (1)
statement describing how directors have had regard to the
matters set out in section 172 (1) (a) to (f) of the Companies
Act 2006 when performing their duty under section 172.
Please refer to pages 74 to 79.
The Annual Report and financial statements use financial
and non-financial key performance indicators wherever
possible and appropriate.
Corporate governance report
The Corporate governance report on pages 80 to 94 is
the corporate governance statement for the purposes of
Disclosure Guidance and Transparency Rule 7.2.1.
Results, dividends and capital
The pre-exceptional profit for the year before income
tax was £32.7m, as shown in the consolidated income
statement on page 141. On 6 March 2024, the Board
declared an interim dividend of 4.0p per share, which was
paid to shareholders on 12 April 2024. The Board has
proposed a final dividend of 11.5p per share. Subject to
approval by shareholders, this will be paid on 5 December
2024 to shareholders on the register at 8 November 2024,
resulting in a total dividend in 2024 of 15.5p per share.
Dividend cover is expected to be 1.8 times earnings.
On 3 October 2024, we announced a further share
buyback programme of a maximum of £10m, reflecting
both a corporation tax refund and our confidence in future
cash generation.
Please refer to page 50 to 51 for an overview of the Group’s capital
structure and funding.
Share capital, authorities and restrictions
The Company has one class of ordinary share capital, with
a nominal value of 50 pence. The ordinary shares rank pari
passu in respect of voting and participation and are traded
on the Main Market of the London Stock Exchange.
At 30 June 2024, the Company had 103,975,786 ordinary
shares in issue. Votes may be exercised at general meetings
of the Company by members in person, by proxy or
by corporate representatives (in relation to corporate
members). The Company’s Articles of Association
(the “Articles”) set a deadline for submitting proxy forms
(electronically or by paper) of not less than 48 hours, taking
no account of any part of a day that is not a working day,
before the time appointed for holding the general meeting
or the adjourned meeting (as the case may be).
The directors are authorised at the AGM each year to issue
shares, to allot a limited number of shares in the Company
for cash other than to existing shareholders, and to make
market purchases of shares within prescribed limits. The
current authorities will expire at the AGM in November
2024. Resolutions to be proposed at the AGM will renew
these authorities, which are explained in the Notice of
2024 AGM sent separately to shareholders.
The Company issued 1,323,592 shares following the
exercise of options under the Company’s Sharesave
Scheme. To the date of this report, the Company has
purchased 8,404,148 shares as part of the share buyback
programme which commenced in September 2022.
All of these shares were cancelled and the share buyback
programme was closed on 31 October 2023.
127
Financial statementsGovernanceStrategic report
There are no restrictions on transferring the Company’s
shares, except for certain shares held by the Employee
Share Trust (“EST”), which are restricted during
the performance periods of relevant Group share
plans. Directors and persons discharging managerial
responsibilities are also periodically restricted in dealing
in the Company’s shares under the Group’s share dealing
policy, reflecting the requirements of the Market Abuse
Regulation. In certain specific circumstances, the directors
are permitted to decline to register a transfer in accordance
with the Articles. There are no other limitations on holdings
of securities, and no requirements to obtain the approval
of the Company, or other holders of shares in the Company,
prior to the share transfer. The Company is not aware of
any agreements between holders of shares that may
restrict the transfer of shares or voting rights.
There are no shares carrying specific rights relating to
control of the Company. The EST holds shares in the
Company in connection with Group share plans which
have rights relating to control of the Company that are
not exercisable directly by the employee. The EST abstains
from voting in respect of these shares. The EST currently
holds 3.68% of the issued share capital of the Company
for the purposes of satisfying employee share options or
share awards.
Articles of Association
The Articles, adopted pursuant to a resolution passed
on 5 November 2019, set out the Company’s internal
regulations and define various aspects of its constitution,
including the rights of shareholders, procedures for
appointing and removing directors, and the conduct of
directors and general meetings.
In accordance with the Articles, directors can be appointed
or removed either by the Board or shareholders in
general meeting. Amendments to the Articles require
shareholder approval by passing a special resolution in
a general meeting. Copies of the Articles are available by
contacting the General Counsel & Company Secretary
at the registered office.
Significant direct and indirect holdings
As at 30 June 2024, being the date of this Annual
Report, the Group had been made aware of the following
beneficial interests in 3% or more of the Company’s
ordinary share capital:
Shareholder Interest % capital
Aberforth Partners LLP 12,154,152 11.81
Premier Miton Group plc 11,370,288 10.96
J O Hambro Capital
Management Limited 10,027,620 9.73
Between 1 July 2024 and the date of this report, there were
no further changes to the significant direct and indirect
holdings information.
Change of control provisions
All the Group’s share plans contain provisions relating
to a change of control. The respective plan rules permit
outstanding awards to vest on a proportional basis and
then become exercisable in the event of a change of control,
subject to the satisfaction of any performance conditions
and Remuneration Committee approval. Other than in
relation to share schemes as described above, the Group
has not entered into any agreements with its directors or
employees which provide for compensation for loss of office
or employment in the event of a takeover or change of
control of the Group.
The agreements governing the Group’s joint ventures all
have appropriate change of control provisions, none of
which is significant in the context of the wider Group.
Directors’ report continued
128 Galliford Try Annual Report and Financial Statements 2024
Directors’ interests and indemnities
Summary biographies of the directors of the Company
as at 30 June 2024 are on pages 82 to 83. The directors’
interests in the Company’s share capital are set out on
page 121 and details of executive directors’ service
contracts and Non-executive directors’ letters of
appointment can be found on page 115.
The Group operates a formal procedure for disclosing,
reviewing and authorising directors’ actual and potential
conflicts of interest, in accordance with the Companies
Act 2006. In addition, the Board reviews and authorises
conflicts of interest, as necessary, on an annual basis.
The Group maintained Directors’ and Officers’ Liability
insurance on behalf of the directors and General Counsel
& Company Secretary throughout the financial year. In
addition, individual qualifying third-party indemnities are
provided to the directors and General Counsel & Company
Secretary, which comply with the provisions of section 234
of the Companies Act 2006 and were in force throughout
the year and up to the date of signing this Annual Report.
Employees
The Group is committed to best-practice employment
policies, which promote equal opportunities for all
employees. We value everyone as an individual, recognising
that everyone is different and has different needs at work.
We respect people’s differences and treat everyone with
dignity and respect. We aim to create a culture in which
everyone feels valued and is motivated to give their best.
The Group gives full and fair consideration to applications
for employment from disabled persons, taking into account
their aptitudes and abilities. The Group has signed up to the
Government’s Disability Confident scheme. We carry out
regular workplace assessments and provide occupational
health checks and advice to support both employees and
line managers. Appropriate arrangements are made for the
continued training and employment, career development
and promotion of disabled persons. If existing members of
staff become disabled, the Group endeavours to continue
employment, either in the same or an alternative position,
with appropriate retraining and occupational assistance
being given if necessary.
Employee engagement and consultation is encouraged
through the Employee Forum (see pages 87 to 88),
as well as regular informal discussions and feedback,
formal annual appraisals, business unit staff forums
and periodic employee surveys.
Details of where to find information regarding the Group’s
employees, remuneration policies, employment practices
and employee involvement are provided in the Strategic
report on pages 1 to 79 and the Remuneration Policy
and Report on pages 104 to 126.
Details of where to find information on other matters of
importance to stakeholders such as environmental, social
and community matters, human rights and anti-corruption,
related policies and their impact can also be found in the
Strategic report.
Significant agreements
There are no persons with which the Group has contractual
or other arrangements which are essential to its business.
Charitable and political donations
For information regarding charitable donations made
through employees’ volunteering or donation of materials,
please refer to the Strategic report on page 38.
The Group’s policy is to avoid making political donations
of any nature and none were made during the financial
year. The Group notes the wide application of Part 14
of the Companies Act 2006, but does not consider the
construction industry bodies of which it is a member to
be political organisations for the purposes of the Act.
Emissions
Details of the Group’s greenhouse gas emissions for the
financial year can be found on page 32 and are included
by reference in this report.
Creditor payment policy
The Group’s policy is to agree payment terms contractually
with suppliers and sub-contractors, ensure the relevant
terms of payment are included in contracts, and to abide
by those terms when satisfied that goods, services or
assets have been provided in accordance with the agreed
contractual terms. The Group remained a signatory to the
Prompt Payment Code throughout the financial year which
contains, among other things, commitments to pay suppliers
within agreed contract terms.
129
Financial statementsGovernanceStrategic report
Financial instruments
Further information regarding the Group’s financial
instruments, including interest rate hedges, related policies
and a consideration of its liquidity and other financing risks,
can be found in the Financial review from page 48 and in
note 23 to the financial statements.
Important developments during the year
On 8 November 2023, the Group acquired AVRS Systems
Limited (“AVRS”), a leading mechanical and electrical
engineering specialist, for the consideration of £4.5m.
For more details see note 30 to the financial statements.
On 30 November 2023, the Group disposed of the
share capital of Rock & Alluvium Limited for the
consideration of £3.9m. For more details see note 30
to the financial statements.
Our new cloud-based Enterprise Resource Planning (ERP)
and HR system, Oracle Fusion, went live in September
2023 and is part of the investment in our digital and data
capabilities for greater efficiency. The implementation
and move to this system is now complete with no more
exceptional costs expected. For more details see note 4
to the financial statements.
An exceptional tax credit arose following amendments
to company tax returns filed in March 2024 and agreed
by HMRC for the period ending 30 June 2019. Additional
Group relief claims were filed for the period which resulted
in a refund due from HMRC for overpaid corporation tax.
For more details see note 4 to the financial statements.
Going concern
In accordance with the Financial Reporting Council’s
Guidance on Risk Management, Internal Control and
Related Financial and Business Reporting published in 2014,
the requirements of the Code and Listing Rule 6.6.6(3),
the directors have conducted a rigorous and proportionate
assessment of the Group’s ability to continue in existence
for the foreseeable future. This has been reviewed during
the financial year and the directors have concluded that
there are no material uncertainties that may cast significant
doubt on the Group’s ability to continue as a going concern.
Furthermore, the Group has adequate resources and
visibility as to its future workload, as explained in this
Annual Report. As a result, the Directors are satisfied that
the Group has adequate resources to meet its obligations
as they fall due for a period of at least 12 months from
the date of approving these financial statements and,
accordingly, is able to adopt the going concern basis in
preparing these financial statements.
AGM
The 2024 AGM will be held at Peel Hunt LLP, 7th floor,
100 Liverpool Street, London, EC2M 2AT on Thursday
28 November 2024 at 11.00am. The Notice convening
the AGM, sent to shareholders separately, explains the
items of business which are not of a routine nature.
Further information on arrangements for the AGM and
voting instructions will be set out fully in the Notice of
AGM and Form of Proxy.
Fair, balanced and understandable
In accordance with the principles of the Code and
as further described on page 103, the Group has
arrangements in place to ensure that the information
presented in this Annual Report is fair, balanced and
understandable. The directors consider, on the advice
of the Audit Committee, that the Annual Report, taken
as a whole, is fair, balanced and understandable and
provides the information necessary for shareholders
to assess the Group’s performance, position, business
model and strategy.
Approval of report
This Directors’ report, the Strategic report, and the
Corporate Governance report and Directors’
Remuneration report were approved by the
Board of Directors on 3 October 2024.
For and on behalf of the Board
Kevin Corbett
General Counsel & Company Secretary
3 October 2024
Directors’ report continued
130 Galliford Try Annual Report and Financial Statements 2024
The directors are responsible for
preparing the Annual Report and the
financial statements in accordance
with applicable law and regulations.
Company law requires the directors to prepare financial
statements for each financial year. Under company law the
directors have prepared the Group and Parent Company
financial statements in accordance with UK adopted
International accounting standards. Under company law,
the directors must not approve the financial statements,
unless they are satisfied that they give a true and fair view
of the state of affairs of the Group and Parent Company
and of the profit or loss of the Group and Parent Company
for that period.
In preparing the financial statements, the directors are
required to:
select suitable accounting policies and then apply
them consistently;
make judgements and accounting estimates that are
reasonable and prudent;
state whether they have been prepared in accordance
with UK-adopted International Accounting Standards
and with the requirements of the Companies Act
2006; and
prepare the financial statements on the going concern
basis, unless it is inappropriate to presume that the
Group and Parent Company will continue in business.
The directors are responsible for keeping adequate
accounting records that are sufficient to show and explain
the Group and Parent Company’s transactions and disclose
with reasonable accuracy at any time the financial position
of the Group and Parent Company and enable them to
ensure that the financial statements and the Directors’
Remuneration Report comply with the Companies Act
2006 and, as regards the Group financial statements,
Article 4 of the IAS Regulation. They are also responsible
for safeguarding the assets of the Group and the Parent
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
The directors are responsible for the maintenance and
integrity of the Group and Parent Company’s website.
Legislation in the UK governing the preparation and
dissemination of financial statements may differ from
legislation in other jurisdictions.
The directors consider that the Annual Report and
Accounts, taken as a whole, is fair, balanced and
understandable and provides the information necessary for
shareholders to assess the Group and Parent Company’s
performance, position, business model and strategy.
Each of the directors, whose names and functions are
listed on pages 82 and 83, confirms that to the best of
their knowledge:
the Parent Company financial statements, which
have been prepared in accordance with UK adopted
International Accounting Standards, give a true and
fair view of the assets, liabilities, financial position and
profit of the Parent Company;
the Group financial statements, which have been
prepared in accordance with UK adopted International
Accounting Standards, give a true and fair view of the
assets, liabilities, financial position and profit of the
Group; and
the Strategic report contained on pages 1 to 79 includes
a fair review of the development and performance of
the business and the position of the Group and Parent
Company, together with a description of the principal
risks and uncertainties that it faces.
In the case of each director in office at the date the
Directors’ Report is approved:
so far as the director is aware, there is no relevant audit
information of which the Group and Group’s auditors
are unaware; and
they have taken all the steps that they ought to have
taken as a director in order to make themselves aware
of any relevant audit information and to establish
that the Group and Group’s auditors are aware of
that information.
This confirmation is given and should be interpreted in
accordance with section 418 of the Companies Act 2006.
For and on behalf of the Board
Bill Hocking
Chief Executive
3 October 2024
Statement of directors’ responsibilities
Forward-looking statements
Forward-looking statements have been made by the directors in good faith using information up until the date on
which they approved this Annual Report. Forward-looking statements should be regarded with caution due to
uncertainties in economic trends and business risks. The Group’s businesses are generally not affected by seasonality.
131
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132 Galliford Try Annual Report and Financial Statements 2024
Opinion on the financial statements
In our opinion:
the financial statements give a true and fair view of the
state of the Group’s and of the Parent Company’s affairs
as at 30 June 2024 and of the Group’s profit for the year
then ended;
the Group financial statements have been properly
prepared in accordance with UK adopted international
accounting standards;
the Parent Company financial statements have been
properly prepared in accordance with UK adopted
international accounting standards and as applied in
accordance with the provisions of the Companies
Act 2006; and
the financial statements have been prepared in
accordance with the requirements of the Companies
Act 2006.
We have audited the financial statements of Galliford Try
Holdings plc (the ‘Parent Company’) and its subsidiaries
(the ‘Group’) for the year ended 30 June 2024 which
comprise the consolidated income statement, the
consolidated statement of comprehensive income, the
balance sheets, the consolidated and company statements
of changes in equity, the statements of cash flows and notes
to the financial statements, including material accounting
policy information. The financial reporting framework
that has been applied in their preparation is applicable
law and UK adopted international accounting standards
and as regards the Parent Company financial statements,
as applied in accordance with the provisions of the
Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (UK) (ISAs (UK)) and applicable law.
Our responsibilities under those standards are further
described in the Auditor’s responsibilities for the audit
of the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion. Our audit
opinion is consistent with the additional report to the
audit committee.
Independence
Following the recommendation of the audit committee,
we were appointed by the members on 4 November 2019
to audit the financial statements for the year ended
30 June 2020 and subsequent financial periods. The period
of total uninterrupted engagement including retenders
and reappointments is 5 years, covering the years ended
30 June 2020 to 30 June 2024. We remain independent of
the Group and the Parent Company in accordance with the
ethical requirements that are relevant to our audit of the
financial statements in the UK, including the FRC’s Ethical
Standard as applied to listed public interest entities, and we
have fulfilled our other ethical responsibilities in accordance
with these requirements. The non-audit services prohibited
by that standard were not provided to the Group or the
Parent Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that
the Directors’ use of the going concern basis of accounting
in the preparation of the financial statements is appropriate.
Our evaluation of the Directors’ assessment of the Group
and the Parent Company’s ability to continue to adopt the
going concern basis of accounting included:
We assessed the appropriateness of the Group’s
cash flow forecasts in the context of the Group’s
secured ongoing contracts, the secured new work
and forecast potential work which were agreed to
the Board approved forecasts.
We evaluated the Directors’ downside sensitivities
including delays to construction resulting in reduced
volume of work and also assessed the impact of materials
and labour price inflation.
We assessed the actual cash performance against
forecasts for the current financial year and post year
end to evaluate the Directors’ accuracy and achievability
of the forecasts prepared.
We evaluated the adequacy of the disclosures within
the Directors’ report in relation to the specific risks
posed, the scenarios the Directors have considered
and conclusions made.
Based on the work we have performed, we have not
identified any material uncertainties relating to events
or conditions that, individually or collectively, may cast
significant doubt on the Group and the Parent Company’s
ability to continue as a going concern for a period of at least
twelve months from when the financial statements are
authorised for issue.
In relation to the Parent Company’s reporting on how it
has applied the UK Corporate Governance Code, we have
nothing material to add or draw attention to in relation to
the Directors’ statement in the financial statements about
whether the Directors considered it appropriate to adopt
the going concern basis of accounting.
Independent auditor’s report
to the members of Galliford Try Holdings plc
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Financial statementsGovernanceStrategic report
Our responsibilities and the responsibilities of the Directors
with respect to going concern are described in the relevant
sections of this report.
Overview
Coverage Group
Revenue
Full scope audit 93%
(2023: 92%)
Specified risk focused audit
procedures 3% (2023: 0%)
Desktop review 4% (2023: 8%)
Group
Absolute
Profit
before tax*
Full scope audit 79%
(2023: 77%)
Specified risk focused audit
procedures 7% (2023: 0%)
Desktop review 14%
(2023: 23%)
Total assets Full scope audit 92%
(2023: 95%)
Specified risk focused audit
procedures 0% (2023: 0%)
Desktop review 8% (2023: 5%)
Key audit
matters
2024 2023
Revenue and profit recognition
for construction contracts X X
Recognition and recoverability
of claims and variations X X
Defects liability provision
in relation to a legacy
infrastructure contract X –
Materiality Group financial statements as a whole
£5.2m (2023: £3.5m) based on 0.30%
(2023: 0.26%) of revenue.
* Group absolute profit before tax considers the percentage of coverage on an
absolute contribution to profit before tax on an individual unit basis within
each component whether that be a profit or a loss.
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding
of the Group and its environment, including the Group’s
system of internal control, and assessing the risks of
material misstatement in the financial statements. We also
addressed the risk of management override of internal
controls, including assessing whether there was evidence
of bias by the Directors that may have represented a risk
of material misstatement.
We tailored the scope of our audit to ensure that we
performed enough work to be able to give an opinion on the
Group financial statements as a whole, taking into account
the structure of the Group, the accounting processes and
controls, and the industry in which the Group operates.
In establishing the overall approach to the Group audit, we
assessed the audit significance of each component in the
Group by reference to both its financial significance and
other indicators of audit risk, such as the complexity of
operations and the degree of estimation and judgement
in the financial results.
Of the group’s components we considered five
(2023: five) to be significant components and we subjected
these five (2023: five) components to full scope audits for
Group purposes. We subjected one (2023: nil) additional
component to specified risk-focused audit procedures
given its contribution to group profit. Therefore, specified
procedures were carried out over component revenue,
cost of sales and administrative expenses.
Certain classes of assets were tested at a group level,
including Goodwill, Right-of-use assets, Public Private
Partnership (PPP) Investments, Cash and cash equivalents,
Deferred income tax assets and current income tax assets,
regardless of which component held the asset and are
included in the full scope coverage above.
For the remaining insignificant components, we carried
out desktop reviews (analytical procedures) to re-examine
our assessment that there were no significant risks of
material misstatement within these. All components are
located in the UK and all work was performed by the
Group audit team.
Climate change
Our work on the assessment of potential impacts on
climate-related risks on the Group’s operations and
financial statements included:
Enquiries and challenge of management to understand
the actions they have taken to identify climate-related
risks and their potential impacts on the financial
statements and adequately disclose climate-related
risks within the annual report;
Our own qualitative risk assessment taking into
consideration the sector in which the Group operates and
how climate change affects this particular sector; and
Review of the minutes of Board and Audit Committee
meeting and other papers related to climate change and
performed a risk assessment as to how the impact of the
Group’s commitment as set out on page 32 may affect
the financial statements and our audit.
We challenged the extent to which climate-related
considerations, including the expected cash flows from the
initiatives and commitments have been reflected, where
appropriate, in management’s going concern assessment
and viability assessment.
We also assessed the consistency of management’s
disclosures included as ‘Statutory Other Information’
on page 61–72 with the financial statements and with
our knowledge obtained from the audit.
Based on our risk assessment procedures, we did not
identify there to be any Key Audit Matters materially
impacted by climate-related risks and related commitments.
134 Galliford Try Annual Report and Financial Statements 2024
Independent auditor’s report continued
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the current period and include the most significant assessed risks of material misstatement
(whether or not due to fraud) that we identified, including those which had the greatest effect on: the overall audit strategy,
the allocation of resources in the audit, and directing the efforts of the engagement team. These matters were addressed
in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Key audit matter How the scope of our audit addressed the key audit matter
Revenue and profit
recognition for
construction
contracts
Note 1 on page
148 to the financial
statements gives
further detail
regarding the
estimates and
judgements made
by the Group in
this regard, and the
accounting policies
for construction
contracts.
For long term construction
contracts, the Group
recognises revenue over
time and measures progress
based on the input method by
considering the costs incurred
to date, relative to the total
estimated forecast costs
applied to the estimated
forecast revenue.
This is considered a significant
risk of material misstatement
as the stage of completion,
forecast revenue and
forecast costs on contracts
are all areas of significant
judgement and the judgements
taken can have a material
impact on the amounts
recognised as revenue.
These judgements also
have a consequential impact
on a number of contract-
related balances, including
trade receivables, contract
assets, accruals and contract
liabilities within the financial
statements including the
related judgements and
estimates disclosures.
There is also a risk that the
accounting policies are not
in accordance with IFRS 15
Revenue from contracts
with customers (‘IFRS 15’).
Having considered the
above we determined that
construction contract revenue
and other related contract
balances have an inherent
high degree of estimation
uncertainty with a range of
possible outcomes and hence
we have treated these areas
and the associated disclosures
as a key audit matter.
We obtained an understanding of and evaluated management’s processes
and controls for ensuring construction contracts with customers meet the
requirements of IFRS 15.
We evaluated the design and implementation and the operating effectiveness
of the key controls over revenue, profit margin, costs to complete and stage
of completion on construction contracts.
We focused our work on those contracts with the greatest estimation
uncertainty, based on the information included in the contract schedule
(e.g. significant movements from tender/prior year or large unagreed variations
or claims) and challenged the judgements made by discussing them with the
project teams as well as senior operational, legal, commercial and financial
management. On each of these contracts selected, we specifically challenged
and critically assessed the explanations provided by management and
carried out the following detailed testing considering both corroborative and
contradictory information;
obtained an understanding of the contract and its particulars by reviewing the
initial contract with the customer and holding discussions with commercial
teams and management.
agreed forecast revenue to contractual agreements, supplemental
agreements and agreed variations. The procedures to test the judgements
in forecast revenue are included in the key audit matter on recognition and
recovery of claims and variations.
reconciled revenue recognised with amounts applied for and amounts
certified by clients and agreeing the amounts received to bank. Where the
balance has not been received into bank, we considered the recoverability
of the balance by reviewing correspondence with the customer.
re-performed the key calculations behind the margin applied, the profit taken
and the stage of completion, as well as contract assets and liabilities.
tested a sample of accrued subcontractor costs to the year-end subcontractor
applications and a sample of other accrued costs to applicable supporting
documentation.
corroborated a sample of forecast costs for significant subcontractor
packages to documentary evidence. Where the subcontractor projected
total costs significantly differed from the total forecast costs in the contract
forecast, we challenged management and obtained supporting evidence for
the differences as applicable.
performed a review of forecast costs by type included within the cost-value
reconciliation (CVR) and analysed the stage of completion of each cost type
to determine whether costs are progressing in line with the overall stage of
completion. We challenged management where costs were not in line with our
expectations and obtained supporting documentation as applicable.
Enquired with commercial Directors on variances between the input method
calculated stage of completion and external certified stage of completion.
We assessed judgements made by the Directors in determining forecast
costs and the remaining contingency on a project, for the possibility of a
material misstatement, and obtained corroborating evidence to support
the positions taken.
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Key audit matter How the scope of our audit addressed the key audit matter
Revenue and profit
recognition for
construction
contracts
(continued)
compared the percentage of forecast costs that have been procured
to the overall forecast costs and challenged management where there
are substantial costs yet to procure as this presents a greater risk.
We corroborated a sample of un-procured subcontractor costs to
documentary evidence.
assessed the recoverability of contract assets by comparing to the post
year end external certification of the value of work performed, and the
payment received post year end.
discussed with management to understand and challenge other areas
of judgement taken including anticipated completion dates and impact
of any delays, whether there are any disputes with third parties on the
contract and the reason for any movements in forecasts from tender/
prior year to 30 June 2024. We obtained corroborating evidence for the
explanations provided.
tested a sample of costs incurred in the year and ensured that they had
been correctly allocated to the relevant project.
where appropriate, reviewing legal correspondence and expert advice
obtained in respect of the judgements and where necessary, speaking
directly with management’s experts who had provided this advice.
remained alert for any contradictory evidence or indicators of
understatement of forecast costs while performing our audit procedures,
including site visits, cost testing and payments testing.
performed a stand back review on the key judgements and estimates
on each contract to assess if sufficient appropriate audit evidence has
been obtained.
from the latest available contract schedule, we compared the forecast
out-turn across all contracts to the audited year end schedule. We challenged
management on any significant movements.
We carried out targeted testing on a sample basis on the remaining contracts
which included:
obtaining an understanding of the contract and its particulars by obtaining
the initial contract with the customer.
agreeing forecast revenue to contractual agreements, supplemental
agreements and agreed variations.
reconciling revenue recognised with amounts applied for and amounts
certified by clients, agreeing the amounts received to bank. Where the
balance has not been received into bank, we considered the recoverability
of the balance by reviewing correspondence with the customer.
From the specific contract information reviewed for these contracts, we
considered whether there was an indication of risks within the contract
including delays, significant unagreed variations and un-procured costs for
which we then performed additional procedures from those set out above
to address the risk.
We visited a sample of sites across the business. We inspected the physical
progress of the sites and discussed progress with personnel working on the
specific sites. Where sites were selected for audit testing, we considered
whether the information obtained from the site visit was consistent with the
information obtained from audit testing.
We assessed the reliability of management’s estimates by reviewing the
fluctuations in budgeted end of life margin from 30 June 2023 to 30 June 2024
for projects that are substantially completed at the year-end as well as from
tender to the 30 June 2024 for all contracts.
We considered the adequacy of the disclosures in the financial statements in
relation to specific contracts and also the disclosures in respect of significant
judgements and estimates.
Key observations:
We consider that the estimates and judgements made by management in respect
of construction contract revenue and profit recognition, and the associated
disclosures to be reasonable.
136 Galliford Try Annual Report and Financial Statements 2024
Independent auditor’s report continued
Key audit matter How the scope of our audit addressed the key audit matter
Recognition and
recoverability of
claims and variations
Note 1 on
page 148 to
the financial
statements gives
further detail
regarding the
estimates and
judgements made
by the Group in
this regard and the
accounting policy
for construction
contracts.
In a number of the Group’s
construction contracts
there are assumptions of
amounts contractually
due from customers,
and contract assets can
include variations and claims
which are not yet certified
or formally agreed but have
been assessed by management
as highly probable of not
reversing under IFRS 15.
The assessment of revenue
as highly probable and not
requiring significant reversal
requires judgement.
There is also a risk these
significant judgements
and estimates are not
adequately disclosed in
the financial statements.
In addition, there are some
downstream claims against
subcontractors, designers,
and insurers other than
customers which are only
recognised once they are
considered to be virtually
certain of recoverability,
in accordance with IAS 37
– Provisions, Contingent
Liabilities and Contingent
Assets. Once the recognition
criteria is considered to be
met, significant judgement
is required to determine the
amounts to be recognised.
These assumptions impact
revenue recognised on these
contracts, as well as contract
assets balances and hence
is considered to be a key
audit matter.
We challenged management’s assessment of the expected recovery of
variations, claims and compensation events from customers, to determine
the basis on which the associated revenue was considered to be highly probable
of not reversing. We obtained evidence of historic success rates and evidence
of amounts agreed post year end to support management’s assessment
as applicable.
We challenged the assumptions made by management in respect of estimated
recoveries from subcontractors, designers, and insurers included in the
forecast, to determine whether these could be considered virtually certain
of recoverability. We obtained evidence such as signed agreements or the
latest correspondence that underpinned management’s assumptions and
also considered the existence of any contradictory evidence.
We assessed the evidence provided by management regarding recovery of
claims amounts to evidence of agreement with customers or insurance reserves
provided by the insurers.
We obtained and reviewed any legal correspondence relating to these claims and
variations results and where necessary discussed the progress of legal disputes
with the Group’s external legal advisors.
We considered and challenged the adequacy of the disclosures regarding key
estimates and judgements against the requirements of the applicable standard.
Key observations:
We consider the estimates and judgements and associated disclosures made by
management in respect of recognition and recoverability of claims and variations
to be reasonable.
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Key audit matter How the scope of our audit addressed the key audit matter
Defects liability
provision in relation
to a legacy
infrastructure
contract
Note 1 on
page 148
to the financial
statements gives
further detail
regarding the
estimates and
judgements made
by the Group in
this regard.
Note 1 on
page 148
to the financial
statements
provides the
accounting policy
for provisions.
Refer to Note 20
in relation
to provisions.
The Group regularly enters
into construction contracts
which include defect
rectification warranty periods
which are typically up to three
years in length. A provision
is established to cover the
expected cost of rectification
work and is utilised as defects
are identified and works
are performed.
Included within the rectification
provision of £34.7m at
30 June 2024, is a provision
of £14.6m in respect of a
single infrastructure contract,
which the Group delivered as
part of a joint arrangement
with two other contractors,
where the total defects
obligation period under the
contract is twelve years.
As at 30 June 2024, there
were 7 years of the defect
period remaining.
Given the length of the
defect period in comparison
to those typically entered
into by the Group, and the
associated assumptions that
management has made in
estimating the provision, there
is a high degree of estimation
uncertainty associated with
this provision. The estimation
uncertainty and assumptions
required may also impact
the Directors ability to
make a reliable estimate of
the provision and therefore
whether, IAS 37 ‘Provisions,
Contingent Liabilities and
Contingent Assets’, criteria
to recognise a provision are
met, or alternatively, whether
it should be disclosed as a
contingent liability instead.
In addition, in deriving the
estimate, the Directors have
used a panel of experts
(external and internal experts),
who identified, a potential
range of outcomes, being
£7.3m to £17.5m, which is
greater than our materiality
for the financial statements
as a whole. Therefore, we
considered this provision to
be a key audit matter.
We obtained management’s assessment paper on whether the recognition
criteria of IAS 37 were met, and whether a provision should be recognised in
respect of this contract. We assessed this against the requirements of IAS 37.
As part of our assessment, we validated the existence of the legal obligations
with respect to the defect requirements through reviewing key terms of
the contract.
We also obtained a report prepared by management’s expert as to whether the
recognition criteria were met. We assessed their competence and objectivity
by examining the work they were required to perform and their professional
qualifications and experience. We considered whether their assessment
provided any contradictory evidence to management’s own assessment.
We obtained an understanding and assessed management’s process for the
quantification of the provision, including:
the analysis of specific cost estimates for known, identified rectification
works; and
the estimation of lifetime costs expected during the defect period.
We validated specific cost estimates to documentary evidence where
applicable, challenging the assumptions, inputs and methodology used,
utilising various sources of supporting evidence such as legal correspondence
and historical costs.
We challenged management’s assessment of expected lifetime costs, and
therefore the remaining provision for yet to be identified defects, requiring
management to obtain additional data points from a panel of experts to
support its assessment.
We met with management’s panel of experts (external) to corroborate
and understand the basis of opinions given, including understanding any
contradictory evidence, and discussed certain assumptions made by
management with them to form our own expectations of defects incurred on
similar types of contracts and assessed whether management’s assessment
was within this range.
Through these discussions, we evaluated the competence, objectivity and
sufficiency of management’s panel of experts that were utilised including
consideration of their professional qualifications and relevant experience.
In assessing the appropriateness of cost estimates, we assessed if the costs
underpinning the accounting provision represent management’s and the
experts best estimate of expected expenditure, based on the current extent
of defect expenditure incurred as well as any known risks identified but not
yet remediated.
We considered the expenditure on defects to date as a basis for an estimate for
expenditure to come in the future and considered whether this provided any
contradictory evidence to the provision recorded by management.
We challenged management on whether the release of a portion of the provision
in the year was indicative of inaccurate estimation. We obtained supporting
explanations and evidence in relation to in-year events which gave rise to the
release, most notably the conclusion of isolated smaller defect periods within
the overall scheme.
We assessed the integrity of formulae and mathematical accuracy of
management’s calculations for the various elements of the provision.
We considered the adequacy of the disclosures made, with particular focus
on the range of potential outcomes and areas of estimation uncertainty and
challenged management in regard to their proposed disclosures against the
requirements of the applicable standards.
Key observations:
We consider the estimates, judgements and associated disclosures made by
management in respect of the estimation of the provision to be reasonable.
138 Galliford Try Annual Report and Financial Statements 2024
Independent auditor’s report continued
Our application of materiality
We apply the concept of materiality both in planning
and performing our audit, and in evaluating the effect
of misstatements. We consider materiality to be the
magnitude by which misstatements, including omissions,
could influence the economic decisions of reasonable users
that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the
probability that any misstatements exceed materiality,
we use a lower materiality level, performance materiality,
to determine the extent of testing needed. Importantly,
misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the
nature of identified misstatements, and the particular
circumstances of their occurrence, when evaluating their
effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance
materiality as follows:
Group financial statements Parent Company financial statements
2024
£m
2023
£m
2024
£m
2023
£m
Materiality 5.2 3.5 2.9 3.0
Basis for determining
materiality
0.30% of revenue 0.26% of revenue 1% of total assets 1% of total assets
Rationale for the
benchmark applied
As the Group continues to be profitable, we
have considered what would be a stable basis
of operations and have benchmarked to peers’
materiality as a proportion of revenue.
Based on this we have set Group materiality
at 0.30% (2023: 0.26%) of Group revenue.
We have set Parent Company materiality at the
lower of 1% (2023: 1%) of total assets and 95%
(2023:95%) of Group materiality.
We chose total assets as the benchmark as we
believe this to be of most interest to the users
of the financial statements.
Performance materiality 3.4 2.3 1.9 2.0
Basis for determining
performance materiality
On the basis of our risk assessment, together with our assessment of the Group’s and Parent
company’s overall control environment and history of adjustments, our judgement was that
overall performance materiality of the Group and Parent Company should be 65% (2023: 65%)
of materiality.
Rationale for the
percentage applied for
performance materiality
We determined performance materiality based on our risk assessment, together with our
assessment of the Group’s and Parent company’s overall control environment, the number of
components and the history of audit adjustments identified in the previous audits.
Component materiality
For the purposes of our Group audit opinion, we set
materiality for each significant component of the Group
apart from the Parent Company whose materiality is set
out above, based on a percentage of between 15% and
81% (2023: 19% and 86%) of Group materiality dependent
on the size and our assessment of the risk of material
misstatement of that component. Component materiality
ranged from £0.8m to £4.2m (2023: £0.65m to £3m).
In the audit of each component, we further applied
performance materiality levels of 65% (2023: 65%) of
the component materiality to our testing to ensure that
the risk of errors exceeding component materiality was
appropriately mitigated.
Reporting threshold
We agreed with the Audit Committee that we would
report to them all individual audit differences in excess
of £260,000 (2023: £70,000). We also agreed to report
differences below this threshold that, in our view,
warranted reporting on qualitative grounds.
Other information
The directors are responsible for the other information.
The other information comprises the information included
in the Annual Report and Financial Statements 2024 other
than the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does
not cover the other information and, except to the
extent otherwise explicitly stated in our report, we do
not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and,
in doing so, consider whether the other information is
materially inconsistent with the financial statements
or our knowledge obtained in the course of the audit,
or otherwise appears to be materially misstated. If
we identify such material inconsistencies or apparent
material misstatements, we are required to determine
whether this gives rise to a material misstatement in the
financial statements themselves. If, based on the work
we have performed, we conclude that there is a material
misstatement of this other information, we are required
to report that fact.
We have nothing to report in this regard.
Corporate governance statement
The UK Listing Rules require us to review the Directors’
statement in relation to going concern, longer-term viability
and that part of the Corporate Governance Statement
relating to the parent company’s compliance with the
provisions of the UK Corporate Governance Code specified
for our review.
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Financial statementsGovernanceStrategic report
Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate
Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit.
Going
concern and
longer-term
viability
The Directors’ statement with regards to the appropriateness of adopting the going concern basis of
accounting and any material uncertainties identified set out on page 130; and
The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment
covers and why the period is appropriate set out on page 73.
Other Code
provisions
Directors’ statement on fair, balanced and understandable set out on page 130.
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set
out on page 56;
The section of the annual report that describes the review of effectiveness of risk management and
internal control systems set out on page 101–102; and
The section describing the work of the audit committee set out on page 99.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by
the Companies Act 2006 and ISAs (UK) to report on certain opinions and matters as described below.
Strategic
report and
Directors’
report
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Directors’ report for the financial year for which
the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report have been prepared in accordance with applicable
legal requirements.
In the light of the knowledge and understanding of the Group and Parent Company and its environment
obtained in the course of the audit, we have not identified material misstatements in the strategic report or
the Directors’ report.
Directors’
remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in
accordance with the Companies Act 2006.
Matters on
which we
are required
to report by
exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006
requires us to report to you if, in our opinion:
adequate accounting records have not been kept by the Parent Company, or returns adequate for our
audit have not been received from branches not visited by us; or
the Parent Company financial statements and the part of the Directors’ remuneration report to be
audited are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of Directors’
responsibilities, the Directors are responsible for the
preparation of the financial statements and for being
satisfied that they give a true and fair view, and for such
internal control as the Directors determine is necessary to
enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are
responsible for assessing the Group’s and the Parent
Company’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors
either intend to liquidate the Group or the Parent Company
or to cease operations, or have no realistic alternative but
to do so.
Auditor’s responsibilities for the audit of
the financial statements
Our objectives are to obtain reasonable assurance about
whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is
not a guarantee that an audit conducted in accordance
with ISAs (UK) will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
financial statements.
140 Galliford Try Annual Report and Financial Statements 2024
Independent auditor’s report continued
Extent to which the audit was capable of
detecting irregularities, including fraud
Irregularities, including fraud, are instances of
non-compliance with laws and regulations. We design
procedures in line with our responsibilities, outlined
above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our
procedures are capable of detecting irregularities,
including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
Our understanding of the Group and the industry in
which it operates;
Discussion with management and those charged with
governance; and
Obtaining an understanding of the Group’s policies
and procedures regarding compliance with laws
and regulations.
we considered the significant laws and regulations to be,
but not limited to, the Companies Act 2006, the UK Listing
Rules and tax legislation.
The Group is also subject to laws and regulations where
the consequence of non-compliance could have a material
effect on the amount or disclosures in the financial
statements, for example through the imposition of fines or
litigations. We identified such laws and regulations to be
the health and safety legislation, data protection legislation,
employment law, the Fire Safety and Building Safety Acts.
Our procedures in respect of the above included:
Review of minutes of meeting of those charged with
governance for any instances of non-compliance with
laws and regulations;
Review of correspondence with regulatory and tax
authorities for any instances of non-compliance with
laws and regulations;
Review of financial statement disclosures and agreeing
to supporting documentation; and
Involvement of tax specialists in the audit.
Fraud
We assessed the susceptibility of the financial statements to
material misstatement, including fraud. Our risk assessment
procedures included:
Enquiry with management and those charged with
governance including the Audit Committee and internal
audit regarding any known or suspected instances
of fraud;
Obtaining an understanding of the Group’s policies and
procedures relating to:
– Detecting and responding to the risks of fraud; and
– Internal controls established to mitigate risks related
to fraud.
Review of minutes of meeting of those charged with
governance for any known or suspected instances
of fraud;
Discussion amongst the engagement team as to how and
where fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual
or unexpected relationships that may indicate risks of
material misstatement due to fraud; and
Testing operating effectiveness of controls around
procurement and tendering process.
Based on our risk assessment, we considered the areas
most susceptible to fraud to be management override of
controls that are otherwise operating effectively.
Our procedures in respect of the above included:
Testing a sample of journal entries throughout the year,
which met a defined risk criteria and considered whether
there was evidence of bias by the Directors within the
significant judgements and estimates, by agreeing to
supporting documentation;
Involvement of forensic specialists in the fraud risk
assessment procedures;
Assessing significant estimates made by management
for bias.
We also communicated relevant identified laws and
regulations and potential fraud risks to all engagement
team members who were all deemed to have appropriate
competence and capabilities and remained alert to any
indications of fraud or non-compliance with laws and
regulations throughout the audit.
Our audit procedures were designed to respond to risks
of material misstatement in the financial statements,
recognising that the risk of not detecting a material
misstatement due to fraud is higher than the risk of
not detecting one resulting from error, as fraud may
involve deliberate concealment by, for example, forgery,
misrepresentations or through collusion. There are inherent
limitations in the audit procedures performed and the
further removed non-compliance with laws and regulations
is from the events and transactions reflected in the financial
statements, the less likely we are to become aware of it.
A further description of our responsibilities is available
on the Financial Reporting Council’s website at:
www.frc.org.uk/auditorsresponsibilities. This description
forms part of our auditor’s report.
Use of our report
This report is made solely to the Parent Company’s
members, as a body, in accordance with Chapter 3 of Part
16 of the Companies Act 2006. Our audit work has been
undertaken so that we might state to the Parent Company’s
members those matters we are required to state to them
in an auditor’s report and for no other purpose. To the
fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Parent Company
and the Parent Company’s members as a body, for our audit
work, for this report, or for the opinions we have formed.
Thomas Edward Goodworth
(Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
3 October 2024
BDO LLP is a limited liability partnership registered in
England and Wales (with registered number OC305127).
141
Financial statementsGovernanceStrategic report
2024 | 2023 | ||||||
| Pre- | Exceptional | Pre- | Exceptional | ||||
| Exceptional | items | Exceptional | items | ||||
| items | (note 4) | Total | items | (note 4) | Total | ||
| Notes | £m | £m | £m | £m | £m | £m | |
Revenue | 3 | ||||||
Cost of sales | ( | ( | ( | ( | |||
Gross profit | |||||||
Other income | 16 | ||||||
Administrative expenses | ( | ( | ( | ( | ( | ( | |
Impairment of financial assets | 17 | ( | ( | ||||
Operating profit/(loss) | ( | ( | |||||
Finance income | 6 | ||||||
Finance costs | 6 | ( | ( | ( | ( | ||
Profit/(loss) before income tax | 7 | ( | ( | ||||
Income tax (expense)/credit | 8 | ( | ( | ( | |||
Profit/(loss) for the year | ( | ||||||
| Earnings per share | |||||||
| Basic | |||||||
Profit attributable to ordinary shareholders | 10 | ||||||
| Diluted | |||||||
Profit attributable to ordinary shareholders | 10 |
The notes are an integral part of the consolidated financial statements.
Consolidated income statement
for the year ended 30 June 2024
142 Galliford Try Annual Report and Financial Statements 2024
Consolidated statement of comprehensive income
for the year ended 30 June 2024
| 2024 | 2023 | ||
| Notes | £m | £m | |
Profit for the year | |||
| Other comprehensive expense: | |||
| Items that may be reclassified subsequently to profit or loss | |||
Movement in fair value of PPP and other investments | 16 | ( | ( |
Total items that may be reclassified subsequently to profit or loss | ( | ( | |
Other comprehensive expense for the year net of tax | ( | ( | |
Total comprehensive income for the year |
The notes are an integral part of the consolidated financial statements.
143
Financial statementsGovernanceStrategic report
Balance sheets
Group | Company | ||||
| 30 June 2024 | 30 June 2023 | 30 June 2024 | 30 June 2023 | ||
| Notes | £m | £m | £m | £m | |
| Assets | |||||
| Non-current assets | |||||
Intangible assets | 11 | – | – | ||
Goodwill | 12 | – | – | ||
Property, plant and equipment | 13 | – | – | ||
Right-of-use assets | 14 | – | – | ||
Investments in subsidiaries | 15 | 189.2 | 188.5 | ||
PPP and other investments | 16 | – | – | ||
Deferred income tax assets | 22 | 0.4 | – | ||
Total non-current assets | 190.6 | 188.5 | |||
| Current assets | |||||
Trade and other receivables | 17 | – | – | ||
Current income tax assets | – | – | |||
Cash and cash equivalents | 18 | 110.0 | 114.2 | ||
Total current assets | 110.0 | 114.2 | |||
Total assets | 299.6 | 302.7 | |||
| Liabilities | |||||
| Current liabilities | |||||
Trade and other payables | 19 | ( | ( | – | – |
Lease liabilities | 14 | ( | ( | – | – |
Provisions for other liabilities and charges | 20 | ( | ( | – | – |
Total current liabilities | ( | ( | – | – | |
| Non-current liabilities | |||||
Lease liabilities | 14 | ( | ( | – | – |
Total non-current liabilities | ( | ( | – | – | |
Total liabilities | ( | ( | – | – | |
Net assets | 299.6 | 302.7 | |||
| Equity | |||||
Share capital | 24 | 52.0 | 52.4 | ||
Share premium | 24 | 0.8 | – | ||
Other reserves | 26 | 136.4 | 135.3 | ||
Retained earnings | 26 | ( | ( | 110.4 | 115.0 |
Total equity attributable to owners of the Company | 299.6 | 302.7 |
The profit for the Parent Company for the year was £23.3m (2023: £25.0m).
The notes are an integral part of the consolidated financial statements.
144 Galliford Try Annual Report and Financial Statements 2024
Consolidated and Company statements of changes in equity
for the year ended 30 June 2024
| Total | ||||||
| Ordinary | Share | Other | Retained | shareholders’ | ||
| shares | premium | reserves | earnings | equity | ||
| Notes | £m | £m | £m | £m | £m | |
| Consolidated statement | ||||||
At 30 June 2022 | ( | |||||
Profit for the year | ||||||
Other comprehensive expense | ( | ( | ||||
Total comprehensive income for the year | ||||||
| Transactions with owners: | ||||||
Dividends | 9 | ( | ( | |||
Purchase of shares | ( | ( | ||||
Share-based payments | 25 | |||||
Cancellation of shares | 24, 26 | ( | ||||
At 30 June 2023 | ( | |||||
Profit for the year | ||||||
Other comprehensive expense | ( | ( | ||||
Total comprehensive income for the year | ||||||
| Transactions with owners: | ||||||
Dividends | 9 | ( | ( | |||
Purchase of shares | ( | ( | ||||
Share-based payments | 25 | |||||
Tax relating to share-based payments | 22 | |||||
Issue of shares | 24 | |||||
Cancellation of shares | 24, 26 | ( | ||||
At 30 June 2024 | ( |
Company statement
At 30 June 2022 55.5 – 132.2 109.7 297.4
Profit for the year – – – 25.0 25.0
Total comprehensive income – – – 25.0 25.0
Transactions with owners:
Dividends 9 – – – (9.6) (9.6)
Share-based payments 25 – – – 0.5 0.5
Purchase of shares – – – (10.6) (10.6)
Cancellation of shares 26 (3.1) – 3.1 – –
At 30 June 2023 52.4 – 135.3 115.0 302.7
Profit for the year – – – 23.3 23.3
Total comprehensive income – – – 23.3 23.3
Transactions with owners:
Dividends 9 – – – (24.2) (24.2)
Share-based payments 25 – – – 0.7 0.7
Tax relating to share-based payments 22 – – – – –
Purchase of shares – – – (4.4) (4.4)
Issue of shares 24 0.7 0.8 – – 1.5
Cancellation of shares 26 (1.1) – 1.1 – –
At 30 June 2024 52.0 0.8 136.4 110.4 299.6
145
Financial statementsGovernanceStrategic report
Statements of cash flows
for the year ended 30 June 2024
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| Notes | £m | £m | £m | £m | |
| Cash flows from operating activities | |||||
Profit for the year | 23.3 | 25.0 | |||
| Adjustments for: | |||||
Income tax (credit)/expense – continuing operations | 8 | ( | (0.4) | – | |
Net finance income – continuing operations | 6 | ( | ( | – | – |
Profit before finance costs and taxation for continuing operations | 22.9 | 25.0 | |||
| Depreciation, amortisation and impairment of | 11, 13 | ||||
| non-current assets | & 14 | – | – | ||
Dividends received from subsidiary undertakings | (22.9) | (25.0) | |||
Profit on disposal of joint venture | 16 | ( | – | – | |
Share-based payments | 25 | – | – | ||
Impairment of financial asset | – | – | |||
Other non-cash movements | ( | ( | – | – | |
| Net cash generated from operations before changes | |||||
in working capital | – | – | |||
Increase in trade and other receivables | 17 | ( | ( | – | – |
Increase in trade and other payables | 19 | – | – | ||
Increase in provisions | 20 | – | – | ||
Net cash generated from operations | – | – | |||
Interest received | – | – | |||
Interest paid | ( | ( | – | – | |
Income tax paid | ( | ( | – | – | |
Net cash generated from operating activities | – | – | |||
| Cash flows from investing activities | |||||
Dividends received from joint ventures and associates | – | – | |||
Decrease in amounts due from joint ventures | – | – | |||
Proceeds from disposal of joint venture | – | – | |||
PPP loan repayments | 16 | – | – | ||
Acquisition of business combinations, net of cash acquired | 30 | ( | ( | – | – |
Dividends received from subsidiary undertakings | 22.9 | 25.0 | |||
Proceeds from disposal of subsidiaries | – | ||||
Acquisition of property, plant and equipment | 13 | ( | ( | – | – |
Net cash (used)/generated from investing activities | ( | 22.9 | 25.0 | ||
| Cash flows from financing activities | |||||
Repayment of lease liabilities | 14 | ( | ( | – | – |
Purchase of own shares | 26 | ( | ( | (4.4) | (10.6) |
Dividends paid to Company shareholders | 9 | ( | ( | (24.2) | (9.6) |
Net proceeds from issue of ordinary share capital | 1.5 | – | |||
Net cash used in financing activities | ( | ( | (27.1) | (20.2) | |
Net increase/(decrease) in cash and cash equivalents | (4.2) | 4.8 | |||
Cash and cash equivalents at 1 July | 18 | 114.2 | 109.4 | ||
Cash and cash equivalents at 30 June | 18 | 110.0 | 114.2 |
146 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements
147
Financial statementsGovernanceStrategic report
1 Accounting policies continued
148 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
1 Accounting policies continued
| £m | |
| Overall contract value (including total | |
| estimated end of contract variations | |
and claims after IFRS 15 constraints) | 689.5 |
Revenue in the year | 149.2 |
| Total estimated end of contract variations | |
and claims before IFRS 15 constraints | 130.2 |
| Total estimated end of contract variations | |
and claims after IFRS 15 constraints | 72.8 |
149
Financial statementsGovernanceStrategic report
1 Accounting policies continued
150 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
1 Accounting policies continued
151
Financial statementsGovernanceStrategic report
1 Accounting policies continued
152 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
1 Accounting policies continued
153
Financial statementsGovernanceStrategic report
1 Accounting policies continued
2 Segmental reporting
Segmental reporting is presented in the consolidated
financial statements in respect of the Group’s business
segments, which are the primary basis of segmental
reporting. The business segmental reporting reflects the
Group’s management and internal reporting structure.
Segmental results include items directly attributable
to the segment, as well as those that can be allocated
on a reasonable basis. As the Group has no activities
outside the UK, segment reporting is not required by
geographical region.
The Chief Operating Decision-Makers (CODM) have been
identified as the Group’s Chief Executive and Chief Financial
Officer. The CODM review the Group’s internal reporting
in order to assess performance and allocate resources.
Management has determined the operating segments of
the Group to be Building, Infrastructure, Investments and
Central (primarily representing central overheads).
The CODM assess the performance of the operating
segments based on a measure of adjusted earnings
before finance costs, amortisation, exceptional items and
taxation. This measurement basis excludes the effects
of non-recurring expenditure and exceptional items
from the operating segments, such as restructuring costs
and impairments when the impairment is the result of
an isolated, non-recurring event. In the financial year
ended 30 June 2023, the Group has also presented
pre-exceptional performance excluding the impairment of
financial assets as a result of a one off contract settlement
as announced on 8 June 2023 (disclosed in the consolidated
income statement as an impairment of financial assets of
£2.8m). Interest income and expenditure are included in the
result for each operating segment that is reviewed by the
CODM. Other information provided to them is measured in
a manner consistent with that in the financial statements.
154 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
2 Segmental reporting continued
Income statement
| PPP | |||||
| Building | Infrastructure | Investments | Central | Total | |
| Year ended 30 June 2024 | £m | £m | £m | £m | £m |
Revenue | 938.3 | 819.8 | 14.7 | – | 1,772.8 |
| Pre-exceptional operating profit/(loss) | |||||
before amortisation | 24.0 | 20.1 | (1.0) | (13.5) | 29.6 |
Finance income | 0.1 | 0.3 | 3.8 | 4.6 | 8.8 |
Finance costs | (1.2) | (1.6) | – | (0.6) | (3.4) |
| Pre-exceptional profit/(loss) | |||||
before amortisation and taxation | 22.9 | 18.8 | 2.8 | (9.5) | 35.0 |
Amortisation of intangible assets | (1.0) | (1.1) | – | (0.2) | (2.3) |
Pre-exceptional profit/(loss) before taxation | 21.9 | 17.7 | 2.8 | (9.7) | 32.7 |
Exceptional items | – | 0.8 | – | (2.6) | (1.8) |
Profit before tax | 21.9 | 18.5 | 2.8 | (12.3) | 30.9 |
Income tax credit | 5.3 | ||||
Profit for the year | 36.2 |
| PPP | |||||
| Building | Infrastructure | Investments | Central | Total | |
| Year ended 30 June 2023 | £m | £m | £m | £m | £m |
Revenue | 797.1 | 590.8 | 5.8 | – | 1,393.7 |
Pre-exceptional operating profit/(loss) before amortisation and impairment of financial assets | 18.5 | 14.5 | 1.4 | (12.5) | 21.9 |
Finance income | – | 0.3 | 3.9 | 2.1 | 6.3 |
Finance costs | (0.7) | (0.7) | (0.1) | (0.3) | (1.8) |
| Pre-exceptional profit/(loss) before amortisation | |||||
and taxation and amortisation of financial assets | 17.8 | 14.1 | 5.2 | (10.7) | 26.4 |
Amortisation of intangible assets | (1.0) | (0.9) | – | (1.1) | (3.0) |
| Pre-exceptional profit/(loss) before taxation | |||||
and impairment of financial assets | 16.8 | 13.2 | 5.2 | (11.8) | 23.4 |
Impairment of financial assets | – | (2.8) | – | – | (2.8) |
Exceptional items | – | – | – | (10.5) | (10.5) |
Profit before tax | 16.8 | 10.4 | 5.2 | (22.3) | 10.1 |
Income tax charge | (1.0) | ||||
Profit for the year | 9.1 |
Inter-segment revenue is eliminated from revenue above. In the year to 30 June 2024, this amounted to £91.8m
(2023: £61.0m) for continuing operations, of which £0.6m (2023: £nil) was in Building, £57.8m (2023: £40.1m)
was in Infrastructure, £13.8m (2023: £nil) was in Investments and £19.6m (2023: £20.9m) was in central costs.
155
Financial statementsGovernanceStrategic report
2 Segmental reporting continued
Balance sheet
| PPP | ||||||
| Building | Infrastructure | Investments | Central | Total | ||
30 June 2024 | Notes | £m | £m | £m | £m | £m |
Goodwill and intangible assets | 40.0 | 57.9 | – | – | 97.9 | |
Other including working capital employed | (60.2) | (160.7) | 42.7 | (24.3) | (202.5) | |
Net cash | 18 | 158.3 | 50.4 | (7.0) | 25.3 | 227.0 |
Net assets/(liabilities) | 138.1 | (52.4) | 35.7 | 1.0 | 122.4 | |
Total Group liabilities | (698.4) | |||||
Total Group assets | 820.8 |
| PPP | ||||||
| Building | Infrastructure | Investments | Central | Total | ||
30 June 2023 | Notes | £m | £m | £m | £m | £m |
Goodwill and intangible assets | 41.0 | 57.1 | – | 0.2 | 98.3 | |
Other including working capital employed | (60.9) | (178.2) | 43.3 | (4.1) | (199.9) | |
Net cash | 18 | 139.0 | 42.7 | (8.6) | 47.1 | 220.2 |
Net assets/(liabilities) | 119.1 | (78.4) | 34.7 | 43.2 | 118.6 | |
Total Group liabilities | (594.1) | |||||
Total Group assets | 712.7 |
Other segmental information
| PPP | ||||||
| Building | Infrastructure | Investments | Central | Total | ||
Year ended 30 June 2024 | Notes | £m | £m | £m | £m | £m |
Contracting revenue | 938.3 | 819.8 | – | – | 1,758.1 | |
| Capital expenditure – property, plant | ||||||
and equipment | 13 | 0.1 | 1.0 | – | 0.5 | 1.6 |
Total depreciation | 13 & 14 | 7.5 | 9.9 | 0.4 | 0.6 | 18.4 |
Share-based payments | 25 | 0.2 | 0.6 | 0.2 | 0.8 | 1.8 |
| Acquisition of intangible assets | 30 | – | 1.0 | – | – | 1.0 |
Amortisation of intangible assets | 11 | 1.0 | 1.1 | – | 0.2 | 2.3 |
1
| PPP | ||||||
| Building | Infrastructure | Investments | Central | Total | ||
Year ended 30 June 2023 | Notes | £m | £m | £m | £m | £m |
Contracting revenue | 797.1 | 590.8 | – | – | 1,387.9 | |
| Capital expenditure – property, plant | ||||||
and equipment | 13 | 0.8 | 1.2 | 0.1 | 0.1 | 2.2 |
Total depreciation | 13 & 14 | 6.4 | 6.1 | 0.2 | 0.9 | 13.6 |
Share-based payments | 17 | 0.9 | 0.5 | 0.4 | 1.6 | 3.4 |
| Acquisition of intangible assets | 25 | – | 0.3 | – | – | 0.3 |
Amortisation of intangible assets | 11 | 1.0 | 0.9 | – | 1.1 | 3.0 |
1
1 Acquired as part of a business combination. See note 30.
156 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
Revenue stream | Nature, timing of satisfaction of performance obligations and significant payment terms |
Fixed price | A number of projects within these segments are undertaken using fixed-price contracts. |
| Contracts are typically accounted for as a single performance obligation; even when a contract | |
| (or multiple combined contracts) includes both design and build elements, they are considered | |
| to form a single performance obligation as the two elements are not distinct in the context of | |
| the contract, given that each is highly interdependent on the other. | |
| The Group typically receives payments from the customer based on a contractual schedule | |
| of value that reflects the timing and performance of service delivery. Revenue is therefore | |
| recognised over time (the period of construction) based on an input model (reference to | |
| costs incurred to date). On a number of contracts, the Group recognised revenue over time | |
| (the period of construction) based on an output model (reference to milestone reached, | |
| units delivered or work certified). Un-invoiced amounts are presented as contract assets. | |
| No significant financing component typically exists in these contracts. | |
Cost-reimbursable | A number of projects are undertaken using cost reimbursable/target price (possibly with |
| a pain/gain share mechanism) contracts. | |
| These projects are often delivered under frameworks, however, individual performance | |
| obligations under the framework are normally determined at a project level where multiple | |
| services are supplied. The Group constrains revenue and calculates any pain/gain mechanism | |
| at the framework level where appropriate. | |
| The Group typically receives payments from the customer based on actual costs incurred. | |
| Revenue is therefore recognised over time (the period of construction) based on an input model | |
| (reference to costs incurred to date). Un-invoiced amounts are presented as contract assets. | |
| No significant financing component typically exists in these contracts. | |
| Facilities management | Contracts undertaken within the Building segment that provide full life-cycle solutions to clients, |
| are accounted for as a single performance obligation, with revenue recognised over time and | |
| typically on a straight-line basis. |
Revenue stream | Nature, timing of satisfaction of performance obligations and significant payment terms |
Investments | The Group has investments in a number of PPP Special Purpose Vehicles (SPVs), delivering |
| major building and infrastructure projects. | |
| Development fees and land sales on co-development private rental schemes represent | |
| a performance obligation that is recognised at a point in time when control is deemed to | |
| pass to the customer (on financial close). | |
| The business additionally provides management services and project manages developments | |
| under Management Service Agreements (MSA) or separate development arrangements. | |
| Revenue for these services is typically recognised over time as and when the service is | |
| delivered to the customer. | |
| The business additionally provides management services to the SPVs under MSA. Revenue | |
| for these services is typically recognised over time as and when the service is delivered to | |
| the customer. |
157
Financial statementsGovernanceStrategic report
3 Revenue continued
| 2027 | ||||
| 2025 | 2026 | onwards | Total | |
| Revenue – year ended 30 June 2024 | £m | £m | £m | £m |
Building | 660.1 | 177.0 | 1.9 | 839.0 |
Infrastructure | 572.3 | 157.9 | 16.6 | 746.8 |
Total Construction | 1,232.4 | 334.9 | 18.5 | 1,585.8 |
Investments | 2.8 | 2.5 | 25.3 | 30.6 |
| Total transaction price allocated to performance obligations | ||||
yet to be satisfied | 1,235.2 | 337.4 | 43.8 | 1,616.4 |
| 2026 | ||||
| 2024 | 2025 | onwards | Total | |
| Revenue – year ended 30 June 2023 | £m | £m | £m | £m |
Building | 614.4 | 214.4 | 32.7 | 861.5 |
Infrastructure | 453.1 | 185.0 | 49.4 | 687.5 |
Total Construction | 1,0 67.5 | 399.4 | 82.1 | 1,549.0 |
Investments | 3.2 | 2.6 | 26.5 | 32.3 |
| Total transaction price allocated to performance obligations | ||||
yet to be satisfied | 1,070.7 | 402.0 | 108.6 | 1,581.3 |
4 Exceptional items
| 2024 | 2023 | |
| £m | £m | |
Implementation costs of cloud-based arrangements 1 – administrative expenses | (2.6) | (10.5) |
| Finance income | 0.8 | – |
Loss before tax | (1.8) | (10.5) |
Associated tax credit on items above (note 8) | 0.5 | 2.1 |
| Exceptional income tax credit (note 8) | 9.6 | – |
Total | 8.3 | (8.4) |
2
2
1 The Group incurred £2.6m (2022: £10.5m) of customisation and configuration costs associated with the move to Oracle Fusion, a cloud-based computing
arrangement, during the period. Taking into account the IFRIC Agenda Decision issued by the IFRS IC in March 2021, the Group has analysed the costs and
concluded that these costs should be expensed in the period. In accordance with the Group’s existing accounting policy, management considers that the costs
should be separately disclosed as exceptional because they are significant and irregular. The move to Oracle Fusion is now complete with no further exceptional
costs expected.
2 The Group previously disclosed that it had not recognised an asset in respect of historic trading losses due to the losses being subject to agreement with HMRC.
This led to an uncertain tax position where no asset was recognised as, based on the advice of tax advisors, the group concluded it was not probable HMRC would
accept the claims to utilise the losses. During the year to 30 June 2024 HMRC agreed a quantum of historic trading losses available and that they could be utilised
against historical trading profits, resulting in a cash tax refund of £9.6m with associated interest of £0.8m, which was received after 30 June 2024. Management
considers that the refund should be disclosed separately as exceptional given it is material in quantum and one off in nature.
An associated tax credit of £0.5m (2023: £2.1m) has been recognised in respect of the implementation costs of cloud based
arrangements and the exceptional finance income (£0.2m tax charge (2023: n/a)).
158 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
5 Employees and directors
Employee benefit expense during the year
Group | Company | ||||
| 2024 | 2023 | 2024 | 2023 | ||
| Notes | £m | £m | £m | £m | |
Wages and salaries | 229.2 | 206.6 | – | – | |
Social security costs | 27.8 | 24.8 | – | – | |
Other pension costs | 25.4 | 21.9 | – | – | |
Share-based payments | 25 | 1.8 | 3.4 | – | – |
Total | 284.2 | 256.7 | – | – |
All employees are entitled to join the Galliford Try Pension Scheme, a defined contribution scheme established as a
stakeholder plan, with a Company contribution based on a scale dependent on the employee’s age and the amount
they choose to contribute. Since 1 July 2013, all non-participating and newly employed staff have been auto-enrolled
into the separate stakeholder plan and are entitled to increase their contribution rates in line with existing members.
Since 1 April 2009, the Group has operated a pension salary sacrifice scheme, which means that all employee pension
contributions are paid as employer contributions on their behalf.
All pension costs in the current and prior years were in respect of the Group’s defined contribution schemes. Of the
total charge, £14.1m (2023: £10.4m) and £11.3m (2023: £11.5m) were included, respectively, within cost of sales and
administrative expenses.
Average monthly number of people (including Executive and non-executive directors) employed
Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| Number | Number | Number | Number | |
| By business: | ||||
– Building | 1,296 | 1,271 | – | – |
– Infrastructure | 2,575 | 2,235 | – | – |
Construction | 3,871 | 3,506 | – | – |
Investments | 58 | 60 | – | – |
Central | 193 | 181 | 6 | 7 |
Total | 4,122 | 3,747 | 6 | 7 |
| 2024 | 2023 | |
| £m | £m | |
Salaries and short-term employee benefits | 3.5 | 3.8 |
Retirement benefit costs | 0.3 | 0.3 |
Share-based payments | 1.1 | 2.9 |
Total | 4.9 | 7.0 |
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| 2024 | 2023 | |
| Group | £m | £m |
Interest receivable on bank deposits | 4.6 | 2.4 |
Interest receivable from PPP Investments and joint ventures | 4.2 | 3.9 |
Finance income | 8.8 | 6.3 |
Other (including interest on lease liabilities) | (3.4) | (1.8) |
Finance costs before exceptional items | (3.4) | (1.8) |
Exceptional items | 0.8 | – |
Net finance income | 6.2 | 4.5 |
| 2024 | 2023 | ||
| Notes | £m | £m | |
Employee benefit expense | 5 | 284.2 | 256.7 |
Total depreciation | 13 & 14 | 18.4 | 13.6 |
Amortisation and impairment of intangible assets | 11 | 2.3 | 3.5 |
Repairs and maintenance expenditure on property, plant and equipment | 1.6 | 1.0 | |
Impairment of financial assets | 17 | – | 2.8 |
Exceptional items | 4 | 1.8 | 10.5 |
| 2024 | 2023 | |
| £m | £m | |
| Fees payable to the Company’s auditor for the audit of Parent Company | ||
and consolidated financial statements | 0.2 | 0.2 |
| Fees payable to the Company’s auditor for other services: | ||
The audit of financial statements of the Company’s subsidiaries | 2.0 | 2.1 |
Audit-related assurance services | 0.1 | 0.1 |
Total other services | 2.1 | 2.2 |
Total | 2.3 | 2.4 |
160 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
8 Income tax charge/(credit)
| 2024 | 2023 | ||
Group | Notes | £m | £m |
| Analysis of expense in year | |||
| Current year’s income tax | |||
Current tax – pre-exceptional items | 3.3 | – | |
Current tax – exceptional items | 4 | (0.5) | – |
Deferred tax – pre-exceptional item | 5.0 | 3.0 | |
Deferred tax – exceptional items | 22 | – | (2.1) |
| Adjustments in respect of prior years | |||
Current tax – exceptional items | 4 | (9.6) | – |
Deferred tax – pre-exceptional items | 22 | (3.5) | 0.1 |
Income tax (credit)/expense | (5.3) | 1.0 | |
| Tax on items recognised in other comprehensive income | |||
Tax recognised in other comprehensive income | – | – | |
Total tax (credit)/expense | (5.3) | 1.0 |
The total income tax credit for the year of £5.3m (2023: charge of £1.0m) is lower (2023: lower) than the expected charge
based on the standard rate of corporation tax in the UK of 25.0% (2023: 20.50%). The differences are explained below:
| 2024 | 2023 | |
| £m | £m | |
Profit before income tax | 30.9 | 10.1 |
| Profit before income tax multiplied by the blended standard corporation tax rate | ||
in the UK of 25% (2023: 20.5%) | 7.7 | 2.1 |
| Effects of: | ||
Expenses not deductible for tax purposes | 0.2 | 0.1 |
Non-taxable income | (0.2) | (1.0) |
Adjustments in respect of prior years | (13.1) | 0.1 |
Change in tax rates | – | 0.1 |
Other | 0.1 | (0.4) |
Income tax (credit)/expense | (5.3) | 1.0 |
The adjustments in respect of prior years include a £9.6m tax credit for exceptional items, as explained in note 4.
The Group is within the scope of OECD Pillar Two rules. The rules are designed to ensure a minimum effective tax
rate of 15% across each country of operation. The rules were enacted into UK law in July 2023 and are effective from
1 July 2024 to the Group. Due to the Group trading only in the UK, it is not expected there will be a significant impact as a
result of the implementation of the rules, however the Group continues to review any potential implications with advisors.
In the Spring Budget 2021, the UK Government announced that from 1 April 2023, the corporation tax rate would
increase from 19% to 25%. This new law was substantively enacted in the Finance Bill 2021 and received Royal Assent
on 10 June 2021. Where appropriate, deferred taxes at the balance sheet date have been measured using the appropriate
tax rates (based on when the underlying balance is expected to crystallise) and reflected in these financial statements.
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9 Dividends
2024 | 2023 | |||
| pence per | pence per | |||
| Group and Company | £m | share | £m | share |
Previous year final | 7.7 | 7. 5 | 6.4 | 5.8 |
Special | 12.5 | 12.0 | – | – |
Current year interim | 4.0 | 4.0 | 3.2 | 3.0 |
Dividend recognised in the year | 24.2 | 23.5 | 9.6 | 8.8 |
The following dividends were declared by the Company in respect of each accounting period presented:
2024 | 2023 | |||
| pence per | pence per | |||
| £m | share | £m | share | |
Interim | 4.1 | 4.0 | 3.2 | 3.0 |
Special | – | – | 12.6 | 12.0 |
Final | 11.9 | 11.5 | 7.9 | 7.5 |
Dividend relating to the year | 16.0 | 15.5 | 23.7 | 22.5 |
The directors are proposing a final dividend in respect of the financial year ended 30 June 2024 of 11.5 pence per share
(2023: 7.5 pence per share), bringing the total dividend in respect of 2024 to 15.5 pence per share (2023: 22.5 pence per
share). The final dividend will absorb approximately £11.9m of equity. Subject to shareholders’ approval at the AGM to
be held on 28 November 2024, the dividend will be paid on 5 December 2024 to shareholders who are on the register
of members at the close of business on 8 November 2024.
The directors declared a special dividend of 12.0 pence per share on 8 June 2023 following the settlement of its
long-standing dispute concerning three contracts with entities owned by a major infrastructure fund, returning
a substantial portion of the proceeds to shareholders.
10 Earnings per share
Basic and diluted earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number
of ordinary shares outstanding during the year, excluding those held by the Trust, which are treated as cancelled.
Under normal circumstances, the average number of shares is diluted by reference to the average number of potential
ordinary shares held under option in the year. The dilutive effect amounts to the number of ordinary shares which would
be purchased using the aggregate difference in value between the market value of shares and the share option price.
Only shares that have met their cumulative performance criteria are included in the dilution calculation. The Group has
two classes of potentially dilutive ordinary shares: those share options granted to employees where the exercise price is
less than the average market price of the Company’s ordinary shares during the year and the contingently issuable shares
under the Group’s long-term incentive plans. A loss per share cannot be reduced through dilution, hence this dilution is
only applied where the Group has reported a profit.
The earnings and weighted average number of shares used in the calculations are set out in the following table.
162 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
10 Earnings per share continued
2024 | 2023 | |||||
| Weighted | Per share | Weighted | Per share | |||
| Earnings | average number | amount | Earnings | average number | amount | |
| £m | of shares | pence | £m | of shares | pence | |
| Basic EPS – pre-exceptional | ||||||
| Earnings attributable to ordinary | ||||||
shareholders pre-exceptional items | 27.9 | 100,051,095 | 27.9 | 17.5 | 105,180,316 | 16.6 |
| Basic EPS | ||||||
| Earnings attributable to ordinary | ||||||
shareholders post-exceptional items | 36.2 | 100,051,095 | 36.2 | 9.1 | 105,180,316 | 8.7 |
| Effect of dilutive securities: | ||||||
Options | n/a | 4,315,217 | n/a | n/a | 7,286,375 | n/a |
Diluted EPS – pre-exceptional | 27.9 | 104,366,312 | 26.7 | 17. 5 | 112,466,691 | 15.6 |
Diluted EPS | 36.2 | 104,366,312 | 34.7 | 9.1 | 112,466,691 | 8.1 |
The pre-exceptional EPS (basic) excluding the impact of the one-off contract settlement as announced on 8 June 2023
(note 17) is 18.9p (and diluted EPS is 17.7p).
| Customer | ||||
| contracts and | Computer | |||
| relationships | software | Total | ||
Group | Notes | £m | £m | £m |
| Cost | ||||
At 1 July 2022 | 17.4 | 11.5 | 28.9 | |
Additions | 30 | 0.3 | – | 0.3 |
At 30 June 2023 | 17.7 | 11.5 | 29.2 | |
Additions | 30 | 1.0 | – | 1.0 |
At 30 June 2024 | 18.7 | 11.5 | 30.2 | |
| Accumulated amortisation and impairment loss | ||||
At 1 July 2022 | (10.7) | (9.4) | (20.1) | |
Amortisation in year | (1.8) | (1.2) | (3.0) | |
Impairment loss | – | (0.5) | (0.5) | |
At 1 July 2023 | (12.5) | (11.1) | (23.6) | |
Amortisation in year | (1.9) | (0.4) | (2.3) | |
At 30 June 2024 | (14.4) | (11.5) | (25.9) | |
| Net book amount | ||||
At 30 June 2024 | 4.3 | – | 4.3 | |
At 30 June 2023 | 5.2 | 0.4 | 5.6 | |
At 30 June 2022 | 6.7 | 2.1 | 8.8 |
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Group | Notes | £m |
| Cost | ||
At 30 June 2022 | 88.2 | |
Additions | 30 | 4.5 |
At 30 June 2023 | 92.7 | |
Additions | 30 | 0.9 |
At 30 June 2024 | 93.6 | |
Aggregate impairment at 30 June 2022, 2023 and 2024 | – | |
At 30 June 2022, 2023 and 30 June 2024 | – | |
| Net book amount | ||
At 30 June 2024 | 93.6 | |
At 30 June 2023 | 92.7 | |
At 30 June 2022 | 88.2 |
| 2024 | 2023 | |
| £m | £m | |
Building | 40.0 | 40.0 |
Infrastructure | 53.6 | 52.7 |
93.6 | 92.7 |
164 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
12 Goodwill continued
13 Property, plant and equipment
| Land and | Plant and | Fixtures and | ||
| buildings | machinery | fittings | Total | |
| Group | £m | £m | £m | £m |
| Cost | ||||
At 1 July 2022 | 2.8 | 3.2 | 10.5 | 16.5 |
Additions | 0.9 | 1.0 | 0.3 | 2.2 |
Disposals | (0.4) | – | (6.5) | (6.9) |
At 1 July 2023 | 3.3 | 4.2 | 4.3 | 11.8 |
Additions | 0.2 | 0.6 | 0.8 | 1.6 |
Disposals | (0.2) | (3.4) | (0.3) | (3.9) |
At 30 June 2024 | 3.3 | 1.4 | 4.8 | 9.5 |
| Accumulated depreciation | ||||
At 1 July 2022 | (0.5) | (0.5) | (8.4) | (9.4) |
Charge for the year | (0.5) | (0.4) | (0.7) | (1.6) |
Disposals | 0.1 | – | 6.3 | 6.4 |
At 1 July 2023 | (0.9) | (0.9) | (2.8) | (4.6) |
Charge for the year | (0.3) | (0.2) | (0.5) | (1.0) |
Disposals | 0.2 | 0.9 | 0.3 | 1.4 |
At 30 June 2024 | (1.0) | (0.2) | (3.0) | (4.2) |
| Net book amount | ||||
At 30 June 2024 | 2.3 | 1.2 | 1.8 | 5.3 |
At 30 June 2023 | 2.4 | 3.3 | 1.5 | 7. 2 |
At 30 June 2022 | 2.3 | 2.7 | 2.1 | 7.1 |
There has been no impairment of property, plant and equipment during the year (2023: £nil).
The Company has no property, plant or equipment.
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| Land and | Plant and | Motor | ||
| buildings | machinery | vehicles | Total | |
| Cost | £m | £m | £m | £m |
At 30 June 2023 | 17.4 | 8.7 | 33.4 | 59.5 |
At 30 June 2024 | 18.8 | 13.0 | 48.5 | 80.3 |
| Accumulated depreciation | ||||
At 30 June 2023 | (4.8) | (2.5) | (13.6) | (20.9) |
At 30 June 2024 | (6.2) | (4.8) | (17.9) | (28.9) |
| Net book amount | ||||
At 30 June 2024 | 12.6 | 8.2 | 30.6 | 51.4 |
At 30 June 2023 | 12.6 | 6.2 | 19.8 | 38.6 |
| 2024 | 2023 | |
| £m | £m | |
Current | 20.5 | 14.9 |
Non-current | 32.5 | 24.2 |
Total lease liabilities | 53.0 | 39.1 |
| Interest | ||||||
| payments | ||||||
| (presented as | ||||||
| Opening | Financing | Interest | operating | Closing | ||
| balance | cash flows | New leases | expense | cash flows) | balance | |
2023 | 24.8 | (12.0) | 26.3 | 1.6 | (1.6) | 39.1 |
2024 | 39.1 | (16.7) | 30.6 | 2.9 | (2.9) | 53.0 |
166 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
14 Leases continued
| 2024 | 2023 | |
| £m | £m | |
| Depreciation of right-of-use assets: | ||
– Land and buildings | 2.5 | 2.5 |
– Plant and machinery | 4.2 | 2.6 |
– Motor vehicles | 10.7 | 6.9 |
Interest expense (included in finance cost) | 2.9 | 1.6 |
Expense relating to short-term leases (included in cost of sales and administrative expenses) | 13.2 | 10.7 |
| Expense relating to leases of low-value assets that are not shown above as short-term leases | ||
(included in administrative expenses) | 0.7 | 0.8 |
Total expenses | 34.2 | 25.1 |
| Land and | Plant and | Motor | ||
| buildings | machinery | vehicles | Total | |
| £m | £m | £m | £m | |
Less than 1 year | 3.0 | 4.1 | 13.4 | 20.5 |
Between 1 and 5 years | 8.9 | 1.8 | 24.1 | 34.8 |
More than 5 years | 8.8 | – | – | 8.8 |
Total | 20.7 | 5.9 | 37. 5 | 64.1 |
| Land and | Plant and | Motor | ||
| buildings | machinery | vehicles | Total | |
| £m | £m | £m | £m | |
Less than 1 year | 3.1 | 3.6 | 8.3 | 15.0 |
Between 1 and 5 years | 8.3 | 2.5 | 14.1 | 24.9 |
More than 5 years | 8.4 | – | – | 8.4 |
Total | 19.8 | 6.1 | 22.4 | 48.3 |
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| 2024 | 2023 | |
| Company | £m | £m |
| Cost | ||
As at 1 July 2023 and 2022 | 188.5 | 188.0 |
Additions | 0.7 | 0.5 |
At 30 June | 189.2 | 188.5 |
| Aggregate impairment | ||
As at 1 July 2023 and 2022 | – | – |
At 30 June | – | – |
| Net book value | ||
At 30 June | 189.2 | 188.5 |
168 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
16 PPP and other investments
| 2024 | 2023 | |
| Group | £m | £m |
At 1 July | 44.6 | 47. 5 |
Disposals and subordinated loan repayments | (1.3) | (0.5) |
Movement in fair value | (1.5) | (2.4) |
At 30 June | 41.8 | 44.6 |
These comprise debt and equity investments in PPP/PFI investments (joint ventures and associates) over which the Group
has significant influence.
Debt investments at fair value through OCI
The debt element of the investments represents over 99% of the total portfolio balance and is held at fair value. The fair
value reflects a blended discount rate of 7.6% (2023: 7.3%). A 0.5% increase/reduction in the discount rate would result in
a corresponding decrease/increase in the value of the investments recorded in the balance sheet of approximately £1.5m
(2023: £1.6m).
None of the financial assets are past their due dates (2023: £nil), and the directors expect an average maturity profile in
excess of 10 years. Further disclosures relating to financial assets are set out in note 23.
The expected credit loss (ECL) was assessed to be minimal and accordingly no ECL was recognised.
During the year, there were no additions (2023: £nil) to the Group’s PPP/PFI investments and subordinated loans of
£1.3m (2023: £0.5m) were repaid. Of the total fair value movement in the year of £1.5m, all of it relates to the movement
in the fair value of the PPP/PFI investments (2023: £2.4m) and has been recorded through other comprehensive income.
The Group has commitments of £nil (2023: £nil) to provide further subordinated debt to its investments.
Equity accounted investments
The Group applies equity accounting to the equity element of its PPP/PFI investments. As the predominant value to the
Group is within the debt element, £nil (2023: £nil) has been recognised through equity accounting. The joint ventures and
associates have non-profit distribution agreements or restrictions on timing and quantum of distributions being made.
The material joint ventures (due to their shareholding and/or issuing listed debt) are disclosed within this note. The net
assets disclosed in the income statement and balance sheet extracts below are not recognised as part of the investment
in joint ventures. The information disclosed reflects the amounts presented in the financial statements or management
accounts of the relevant joint ventures and associates and not the Group’s share of those amounts.
The Group has an investment in Space Scotland Limited which it considers to be a material joint venture by virtue of the
companies it is a shareholder of. Space Scotland Limited holds the Group’s investments in several of the PPP/PFI entities to
which this note relates. The individual entities are not considered to be material to the Group. The income statement and
balance sheets for Space Scotland Limited are £nil (2023: £nil).
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16 PPP and other investments continued
Aberdeen Roads (Finance) Plc | Aberdeen Roads Limited | |||
| 2024 | 2023 | 2024 | 2023 | |
| Income statement – extracts | £m | £m | £m | £m |
| Revenue | – | – | (1.9) | (1.1) |
Depreciation and amortisation | – | – | – | – |
Finance income | 23.3 | 24.1 | 29.7 | 29.7 |
Finance expense | (23.3) | (24.1) | (23.3) | (29.6) |
Income tax expense | – | – | – | – |
Profit (100%) | – | – | – | – |
Other comprehensive (expense)/income | (2.1) | 2.9 | – | – |
Total comprehensive income (100%) | (2.1) | 2.9 | – | – |
Group’s share of profit and total comprehensive income | (0.7) | 1.0 | – | – |
Dividends received by the Group during the year | – | – | – | – |
| Balance sheet – extracts | ||||
Cash and cash equivalents | 0.9 | 0.2 | 28.0 | 29.3 |
Other current assets | – | – | 4.9 | 4.9 |
Current assets | 0.9 | 0.2 | 32.9 | 34.2 |
Non-current assets | 515.1 | 536.3 | 520.2 | 532.6 |
Current external borrowings – bank/listed bonds | (19.5) | (19.5) | – | – |
Other current liabilities | (3.4) | (3.6) | (39.5) | (34.8) |
Current liabilities | (22.9) | (23.1) | (39.5) | (34.8) |
Non-current external borrowings – bank/listed bonds | (445.3) | (460.1) | – | – |
Other non-current liabilities | (45.4) | (48.7) | (513.6) | (532.0) |
Non-current liabilities | (490.7) | (508.8) | (513.6) | (532.0) |
Net assets (100%) | 2.5 | 4.6 | – | – |
170 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
| Group | |||
| 2024 | 2023 | ||
| Notes | £m | £m | |
| Current assets: | |||
Trade receivables | 43.7 | 52.0 | |
Less: provision for impairment of receivables | (0.4) | (0.1) | |
Trade receivables – net | 43.3 | 51.9 | |
Contract assets | 21 | 290.1 | 204.9 |
Amounts due from joint ventures | 0.8 | 0.9 | |
Research and development expenditure credits | 5.4 | 5.8 | |
Other receivables | 14.0 | 7.6 | |
Prepayments | 17. 2 | 15.4 | |
370.8 | 286.5 |
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17 Trade and other receivables continued
| 2024 | 2023 | |
| £m | £m | |
| Number of days past due date | ||
Less than 30 days | 9.3 | 5.7 |
Between 30 and 60 days | 0.7 | 2.3 |
Between 60 and 90 days | 0.1 | 2.2 |
Between 90 and 120 days | 1.1 | 0.5 |
Greater than 120 days | 3.3 | 5.1 |
14.5 | 15.8 |
| 2024 | 2023 | |
| £m | £m | |
| Number of days past due date: | ||
Greater than 120 days | 0.4 | 0.1 |
0.4 | 0.1 |
18 Cash and cash equivalents
Group | Company | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
Cash at bank and in hand and per the statement of cash flows | 227.0 | 220.2 | 110.0 | 114.2 |
Cash at bank above includes £21.7m (2023: £11.0m), being the Group’s share of cash held by jointly controlled operations.
The Group has no bank borrowings or loans.
Net cash excludes IFRS 16 lease liabilities (note 14).
Cash and cash equivalents and bank overdrafts are presented on a net (offset) basis. In 2016, the IFRS Interpretations
Committee released an update in respect of IAS 32 ‘Financial instruments: presentation’ specifically in relation to offsetting
and cash pooling. This clarified that in order to offset bank account balances, an entity must have both a legally enforceable
right and an intention to do so. The Group’s bank arrangements and facilities with both HSBC Bank plc and Barclays Bank
plc provide the legally enforceable right to offset and the Group demonstrated its intention to offset by formally sweeping
the balances within each bank. Consequently, the balances have been offset in the financial statements.
172 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
| Group | |||
| 2024 | 2023 | ||
| Notes | £m | £m | |
Trade payables | 107.6 | 136.6 | |
Contract liabilities | 21 | 121.8 | 106.6 |
Other taxation and social security payable | 70.4 | 53.4 | |
Other payables | 2.4 | 1.9 | |
Accruals | 307.0 | 226.6 | |
609.2 | 525.1 |
| Onerous | Total | ||
| Group | contracts | Rectification | £m |
At 30 June 2023 | (2.0) | (27.9) | (29.9) |
Balance sheet reclassification 1 | (0.5) | (4.5) | (5.0) |
Utilised | 1.6 | 3.6 | 5.2 |
Released | – | 2.3 | 2.3 |
Additions | (0.6) | (8.2) | (8.8) |
At 30 June 2024 | (1.5) | (34.7) | (36.2) |
173
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20 Provisions for other liabilities and charges continued
21 Contract balances
Contract assets and liabilities are included within ‘trade and other receivables’ and ‘trade and other payables’
respectively on the face of the balance sheet. Where there is a corresponding contract asset and liability in relation to
the same contract, the balance shown is the net position. The timing of work performed (and thus revenue recognised),
billing profiles and cash collection results in trade receivables (amounts billed to date and unpaid), contract assets
(unbilled amounts where revenue has been recognised) and contract liabilities (customer advances and deposits where
no corresponding work has yet to be performed), being recognised on the Group’s balance sheet.
The reconciliation of the Group opening to closing contract balances is shown below:
2024 | 2023 | |||
| Contract | Contract | Contract | Contract | |
| asset | liability | asset | liability | |
| £m | £m | £m | £m | |
At 1 July | 204.9 | (106.6) | 173.4 | (104.4) |
Revenue recognised in the year | 1,725.0 | 47.8 | 1,334.9 | 58.8 |
Net cash received in advance of performance obligations being fully satisfied | – | (63.0) | – | (61.0) |
Transfers in the year from contract assets to trade receivables | (1,639.8) | – | (1,303.4) | – |
30 June | 290.1 | (121.8) | 204.9 | (106.6) |
Revenue allocated to performance obligations that are unsatisfied at 30 June, is expected to be recognised as disclosed
in note 3.
The Company has no contract balances.
The amount of revenue recognised in the year from performance obligations satisfied in previous periods amounts to
£4.7m (2023: £4.8m).
174 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
22 Deferred income tax continued
| Group | ||
| 2024 | 2023 | |
| £m | £m | |
Deferred income tax assets | 15.6 | 16.6 |
Deferred income tax liabilities | (0.6) | (1.1) |
Net deferred income tax | 15.0 | 15.5 |
| Group | ||
| 2024 | 2023 | |
| £m | £m | |
At 1 July | 15.5 | 14.0 |
Current year’s deferred income tax | (5.7) | (0.9) |
Adjustment in respect of prior years | 4.5 | (0.1) |
Transfer from current tax assets | 0.3 | 2.5 |
Acquisition of subsidiaries | (0.2) | – |
Disposal of subsidiaries | 0.6 | – |
At 30 June | 15.0 | 15.5 |
| Share-based | ||||
| payments | Tax losses | Other | Total | |
| Group | £m | £m | £m | £m |
At 30 June 2022 | 0.2 | 12.0 | 3.4 | 15.6 |
Credit/(expense) taken to income statement | 0.1 | (1.1) | (0.3) | (1.3) |
Adjustment in respect of prior years | – | (0.2) | – | (0.2) |
Transfer to deferred income tax | – | 2.5 | – | 2.5 |
At 30 June 2023 | 0.3 | 13.2 | 3.1 | 16.6 |
Expense taken to income statement | (0.3) | (4.3) | (0.5) | (5.1) |
Credit in respect of prior years taken to income statement | 0.8 | 2.7 | – | 3.5 |
Expense taken to equity | (0.7) | – | – | (0.7) |
Transfer from current tax income tax | – | 0.3 | – | 0.3 |
Credit in respect of prior years taken to equity | 1.0 | – | – | 1.0 |
At 30 June 2024 | 1.1 | 11.9 | 2.6 | 15.6 |
175
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22 Deferred income tax continued
| Accelerated | Intangible | ||
| tax | assets | ||
| depreciation | acquired | Total | |
| Group | £m | £m | £m |
At 30 June 2022 | (0.6) | (1.0) | (1.6) |
Credit taken to income statement | 0.2 | 0.2 | 0.4 |
Adjustment in respect of prior years | – | 0.1 | 0.1 |
At 30 June 2023 | (0.4) | (0.7) | (1.1) |
Expense/(credit) taken to income statement | (0.1) | 0.2 | 0.1 |
Expense/(credit) in respect of prior years | (0.1) | 0.1 | – |
Acquisition of subsidiary | – | (0.2) | (0.2) |
Disposal of subsidiary | 0.6 | – | 0.6 |
At 30 June 2024 | – | (0.6) | (0.6) |
176 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
23 Financial instruments continued
2024 | 2023 | ||||
| Book value | Fair value | Book value | Fair value | ||
| Notes | £m | £m | £m | £m | |
| Financial liabilities: | |||||
Current financial liabilities measured at amortised cost | 19 | 417.0 | 417.0 | 365.1 | 365.1 |
| Financial assets: | |||||
PPP and other investments | 16 | 41.8 | 41.8 | 44.6 | 44.6 |
Current assets measured at amortised cost | 17 | 353.6 | 353.6 | 271.1 | 271.1 |
Cash and cash equivalents | 18 | 227.0 | 227.0 | 220.2 | 220.2 |
177
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23 Financial instruments continued
2024 | 2023 | |||
| Level 3 | Total | Level 3 | Total | |
| £m | £m | £m | £m | |
| Assets | ||||
| Fair value through other comprehensive income | ||||
– PPP and other investments | 41.8 | 41.8 | 44.6 | 44.6 |
Total | 41.8 | 41.8 | 44.6 | 44.6 |
| 2024 | 2023 | |
| £m | £m | |
At 1 July | 44.6 | 47.5 |
Movement in fair value | (1.5) | (2.4) |
Disposals and subordinated loan repayments | (1.3) | (0.5) |
Closing balance | 41.8 | 44.6 |
| Ordinary | Share | |||
| Number of | shares | premium | Total | |
| Group | shares | £m | £m | £m |
At 30 June 2022 | 111,054,228 | 55.5 | – | 55.5 |
Allotted under share option schemes | 2,114 | – | – | – |
Cancellation of shares | (6,187,148) | (3.1) | – | (3.1) |
At 30 June 2023 | 104,869,194 | 52.4 | – | 52.4 |
Allotted under share option schemes | 1,323,592 | 0.7 | 0.8 | 1.5 |
Cancellation of shares | (2,217,000) | (1.1) | – | (1.1) |
At 30 June 2024 | 103,975,786 | 52.0 | 0.8 | 52.8 |
178 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
24 Ordinary shares and share premium continued
| Ordinary | Share | |||
| Number of | shares | premium | Total | |
| Company | shares | £m | £m | £m |
At 30 June 2022 | 111,054,228 | 55.5 | – | 55.5 |
Allotted under share option schemes | 2,114 | – | – | – |
Cancellation of shares | (6,187,148) | (3.1) | – | (3.1) |
At 30 June 2023 | 104,869,194 | 52.4 | – | 52.4 |
Allotted under share option schemes | 1,323,592 | 0.7 | 0.8 | 1.5 |
Cancellation of shares | (2,217,000) | (1.1) | – | (1.1) |
At 30 June 2024 | 103,975,786 | 52.0 | 0.8 | 52.8 |
25 Share-based payments
The Group operates performance-related share incentive plans for Executives, details of which are set out in the
Directors’ Remuneration report. The Group also operates sharesave schemes. The total charge for the year before
tax relating to employee share-based payment plans was £1.8m (2023: £3.4m), all of which related to equity-settled
share-based payment transactions.
Savings-related share options
The Company operates an HMRC-approved sharesave scheme, under which employees are granted an option to purchase
ordinary shares in the Company at up to 20% less than the market price at grant, in three years’ time, dependent on their
entering into a contract to make monthly contributions into a savings account over the relevant period. These funds
are used to fund the option exercise. This scheme is open to all employees meeting the minimum employment period.
No performance criteria are applied to the exercise of sharesave options.
The options were valued using the binomial option-pricing model. The fair value per option granted and the assumptions
used in the calculation are as follows:
| Employee | ||||||||||
| Share price | Option | turnover | Fair | |||||||
| Shares | at grant | Exercise | Contract | Expected | life | Risk free | Dividend | before | value per | |
| Grant date | under option | date | price | date | volatility | (years) | rate | yield | vesting | option |
07.0 4. 21 | 221,765 | 130p | 112p | 01.06.21 | 60% | 3 | 0.2% | 3.1% | 10% | 50p |
13.04.22 | 806,868 | 174p | 143p | 01.06.22 | 58% | 3 | 1.5% | 3.3% | 10% | 70p |
14.04.23 | 850,680 | 174p | 137p | 01.06.23 | 54% | 3 | 3.6% | 4.5% | 10% | 67p |
12.04.24 | 927,329 | 244p | 201p | 01.06.24 | 30% | 3 | 4.2% | 4.5% | 10% | 61p |
The expected volatility is based on historical volatility in the movement in the share price over the past three years up to
the date of grant (or since incorporation of the Company in January 2020). The expected life is the average expected period
to exercise. The risk-free rate is the yield on zero-coupon UK Government bonds of a term consistent with the assumed
option life. A reconciliation of savings-related share awards over the year to 30 June 2024 is shown below:
179
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25 Share-based payments continued
2024 | 2023 | |||
| Weighted | Weighted | |||
| average | average | |||
| Number | exercise price | Number | exercise price | |
Outstanding at 1 July | 3,481,546 | 127p | 2,776,374 | 123p |
Awards | 936,197 | 201p | 947,033 | 137p |
Forfeited | (148,347) | 129p | (109,335) | 124p |
Cancelled | (128,780) | 135p | (127,458) | 124p |
Expired | (10,382) | 115p | (2,954) | 119p |
Exercised | (1,323,592) | 112p | (2,114) | 112p |
Outstanding at 30 June | 2,806,642 | 158p | 3,481,546 | 127p |
Exercisable at 30 June | 221,765 | 112p | – | – |
The weighted average fair value of awards granted during the year was 61p (2023: 67p). There were 1,323,592 share
options exercised during the year ended 30 June 2024 (2023: 2,114) and the weighted average exercise price at the
date of exercise was 112p (2023: 112p). The weighted average remaining contractual life is 1 years and 10 months
(2023: 1 years and 9 months).
Performance-related long-term incentive plans
The Group operates performance-related share incentive plans for Executives, details of which are set out in the Directors’
Remuneration report. The awards that vest are satisfied by the transfer of shares for no consideration. The outstanding
options were valued using a Black-Scholes model. The fair value per option granted and the assumptions used in the
calculation are as follows:
| Vesting | Fair | |||||
| Shares | Share price at | period/option | Risk-free | Dividend | value per | |
| Grant date | under option | grant date | life (months) | rate | yield | option |
23.09.21 | 1,176,591 | 177p | 36 | 0.4% | 2.5% | 164p |
23.09.22 | 1,369,284 | 161p | 36 | 4.0% | 5.0% | 139p |
23.09.23 | 987,710 | 225p | 36 | 4.3% | 4.7% | 195p |
The expected volatility is based on historical volatility in the movement in the share price of the Company and its
comparator group and the correlations between them over the past three years. The expected life is the average expected
period to exercise. The risk-free rate is the yield on zero-coupon UK Government bonds of a term consistent with the
assumed option life. A reconciliation of performance-related share awards over the year to 30 June is shown below:
| 2024 | 2023 | |
| Number | Number | |
Outstanding at 1 July | 6,466,295 | 6,986,213 |
Granted | 1,244,171 | 1,728,911 |
Exercised | (3,156,934) | (2,248,829) |
Forfeited | (1,019,947) | – |
Outstanding at 30 June | 3,533,585 | 6,466,295 |
Exercisable at 30 June | – | – |
The weighted average fair value of awards granted during the year was 195p (2023: 139p). There were 3,156,934 options
exercised during the year ended 30 June 2024 (2023: 2,248,829). The weighted average remaining contractual life is one
year and two months (2023: one year and nil months).
180 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
25 Share-based payments continued
Annual bonus plan – deferred shares
Executive directors are eligible to participate in the Company’s annual bonus scheme. The scheme rules dictate that
two thirds of any bonus earned in excess of 50% of the base annual salary is deferred into restricted shares for three
years. Participants must remain in employment to receive the restricted shares, but there are no other associated
performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
| 2024 | 2023 | |
| Number | Number | |
Outstanding at 1 July | 821,646 | 413,502 |
Granted | 126,350 | 408,144 |
Exercised | (52,969) | – |
Forfeited | (169,058) | – |
Outstanding at 30 June | 725,969 | 821,646 |
Exercisable at 30 June | – | – |
The weighted average remaining contractual life is one year and nil months (2023: one years and eight months). The fair
value of the awards is the closing share price on the date of grant.
Long term bonus plan – deferred shares
Certain members of the Group are eligible to participate in the Company’s long term bonus plan. The scheme rules
dictate that up to half of the bonus earned is awarded in restricted shares. The shares are restricted for a period of
twelve months. Participants must remain in employment to receive the restricted shares, but there are no other
associated performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
| 2024 | 2023 | |
| Number | Number | |
Outstanding at 1 July | – | – |
Granted | 129,136 | – |
Exercised | – | – |
Outstanding at 30 June | 129,136 | – |
Exercisable at 30 June | – | – |
The weighted average remaining contractual life is three months (2023: nil months). The fair value of the awards is the
closing share price on the date of grant.
181
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| Other | Retained | ||
| reserves | earnings | ||
Group | Notes | £m | £m |
At 30 June 2022 | 132.2 | (55.6) | |
Profit for the year | – | 9.1 | |
Dividends paid | 9 | – | (9.6) |
Share-based payments | 25 | – | 3.4 |
Movement in fair value of PPP and other investments | 16 | – | (2.4) |
Purchase of own shares | – | (14.0) | |
Cancellation of shares | 3.1 | – | |
At 30 June 2023 | 135.3 | (69.1) | |
Profit for the year | – | 36.2 | |
Dividends paid | 9 | – | (24.2) |
Share-based payments | 25 | – | 1.8 |
Tax relating to share-based payments | – | 2.0 | |
Movement in fair value of PPP and other investments | 16 | – | (1.5) |
Purchase of own shares | – | (12.0) | |
Cancellation of shares | 1.1 | – | |
At 30 June 2024 | 136.4 | (66.8) |
182 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
26 Other reserves and retained earnings continued
| Other | Retained | ||
| reserves | earnings | ||
Company | Notes | £m | £m |
At 30 June 2022 | 132.2 | 109.7 | |
Profit for the year | – | 25.0 | |
Dividends paid | 9 | – | (9.6) |
Share-based payments | – | 0.5 | |
Purchase of shares | 15 | – | (10.6) |
Cancellation of shares | 3.1 | – | |
At 30 June 2023 | 135.3 | 115.0 | |
Profit for the year | – | 23.3 | |
Dividends paid | 9 | – | (24.2) |
Share-based payments | – | 0.7 | |
Purchase of shares | 15 | – | (4.4) |
Cancellation of shares | 1.1 | – | |
At 30 June 2024 | 136.4 | 110.4 |
183
Financial statementsGovernanceStrategic report
| Sales to | Amounts owed by | |||
| related parties | related parties | |||
| 2024 | 2023 | 2024 | 2023 | |
| £m | £m | £m | £m | |
| Trading transactions | ||||
Related parties | 79.3 | 71.2 | 35.1 | 36.8 |
| Interest and dividend income | ||
| from related parties | ||
| 2024 | 2023 | |
| £m | £m | |
| Non-trading transactions | ||
Related parties | 3.8 | 4.1 |
184 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
29 Related party transactions continued
| Interest and dividend income | ||
| from related parties | ||
| 2024 | 2023 | |
| £m | £m | |
| Non-trading transactions | ||
Subsidiary undertakings | 22.9 | 25.0 |
30 Business combinations
During the year, the Group acquired (i) 100% of the share capital AVRS Systems Limited. The Group has also finalised
the acquisition accounting of MCS Control Systems Limited and certain contracts and assets of Ham Baker Limited
(in administration) having previously reported the balances as provisional in accordance with IFRS 3. In the prior year,
the acquisition accounting for nmcn was also finalised.
(i) AVRS Systems Limited
On 8 November 2023, the Group acquired 100% of the share capital of AVRS Systems Limited (“AVRS”), a leading
mechanical and electrical engineering specialist for £4.5m settled in cash. The addition of AVRS’s capabilities is
complementary to the operations of Galliford Try’s expanding Environment asset optimisation and capital maintenance
business in line with the Group’s strategy. In particular, AVRS provides additional competencies that complement those
acquired over the past two years with nmcn’s Water business, Lintott Control Systems Limited, MCS Control Systems
Limited and the capital maintenance business of Ham Baker.
The goodwill of £0.9m arising from the acquisition is significantly attributable to the acquired workforce and their
technical expertise and the opportunity to leverage this expertise across the Group to enhance the asset optimisation
and capital maintenance strategy.
The following table summarises the consideration paid and the provisional fair value of the assets acquired and
liabilities assumed.
| £m | |
| Recognised amounts of identifiable assets acquired and liabilities assumed | |
Property plant and equipment (including right-of-use assets) | 1.0 |
Intangible assets | 1.0 |
Trade and other receivables | 2.5 |
Cash and cash equivalents | 1.0 |
Trade and other payables | (0.9) |
Corporation tax liability | (0.3) |
Lease liabilities | (0.5) |
Deferred tax liability | (0.2) |
Total identifiable net liabilities | 3.6 |
Goodwill | 0.9 |
Total | 4.5 |
| Consideration | |
Cash | 4.5 |
Total | 4.5 |
185
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30 Business combinations continued
As part of the conditions of the sale and in addition to the initial consideration of £4.5m, an earn out arrangement is in
place, whereby the sellers are entitled up to additional £2.5m. Due to the nature of the earn out, this will be treated as
remuneration as it requires the sellers to remain in employment during the earn out period of two years. The earn out
accrued during the year is £0.6m.
The acquisition contributed £9.5m of revenue and a profit before tax of £0.4m in the period to 30 June 2024. If the
acquisition had taken place at 1 July 2023, it would have contributed £13.2m of revenue and a profit before tax of £1.1m.
(ii) MCS Control Systems Limited
On 8 July 2022, the Group acquired 100% of the share capital of MCS Control Systems Limited (MCS), a leading systems
integrator to the industrial and utilities sectors for consideration of £1 settled in cash. The addition of MCS’s capabilities is
complementary to the operations of Galliford Try’s expanding Environment business. In particular, MCS provides additional
competencies that complement those acquired in October 2021 with nmcn’s Water business and Lintott Control Systems
Limited and will accelerate the growth of Galliford Try Environment’s asset optimisation and capital maintenance strategy.
The goodwill of £3.2m arising from the acquisition is significantly attributable to the acquired workforce and their
technical expertise and the opportunity to leverage this expertise across the Group to enhance the asset optimisation
and capital maintenance strategy.
The following table summarises the consideration paid and fair value of the assets acquired and liabilities assumed.
| £m | |
| Recognised amounts of identifiable assets acquired and liabilities assumed | |
Property plant and equipment | 0.1 |
Intangible assets | 0.2 |
Right-of-use assets | 0.6 |
Trade and other receivables | 3.2 |
Trade and other payables | (5.9) |
Bank and other borrowings | (0.8) |
Lease liabilities | (0.6) |
Total identifiable net liabilities | (3.2) |
Goodwill | 3.2 |
Total | – |
| Consideration | |
Cash | – |
Total | – |
The acquisition contributed £5.7m of revenue and a £0.7m loss before tax and amortisation in the year to 30 June 2023,
which is similar to the contribution it would have made if acquired at the start of the financial year.
(iii) Ham Baker
On 18 November 2022, the Group acquired certain contracts and assets from Ham Baker Limited (in administration)
for £225,000 settled in cash. The Group has acquired the asset inspection, maintenance and screens and distributor
operations. The acquired business produces a variety of engineered products for the water industry, which the Group will
use as a basis to develop a low carbon engineering offering, enabling products and raw materials to be reused if possible,
and reducing waste. The acquisition brings complementary capabilities to the Group’s growing Environment business and
will give it a further advantage in preparing for the water industry’s AMP8 cycle, in particular addressing storm overflow
challenges. It also plays into Galliford Try’s role in decarbonising the industry for a greener, more sustainable future.
Similar to the MCS Control Systems Limited acquisition, the goodwill of £0.5m arising from the acquisition is significantly
attributable to the acquired workforce and their technical expertise and the opportunity to leverage this expertise
across the Group to enhance the asset optimisation and capital maintenance strategy.
186 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
30 Business combinations continued
The following table summarises the consideration paid and fair value of the assets acquired and liabilities assumed.
| £m | |
| Recognised amounts of identifiable assets acquired and liabilities assumed | |
Intangible assets | 0.1 |
Trade and other payables | (0.4) |
Total identifiable net liabilities | (0.3) |
Goodwill | 0.5 |
Total | 0.2 |
| Consideration | |
Cash | 0.2 |
Total | 0.2 |
The acquisition contributed £1.5m of revenue and a £1.6m loss before tax and amortisation in the year to 30 June 2023.
The performance of the business preceding the acquisition was impacted by Ham Baker Limited entering administration,
and accordingly it is impracticable to assess the contribution it would have made to the Group if acquired at the start of the
reporting period.
31 Events after the reporting date
On 3 October 2024, the Group announced a further share buyback programme of up to a maximum of £10m, details can be
found in the announcement on the Group’s investor website.
There were no other material post balance sheet events arising after the reporting date.
187
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32 Alternative performance measures
Throughout the Annual Report and Accounts, the Group has presented financial performance measures which are used
to manage the Group’s performance. These financial performance measures are chosen to provide a balanced view
of the Group’s operations and are considered useful to investors as they provide relevant information on the Group’s
performance. They are also aligned to measures used internally to assess business performance in the Group’s budgeting
process and when determining compensation. An explanation of the Group’s financial performance measures and
appropriate reconciliations to its statutory measures are provided below.
Providing clarity on the Group’s alternative performance measures
The Group has included this note and the enclosed explanations and reconciliations with the aim of providing transparency
and clarity on the measures adopted internally to assess performance. The APMs adopted by the Group are also commonly
used in the sectors it operates in. This additional information is not defined under international accounting standards and
may therefore not be comparable with similarly titled profit measures reported by other companies. It is not intended to
be a substitute for, or superior to, international accounting standards measures of profit.
The Board believes that disclosing these performance measures enhances investors’ ability to evaluate and assess the
underlying financial performance of the Group’s operations and the related key business drivers.
Measuring the Group’s performance
The following measures are referred to in this report:
Statutory measures
Statutory measures are derived from the Group’s reported financial statements, which are prepared in accordance with UK
adopted International Accounting Standards and in line with the Group’s accounting policies, that can be found in note 1.
The Group’s statutory measures take into account all of the factors, including exceptional items which do not reflect the
ongoing underlying performance of the Group.
Alternative performance measures
In assessing its performance, the Group has adopted certain non-statutory measures that reflect the underlying
performance of the Group. These typically cannot be directly extracted from its financial statements but are reconciled
to statutory measures below:
a) Pre-exceptional performance
The Group adjusts for certain significant irregular (exceptional) items which the Board believes assist in understanding
the performance achieved by the Group as this reflects the underlying and ongoing performance of the business.
A reconciliation of the statutory measure to the pre-exceptional measure is provided in the following tables. In the
financial year ended 30 June 2023, the Group also presented pre-exceptional performance excluding the impairment of
financial assets as a result of a one off contract settlement as announced on 8 June 2023 (disclosed in the consolidated
income statement as an impairment of financial assets of £2.8m).
b) Operating profit before amortisation
The Group adjusts operating profit to exclude the amortisation of intangible assets as this reflects the ongoing
performance of the business. Operating margin reflects the ratio of pre-exceptional operating profit before amortisation
of intangible assets and revenue. In the financial year to 30 June 2023, operating margin also excludes the impairment of
financial assets as a result of the one off contract settlement as announced on 8 June 2023. This differs from the statutory
measure of operating profit which includes the amortisation of intangible assets. Divisional operating margin is the
combined operating margin of Building and Infrastructure.
188 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
32 Alternative performance measures continued
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
| PPP | |||||
| Building | Infrastructure | Investments | Central | Total | |
| £m | £m | £m | £m | £m | |
| Year ended 30 June 2024 | |||||
Statutory operating profit/(loss) | 23.0 | 19.0 | (1.0) | (16.3) | 24.7 |
exclude: amortisation of intangible assets (note 11) | 1.0 | 1.1 | – | 0.2 | 2.3 |
exclude: exceptional items (note 4) | – | – | – | 2.6 | 2.6 |
Pre-exceptional operating profit before amortisation | 24.0 | 20.1 | (1.0) | (13.5) | 29.6 |
Revenue | 938.3 | 819.8 | 14.7 | – | 1,772.8 |
Operating margin | 2.6% | 2.5% | n/a | n/a | 1.7% |
| Year ended 30 June 2023 | |||||
Statutory operating profit/(loss) | 17.5 | 10.8 | 1.4 | (24.1) | 5.6 |
exclude: amortisation of intangible assets (note 11) | 1.0 | 0.9 | – | 1.1 | 3.0 |
exclude: exceptional items (note 4) | – | – | – | 10.5 | 10.5 |
Pre-exceptional operating profit before amortisation | 18.5 | 11.7 | 1.4 | (12.5) | 19.1 |
exclude: impairment of financial assets (note 17) | – | 2.8 | – | – | 2.8 |
| Pre-exceptional operating profit before amortisation | |||||
excluding the impairment of financial assets | 18.5 | 14.5 | 1.4 | (12.5) | 21.9 |
Revenue | 797.1 | 590.8 | 5.8 | – | 1,393.7 |
Operating margin excluding the impairment of financial assets | 2.3% | 2.5% | n/a | n/a | 1.6% |
c) Pre-exceptional profit before tax
The Group uses a profit before tax measure which excludes exceptional items and other items as noted above. This differs
from the statutory measure of profit before income tax, which includes these items.
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
| 2024 | 2023 | |
| £m | £m | |
Statutory profit before tax | 30.9 | 10.1 |
exclude: exceptional items (note 4) | 1.8 | 10.5 |
Pre-exceptional profit before tax | 32.7 | 20.6 |
Pre-exceptional profit before tax excluding the impairment of financial assets in 2023 was £23.4m.
189
Financial statementsGovernanceStrategic report
32 Alternative performance measures continued
d) Pre-exceptional earnings per share
In line with the Group’s measurement of adjusted performance, the Group also presents its earnings per share on an
adjusted basis. This differs from the statutory measure of earnings per share, which includes these items. A reconciliation
of the statutory measure to the Group’s performance measure (post-tax) is shown below, based on continuing operations:
2024 | 2023 | |||||
| Weighted | Weighted | |||||
| Earnings | average number | EPS | Earnings | average number | EPS | |
| £m | of shares | pence | £m | of shares | pence | |
Statutory results | 36.2 | 100,051,095 | 36.2 | 9.1 | 105,180,316 | 8.7 |
exclude: exceptional items (note 4) | (8.3) | n/a | n/a | 8.4 | n/a | n/a |
Pre-exceptional earnings per share | 27.9 | 100,051,095 | 27.9 | 17.5 | 105,180,316 | 16.6 |
Pre-exceptional earnings per share excluding the impairment of financial assets in 2023 was 18.9p based on post-tax profit
of £19.9m.
| Shareholding | |||||
| (direct or | |||||
Entity name | Registered office or principal place of business | indirect) | |||
Charles Grip Surfacing Limited | Miller House, Pontefract Road, Normanton, WF6 1RN | 100% | |||
Construction Holdco 1 Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Brick Factors Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Asset Intelligence Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Building 2014 Limited | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 100% | |
Galliford Try Construction Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
| Galliford Try Construction & Investments | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
| Holdings Limited | |||||
Galliford Try Corporate Holdings Limited | PO Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 100% | ||
Galliford Try Employment Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Estates Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Facilities Management Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try HPS Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Infrastructure Limited | PO | Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 100% | |
| Galliford Try Investments Consultancy | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
| Services Limited | |||||
Galliford Try Investments Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Investments NEPS Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Plant Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Properties Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Construction Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||
Galliford Try Secretariat Services Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% |
190 Galliford Try Annual Report and Financial Statements 2024
Notes to the financial statements continued
| Shareholding | |||||||
| (direct or | |||||||
Entity name | Registered office or principal place of business | indirect) | |||||
Galliford Try Services Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Galliford Try Telecommunications Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Galliford Try (Water) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT (Leeds) Lift Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT (Leicester) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT (North Hub) Investments Limited | PO | Box | 17452 | , 2 Lochside View, Edinburgh, EH12 1LB | 100% | ||
GT (North Tyneside) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Camberwell (Holdings) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Camberwell Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Car Parks Leicester (Holdings) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Car Parks Leicester Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Guildford Crescent Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
GT Inverness Investments Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 100% | |
GT Telford (Holdings) Limited | PO Box 17452, | 2 Lochside | View, Edinburgh, EH12 1LB | 100% | |||
GT TMGL Limited | PO | Box 17452, | 2 | Lochside View, Edinburgh, EH12 1LB | 100% | ||
GTFM (Cavalry) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Ham Baker Engineering Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Kingseat Development 1 Limited | Morrison House, Kingseat Business Park, Kingseat, | 100% | |||||
| Newmachar, Aberdeenshire, AB21 0AZ | |||||||
Leicester GT Education Company Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Lintott Control Systems Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Lintott Environmental Technologies Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
MCS Control Systems Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
AVRS Systems Limited | Avrs Systems Ltd Lonning End, Ponsonby, Seascale, | 100% | |||||
| Cumbria, England, CA20 1BU | |||||||
Morrison Construction Limited | PO Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 100% | ||||
Morrison Highway Maintenance Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Oak Specialist Services Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Regeneco (Services) Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Regeneco Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% | |||||
Try Construction Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 100% |
33 Group undertakings continued
191
Financial statementsGovernanceStrategic report
33 Group undertakings continued
| Proportion of | Financial | |||||||
Entity name | Registered office or principal place of business | capital held | year-end | |||||
Aberdeen Roads (Finance) PLC | Maxim 7, Maxim Office Park, Parklands Avenue, | 33% | 31-Dec | |||||
| Eurocentral, Holytown, Scotland, ML1 4WQ | ||||||||
Aberdeen Roads Holdings Limited | Maxim 7, Maxim Office Park, Parklands Avenue, | 33% | 31-Dec | |||||
| Eurocentral, Holytown, Scotland, ML1 4WQ | ||||||||
Aberdeen Roads Limited | Maxim 7, Maxim Office Park, Parklands Avenue, | 33% | 31-Dec | |||||
| Eurocentral, Holytown, Scotland, ML1 4WQ | ||||||||
ACP: North Hub Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | 31-Dec | |
GBV JV Limited | 3 Frayswater Place, Uxbridge, UB8 2AD | 50% | 30 -Jun | |||||
GT Equitix Inverness Limited | PO | Box | 17452 | , 2 Lochside View, Edinburgh, EH12 1LB | 50% | 31-Mar | ||
GT Equitix Inverness Holdings Limited | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 50% | 31-Mar | |||
Hub South East Scotland Limited | 8 Melville Street, Edinburgh, EH3 7NS | 50% | 31-Mar | |||||
Kingseat Development 2 Limited | Morrison House, Kingseat Business Park, Kingseat, | 50% | 3 0 -Jun | |||||
| Newmachar, Aberdeenshire AB21 0AZ | ||||||||
Space Scotland Limited | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 83% | 31-Mar | |||
Urban Vision Partnership Limited | 65 Gresham St, London, EC2V 7NQ | 30% | 31-Dec |
| Proportion of | |||||||
| capital held by | |||||||
Entity name | Registered office or principal place of business | class | |||||
Aberdeen Community Health Care Village Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | |
Alliance Community Partnership Limited | Avondale House, Suites 1l – 1o Phoenix Crescent | 10% | |||||
| Strathclyde Business Park, Bellshill, | |||||||
| North Lanarkshire, Scotland, ML4 3NJ | |||||||
Galliford Try Qatar LLC | PO Box 11726 Doha, State of Qatar | 49% | |||||
| (incorporated in Qatar) | |||||||
Hub North Scotland (Alford) Limited | 2 Lochside View, | PO Box 17452, | Edinburgh, EH12 1LB | 30% | |||
Hub North Scotland (FWT) Limited | Box | 17452 | PO | , 2 Lochside View, Edinburgh, EH12 1LB | 30% | ||
Hub North Scotland (O&C) Limited | PO Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | ||||
Hub North Scotland (O&C) Holdings Limited | Box | 1745 | PO | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | |
Hub North Scotland Limited | PO Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | ||||
James Gillespie’s Campus Subhub Holdings Limited 8 Melville Street, Edinburgh, EH3 7NS | 50% | ||||||
James Gillespie’s Campus Subhub Limited | 8 Melville Street, Edinburgh, EH3 7NS | 50% | |||||
LBP DBFM Holdco Limited | 2 | Box | 1745 | PO | 2, | Lochside View, Edinburgh, EH12 1LB | 50% |
LBP DBFMco Limited | 2 Lochside View, | PO Box 17452, | Edinburgh, EH12 1LB | 50% | |||
Newbattle DBFM HoldCo Limited | 2 Lochside | PO Box | 52, | 174 | View, Edinburgh, EH12 1LB | 50% | |
Newbattle DBFMCo Limited | PO Box | 17452 | , 2 Lochside View, Edinburgh, EH12 1LB | 50% | |||
ELCH DBFMCo Limited | Box | 17452 | PO | , 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||
192 Galliford Try Annual Report and Financial Statements 2024
| Proportion of | ||||||||
| capital held by | ||||||||
Entity name | Registered office or principal place of business | class | ||||||
ELCH DBFM Holdco Limited | PO | Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||||
WCHS DBFMCo Ltd | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||
WCHS DBFM Holdco Ltd | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 50% | ||||
JICC DBFMCo Ltd | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||
JICC DBFM Holdco Ltd | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 50% | ||||
KHS DBFM HoldCo Limited | PO | Box | 17452 | , 2 Lochside View, Edinburgh, EH12 1LB | 50% | |||
KHS DBFMCo Limited | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 50% | ||||
QHS DBFMCo Ltd | PO | Box | 17452 | , 2 Lochside View, Edinburgh, EH12 1LB | 50% | |||
QHS DBFM Holdco Ltd | PO | Box 17452, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||||
REH Phase 1 Subhub Holdings Limited | PO Box 17452, | 2 Lochside | View, Edinburgh, EH12 1LB | 50% | ||||
REH Phase 1 Subhub Limited | PO Box 17452, | 2 Lochside View, | Edinburgh, EH12 1LB | 50% | ||||
REH Phase 2 DBFM HoldCo Limited | PO Box 17452, | 2 Lochside | View, Edinburgh, EH12 1LB | 50% | ||||
REH Phase 2 DBFMCo Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 50% | ||
Hub North Scotland (I&F) Holdings Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | ||
Hub North Scotland (I&F) Limited | PO | Box | 1745 | 2, | 2 Lochside View, Edinburgh, EH12 1LB | 30% | ||
Hub South West Scotland Limited | Avondale House, Suites 1l – 1o Phoenix Crescent | 6% | ||||||
| Strathclyde Business Park, Bellshill, | ||||||||
| North Lanarkshire, ML4 3NJ | ||||||||
Hub SW Cumbernauld DBFMCo Limited | Avondale House, Suites 1l – 1o Phoenix Crescent | 6% | ||||||
| Strathclyde Business Park, Bellshill, | ||||||||
| North Lanarkshire, ML4 3NJ | ||||||||
Hub SW Cumbernauld Holdco Limited | Avondale House, Suites 1l – 1o Phoenix Crescent | 6% | ||||||
| Strathclyde Business Park, Bellshill, | ||||||||
| North Lanarkshire, ML4 3NJ | ||||||||
33 Group undertakings continued
Notes to the financial statements continued
193
Financial statementsGovernanceStrategic report
Five-year record (unaudited)
2020
£m
2021
£m
2022
£m
2023
£m
2024
£m
Revenue 1,121.6 1,124.8 1,237.2 1,393.7 1,772.8
Profit/(loss) before exceptional items (59.7) 11.4 19.1 20.6 32.7
Exceptional items 25.1 – (13.7) (10.5) (1.8)
Profit/(loss) before taxation (34.6) 11.4 5.4 10.1 30.9
Tax 2.0 (1.0) 0.9 (1.0) 5.3
Profit/(loss) after taxation attributable to shareholders (32.6) 10.4 6.3 9.1 36.2
Fixed assets (including IFRS 16 right-of-use assets),
investments in joint ventures, PPP and other investments 67.5 73.2 79.4 90.4 98.5
Intangible assets and goodwill 85.0 82.9 97.0 98.3 97.9
Net current assets/(liabilities) (14.4) (24.4) (43.4) (61.4) (56.5)
Other long-term assets 5.3 14.3 14.0 15.5 15.0
Long-term payables and provisions (22.9) (11.9) (14.9) (24.2) (32.5)
Net assets 120.5 134.1 132.1 118.6 122.4
Share capital 55.5 55.5 55.5 52.4 52.0
Share premium – – – – 0.8
Reserves 65.0 78.6 76.6 66.2 69.6
Shareholders’ funds 120.5 134.1 132.1 118.6 122.4
Dividends per share (pence) – 4.7 8.0 22.5 15.5
Basic earnings per share (pence)
1
(47.7) 9.5 16.0 16.6 27.9
Diluted earnings per share (pence)
1
(47.7) 9.1 15.0 15.6 26.7
1 Pre-exceptional.
194 Galliford Try Annual Report and Financial Statements 2024
Shareholder information
Financial calendar 2024
Half year results announced 6 March
Full year results announced 3 October
Ex dividend date – final dividend 7 November
Final dividend record date 8 November
Annual General Meeting 28 November
Final dividend payment 5 December
Shareholder enquiries
The Company’s registrars are Equiniti Limited. They will
be pleased to deal with any questions regarding your
shareholding or dividend payments. Please notify them if
you change your address or other personal information.
Call the shareholder contact centre on 0371 384 2202.
Lines open from 8.30am to 5.30pm, Monday to Friday.
Alternatively, write to them at:
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
You can find a number of shareholder services online
via their website at www.shareview.co.uk, including
the portfolio service which gives you access to more
information on your investments such as balance
movements, indicative share prices and information on
recent dividends. You can also register your email address
to receive shareholder information and Annual Report
and Accounts electronically.
Share dealing service
A telephone and internet dealing service is available
through Equiniti which provides a simple way of buying
and selling Galliford Try shares. Commission is currently
1.5% with a minimum charge of £60 for telephone dealing
and a minimum charge of £45 for internet dealing. For
telephone sales call 0345 603 7037 between 8.00am
and 4.30pm, Monday to Friday, and for internet sales
log on to www.shareview.co.uk/dealing. You will need
your shareholder reference number as shown on your
share certificate. Share dealing services are also widely
provided by other organisations. The Company is listed
on the London Stock Exchange under the code GFRD
and the SEDOL and ISIN references are BKY40Q3 and
GB00BKY40Q38.
Group website
You can find out more about the Group on our website
www.gallifordtry.co.uk which includes a section specifically
prepared for investors. In this section you can check the
Company’s share price, find the latest Company news, look
at the financial reports and presentations as well as search
frequently asked questions and answers on shareholding
matters. There is also further advice for shareholders
regarding unsolicited boiler room frauds.
Company contact
Contact with existing and prospective shareholders
is welcomed by the Company. If you have any questions
please contact the General Counsel & Company
Secretary, either at the registered office or via email
(kevin.corbett@gallifordtry.co.uk).
Analysis of shareholdings at 30 June 2024
Size of
shareholding
% of
holders
Number
of holders
% of
shares
Number
of shares
1–10,000 91.64% 2,808 2.81% 2,921,161
10,0 01–
50,000 4.11% 126 2.83% 2,947,408
50,001–
500,000 3.04% 93 16.01% 16,642,698
500,001 –
highest 1.21% 37 78.35% 81,464, 519
Total 100.00% 3,064 100.00% 103,975,786
Registered office
Galliford Try Holdings plc
Blake House
3 Frayswater Place
Cowley
Uxbridge
Middlesex
UB8 2AD
Stockbrokers
Peel Hunt LLP
Panmure Liberum Limited
Bankers
Barclays Bank PLC
HSBC Bank PLC
Registration
England and Wales 12216008
Independent auditor
BDO LLP
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Galliford Try Holdings plc Annual Report and Financial Statements 2024
Galliford Try
Blake House,
3 Frayswater Place,
Cowley,
Uxbridge,
Middlesex
UB8 2AD
gallifordtry.co.uk