Galliford Try posts strong set of results, launches share buyback

3rd Oct 2024 08:23

(Sharecast News) - Galliford Try reported a strong set of full-year financial results on Thursday, with revenue rising 27.2% to £1.77bn, and operating profit before amortisation increasing 35.2% to £29.6m.

The London-listed company exceeded analysts' expectations, with pre-exceptional profit before tax up 39.7% to £32.7m and pre-exceptional earnings per share climbing 47.6% to 27.9p.

Its divisional operating margin improved to 2.5%, and its order book grew 2.7% to £3.8bn, with 92% of 2025 financial year revenue already secured.

The firm maintained a strong balance sheet, with £227m in cash and no debt or pension liabilities.

Its board proposed a final dividend of 11.5p, bringing the total dividend for the year to 15.5p, a 47.6% increase from the prior year.

The firm also announced a £10m share buyback programme.

Galliford Try said it remained confident in its outlook, driven by its high-quality order book and strong operational performance.

"Galliford Try has delivered another year of sequential, robust revenue and margin growth. Our strong progress, well ahead of plan, provided us with the confidence to reset our ambitions over the mid-term, and to announce our updated sustainable growth targets to 2030 at the capital markets event held in May," said chief executive officer Bill Hocking.

"Our commitment to risk management, careful contract selection and operational excellence underpins the consistent year on year performance and our future prospects.

"The UK's planned, and required, investment in economic and social infrastructure continues to support growth in our chosen markets; and our confidence in the group's outlook is supported by our carefully selected, sector focused, high quality order book which provides visibility and security of future workloads."

Hocking said the company would continue doing what it said it would, consistently delivering strong performance, supported by its teams, a strong balance sheet, solid order book, and its supply chain and client relationships.

"I am very much looking forward to working with Kris Hampson, our new chief financial officer, who brings a wealth of stakeholder experience to the group and positions us to further progress our sustainable growth ambition.

"I continue to be impressed by our people, their professionalism and work ethic and thank them all for their contribution to the ongoing success of the group.

"We are confident in the outlook for the current financial year, with 92% of 2025 revenue already secured, and are encouraged by our recent framework and sector wins which align with our strategy to 2030 and underpin the opportunity to deliver further strong performance and sustainable long-term value for all stakeholders."

At 1002 BST, shares in Galliford Try Holdings were up 4.33% at 313p.

Reporting by Josh White for Sharecast.com.