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Trading statements

Galliford Try to take £98m hit on construction projects

03 May 2017 07:58

Galliford Try has reported a strong trading performance for the period from 1 January to 2 May but warned the overall result would be impacted by non-recurring costs in Construction.

It said non-recurring costs of around £98m were expected following a reappraisal of costs to complete and recoveries from legacy contracts in Construction.

The group said underlying business in Construction was performing well, while Linden Homes and Galliford Try Partnerships & Regeneration continued to make strong progress.

It said group outlook for FY 2017 and future years was otherwise unchanged.

It said the balance sheet and cash position remained robust, and the group expected to pay a final dividend in line with previous guidance.

The group also said it had made good progress towards 2021 strategic targets to deliver sustainable growth and strong returns across all three businesses.

Chief executive Peter Truscott said: "The impact of the legacy projects in Construction, in particular the two large infrastructure projects, is regrettable.

"However, as described in our recent Strategy presentation, Galliford Try is no longer undertaking large infrastructure jobs on fixed price contracts.

"There are no other similarly procured major projects in our current portfolio and we are encouraged by the performance of the underlying portfolio of newer work.

"Excluding the non-recurring charge, we remain confident in delivering a strong performance over the full year, and we plan to pay the dividend in line with previous guidance.

"The Group continues to make good progress on our Strategy to 2021, supported by the strong leadership of our reorganised management teams.

"Whilst we remain cautious of continuing macroeconomic uncertainty, all three businesses are focused on exciting targets and clearly defined plans to improve operating efficiency and grow both margins and revenue."

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Related Company: GFRD

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