Business model and strategy
Galliford Try operates across the UK as a standalone construction group, carrying out work primarily as Galliford Try and Morrison Construction.
Our business is organised into three areas: Building, Infrastructure and Specialist Services, which includes Investments, FM and our dry lining and piling businesses.
Building operates across the UK, designing, constructing and refurbishing assets across markets where we have proven expertise and significant opportunities, particularly the education, health, defence, justice and commercial sectors. Our Facilities Management business works with Building, with an emphasis on the education and health sectors. Our capabilities include delivering high-quality, full life-cycle solutions to our clients, including green retrofit.
Infrastructure division comprises our Environment and Infrastructure businesses, which carry out vital civil engineering projects across the UK. Environment covers the water and sewage sectors, where we are one of the largest players and carry out capital delivery and maintenance, and asset optimisation. Our work in Infrastructure has contributed substantially to the national infrastructure network, from major project delivery of large-scale schemes to delivering road surfacing works and maintenance as a leading player.
Investments has historically specialised in managing construction through to operations for major building projects via public private partnerships. These skill sets are now being used to progress co-development opportunities, with a focus on the PRS (Private Rented Sector). Our expertise in leading bid consortia and arranging finance to devise and secure the right solution on an individual basis makes us attractive to clients.
Our network of regional offices is a key advantage, offering clients the benefit of national strength with local delivery and we are focused on sectors where we have proven strengths, operating predominantly in the public and regulated sectors.
Prior to 2020, Galliford Try was a FTSE 250 construction, housebuilding and regeneration group. The business disposed of its housebuilding divisions Linden Homes and Galliford Try Partnerships on 3 January 2020 becoming a well-capitalised, standalone construction-focused group. In 2021, Galliford Try announced its Sustainable Growth Strategy and acquired the water business of nmcn, including Lintott, following administration of the company. As part of the £1 million acquisition, circa 900 employees joined Galliford Try. In July 2022, we acquired MCS Control Systems.
Sustainable Growth strategy
Our strategy is to deliver high-quality buildings and infrastructure in a socially responsible way and provide a sustainable return for our shareholders.
Our strategy targets sustainable growth across revenue and margin. Our focus is on margin growth, with revenue targeted where markets support growth.
Growth will be achieved by:
Sustainability, driven by digitalisation, decarbonisation and social value, is at the core of our strategy, responding to stakeholder needs and increasing the long-term operational and financial resilience of our organisation.
Sustainability pillar |
Objective |
KPI |
FY21 |
FY22 |
2026 ambition |
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Health and safety |
Prioritising health, safety and wellbeing and ensuring no harm to anyone linked with our operations. |
Accident Frequency Rate
|
0.08 |
0.06 |
No harm. |
Lost Time Incident Rate |
0.26 |
0.26 |
No harm. |
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Our people |
Creating an inclusive environment and progressive culture that enables all individuals to reach their potential. |
Early careers as a % of total employees |
7.2% |
6.1% |
Year-on-year increase. |
Women as a % of total employees |
23% |
21.2% |
Year-on-year increase. |
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Employee advocacy |
Not measured |
85% |
>80% |
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Environment and climate change |
Adopting sustainable resourcing and consumption practices and taking measures to mitigate carbon production and climate change to protect our environment and biodiversity. |
Scope 1 and 2 carbon emissions (CO2e tonnes) |
11,525 |
10,795 |
Net zero by 2030. |
Scope 3 carbon emissions (CO2e tonnes) |
Not measured |
6,040 |
Net zero by 2045. |
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Waste intensity (tn/£100k revenue) |
7.6 |
20.96 |
Year-on-year reduction. |
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Communities |
Making a positive impact in communities where we operate by delivering greater social value and improving lives. |
% of completed projects delivering >25% SLEV as a % of contract value |
Not measured |
50% |
60% |
Considerate Constructors Scheme performance |
40.6 (industry ave. 38.0) |
41.8 (industry ave 39.0) |
>38 and above industry average. |
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Clients |
Delivering lower carbon, superior buildings and infrastructure with a better social footprint for clients in our chosen markets through a focus on innovation, digitalisation and quality. |
% of repeat business in our order book |
92% |
94% |
>80% |
% of full year planned revenue secured at the start of the financial year |
90% |
90% |
>85% |
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Supply chain |
Aligning our supply chain with our culture and creating collaborative relationships that deliver best practice, innovation and sustainable outcomes for clients, communities and the environment. |
% of business unit core trades spend with Aligned subcontractors |
59% |
60% |
70%–80% |
Prompt payment – % of invoices paid within 60 days |
93% |
98% |
>95% |
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Sustainable financial returns |
|
2026 target |
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Finance |
Earn a sustainable return on the value we deliver. |
Focus on bottom line margin growth |
Divisional operating margin 2.0% |
Divisional operating margin 2.4% |
Divisional operating margin growth to 3.0% |
Disciplined contract selection and sustainable revenue growth |
Revenue £1,125m |
Revenue £1,1237m |
Revenue growth towards £1.6bn |
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Maintain strong balance sheet |
Average month end cash £164m |
Average month end cash £174m |
Operating cash generation |
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Sustainable dividends |
Dividend cover of 2.0x |
Dividend cover of 2.0x |
Dividend cover of 2.0x |