This time last year, Galliford Try reported an interim loss before tax due in part to costs associated with its autumn 2021 acquisition of failed contractor NMCN’s water business.
Today, with the benefits of that acquisition having filtered through, it has posted strong profits, with an operating margin of 2.3% across its construction activities.
For the six months ended 31st December 2022, Galliford Try grew revenue by 14% to £679m. Profit before tax was £7.2m, compared to a £2.6m loss last time. Excluding exceptional items, pre-tax profit was up 65% to £11.7m (2022 H1: £7.1m)
The Building division generated a profit of £9.3m (H1 2021: £8.4m) on revenue of £399.7m (2022 H1: £386.2m), representing an operating margin of 2.3% (H1 2022: 2.2%).
The Infrastructure division generated a profit of £6.5m (H1 2022: £4.3m) on revenue of £276.6m (2022 H1: £204.4m), representing an operating margin of 2.3% (H1 2022: 2.1%).
The 35% increase in infrastructure revenue included the benefit of the NMCN water business acquired in autumn 2021.
Chief executive Bill Hocking said: “I am pleased with the group’s performance in the first half of the financial year, seeing increasing revenue and divisional operating margin, as we continue to make good progress against our strategic objectives. Our strong performance is a reflection of our excellent people and well established relationships with our supply chain and clients.
“Our strong and high quality order book, in our chosen sectors, provides visibility and security of future workloads. Together with our excellent people and our strong balance sheet, this gives confidence in our ability to deliver our sustainable growth strategy and continue to provide long-term sustainable value for our stakeholders.”
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Galliford Try PLC, a leading construction and housebuilding firm in the UK, has reported a significant rise in its operating margins in its latest financial results. Despite a challenging environment as a result of the global pandemic, the company has seen a significant improvement in its results from 1.2% to 2.3% over the same period of last year.
The improvement in Galliford Try PLC’s operating margins is the result of an expansive cost reduction and service efficiency agenda undertaken by the company. Part of this strategy has included the closure of subsidiary businesses and the divestment of non-core businesses. In addition, the company reported an increase in revenue and an overall return cash flow to shareholders, indicating a significant improvement in the company’s financial position.
The company has also reported progress of several ongoing projects and the delivery of a number of their strategic initiatives in the areas of environment, settlements and public services. this has helped Galliford Try PLC to reduce its overall costs, improve its operational efficiency and further develop its market share.
The strengthened margins also serve to further support the company’s strong balance sheet, further enhancing its ability to execute its strategy. The company’s executive chairman, Peter Truscott, said that the performance underscores “‘the resilience and strength of the Group during difficult market conditions and demonstrates the continuing progress of the strategy to focus on our core businesses”.
Overall, the news of a significant improvement in Galliford Try PLC’s operating margins will be seen as positive news for the company and its shareholders. The company looks set to build on the strong performance in the coming financial period and further increase its market share in the construction and housebuilding industry.
