Galliford Try expects return to profit before January

Bosses at Galliford Try expect the company to get back into the black in the first half of its financial year, after its construction sites reopened following the first lockdown.

All the business’s projects have been fully operational since the financial year started on July 1, and productivity is nearly back to normal levels, the company said.

“The group is performing well, in line with the board’s expectations, with an excellent first half year average month end cash position towards the upper end of previous guidance of £125 million to £145 million,” Galliford told investors ahead of a shareholder meeting on Friday.

“The board expects the group to return to profitability in the first half of this financial year and a resumption of dividend with the interim results.”

Shareholders reacted with delight, sending the company’s stock up by around 17% about an hour after markets opened on Friday.

Galliford said it had won a series of new contracts in recent months, including a role in Thames Water’s £590 million investment programme over the next four years.

The company is also included in the £85 million development for two junctions on the M56, and a £60 million schools project for West Lothian Council.

Galliford said its strategy and sector focus makes it “positioned to emerge strongly from the pandemic, supporting the Government’s planned investment in infrastructure and economic recovery.”

It added: “We welcome the Government’s support for the construction sector continuing to operate. Our staff, suppliers and clients’ health, safety and wellbeing remain our top priority.”