Galliford Try affirms annual profit outlook

Builder Galliford Try has affirmed expectations for the full year, as it completes a restructuring of its construction business.

Analysts expect profit before tax for the year to be between £112.7 million and £116.4 million, including a £40 million bill for exceptional items.

In April the company issued a profits warning, indicating that it would take a hit of up to £40 million related to the Queensferry Crossing project.

Net debt as of June 30 was £60 million, with an average net debt of £187 million, in line with previous guidance from the group.

Chief executive Graham Prothero said: “The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively.

“I look forward to the next financial year with the appropriate strategic priorities in place across the group.”

It comes as Galliford completes the restructuring of its construction business, which it confirmed in May would affect up to 350 jobs.

Meanwhile, the Linden Homes division of the business has been refocused on mid-range family houses and reduced exposure to central London, where house prices have on average been weaker.

Mr Prothero said: “Despite the weaker economic outlook, Linden Homes continues to see robust demand, with operating efficiencies driving strong margins and improving customer satisfaction.”

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