Topic Business
Date 09 Jan 2020
Galliford Try today provides an update on trading for the half year ended 31 December 2019 following the disposal of the Linden Homes and Partnerships & Regeneration divisions of Galliford Try plc on 3 January 2020.
The Group enters the new year with a high-quality order book of £3.2bn and recent significant contract wins including appointments to the YORCivil four-year major framework for Sheffield Council, AMP7 for Yorkshire Water, AMP7 for Southern Water, the A47 and A303 improvement works for Highways England and, in the private sector, the prestigious Project Nash development in central London for the Portman Estate. The Group is also pleased to acknowledge its re-admittance to the Government's Prompt Payment Code.
The completed transaction means Galliford Try is a well-capitalised construction business. As at 31 December 2019 the Group's pro forma cash balance was £225m*, with average month end cash balances for the second half of the financial year expected to be in excess of £100m.
The underlying construction business continues to perform well and in line with management's expectations for the financial year ending 30 June 2020. As previously highlighted, the Group expects performance to be weighted to the second half of the financial year due to both market uncertainty and the settlement of certain claims in the first half of the year.
The Group expects to announce its results for the half year and a strategy update on 12 March 2020.
Bill Hocking, Chief Executive, commented: "The successful completion of the disposal of the housing and partnerships divisions means Galliford Try is now a well-capitalised and focused UK construction group. Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth. I am very excited about the future opportunities for Galliford Try. There is good momentum in the business, reflected by a number of significant wins through the first half of the year and the strength of the high-quality order book."
⃰ Pro forma cash balance is stated after adjusting for the disposal of the housebuilding divisions, Linden Homes and Partnerships & Regeneration, from Galliford Try plc which completed on 3 January 2020.