Annual Report and
Financial Statements
2025
Delivering
Sustainable
Growth
Strategic report
1
Our investment case
2
Business overview
4
Our business model
8
Chair’s statement
10
Market review
16
Our strategy
20
Chief Executive’s review
22
Operating sustainably
24
Health and safety
28
Our people
32
Environment and climate change
36
Communities
40
Clients
44
Supply chain
48
Human rights and modern slavery
50
Financial review
54
Operating review
58
Risk management
63
Task Force on Climate-related
Financial Disclosures
76
Stakeholder engagement
and s172(1) statement
Governance
82
Chair’s review
84
Governance at a glance
88
Directors and Executive Board
90
Governance review
90
Our Board’s year
90
Activities and site visits
92
Focus areas in detail
94
Culture and Board effectiveness
96
UK Corporate Governance
Code compliance
97
Nomination Committee report
100
Audit Committee report
104
Remuneration Committee report
108
Directors’ Remuneration Policy report
115
Annual report on remuneration
123
Directors’ report
127
Statement of directors’ responsibilities
Financial statements
128
Independent auditor’s report
137
Consolidated income statement
138
Consolidated statement of
comprehensive income
139
Balance sheets
140
Consolidated and Company
statements of changes in equity
141
Statements of cash flows
142
Notes to the financial statements
185
Five-year record (unaudited)
186
Shareholder information
Cover image:
our bolt-on acquisitions such as the purchase of AVRS in 2023 are giving us further advantage
across the water industry’s AMP8 cycle, adding to our in-house capability across higher margin capital
maintenance and asset maintenance work, where there is strong demand from our water clients.
Revenue
£1,875.2m
(2024 restated: £1,763.7m)
Divisional adjusted operating margin
1,2
3.0%
(2024: 2.5%)
Profit before tax
£44.1m
(2024 restated: £19.2m)
Earnings per share
33.7p
(2024 restated: 27.3p)
Average month-end cash
3
£179m
(2024: £155m)
Net cash
£237.6m
(2024: £227.0m)
Adjusted operating profit
1,2
£40.6m
(2024: £29.6m)
Adjusted profit before tax
1,2
£45.0m
(2024: £35.0m)
Adjusted basic earnings per share
1,2
34.4p
(2024: 29.6p)
Full year dividend per share
19.0p
(2024: 15.5p)
Order book
2
£4.1bn
(2024: £3.8bn)
Performance
6.3% increase in revenue to £1,875m, driven by AMP7 run-off in Environment
and robust Highways performance.
28.6% increase in adjusted profit before tax to £45.0m, driven by volume,
our quality delivery and considered operational management.
3.0% divisional adjusted operating margin, up from 2.5% last year, delivering
our previously communicated target one year ahead.
Total dividend for the financial year of 19.0p per share up 22.6%.
Well-capitalised debt-free balance sheet, £237.6m cash, average month-end cash
for the year of £178.7m, PPP asset portfolio of £38.6m and no pension liabilities.
Completion of £10m share buyback programme, and new £10m share buyback
programme announced, reflecting strong cash performance, a record order book
and confidence in the future.
Non-cash restatement of prior year exceptional items relating to nmcn onerous
contract acquired.
1
See note 32 for a reconciliation of statutory numbers to Adjusted Performance Measures.
2
Adjusted items or non statutory measures.
3
Average month-end cash is a non-statutory measure the Group refers to, being the average
month-end cash balance over the financial year. The cash balance used each month is the
statutory cash and cash equivalents balance.
Strategic report
1
Annual Report and Financial Statements 2025
A compelling investment
Rigorous risk management
The vast majority of the work we undertake is procured via multi-stage
negotiation and early involvement, resulting in an equitable and agreed
allocation of risk between us and the client. We are highly selective, and
only pursue opportunities where we have the skills, resources and contract
terms and conditions to deliver successfully and profitably. Our strategy
of selectivity is underpinned by our sizeable order book and balance sheet
strength, as described below.
99% of our order book is secured via negotiation.
80% of bid criteria is typically based on quality, safety, management skills,
and other expertise, with 20% based on price.
A people-orientated, progressive culture that delivers
for stakeholders
We attract, retain and develop people who share our purpose, values,
objectives and approach to business. We empower them with the tools and
resources required to carry out their work, provide an environment where
they are motivated to give their best, and reward them competitively so that
they deliver for our stakeholders.
Consistently high, and above average, employee advocacy score of 87%.
Voted the number one Construction and Civil Engineering company for
both Apprentices and Graduates by The Job Crowd.
Robust market opportunity
We have established positions in sectors with long-term drivers of
demand, including ageing social and economic infrastructure, which needs
to be replaced, repaired or upgraded; the impact of climate change, and
population changes. We are also growing in higher margin adjacent markets
such as asset maintenance and optimisation in water, where the work
complements our capabilities, there is strong demand, and the risk profile
is within our appetite.
Investment in these key sectors was reinforced in June 2025’s
Spending Review.
Our geographical footprint, and excellent client and supplier relationships
also give us an advantage by enabling us to successfully deliver work
nationally with a local approach.
93% of our clients are in the public and regulated sectors.
90% of our work is in long-term frameworks.
93% repeat business based on successful delivery.
Strong financial position
Our strong balance sheet is important to our clients, supply chain and
employees. It means we will be around to deliver for clients in the long term,
can pay our supply chain on time, and offer job security for our people. It also
enables us to invest in our business and people, and provides the agility to
react quickly to strategic opportunities when they arise. A strong balance
sheet also means we don’t pursue work that doesn’t have the right terms
for us, reinforcing our approach to risk.
Four acquisitions since 2021.
£107.7m inclusive of the newly announced £10m share buyback returned
to shareholders since FY21.
352% total shareholder returns for the period from 1 July 2020
to 30 June 2025.
See our Sustainable Growth Strategy to 2030 on page 16.
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.
Delivering the
UK’s construction needs
“We have delivered our fifth consecutive year
of revenue and margin growth and continue
to demonstrate consistency with our results.
Demand within our markets remains strong,
as the UK targets its objectives of a productive,
connected economy, better infrastructure,
improved living standards, and resilience,
reinforced by June 2025’s Spending Review.
With excellent teams, collaborative supplier
and client relationships, and an embedded
approach to risk, we are well positioned to take
advantage of the significant opportunities in
both our existing and newer higher-margin
adjacent markets.”
Bill Hocking
Chief Executive
2
Galliford Try
What we believe
Our purpose is to improve people’s lives by
delivering the buildings and infrastructure
that communities need, while providing
opportunities for our people to learn,
grow and progress; working with our
supply chain to promote the very best
working practices; and caring for the
environment in which we work.
Modern Methods of Construction enable new heights
at The Rise
Pictured to the right, The Rise is a landmark project, which will become
one of Cardiff’s tallest buildings, delivering 272 Private Rented Sector
(PRS) apartments, retail units, and amenity spaces. The project is privately
funded by Lloyds Living, with Galliford Try Investments acting as the
client, and our Building division undertaking construction.
Situated on a tight site bordered by a railway station, this feat of
construction would not have been possible without our use of
Modern Methods of Construction. The project adopted off-site
fabrication, modular integration, and a streamlined assembly process
to overcome access challenges, enhance build efficiency and ensure
a consistently high standard of quality across the development.
This included the use of pre-cast concrete panels that integrate
façade, floor planks, internal walls and stairwells; pre-assembled
bathroom and shower pods and MEPV (Mechanical, Electrical,
Plumbing and Ventilation) modules.
Business overview
A leading UK construction group
Strategic report
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Annual Report and Financial Statements 2025
Our vision and values
Our vision is to be a people-orientated,
progressive business, driven by our
values to deliver for our stakeholders
and the communities we work in.
Excellence
Delivering the best.
Passion
Committed
to all we do.
Integrity
Demonstrating strong
ethical standards.
Collaboration
Dedicated to
working together
to achieve results.
Our
values
4
Galliford Try
Our business model
A progressive UK construction business
What we do
We are a major (tier one) contractor, leading the
overall management of a project, liaising with designers,
and selecting and managing subcontractors to carry out
works under our direction.
We operate predominantly as Galliford Try in England
and Wales, and as Morrison Construction in Scotland.
Our network of regional offices is a key advantage, offering
clients the benefit of national strength with local relationships.
Building
Operates across the UK, designing,
constructing and refurbishing assets
across markets where we have
significant expertise and opportunities,
particularly the education, defence,
custodial and health sectors. In addition,
we work with carefully chosen blue-
chip clients in the commercial sector
and have selectively re-entered the
affordable homes market. Our Facilities
Management (FM) business works with
Building, predominantly in the education
and health sectors. Its capabilities
include delivering high-quality,
full life-cycle solutions and green
retrofitting to enhance the sustainability
performance of client assets.
Infrastructure
Carries out vital civil engineering
projects across the UK. It comprises:
Environment
where we work with
all 13 of the UK’s major water and
sewage companies and are one of
the largest contractors in the market,
carrying out capital design and delivery,
alongside maintenance works and
asset optimisation.
Highways
where 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.
Investments
Leads bid consortia and arranges
finance for major building projects via
public private partnerships, devises
and secures solutions for our clients
on an individual basis, and specialises
in managing construction through to
operations. We are now using these
skillsets to progress co-development
opportunities, with a focus on the
Private Rented Sector.
Specialist Services
In addition to our three main
businesses, we are growing our
Specialist Services businesses. These
include our fire-protection and façade
remediation specialists Oak Specialist
Services; our active security business
Asset Intelligence; and our Digital
Infrastructure business, which offers
connectivity and 5G across the private,
defence and infrastructure markets,
and installs large-scale electric vehicle
charging infrastructure.
Scan the QR code to watch
our ‘What we do’ video.
Strategic report
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Annual Report and Financial Statements 2025
Who we work with
Around 90% of our work is with clients in the public and
regulated sectors, where we have a strong understanding
of client requirements, the market and risk profile.
Clients include major public sector bodies such as the
Department for Education, the Ministry of Defence,
the Ministry of Justice, the Department for Health and
Social Care, and Homes England. In our Environment
business, we work with all 13 of the UK’s largest water
and sewerage companies.
Meanwhile, our Highways business partners with
National Highways as well as local authorities, and
Investments works with major investment funds
and Private Rented Sector businesses.
6
Galliford Try
Our business model
continued
How we do it
Identifying
opportunities
We seek opportunities within our chosen
markets and only pursue those where we
have the skills, expertise and resources
to successfully complete the work safely,
profitably and to a high quality. We work with
clients who value a collaborative approach and
long-term relationships, often by working under
frameworks (page 41). Public and regulated
sector clients use these frameworks to procure
goods and services from a list of pre-approved
contractors, with agreed terms and conditions.
Once awarded, frameworks typically run
for four years and provide opportunities for
deeper, collaborative working, early planning
and mitigation of risk. They also support the
achievement of wider strategic and social goals,
create better understanding between parties,
and generate repeat business.
Alignment to
risk appetite and
contract selection
Our businesses follow a well-established
contract selection process to ensure all aspects
of a contract’s terms and conditions satisfy our
strict criteria. Initial selection considers factors
such as the scope of work, our geographical
presence, type of client, size of the project,
technical complexities, our experience of
similar projects, and supply chain and
resource availability in that area.
Our teams consider contracts meeting
these criteria and subject them to a rigorous
risk assessment. All contracts with a value
exceeding £25m or specific risk parameters
require Executive Board review before
proceeding. Few projects reach Executive
level that are not subsequently approved,
demonstrating cross-company alignment
to our strict risk appetite.
Planning and
managing
construction
We plan, manage, monitor and oversee the
project’s construction phase, subcontracting
packages of work to specialist trade supply
chain partners.
Pre-construction and planning activities are
an essential part of managing a construction
project and we look to start as early as possible
to influence design decisions. During these
phases, we identify and mitigate risks such as
those relating to health and safety, resource,
build conditions such as presence of asbestos,
underground or overhead services, site
restrictions, ground conditions and logistical
challenges such as access or build restrictions.
During construction, we carry out the agreed
work, managing and monitoring safety,
programme, budget, quality and sustainability
requirements. We co-ordinate with the client,
designers and all contractors involved,
and supervise and track the overall works,
resolving any challenges that arise and
making any required adjustments.
Handover
Before handover, we check the project against
contractual requirements and ensure all final
installations and outstanding deliverables have
been completed.
The client then approves the project and we
typically issue a final completion certificate,
confirming we have handed over the project
in a satisfactory manner. In some instances,
we may also take on the maintenance of
the asset through our FM business.
Assembling a team
and procuring products
and services
Delivering a construction project requires
different disciplines and specialisms. Our role
includes assembling the right team, including
subcontractors and consultants, who have the
skills, knowledge, experience and organisational
capability to carry out the works.
Because most of the construction phase is
delivered with our supply chain, we align key
supply chain members with our culture and
develop collaborative relationships using our
Advantage through Alignment programme.
This offers benefits such as training, enhanced
visibility of pipeline, and access to resources.
We choose our partners based on their
ability to deliver the work and improve social,
environmental and economic outcomes
for us and our clients.
Our reputation as a prompt payer and
collaborative client who seeks mutually
beneficial relationships works to our advantage
when selecting supply chain partners,
particularly in times of high demand or
skills shortages.
Strategic report
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Annual Report and Financial Statements 2025
How we make money
We operate in core markets which we know and understand,
and are targeting growth in both these markets and adjacent
markets, that are within our risk appetite and typically earn
a higher margin (page 18). In addition, we earn revenue and
profit from our Investments and FM businesses, which offer
lower risk annuity type income and margin accretion.
We are awarded work based on outcomes such as our ability
to deliver safely and to a high standard, while meeting criteria
including social value and carbon commitments. This type of
procurement provides a far more mature, sustainable contract
environment with higher levels of collaboration between all
parties and a more equitable allocation of risk.
99%
of our work is secured via multi-stage
negotiation and early involvement.
Our clients typically score tenders on a quality basis,
as seen below.
Example of scoring criteria
Non-financial criteria
Management
20%
Project delivery
19%
Safety, Health, Environment and Quality
15%
Sustainability and carbon
8%
Social value
10%
Contract management
8%
Typical scoring criteria
Non-financial
80%
Financial
20%
Benefits of multi-stage negotiation and
early involvement
Improved buildability, programming, visibility and
management of construction risk, through earlier
collaboration between designers, contractor and
supply chain.
Improved innovation, by enabling us to share expertise
and ideas early in the design phase.
Reduced costs, by mitigating risks early, and making
fewer changes to designs.
Faster delivery, as a result of better design, and more
efficient planning and mobilisation of resources.
More reliable budgets and cost estimates.
Lower operational and financial risk profile.
Pricing and procurement routes
51%
41%
7%
Order book procurement
Single-stage (1%)
of our order book
is procured via
multi-stage negotiation
99%
Negotiated
Two-stage
Target/cost plus
Almost 100% of our order book is procured via some form
of negotiation. This comprises:
Target cost/cost reimbursable contract:
a target cost plus our
overhead and profit are agreed, based on our initial estimate,
and builds in risk and inflation contingencies. Cost savings/
overspends against the target are shared between us and
the client.
Two-stage tendering:
an initial information stage facilitates
early collaboration between us and the client, helping to
ensure a safe and affordable design, cost certainty and project
timescales. We submit details under a pre-construction
agreement which typically includes early site investigation
works, project preliminaries, method statements, design,
construction costs, risk provisions, overheads and profit. Once
we have agreed a price based on the criteria developed in the
first stage, we move on to the construction/delivery phase.
Negotiated tendering:
the client approaches us and we then
negotiate the terms of the contract and the price. The benefit
for the client is the speed with which they can obtain a price
for the work.
Single-stage tendering:
the client will provide all of the relevant
information about their project requirements at the point of
issue and several contractors will compete for the contract
based on price. Drawbacks can include the loss of early
contractor input into buildability and risk of incomplete design
information while benefits are a fast bidding process.
Technical and operational improvements
Our focus on quality and digital
drives margin by saving the
time and cost of redoing work and reducing waste, taking
a ‘Right first-time approach’. Digital tools aid operational
efficiency, enhance safety during construction and in use,
drive quality and carbon, enable experts in niche areas to
deploy their skills nationally, provide improved governance
and control, and ultimately improve financial performance.
Modern Methods of Construction
such as off-site construction
techniques and factory assembly as alternatives to traditional
building similarly improve our efficiency and margins by
speeding up delivery, reducing labour costs, eliminating
unnecessary waste and improving quality.
The global economy faced significant challenges
in the financial year, with markets dealing with
the shocks of US tariffs, the ongoing war in
Ukraine, the impact of climate change, and,
in the UK, a change of Government.
Our robust position has allowed us to withstand
these external stresses. Most of our clients
are in the public and regulated sectors, and
are committed to long-term plans designed to
improve the UK’s infrastructure and make the
country more resilient, as emphasised in June
2025’s Spending Review. Labour’s priority
is for national renewal, with construction
established as a tool to kickstart economic
growth, rebuild the country, unlock investment,
and improve living standards. Our Sustainable
Growth Strategy therefore places us in the
right markets to deliver on the UK’s ambition,
as demonstrated by a record performance
for the Group and another year of consistent,
profitable growth.
Revenue increased by 6.3% to £1,875.2m
(2024 restated: £1,763.7m) and adjusted
operating profit increased by 37.2% to £40.6m
(2024: £29.6m). The combined divisional
adjusted operating margin was up 42bps at
3.0% (2024: 2.5%), delivering our previously
communicated margin goal one year ahead
of target, with improvement in both Building
and Infrastructure.
Cash continues to be a differentiator for
Galliford Try and, encouraged by a consistently
strong average month-end cash balance,
we completed our second share buyback
programme in May 2025 for a maximum of
£10m of ordinary shares where we repurchased
and cancelled 2,690,861 shares, at an average
price of approximately £3.72 each and a total
cost of £10m.
On the back of an excellent cash performance,
a record order book and confidence in the future,
we announced a further share buyback of up to
£10m on 17 September 2025. This represents
a vote of confidence in our company, and an
additional way to return capital to shareholders
in line with our capital allocation policy.
We also used our market position and track
record to establish a beneficial Revolving
Credit Facility. While we can achieve all our
targets via organic growth, this provides
greater agility and resilience alongside our
already strong balance sheet, and is a further
mechanism to take advantage of potential
future growth opportunities.
A progressive culture, founded on
solid fundamentals
As Chair, it is my responsibility to oversee how
we monitor and assess our culture; how we
manage our stakeholders’ interests, and how we
approach Environment, Social and Governance
(ESG) matters. This year, through my meetings
with the Board, our site visits, interactions with
employees and supply chain, as well as feedback
from our clients, I can confirm that the Group
has an aligned culture where the first priority
is safety. There is an embedded understanding
of what delivering sustainable profit entails,
and Chief Executive Bill Hocking has instilled
the importance of a ‘sustainable engine’,
which starts by pursuing projects that meet
our stringent risk appetite, and working to
agreed practices to deliver profit. Meanwhile,
a strong HR strategy, Grow Together, continues
to be successful, with 87% of our people
recommending Galliford Try as a great place to
work, and 68% confirming this vision has been
successfully communicated by the leaders at
Galliford Try. This third year of excellent survey
results is testament to the work of leadership
across the business. Employee advocacy for
the company is apparent too in our Board
site visits, our assessment of Board packs and
the presentations we receive from individuals
such as the Health, Safety & Environment
Director, the Head of Work Winning, the
Supply Chain Director, interactions with
senior management and feedback from the
plc Board-level Employee Forum.
Chair’s statement
A record performance that proves our strategy
I am pleased with the
Group’s continued progress,
as we report record
performance, a fifth year
of growth, and strong
momentum towards our
2030 targets, delivering
value for our shareholders,
clients and communities.
Alison Wood
Chair
8
Galliford Try
Outside of the Group, we continue to make
a positive impact in the communities where we
work, generating more than £1,076m of social
and local economic value on projects that were
completed in the year through activities such
as volunteering, donating time, materials and
money, offering work experience opportunities,
upskilling SMEs, and purchasing goods and
services from local suppliers. Procurement
Policy Note (PPN) 002 Social Value Model,
introduced by the Government in February
2025 embeds social value at the heart of
central Government procurement, mandating
a minimum 10% weighting. It is therefore a
fundamental way for the Group to secure
future work, alongside other strategic priorities
such as contributing to a low-carbon economy,
both through our own carbon footprint and by
supporting our clients to deliver low and zero
carbon buildings and infrastructure.
Key areas of Board focus
Managing risks is one of the plc Board’s crucial
roles. Cyber security has become a major topic
across all companies, with recent high-profile
cyber attacks highlighting the importance of
vigilance and robust practice. The Group has
increased the focus on raising our people’s
awareness of cyber threats and invested
in further training. Encouragingly, cyber
security was one of the highest scoring
areas in the Employee Survey, with 94% of
people stating they have received sufficient
training to recognise threats to our systems.
We continue to monitor cyber resilience,
receiving updates from the Group’s Chief
Information Officer.
We remain committed to upholding the highest
standards of corporate governance and are
monitoring and reviewing the implementation
of changes required under the UK Corporate
Governance Code, in particular to Provision
29, the risk management and internal control
framework. While we meet many of its
principles already, we have set a path to
ensuring we have full compliance with the
new requirements by 1 January 2026.
plc Board changes
During the year, we welcomed Kris Hampson as
Chief Financial Officer. Kris took over from the
outgoing Andrew Duxbury and brings a wealth
of financial expertise, including from a FTSE 100
background. He has proven to be an excellent
addition to the plc and Executive Boards,
bringing fresh ideas and constructive challenge
while quickly embedding himself in the team,
both among his peers and across all levels at
the Group.
Kevin Boyd, who joined as a Non-executive
Director on 1 March 2024, took up Marissa
Cassoni’s roles as Senior Independent
Non-executive Director and Chair of the
Audit Committee, following her departure
from the Board on 28 November 2024
after six years (see Governance report).
An external evaluation of the plc Board during
the year confirmed that we continue to benefit
from an excellent breadth of experience and
capabilities among Board members. As we
move forward, we will continue to ensure our
succession plans provide continuity for our
business, preserving institutional knowledge
and expertise and building a strong talent
pipeline for future leadership roles in line with
the Board’s objectives to promote the long-term
sustainable success of the company.
Increasing shareholder value
Generating attractive returns and rewarding
shareholders is a cornerstone of our strategy,
and since 2021, we have returned circa £107.7m
inclusive of the newly announced share
buyback of £10m to shareholders, as shown
below. This year, the full dividend for the year
increased by 22.6% to 19.0p (2024: 15.5p).
Conclusion
The Group is in excellent shape as we move into
the second full year of our strategy to 2030,
supported by strong markets, an excellent team
and good client and supply chain relationships.
I thank leadership, our people, partners and
subcontractors for their dedication and
contributions, as we deliver on our objectives.
Alison Wood
Chair
Strategy in action
Generating
attractive returns
We remain committed to delivering
long-term value to all our stakeholders,
including our shareholders. In line with
this, we have returned circa £107.7m
to shareholders since FY21 through
a combination of dividends, including
a special dividend, and two completed
share buybacks and one newly announced
£10m share buyback. Our total shareholder
return from 1 July 2020 to 30 June 2025
was 352%. This reflects our strong financial
performance, the success of our disciplined
capital allocation policy, and confidence in
the company’s outlook.
£107.7m
inclusive of the newly announced £10m
share buyback returned to shareholders
since FY21.
352%
total shareholder returns from 1 July 2020
to 30 June 2025.
Dividend
Special dividend
Share buyback
Returns to shareholders
FY21–FY25
£60.2m
£12.5m
£35.0m
Total
£107.7m
Strategic report
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Annual Report and Financial Statements 2025
10
Galliford Try
Market review
Drivers of growth
The UK construction
industry entered
FY25/26 with renewed
momentum, driven by
Government priorities.
Major commitments from the
Spending Review (SR) in June 2025
provide multi-year support to the
sectors where we operate, with the aim
to promote long-term economic growth
through investment in infrastructure
and housing, while improving the
UK’s resilience, driving productivity,
providing jobs and closing skills gaps.
Further support for construction includes the
introduction of the Planning and Infrastructure
Bill in March 2025. The Bill aims to speed up the
UK’s planning approvals processes, accelerate
infrastructure development and provide more
predictability by addressing long-standing
issues such as delays and inefficiencies in major
infrastructure projects.
A key part of the reform is the creation of
the National Infrastructure and Service
Transformation Authority (NISTA). NISTA’s role
is to provide more co-ordinated oversight and
strategic planning for infrastructure projects,
to drive better project execution, reduce
bottlenecks, and improve overall efficiency
in delivering national infrastructure.
Additionally, the construction sector has
been explicitly identified as a priority industry
as part of the Modern Industrial Strategy,
a 10-year plan launched in June 2025,
to increase business investment and grow
the industries of the future in the UK.
It includes a £600m fund as a Strategic Sites
Accelerator focused on making strategically
important land development-ready by
fast-tracking infrastructure and planning
hurdles helping developers — and indirectly
construction firms — to access and deliver
on high-value projects across the UK.
Across the sectors listed across this section,
we have excellent framework positions that
will play to our advantage.
Market opportunity
Ageing social and economic infrastructure
Water
Long-term underinvestment in water
infrastructure has resulted in an ageing
asset base that requires more frequent
maintenance or needs replacing.
Clients must either build new assets or
focus on asset optimisation to extend the
operational lifespan of existing facilities.
Poor asset condition is being exacerbated
by heavier and more intense rainfall,
which overwhelms ageing infrastructure,
causing sewage discharge and flooding.
Statutory standards and regulatory
requirements set out by the Environment
Agency, Natural Resources Wales and the
Drinking Water Inspectorate are driving
investment to reduce spills from storm
overflows, improve wastewater treatment
standards and raise the quality of drinking
water. Implementation of the Environment
Act 2024 will provide a database of water
quality information on a scale that England
has never had before. The Act requires
utilities to continuously monitor water
quality upstream and downstream of the
majority of storm overflow and sewage
treatment works, which discharge into
a watercourse.
Our response
We are now one of the biggest contractors
in the sector, with a national water business
working with all 13 of the UK’s major
water and sewage companies. We are
well positioned to serve their needs across
spending cycles, with our ability to respond
to local water plans.
Targeted acquisitions have extended
our specialist capabilities to include
capital maintenance, asset optimisation
and Mechanical, Electrical,
Instrumentation, Control, and Automation,
giving us the ability to work across the
life cycle of client assets, to improve asset
efficiency, resilience and optimisation.
Our investment in digitalisation, including
digital twins and AI, is enabling us to:
optimise processes for clients through
improved safety during construction and
in use; enhance quality through greater
accuracy, stronger governance and control;
deliver greater efficiency; leverage skills
nationally through remote working; and
drive net zero carbon commitments.
Our carbon capabilities are, in turn,
enabling our clients to meet both their
own net zero carbon ambitions and their
objectives to deliver value for customers
in the long run.
£104bn
of investment announced by Ofwat through
the AMP8 period until 2030.
Sources: https://nic.org.uk/studies-reports/national-infrastructure-assessment/second-nia/#tab-challenges; https://www.ofwat.gov.uk/ofwat-approves-104bn-
upgrade-to-accelerate-delivery-of-cleaner-rivers-and-seas-and-secure-long-term-drinking-water-supplies-for-customers/
Strategic report
11
Annual Report and Financial Statements 2025
Transport
The Strategic Road Network provides
critical routes and connections across
the country to support UK growth
and safe and efficient journeys for
people and business. It connects
towns, cities, ports and airports,
with 81% of domestic freight in
the UK carried by roads.
The Government’s 10-Year Infrastructure
Strategy sets out a £24bn pipeline of capital
funding between 2026-2030 to maintain
and improve motorways and local roads,
including £1bn to enhance the road network
and to repair major structures.
The strategy also includes £15.6bn of
investment in city region sustainable
public transport systems, while, in 2026,
the Government is due to publish its next
Road Investment Strategy (RIS 3). In the
intervening period, £4.8bn has been set
aside in the ‘Interim Settlement’.
Our response
We operate nationally, with local teams
organised into three businesses streams
of Local Authorities (LAs), National
Highways and Major Projects, which
reflect the way investment in the UK’s
road infrastructure is made.
We have established, long-term
relationships with strategic clients across
this market, working with LAs and being
a long-term partner of National Highways.
Source: https://www.gov.uk/government/publications/strategic-road-network-interim-settlement-
2025-to-2026#:~:text=The%20interim%20settlement%20sets%20out,priorities%20for%202025%20
to%202026
Education
In its Spending Review in June
2025, the Government reaffirmed
its commitment to rebuild over
500 schools through the School
Rebuilding Programme (SRP),
providing around £2.4bn in
each of the next four years.
In addition, the Government has further
committed to providing £20bn in the period
up to 2035 to give long-term certainty
for the SRP, as part of its 10-Year UK
Infrastructure Strategy, adding at least
250 schools to the programme.
In England, the 64,000 state buildings
making up the school estate all vary in
age and design. The National Audit Office
(NAO) has reported that following years
of underinvestment, the condition of this
estate is declining, with the estimated
backlog currently standing at £13.8bn.
FM plays a vital role in the Government,
education sectors, ensuring the efficient
and effective operation of assets. The
Department for Education has launched
its new Construction Framework worth
up to £15.4bn for building and refurbishing
education facilities across England.
In Scotland, the condition of the school
estate is generally improving. However,
the Learning Estate Investment Programme
has set aside £2bn to build new facilities.
In 2021, the Right support, Right place, Right
time SEND (Special Education Needs and
Disabilities) review, outlined that 15.8% of
children in England alone have SEND needs,
but there is a shortfall of suitable places.
Our response
We are a multiple award-winning and
market-leading provider of education
facilities and play a significant role in
renewing and expanding the schools
estate across the country, working as
a leading contractor for the Department
for Education in England and the Hub
procurement vehicles in Scotland.
We are earning a reputation as a leader
in the delivery of SEND facilities and
have been involved with 17 projects
delivering Special Schools, Additional
Support Needs and Inclusive Learning
Environments to the value of £265m in
the last three years.
Our FM business provides hard and soft
facilities management services across
the UK, operating in both public and
private settings, with an emphasis on
the education and health sectors.
Source: https://www.nao.org.uk/reports/condition-of-school-buildings/?nab=1
12
Galliford Try
Market review
continued
Market opportunity
Ageing social and economic infrastructure continued
Defence
In February 2025, the Government
announced that defence spending
will rise to 2.6% of GDP from 2027,
with an ambition to reach 3% in the
next Parliament when economic
and fiscal conditions allow.
The Strategic Defence Review and
the Spending Review confirmed the
Government’s plans for defence spending,
and set out further investment in the UK’s
intelligence agencies, whose budget will rise
by £600m in real terms over the period to
2028-29, enabling the UK to remain at the
cutting edge of technology and keep pace
with rising threats from hostile states.
The Defence Estate Optimisation (DEO)
Portfolio is the single biggest estates change
programme in defence, investing £5.1bn
in modern, greener and more sustainable
infrastructure, delivering a commitment to
invest in key defence sites and meet future
force structure requirements.
Major projects include contemporary
office space for over 14,900 people,
101 specialist Military facilities, education
and training facilities for over 49,000 people,
and new and refurbished accommodation
and housing for over 40,000 personnel
and their families.
Our response
We have a proud history of partnering
with defence clients to deliver the assets
that protect the country, and enable
the UK’s Armed Forces personnel to
live, work and train. In the last 10 years
alone, we have delivered £500m+ of
new facilities and upgrades for the
defence estate.
We understand how to operate in high
security, complex environments and have
the systems, processes and personnel
to protect information and critical assets.
We continue to deliver projects in
partnership with the Ministry of Defence
and other defence estate suppliers,
such as Thales UK and BAE Systems.
Source: https://www.gov.uk/guidance/defence-estate-optimisation-deo-portfolio
Custodial and Judicial
The NAO last reported on the
condition of the prison estate and the
capacity of the system in 2020 and
concluded that the prison service was
failing to meet its aims of providing a
safe, secure and decent prison estate.
The prison population has grown
substantially over the past 30 years and
the adult male estate has been running at
99% capacity since February 2023.
The original programme to build 20,000
places was launched in 2021, with only
6,000 places were delivered.
The Government has revised the strategy
to deliver the remaining 14,000 places
by 2031, by committing to:
Four new prisons with 6,500 places.
6,400 places through new houseblocks
on existing prison sites.
1,000 rapid deployment cells.
1,000 existing cells refurbished.
Capital and maintenance work required to
bring the prison estate to a fair condition
requires £2bn of investment.
Our response
Galliford Try has a long history of working
in the custodial and judicial sectors across
prisons and courts throughout the UK.
We understand the particular sensitivity of
working in secure environments, and have
extensive experience of improving existing
facilities and deliver quality and security
throughout the custodial estate.
Source: https://commonslibrary.parliament.uk/research-briefings/sn05646/; https://www.gov.uk/
government/news/prison-expanded-to-create-uks-largest-jail-and-keep-public-safe
Strategic report
13
Annual Report and Financial Statements 2025
Affordable homes
There is significant, long-term
demand for affordable homes in
the UK. Research from Savills
estimated that 187,000 additional
affordable homes are needed
in England alone each year.
The Government Spending Review in June
2025, confirmed £39bn for its affordable
homes programmes over a 10-year period
from 2026-27 to 2035-36.
The Government remains committed to the
target of 1.5 million homes in this Parliament
and has announced support for 100 new
towns across England.
Investment in affordable homes remains
a key priority for Registered Providers (RPs),
including Housing Associations and councils.
However, pressure from the regulator to
ensure stock is up to standard, and that
fire safety and cladding issues have been
resolved, remains a focus. The sector is
also using land led partnerships to increase
supply. Clients are reviewing how they can
get access to funding with more working
with institutional funders.
Our response
We have good local authority and housing
association relationships.
Since 2020, we have delivered more than
3,000 homes, building our reputation for
high-density urban schemes.
Our Oak Specialist Services business
delivers the remedial cladding and fire
safety improvements the sector is
looking for.
Our experience coupled with our
established supply chain allows us to
deliver the mid-rise housing schemes
that are key to regeneration in our towns
and cities.
We have the skills to deliver land-led
models for assembling developments,
leveraging the experience of our
Investments business in the Private
Rented Sector, to assist RP partners.
Health
There is widespread
acknowledgement that the state
of the NHS is in need of investment.
In January 2025, Labour confirmed funding
and a timetable to put the New Hospital
Programme on track to deliver all of its
hospital projects.
The new plan will be backed with £15bn
of new investment over consecutive
five-year waves, averaging £3bn a year.
There is a commitment to transition from
hospital to community care, providing
access to primary care services to promote
self-care and diagnosis at early stages.
Alongside this, there is an ambition to
change the service from a sickness focus
to that of prevention, expanding mental
health support and incentivising good
health, alongside achieving net zero goals.
In addition, the decade long Infrastructure
Strategy aims to deliver stability, investment
and national renewal. Within it, over £6bn
has been set aside per year to create safer
hospital environments across England with
reduced waiting times, improved patient
outcomes, and better working conditions
for NHS staff.
Our response
We have tremendous experience within
the healthcare sector, understanding
the unique drivers and technicalities that
are part and parcel of working within
a healthcare environment.
Having been active in the sector for the
past 13 years, Galliford Try has delivered
over £1bn and more than 1,300 bed spaces
across England and Scotland for healthcare
providers in Acute, Mental Health and
Community care environments.
Source: https://www.gov.uk/government/news/government-to-deliver-all-schemes-in-new-
hospital-programme.
Source: https://www.gov.uk/government/news/government-unveils-plans-for-next-generation-of-new-towns
14
Galliford Try
Changes to fire safety
The Building Safety Act came
into law in January 2022 and
sets out safety requirements for
landlords and owners of higher-risk
buildings, driving a huge focus on
fire safety across both new build
and existing stock.
Our response
Oak Specialist Services, part of our
Specialist Services business, provides
cladding remediation, passive fire
protection, fire maintenance, risk
assessments, building fabric surveys,
new-build facades and green retrofit.
We see an opportunity to grow Oak from
its focus on London, utilising Galliford
Try’s UK-wide office footprint to provide
a nationwide service to clients who
currently have different suppliers in
different regions.
The market represents long-term,
higher-margin annuity type revenue,
due to the requirement for repeat
services such as inspections.
Drive for decarbonisation and action on
climate change
Labour described the climate
and nature crisis as “the greatest
long-term global challenge we face”.
This is emphasised by the fact that
the UK is committed to achieving
net zero carbon by 2050.
According to the Construction Industry
Council, the built environment is responsible
for approximately 38% of global carbon
emissions. Construction therefore has
a major role to enable change.
Our response
Investing in knowledge:
we have upskilled
our teams to better understand how we
can design, build and maintain low-carbon
infrastructure and buildings through
selection of materials and construction
methodologies, operational energy
consumption and, where relevant,
end-of-life decommissioning.
Our capabilities in asset optimisation
and retrofit enable our clients to
increase the lifespan of their facilities and
to optimise their performance including
environmental credentials. These skills
are increasingly enabling our clients to
achieve their carbon goals.
Our approach to digitalisation
for efficiency and adoption of
new technologies such as design
rationalisation using our Building
Information Modelling (BIM) tools
and experience helps us avoid over-
specification and reduce materials
consumed and waste created.
Adopting Modern Methods of
Construction (MMC) such as off-site
manufacture helps to minimise waste
and uses materials more efficiently.
It also mitigates against safety risk and
adverse weather conditions by reducing
time on site.
Market opportunity
Changing regulation
Market review
continued
Strategic report
15
Annual Report and Financial Statements 2025
Case study
UK leading
employee advocacy
Our 2025 Employee Survey results
demonstrated that we continue to
outperform the sector and UK for
employee engagement.
We retained our record high employee
advocacy score of how likely our people
are to recommend us as a great place to
work at 87%, compared to 81% across the
heavy construction sector and 75% across
UK companies.
Overall engagement also remained
consistently high, increasing slightly to
75% and again, exceeding UK and industry
benchmarks. These results come from
an excellent participation rate of 80%,
with 3,422 of our people taking part.
CultureAmp, the insights organisation that
runs our survey, fed back that our people
feel “valued, respected, and supported”
by managers and colleagues. This confirms
our approach to being a people-orientated,
progressive, values-driven business. We
continue to act on feedback and recognise
that beyond the areas we are doing well,
such as safety, ethics, being kept informed,
being treated well and the impact we make
in communities, there are also areas we
can enhance further such as systems and
processes, and showcasing progression
routes better. Encouragingly, these are areas
which we are already making changes in.
87%
employee advocacy score.
Market challenge
Skilled and experienced people are in high demand across the UK
As investment in construction
projects starts to grow, it is
emphasising the lack of skilled
professionals in the market.
These labour and talent shortages
could significantly impact the
delivery of UK infrastructure.
In the Spring Statement, the Government
committed £625m in England over
four years to boost existing training
routes, ensure a sustainable flow of
skilled construction workers and support
employers to invest in training. The 2025
Spending Review specifically commits
to training up to 60,000 skilled
construction workers.
Our response
Over the last 18 months, we have invested
in our Employee Value Proposition (EVP).
Our EVP is the unique set of benefits that
our people receive in return for the skills,
capabilities and experience they bring to
our business so that we can encourage
retention and attract the right talent.
As a result, 87% recommend us as an
employer and employee churn is in line
with our objectives.
Our people-orientated culture, including
initiatives such as agile working and
our focus on wellbeing, further support
retention and make Galliford Try a more
attractive employer, helping us to appeal
to a diverse range of employees, and
broadening our pool of potential recruits.
Investment in our people’s learning and
development ensures we have the skills
we need to carry out our operations and
is seen as an attractive benefit to existing
and potential talent.
Succession planning: a structured
approach to succession planning enables
us to meet the future needs of our
business with less likelihood of disruption
to operations.
Our graduate, trainee and apprentice
programmes allow us to build our own
talent pool. In addition, we actively
promote our industry to school and
college leavers, as well as graduates
through social media use, presentations,
visits to our sites and careers exhibitions,
which help to encourage a career in
construction for future generations. Our
approach breaks down stereotypes of the
industry and presents it as an important
enabler of the UK’s plans for the future.
Benefits: we continue to monitor and
enhance our rewards package to improve
our EVP. As well as salary and bonus, this
extends to company car or car allowance,
paid volunteering days, employee
assistance programmes, private
healthcare and discount schemes.
16
Galliford Try
Our strategy
Delivering Sustainable Growth
In May 2024, we updated our financial growth targets through to 2030,
as follows:
Revenue
Growing to in excess of £2.2bn, maintaining disciplined contract
selection and robust risk management in resilient market sectors.
Divisional
adjusted
operating
margin
Increasing to 4.0% through a focus on both top and bottom-line
growth and accelerated growth in our higher margin adjacent
market businesses.
Cash
Retaining a strong balance sheet and operating cash generation.
Dividends
Delivering sustainable dividends with earnings cover of 1.8x.
Grow revenue
and margin
in our three
core businesses
Grow our
specialist
businesses in
higher margin,
adjacent
markets
Re-enter the
Affordable
Homes market
Leverage our
geographical and
client footprint
across the UK
Continue
to generate
growing
shareholder
returns
Our plan to achieve these targets is to:
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, delivering high-quality buildings and infrastructure through
a focus on quality and innovation, to provide sustainable financial returns.
Strategic report
17
Annual Report and Financial Statements 2025
Grow revenue and
margin in our three
core businesses
Volume growth and leverage
Top-line growth will be driven primarily by organic expansion in our established
Building, Environment and Highways sectors, where there is strong demand
driven by the Government’s ambitions to stimulate the economy and modernise
infrastructure, for a more productive, well-connected, resilient, low carbon
nation (see Market review).
We will leverage our framework positions, long-standing client and supplier
relationships, and repeat business in regulated public sectors including water,
defence, education, custodial, highways and health to grow volumes and revenue
to in excess of £2.2bn.
Contractual discipline, risk controls and our selectivity about the work we
pursue will ensure we only take on work we can deliver successfully and embed
appropriate profit.
Better contracting environment
99% of our order book is procured via multi-stage negotiation and
early involvement (page seven) which lower operational and financial risk
profile through:
Improved buildability, programme, and construction risk through earlier
collaboration between designers, contractor and supply chain.
Improved innovation by enabling us to share expertise and ideas early in
the design phase.
Reduced costs by mitigating risks early, fewer changes to design and
subsequently less delays during construction.
Quicker delivery as a result of more efficient planning and mobilisation
of resources.
More reliable budgets and accurate cost estimates.
Changes introduced by The Construction Playbook, published by the UK
Government in December 2020, have created a more mature contracting
environment in the construction industry by promoting collaboration,
innovation, and early contractor involvement. This is fostering a more
co-operative approach to problem-solving and risk management and
encouraging a shift towards value-based procurement, which considers
the whole-life costs of a project and quality outcomes, rather than just the
initial capital cost. This is demonstrated in the example of how we win our
work on page seven, contributing to the bottom line.
Operational improvements will deliver gains via our focus on quality, using digital
tools and Modern Methods of Construction, improving our productivity and
efficiency, adding to the bottom line.
Overhead leverage as we grow volumes will lead to increases in operating income.
Progress
During the year, we secured £2.2bn of work, which contributed to 6.3% revenue
growth in the year, and an increase in divisional adjusted operating margin of
42 bps.
We took over £133m of projects following ISG going into administration.
Our order book stands at a record £4.1bn of work, which is all high-quality.
We have secured 92% of our projected work for FY26 (2024: 92%) and 75%
for FY27 (2024: 70%).
See Operating review p54.
Highways
Environment
Building
18
Galliford Try
Our strategy
continued
Re-enter the
affordable
homes market
We are strategically expanding into the
affordable homes sector, with a particular
focus on urban, mid- to high-rise developments.
Our goal is to deliver approximately 1,200
affordable homes annually by 2030.
We plan to achieve this by leveraging our
extensive experience in constructing apartment
buildings for private sector clients, our well-
established supply chain relationships, and our
regional teams and office bases.
This expansion builds on our evolving private
residential portfolio, through which we have
delivered upwards of 3,000 homes since
2020 and strengthened our reputation for
high-density, urban projects.
Progress
By deepening our partnerships with local
authorities and housing associations, we
have rapidly secured a strong foothold in
this adjacent market, earning recognition
as a preferred development partner.
We are being recognised for having the
expertise to meet the challenge of residential
decarbonisation, and our approach to
MMC which is directly transferable to the
affordable homes market, allowing us to
deliver high-quality homes efficiently.
Our team is led by an Affordable Homes
Director to develop Galliford Try’s offering
in the sector, and build relationships with
affordable housing providers, local authorities
and wider stakeholders.
We have secured places on major frameworks
including, the £3.2bn Communities Housing
Investment Consortium (CHIC) and the
Homes England DPS.
We have niche capabilities in higher margin,
adjacent markets of capital maintenance
and asset optimisation within the existing
Environment sector, and Specialist Services
including fire protection, digital infrastructure,
electronic and physical security, and FM.
Our skills and experience in the Private
Rented Sector also benefit our growth plans
in affordable homes.
These adjacent markets offer a lower-risk path
to growth by leveraging existing strengths
and resources, and will allow us to expand into
new areas where there is strong demand page
10 while mitigating the risks associated with
entering entirely new, unfamiliar markets.
Many of the specialist markets are fragmented,
and clients struggle to find national contractors
like us who can deliver across their portfolios.
We have the opportunity to utilise existing
client relationships, the strength of our brand,
and existing infrastructure, processes, and
supply chains to penetrate markets, while also
to selling new services to existing customers.
We will continue to assess any potential future
acquisition opportunities in line with our
strategic priorities, as we did with four
bolt-on acquisitions from 2021 to 2023.
Progress
During the year, our Specialist Services
have been focusing on their unique selling
proposition and promoting their work to
new clients.
FM continued to make a good contribution
to our business and has an order book
of £382m.
Our Digital Infrastructure business was
rebranded from Telecommunications to
reflect its expanding services in emerging
digital infrastructure markets.
Water Technologies opened a new
Operations Centre in Paisley, Renfrewshire
which provides 640 sqm of manufacturing
space and new workshops for our Lintott
Control Systems, Ham Baker Engineering
and Galliford Try Fabrications businesses.
This will help grow our capability in off-
site build, capital maintenance and asset
optimisation for our water clients.
Asset Intelligence launched its own
social media account, and AVRS recently
developed a new website enabling them to
sell their services both as part of Galliford
Try and as standalone businesses, which is
of particular advantage when selling to
fellow contractors.
Our order book in the Specialist businesses
reached £0.5bn.
Capital maintenance and asset optimisation
within the existing Environment sector
Private Rented Sector (PRS)
Affordable Homes
Specialist Services
Grow our specialist businesses in
higher margin, adjacent markets
We are targeting delivery of
1,200+
affordable homes per annum by
2030, with anticipated turnover
per annum being £250m+ by the
same date.
Pictured above:
we acquired Lintott in 2021 as part of the purchase of nmcn’s water businesses. Lintott is
a specialist manufacturer of control panels and chemical dosing systems for the water industry, and a pioneer
in digital solutions for the sector. This represents a higher margin adjacent market for us.