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 divisions: Building, Infrastructure and Specialist Services, which includes Investments, FM and our dry lining and piling businesses.
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.
Sustainable Growth strategy
Having established Galliford Try as a robust player in the market, our updated strategy elevates our ambitions and sets objectives which aligning profit with purpose. Sustainability, driven by digitalisation, decarbonisation and social value, is at its heart, responding to stakeholder needs and increasing the long-term operational and financial resilience of our organisation.
Sustainability pillar |
Objective |
KPI |
FY20 |
FY21 |
Ambition |
Progressive culture |
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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
|
0.07 |
0.08 |
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 |
8.0% |
7.2% |
Year-on-year increase. |
Women as a % of total employees |
22% |
23% |
Year-on-year increase. |
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Employee advocacy |
*Note 1 |
*Note 1 |
Year-on-year increase. |
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Socially responsible delivery |
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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) |
14,127 |
8,881 |
Net zero by 2030. |
Scope 3 carbon emissions (CO2e tonnes) |
*Note 2 |
*Note 2 |
Net zero by 2045. |
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Waste intensity (tn/£100k revenue) |
13.04 |
7.6 |
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. |
Social value as a % of turnover |
*Note 3 |
*Note 3 |
Year-on-year increase. |
Considerate Constructors Scheme performance |
41.1 (industry ave. 37.1) |
40.6 (industry ave. 38.0) |
>38 and above industry average. |
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Quality and innovation |
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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 |
91% |
92% |
>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 |
58% |
59% |
70%–80% |
Prompt payment – % of invoices paid within 60 days |
88% |
93% |
>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 (5.0)% |
Divisional operating margin 2.0% |
Divisional operating margin growth to 3.0% |
Disciplined contract selection and sustainable revenue growth |
Revenue £1,090m |
Revenue £1,125m |
Revenue growth towards £1.6bn |
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Maintain strong balance sheet |
Average month end cash £141m |
Average month end cash £164m |
Operating cash generation |
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Sustainable dividends |
Dividend cover = n/a |
Dividend cover of 2.0x4 |
Dividend cover of 2.0-2.5x |
Notes
1 Employee advocacy will be measured through regular employee surveys.
2 Historically, we have only reported on one element of our Scope 3 emissions, business use of private vehicles. As part of our commitment to net zero by 2045 and setting a science based interim carbon reduction target, we are currently in the process of performing a Scope 3 screening review to identify the most material Scope 3 emissions categories. We will then develop reporting methodologies for the most material Scope 3 categories and intend to start reporting our Scope 3 emissions from 2023.
3 Our Social Value Calculator was updated and relaunched during the second half of FY21. It captures social value outcomes across six key measures which are then multiplied by the proxy values in the national TOMS framework to give an estimate of total social value delivered. We do not have a full year of data to report in FY21 but intend to start reporting this KPI in FY22.
4 Based on earnings from continuing operations.