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.
We are proud to be one of the UK’s largest construction companies and are passionate about our role in delivering vital social and economic infrastructure across the country, making a real difference to people’s lives. We operate through:
Building
This business operates across the UK through regional bases, designing, constructing and refurbishing assets in markets where we have significant expertise, particularly education, defence, custodial and health.
We also work with carefully chosen private clients in the commercial sector and have selectively re-entered the affordable homes market.
Our Facilities Management (FM) business works with Building, predominantly across education and health, delivering high-quality, full-lifecycle solutions and green retrofitting to enhance the performance and sustainability of client assets.
Infrastructure
Our Infrastructure business, comprising Highways and Environment – including our water and wastewater activities, carries out critical engineering projects.
Environment works with all 13 of the UK’s major water and wastewater companies and is one of the largest contractors in the market, carrying out capital design and delivery, alongside capital maintenance and asset optimisation.
In Highways, we contribute substantially to the national road network and deliver large-scale schemes for local authorities, as well as active travel, maintenance work and urban, multi-modal transport schemes. We deliver civil engineering and highways solutions to assist clients in the energy sector to deliver major infrastructure schemes.
Both Building and Infrastructure have established long-term frameworks with clients where we have a strong track record, focusing on public and regulated sector work that benefits from early involvement. We maintain a substantial presence in Scotland, operating as Morrison Construction.
Investments
Investments leads bid consortia and arranges finance for major building projects via public private partnerships. We specialise in managing construction through to operations and devise and secure solutions for our clients on an individual basis. These skillsets enable us to progress co-development opportunities, with a focus on the Private Rented Sector and affordable homes partnerships.
Specialist Services
This area brings together Asset Intelligence, our integrated physical and electronic security and fire protection business; the newly acquired Nene Valley Fire & Acoustic; Digital Infrastructure, which provides end-to-end services across land acquisition and planning, 5G and connectivity solutions, and large-scale electric vehicle charging infrastructure; and Oak Facades, specialists in facade remediation and installation.
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 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 acquired the water business of nmcn, including Lintott, following administration of the company. Further acquisitions have included MCS Control Systems, Ham Baker Engineering, AVRS Systems and Nene Valley Fire & Acoustic.
Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for our Sustainable Growth Strategy, which aligns our financial objectives with our sustainability aspirations to deliver sustainable profitable growth.
Bill Hocking
Chief Executive , Galliford Try
Sustainable Growth Strategy to 2030
In May 2024, Galliford Try announced its 2030 strategy, targeting in excess of £2.2bn in revenue and a divisional operating margin of 4.0%, having accelerated its strategy to 2026 ahead of programme and with the margin goal rising from 3.0% to 4.0%.
The strategy is founded on the imperative to renew and improve the UK’s social and economic infrastructure, concentrating on three main aspects of our business.
Operating sustainably
Our strategy is underpinned by our approach to sustainability, which is to champion a people-orientated, progressive culture, operating in a socially and environmentally responsible way, and deliver high-quality buildings and infrastructure through a focus on quality and innovation, to provide sustainable financial returns.
|
Sustainability pillar |
Objective |
KPI |
FY24 |
FY25 |
Ambition |
|
Health and safety |
Prioritising health, safety and wellbeing and ensuring no harm to anyone linked with our operations. |
Lost Time Frequency Rate
|
0.14 |
0.09 |
No harm. |
|
Accident Frequency Rate
|
0.04 |
0.03 |
No harm. |
||
|
Our people |
Creating an inclusive environment and progressive culture that enables all individuals to reach their potential. |
Early careers as a % of total employees |
10.2% |
10.1% |
>9.0% |
|
Women as a % of total employees |
22.5% |
23.0% |
Year-on-year increase. |
||
|
Employee advocacy |
87% |
87% |
>80% |
||
|
|
|||||
|
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) |
10,486 |
14,811 |
Net zero by 2030. |
|
Scope 3 carbon emissions (CO2e tonnes) |
7,128 |
8,874 |
Net zero by 2045. |
||
|
Waste intensity (tn/£100k revenue) |
17.7 |
12.4 |
Year-on-year reduction. |
||
|
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 |
79% |
83% |
60% |
|
Considerate Constructors Scheme performance |
42.9 (industry ave 40.6) |
43.9 |
>39 and above industry average. |
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|
|
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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% |
93% |
>80% |
|
% of full year planned revenue secured at the start of the financial year |
92% |
92% |
>85% |
||
|
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 |
61% |
59% |
70%–80% |
|
Prompt payment – % of invoices paid within 60 days |
96% |
97% |
>95% |
||
|
|
FY24 |
FY25 |
2030 target |
||
|
Divisional operating margin |
Focus on both top and bottom line growth and accelerated growth in our higher-margin adjacent market businesses. |
2.5% |
3.0% |
4.0% |
|
|
Revenue |
Maintaining disciplined contract selection and robust risk management in resilient market sectors. |
£1.8bn |
£1.9bn |
>£2.2bn |
|
|
Average month-end cash |
Retain a strong balance sheet and operating cash generation |
£155m |
£179m |
Operating cash generation |
|
|
Dividend cover |
Sustainable dividends with earnings cover of 1.8x. |
1.8x earnings cover |
1.8x earnings cover |
1.8x earnings cover |
|
Our strengths
- Our business is well-capitalised and cash positive.
- We have strong client relationships based on collaborative working.
- Our management team is highly-experienced.
- We have a disciplined approach to project selection.
- We are focused on sectors where we have core and proven strengths.
- We have an excellent position on frameworks and in public and regulated sectors.
- We are committed to creating long-term value for our stakeholders.
