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.
Strategic report
19
Annual Report and Financial Statements 2025
Leverage our
geographical and
client footprint
across the UK
Continue to
generate growing
shareholder
returns
We will continue to leverage our extensive
geographical footprint and strong client
relationships across the UK as part of our
strategy. By tapping into established networks
with clients and suppliers, as well as engaged
regional teams, we can efficiently target
and deliver growth in our core and adjacent
markets. Our national presence enables us
to make the most of resource allocation, and
where appropriate, scale operations in line
with our growth goals.
Coupled by our no-debt position and robust
cash, we will continue to deliver shareholder
returns in line with our capital allocation policy.
These will be generated through a combination
of expanding our business through organic
growth, bolt-on acquisitions where they fit
our criteria, improving operational efficiency,
and effective capital management.
Progress
We have demonstrated a trajectory of growing
shareholder returns, with £107.7m returned to
shareholders from FY21 to FY25.
Strategy in action
Pioneering AI
to drive down
security and risk
for safer and
smarter working
Galliford Try Asset Intelligence has
announced a strategic partnership
with tech company Chooch to
integrate AI into selected operations
for enhanced security, safeguarding
and improved operational efficiency.
The new technology enables real-time,
autonomous site monitoring which can
detect potential safety risks, deliver rapid
alerts, and provide intelligent insights
that can be used across physical and
electronic security systems, as well as
fire detection solutions.
Key benefits of the integration include:
Workplace safety: automated detection
of safety hazards, reducing accidents and
improving response times to incidents.
Real-time asset protection, prediction,
monitoring and data analysis, enhancing
resource efficiency and driving smarter
operational decisions. For example,
alerting us when a trickle bed filter
at a wastewater treatment plant
needs replacing.
Fire detection: early, accurate fire
detection to protect people, assets,
and the environment.
£107.7m
The total of our shareholder
distributions inclusive of the newly
announced £10m share buyback
since FY21 is c£107.7m.
Inverness
Elgin
Aberdeen
Glasgow
Paisley
Gateshead
Middlesbrough
Warrington
Newcastle-under-Lyme
Manchester
Ponsonby
Solihull
Warwick
Coventry
Straord-upon-Avon
Bristol
Leicester
Uxbridge
Romford
Guildford
Edinburgh
Stafford
Hinckley
Plymouth
Exeter
Norwich
Grangemouth
Perth
Falkirk
Leeds
Huthwaite
Annesley
Normanton
20
Galliford Try
Our results, and wider performance for
the full year, once again demonstrate
the progress we are making as a
business, and towards the objectives
of our Sustainable Growth Strategy.
Revenue was up 6.3% from £1.8bn to
£1.9bn in the year. Divisional adjusted operating
margin rose from 2.5% to 3.0%, delivering
our previously communicated margin goal
one year ahead of target and resulting in
adjusted profit before tax of £45.0m, up 28.6%
from the same period last year. Building and
Infrastructure each contributed towards
revenue and profit targets in line with our
plan. Further information can be found in
the Operational review.
We recorded adjusted earnings per
share for the year of 34.4p (2024: 29.6p).
The statutory earnings per share in 2025
were 33.7p (2024 restated: 27.3p).
Our balance sheet remains robust with
£237.6m of cash at the year and, importantly,
average month-end cash was £178.7m
compared with £154.8m last year. Again, this
reflects the quality of the projects we select and
how tightly we manage them. Building on this,
we announced the establishment of a £25m
Revolving Credit Facility which will provide
further agility, optionality and resilience to
our capital allocation policy across our 2030
Sustainable Growth Strategy period (page 16).
Delivering on our strategy for
Sustainable Growth to 2030
Growing revenue and margin in our
three core businesses
In the early part of our strategy period, we are
making good progress towards our targets.
All our management teams and people are
aligned to our goals, and we have excellent
client and supplier relationships, coupled with
the right market conditions to succeed.
As outlined in the Strategy section on page 16,
we continued to grow our high-quality order
book at £4.1bn (2024: £3.8bn) providing
long-term visibility and security of workload,
and we have already secured 92% of revenue
for the next financial year.
There continues to be robust, long-term
demand across all our sectors, driven by ageing
social and economic infrastructure which needs
to be repaired, improved or replaced to cater
for a growing population, the effects of climate
change and to support and enhance the UK’s
productivity. We have leading positions in the
sectors and frameworks that are responding
to these challenges and see a solid pipeline of
opportunity well into the future.
This year we delivered
our fifth set of full year
results since becoming
a standalone construction
group, generating consistent
revenue and margin
growth and marking an
excellent start to our
updated Sustainable
Growth Strategy to 2030.
With strong demand in our
chosen markets, backed
by Government policy,
our excellent teams
and leading framework
positions, we are well
placed for the future.
Bill Hocking
Chief Executive
Chief Executive’s review
Five years of sequential and profitable growth
£1.9bn
Revenue increased 6.3% from
£1.8bn to £1.9bn in the year.
£4.1bn
We have a record £4.1bn
order book (2024: £3.8bn).
19.0p
A full year dividend of 19.0p,
up 22.6% on last year.
Key highlights
Strategic report
21
Annual Report and Financial Statements 2025
Growing our specialist businesses in
higher margin, adjacent markets
When we announced our strategy in May 2024,
we said that margin growth from this part of
the business and affordable homes would be
biased towards the latter part of the strategy
period, as those adjacent market volumes
start to come through.
As described in the Strategy section, these
businesses are building their brands and client
base, and winning new work. We are pleased
with their progress at this early point in our
strategy period.
Re-enter the affordable homes market
There is no doubt that the UK is in urgent need
of affordable homes. The new Government
has strong ambition and funding streams are
now becoming clearer following the Spending
Review. Having been appointed to the
£3.2bn Communities & Housing Investment
Consortium (CHIC) Newbuild Development
Framework for affordable housing last year and
Homes England’s Dynamic Purchasing System,
we are confident of our objectives, and have the
geographic bases, people and supply chain to
deliver on our ambition in this key market in
the coming years.
Leverage our geographical and client footprint
across the UK
The progress we are making is based upon
the excellent coverage we have across the UK
and this continues to be an advantage to us.
Our 33 bases accommodate 21 business units,
which facilitates collaboration and will help us
expand our client footprint nationwide. For
example, Oak is based in our Uxbridge office
alongside our Building London and South
East business unit, and they are working on
opportunities together. FM also co-locates
with our Building business, and this has
served them well historically.
Continue to generate growing
shareholder returns
On 21 May 2025, we completed our second
share buyback programme, announced on
3 October 2024. Under this share buyback
programme, a total of 2,690,861 ordinary
shares of 50 pence each were repurchased,
and subsequently cancelled, at an average
price of approximately £3.72 per ordinary
share, and a total cost of £10m.
On 17 September 2025, we announced a
further share buyback of up to £10m with our
full year results, in line with our policy to return
excess cash to shareholders, and in response to
another good cash performance, record order
book and confidence in the future.
On the basis of our full year performance,
we announced a final dividend of 13.5p, to give
a full year dividend of 19.0p, up 22.6% on last
year. Adjusted earnings per share were 34.4p
against dividend cover of 1.8 times and we have
provided a total shareholder return of 352% for
the period from 1 July 2020 to 30 June 2025.
A people-orientated,
progressive culture
Our culture starts with the aim to achieve
no harm to anyone linked with our operations
and we were pleased to reduce our Accident
Frequency Rate (AFR) to 0.03 in the year
(2024: 0.04). Health and safety is the first item
on our meeting agendas and we constantly
review the behaviours and actions we take on
site, and look to understand the mindsets of our
teams and how we can eliminate risk through
the use of digital tools and MMC. It speaks to
our approach that 96% of our people believe
we place top priority on health and safety.
As described in the Chair’s review, we consider
our people to be a differentiator, and continue
to invest in our EVP to retain and gain the right
people across our business. During the year,
we refreshed and launched 120 Career
Paths that show our people clear routes for
advancing through our organisation, each with
bespoke ‘Success Factors’ that will facilitate
their progression.
With our business and teams growing, we are
launching a new induction platform, which will
help us retain our strong culture as new people
join our business. We are on the right track,
and 87% of our people recommend us as
a great place to work.
Operating in a socially and
environmentally responsible way
We continue to focus on developing
collaborative, long- term relationships with our
supply chain partners through our Advantage
through Alignment programme which offers
training and education, sharing our working
practices, values and our vision, access to our
behavioural safety programme and Continuing
Professional Development. 59% of our core
trades spend is with these suppliers.
We signed up to the Fair Payment Code, which
replaced the Prompt Payment Code and drives
good payment practice and achieved Bronze
status for paying at least 95% of all invoices
within 60 days.
Carbon remains high on the agenda for the UK,
our clients, our business and employees and
we published a comprehensive Net Zero Route
Map, detailing how we aim to achieve net zero
by targeting 16 specific areas.
In February 2025, we maintained our score of
B in CDP, the global environmental disclosure
framework, in recognition of our commitment
and action to address climate change. For
the fourth time, we were awarded an AAA
rating from MSCI, which measures companies’
resilience to financially relevant, industry-
specific sustainability risks and opportunities.
We also received the London Stock Exchange’s
Green Economy Mark as part of a select
group of businesses gaining at least 50% of
their revenues from activities that benefit
the environment.
Our efforts are the result of investing in
and developing carbon expertise within our
business, as well as upskilling our supply chain.
Finally, we continue to make a positive impact
in the communities where we operate, above
and beyond the buildings and infrastructure we
provide, and we delivered more than £1,076m
of social and local economic value on projects
that were completed in the period.
Executive Board changes
Ensuring we have the right leadership to deliver
our plans is key and we were pleased to make
two appointments during the year.
In line with the growth of the business, we
welcomed David Lowery to the newly-created
position of Managing Director – Infrastructure
on 1 July 2024. David was previously Managing
Director of the Highways business, which he
joined in 2021, and has extensive UK and overseas
experience comprising more than 24 years.
After over 27 years of exceptional leadership
and invaluable contributions to the Group,
Mark Baxter, Executive Board member and
Managing Director of Specialist Services,
confirmed his decision to retire at the end of
2026. Thomas Faulkner was appointed to
the Executive Board on 15 September 2025.
Thomas, who has 30 years of experience in
construction with a strong background in water,
environment, highways, rail and specialist
services, will succeed Mark, taking up his
new role in a phased manner.
Outlook
We are pleased with the progress we have made
in this early part of our strategy and have all the
right fundamentals in place, with great client
and supplier relationships and strong market
positions and conditions, to carry out our plans
successfully. My thanks go to our people and
supply chain, whose ongoing commitment,
attitudes and passion have been pivotal to
our success to date.
Bill Hocking
Chief Executive
22
Galliford Try
Operating sustainably
Sustainability underpins the delivery of our strategy
Operating sustainably helps
us to win work, engages
our employees, benefits
communities and the
environment, and makes us
more efficient. This is why
Environmental, Social and
Governance (ESG) matters
are an integral part of our
strategy, and at the core of
how we deliver long-term
stakeholder value.
Oversight of ESG
The Executive Board has overall responsibility
for setting policy and monitoring our
sustainability performance.
Main plc Board oversight of sustainability is
maintained through several means.
The ESG Committee meets four times a year
and is chaired by the Chief Financial Officer.
Committee membership comprises the Director
of Sustainability, senior representatives
from our operating divisions, and relevant
Support Services leads from Supply Chain,
Low Carbon Construction, Environmental,
Communities and Social Value, Human
Resources, and Pre-construction.
In addition to the Committee’s formal activities,
the Board receives further insight into ESG
topics through progress reporting with KPIs
and presentations from subject matter experts.
Updates to our ESG Committee
During the year, we reviewed and updated
the ESG Committee’s terms of reference to
provide greater rigour and structure to its work.
The Committee’s governance role now covers:
Agreeing ESG strategy and policies.
Agreeing ESG metrics and targets, and
monitoring performance against them.
Regulatory compliance with ESG matters.
Risk management of ESG matters.
Reporting and disclosure of ESG matters.
Stakeholder engagement.
Learning and development around ESG.
Stakeholder materiality assessment
We publicly report our progress across
six areas: Health and Safety, Our People,
Environment and Climate Change,
Communities, Clients and Supply Chain.
When developing our initial Sustainable
Growth Strategy in 2021, we assessed the
relative materiality of sustainability priorities
for different stakeholder groups across
these areas. The ESG Committee reviews
the assessment and related KPIs annually,
to ensure they continue to reflect the
priorities of our key stakeholders.
This year, the main changes were to reflect
the high and increasing importance of talent,
development and retention, and quality to our
clients, investors, employees and supply chain.
The updated priorities are summarised to the
right. They guide our sustainability priorities
and targets, as detailed in this section.
Policies
In addition to our Sustainability Policy, our
policies and processes for Health and Safety,
Our People, Environment and Climate Change,
Communities, Clients and Supply Chain are
contained within our BMS which defines our
approach to all key operations and sets out
the standards we must adhere to. Use of the
BMS ensures consistency, governance and
control, and effective risk management by
mitigating issues at source. Our policies are
also advertised via our Code of Conduct,
through new starter inductions and training
including refresher modules.
See page 76.
Recognition in the year
During the year, we received MSCI’s highest
ESG rating of AAA for the fourth consecutive
year, a testament to our commitment to
sustainable growth and responsible business
practices. MSCI is a leading provider of
critical decision support tools and services
for the global investment community whose
ESG ratings assess a company’s resilience
to long-term ESG risks, scoring firms on an
industry-relative scale from AAA to CCC
based on their business model. Other awards
and accreditations are listed within the
corresponding sections on pages 24 to 49.
Sustainable
Growth to 2030
Revenue
>2.2bn
Divisional adjusted
operating margin
4.0%
Health and safety
Environment &
climate change
Our people
Communities
Clients
Supply chain
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Strong
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23
Annual Report and Financial Statements 2025
Strategic report
Stakeholder materiality assessment
Our key ESG ratings
AAA
B
Management
(Taking co-ordinated
action on climate issues).
The Green Economy Mark
recognises companies that derive
at least 50% of their revenue from
green products and services.
Sustainability
pillars
Priorities
Key stakeholder groups
Clients
Investors
Employees
Supply chain
Communities
Regulators
Health
and safety
Page 24
Physical health and safety
Mental health and wellbeing
Our people
Page 28
Equity, diversity and inclusion
Human rights
Talent, development
and retention
Environment
and climate
change
Page 32
Carbon emissions
Waste
Water
Biodiversity
Communities
Page 36
Employment
Economic growth
Disadvantaged or
underrepresented groups
Community engagement
Clients
Page 40
Innovation and efficiency
Energy efficiency of built assets
Quality
Supply
chain
Page 44
Responsible sourcing
Fair payment
Relative importance
High
Moderate
Low
Movement in the year
Increased
Unchanged
Decreased
23
Annual Report and Financial Statements 2025
Health
and safety
Our objective is to prioritise health,
safety and wellbeing, and ensure no
harm to anyone linked with our operations.
We achieve this by prioritising our
Lead Indicators, through our behavioural
safety programme Challenging Beliefs,
Affecting Behaviour (CBAB), and our
wellbeing initiative, Be Well.
Key UN sustainable
development goals
24
Galliford Try
Strategic report
25
Annual Report and Financial Statements 2025
Performance in the year
Our commitment to health and safety extends
to all people across our sites and offices.
The KPI calculations on this page include our
own employees, subcontractor employees
and visitors.
Accident Frequency Rate (AFR)
Our AFR, which measures the number of
injuries resulting in more than seven days away
from work or those listed as RIDDOR specified,
reduced to 0.03 during the year (2024: 0.04).
In addition, 13 out of 21 business units recorded
an AFR of zero.
Lost Time Frequency Rate (LTFR)
We also reported a further reduction in our
LTFR, which measures every incident that
results in more than a day away from work,
and fell to 0.09 during the year (2024: 0.14).
Both our AFR and LTFR are at record lows for
us. We attribute this continuous improvement
to our culture of care, embedded through
CBAB, a programme based on awareness,
training, coaching and visible leadership.
We continue to develop our approach as we
strive to achieve our ambition of no harm,
believing nothing we do is so important that
we cannot take the time to do it safely.
Ambition
FY25
FY24
FY23
A
ccident Frequency Rate (AFR)
0.09
0.04
0.03
No harm
0.03
Ambition
FY25
FY24
FY23
Lost Time
Frequency Rate (LTFR)
0.20
0.14
0.09
0.09
No harm
We were proud to host the Department for Education’s
(DfE’s) Health, Safety and Quality Forum at our
Merrist Wood College project in Guildford, bringing
together key stakeholders from the DfE and its supply
chain partners to drive safety culture and continuous
improvement across the industry.
26
Galliford Try
Lead Indicators
While AFRs and LTFRs remain the industry
standard measures of safety performance,
internally we use Lead Indicators to drive
improvement in safety culture and behaviour,
as they enable us to proactively manage health
and safety. Our Lead Indicators span six areas:
leadership, communication, competence,
culture, contractors and planning.
Highlights from the period include:
Achieved 95% average monthly compliance
with our Back to Basics requirements, which
provide additional rigour to ensuring we
have the right person, planning, equipment
and workplace for each activity.
100% completion of Site and Safety
Environmental Reviews (SSERs), which
provide a comprehensive overview of how
each site is running, and are attended by
the senior project team, demonstrating
visible leadership on safety (see below for
further detail).
Conducted 1,654 director tours
(2024: 1,276) and 97,264 Safe Behaviour
Discussions (2024: 60,491). These provide
visible leadership and are a powerful way
for management to promote and maintain
safe behaviours on site, by engaging with
operatives to reaffirm positive behaviour
and constructively challenge any potential
non-compliance.
In addition, our Chief Executive hosts
fortnightly meetings with all business unit
managing directors and heads of function.
We continued to use these meetings to highlight
and report on trends within our business and
the wider industry, and reinforced this with
a session on health and safety in our annual
Senior Leadership Meeting in March 2025.
Other areas of focus
Health, Safety and Environmental
(HS&E) Conference
Our bi-annual HS&E Conference brings
together members of the Executive Board,
senior leaders from across the business,
and our HS&E team, to highlight HS&E
standards and continuous improvement.
Health and safety
continued
Case study
Innovative lift technology
reduces safety risk
We used an innovative load assistance system to help reduce
the risk of injury on a major beam lift at our Melton Mowbray
Distributor Road (MMDR) project.
The Vita Load Navigator is a semi-autonomous propulsion-driven device
that connects below the hook of the crane and is remotely controlled.
It is capable of measuring over 1,000 data points per second to detect
load movement in real-time and adjusts the load with high-powered fans
to eliminate spinning and rotations, significantly reducing safety risk by
minimising interface between site operatives and the beams, and reducing
the number of people working at height.
The system was deployed to lift 18 concrete beams into place as part of
two bridges over water courses.
The project won the Midlands Highways Alliance Award for Best Use of
Technology in Construction and we have subsequently used the system on
other infrastructure projects, including the A47 Tuddenham and Blofield
schemes, where we received a Blue Star Award from National Highways
for innovation in health, safety and wellbeing.
Scan to watch the video of the
technology in action.
Strategic report
27
Annual Report and Financial Statements 2025
At this year’s conference, we simulated
a multi-faceted safety incident, working
with a specialist drama group and actors.
Delegates took part in role play and ‘murder
mystery’-style exercises, to reinforce the
importance of proactive and informed
leadership, working through ‘flashbacks’
from the actors who explained their thought
processes in the lead up to the accident. There
were observations from key protagonists, and
participants reflected on the critical actions
needed in the ‘golden hour’ after an incident.
The interactive approach brought to life the
importance of noticing your surroundings,
following policy, and maintaining records and
documentation, through an impactful and
engaging learning experience.
Enhancing our Health and Safety
audit processes
SSERs form the basis of our approach to
providing safety advice to our site teams and
monitoring adherence to our policies and
procedures. Reviews are performed every
month with any non-compliance identified
requiring a corrective action plan, including the
date by which it will be completed. Statistics
and trends in non-compliance are reported to
business unit and divisional Board meetings
each month.
During the year, we enhanced the SSER process
by aligning the approach with the internal
audits performed to assess compliance with the
Occupational Health and Safety Management
Standard (ISO 45001) and Environmental
Management Standard (ISO 14001). This
provides greater consistency in the assurance
procedures we undertake and ensures they
are focused on the most relevant issues.
We have also trained 20 new internal HS&E
auditors to support delivery of the internal
audit programme, reflecting the growth in
the business.
Looking forward
We will:
Review the HS&E Lead Indicators with a
view to replacing those which consistently
achieve 100% compliance, with new
indicators targeted at improvement areas.
Review HS&E core competencies
Group-wide, to ensure that our people
receive the best, up-to-date and most
appropriate training and development
for their roles.
98%
of our people say they understand
their role in keeping colleagues safe.
96%
of our people say we give Health
& Safety a high priority.
Our HS&E Conference featured a staged workplace accident to engage 140 employees in interactive safety
training, emphasising proactive leadership and critical decision-making with role-play exercises and expert panels.
Our people
Our objective is to
create a progressive,
people-orientated and
inclusive culture that
enables individuals to
reach their potential.
28
Galliford Try
Key UN sustainable
development goals
Strategic report
29
Annual Report and Financial Statements 2025
Performance in the year
Employee advocacy
Employee advocacy is a powerful indicator of
how engaged employees are, measuring how
likely they are to recommend our business as
a great place to work.
In our 2025 Employee Survey, we achieved an
employee advocacy score of 87%, compared
to a sector average of 81% and UK average
of 75%. This is the third year in a row that
we outperformed the sector and wider UK
industries. Our engagement score, which
is made up of a number of factors including
employee motivation, commitment to our
vision and pride in the company, was also above
the sector average at 75% This compares to
72% for the construction sector and 64% for
UK companies. Analysis by CultureAmp, our
survey provider, indicates that our people
feel “valued, respected, and supported”
by managers and colleagues.
Data-led insights like this demonstrate we are
earning a place as a destination employer, not
only within the industry but across the UK.
Ambition
FY25
FY24
FY23
Employee advocacy
86%
87%
87%
>80%
87%
Ambition
FY25
FY24
FY23
Women as a % of total employees
21.6%
22.5%
23.0%
YoY
increase
23.0%
Ambition
FY25
FY24
FY23
Early careers as a % of total employees
10.0%
10.2%
10.1%
>9%
10.1%
Our annual two-day Early Careers Welcome event
brings together our latest cohort of apprentices and
graduates to support their transition into new roles
with networking, learning and leadership engagement.
30
Galliford Try
Gender diversity
Gender split of women and men across our
business at 30 June 2025.
Gender
1
Women
Men
plc Board
2
4
Senior grades
(A-D)
2
94
629
Total company
993
3,324
1
Gender figures are based on employee numbers
at year-end.
2
Senior grades are defined as job grades A–D
which encompass senior managers and directors,
excluding plc Board directors.
Employing more women in our business is key
to accessing diverse skills and talent.
This year, the proportion of women across
Galliford Try increased to 23.0 % from 22.5%
last year.
During the year, we have continued work on
our ‘Women into Construction’ project which
has seen us survey the women who work at
Galliford Try to understand their perspectives
on the challenges women face in their careers,
the specific barriers for women in operational
roles in construction, the stages of women’s
careers where they are most likely to be
impacted, and the areas we need to target to
position us as a recognised place for women to
establish long-term flexible careers. Based on
the results of this work, we have identified the
following areas for further action:
Optimising the development experience.
Continuing our work to build external
talent pools.
Engaging with and equipping our managers
to support the continued development of
our culture.
Importantly, the survey also highlighted that
84% of women would recommend Galliford
Try as a place to work, and 70% see themselves
here in the long term.
Since 2020, we have reduced our mean gender
pay gap from 28.8% to 24.1%, and our median
gender pay gap from 32.2% to 27.7%.
We also enhanced maternity pay (full pay)
entitlement from 13 weeks to 26 weeks and
established a £2,500 returner’s bonus payment
for employees who return to work from
maternity/adoption leave and are still employed
by the company 12 months from the date they
return to work.
Early careers
Early careers roles (apprentices, trainees,
graduates and sponsored students) remain
a key focus for both retention and recruitment,
as these roles help us to grow our own talent,
shape our leaders and influence the skill sets
and composition of our future workforce,
including diversity.
We maintained the percentage of early
careers roles at 10.1% (2024: 10.2%) of
our workforce.
We are proud to have retained our Platinum
membership of The 5% Club, which
recognises the business’s commitment to
inclusion and social mobility, future growth
of ‘earn as you learn’ opportunities and
the quality of training and development.
Platinum membership is awarded to
companies that have 10% or more
employees in ‘earning and learning’ roles.
We have also been voted the number one
Construction and Civil Engineering company
for both Apprentices and Graduates by
The Job Crowd, the UK’s only graduate and
apprentice employer ranking system based
on employee feedback. We ranked seventh
for apprentices and 21st for graduates
across all industries.
We continue to support the Institution
of Civil Engineers QUEST scholarship
programme, as a partner employer. As part
of the programme, we support students
who are studying for a degree in engineering
by providing summer work placements and
job opportunities once they graduate.
Other areas of focus
Equity, Diversity and Inclusion
We completed the delivery of inclusive
leadership education and awareness sessions
to all our business unit leadership teams. These
consisted of in-person modules, self-evaluations
and personal action plans to embed inclusion
into their business plans.
To continue to develop our culture, we have
also started the roll-out of Active Bystander
training, which aims to help our people
recognise and challenge any inappropriate
behaviour they may see by providing them
with the knowledge, tools and confidence to
safely intervene.
We continue to work with The Clear Company,
a global diversity and inclusion specialist,
using their Clear Assured standard to
embed the most inclusive practices across
our organisation.
Enhanced induction programme
A quality induction leads to better retention,
supports belonging, and reinforces our values
and behaviours. During the year, we have been
developing a digitised induction that improves
the employee experience. The programme
has been compiled based on feedback from
across our employee population and comprises
nine modules that help joiners understand our
culture and ways of working, as well as practical
modules on getting set up, what we do and
how we do it. The effectiveness of the learning
experience is supported by checks at the end
of each module, which are designed to improve
knowledge retention. A key feature of the
programme is that it is underpinned by regular
manager involvement. The new platform sets
up our people for success.
Career Paths
We value learning at every level of the
organisation and provide opportunities for
our people to grow, both personally and
professionally, and build ‘Careers Without
Compromise’. This could mean developing
them further in their current role, supporting
a sideways step, or helping them to move to
a different area of the business.
In support of these objectives, and following
a review by working groups across the business,
we launched our new Career Paths app to help
our people understand what career progression
options are available to them within the Group.
There are 120 Career Paths, each with bespoke
development options and ‘Success Factors’ –
the key competencies including technical and
behavioural indicators needed to be successful.
Each Career Path is built around the idea
that 70% of learning comes from on-the-job
experiences, 20% comes through feedback and
coaching from other people, and 10% comes
through formal training.
Our Learning and Development team has
also developed a new version of our GT
Academy app, with a new set of resources and
content types and the ability for employees to
personalise their experience, bookmark content
and create their own playlists.
Defence Employer Recognition Scheme
Attracting employees from diverse
backgrounds is one of the key elements of
our Retain and Gain strategy. People who
have served in the Military often have skills,
experience and dedication that make them
a key talent pool for our business. We are
therefore committed to supporting Military
personnel, recognising the positive impact
it makes to both those individuals, our
business and the community. We provide
Our people
continued
Strategic report
31
Annual Report and Financial Statements 2025
Looking forward
We will:
Expand employment outreach to
disadvantaged groups, including
ex-offenders, ex-Military and care leavers.
Continue to work with The Clear Company
to improve our approach to equity, diversity
and inclusion.
Continue to develop our approach to
resourcing, enabling us to attract the
best talent with a range of backgrounds
and experience.
Provide additional support and guidance to
hiring managers about how to create a great
candidate experience and support them to
identify out-of-sector candidates who have
useful skills for our business.
an accessible route into the business through
a combination of placements, buddy systems,
and tailored programmes that are shaped by the
experiences of existing employees who have
previously worked with the Military.
We currently employ 93 ex-Military personnel,
having recruited 16 people in the past year.
In recognition of our commitment to employing
Armed Forces leavers, we achieved the Gold
Award in the Defence Employer Recognition
Scheme (ERS), the highest badge of honour for
organisations that demonstrate outstanding
support to the Armed Forces community. To
receive Gold, employers must be exemplary
within their sector, actively championing
defence people initiatives and influencing
partner organisations and suppliers to adopt
similar supportive practices. Gold was achieved
in July 2025, and Silver the previous year.
In June 2025, we were also recognised as one
of the Top 50 employers for people leaving the
Armed Forces, as named by the GREAT British
Employers of Veterans programme.
Case study
Retaining talent
Our internal mobility programme,
Explore, is specifically designed to
facilitate internal career moves,
allowing employees to explore
different roles and business units
within the company.
Viktoria used our Explore internal mobility
programme to relocate from the South of
England to Scotland, enabling her to stay
with the company while moving closer
to her partner. With her project ending
and 15 years of engineering experience,
she saw it as the ideal moment to take
her career in a new direction. She is now
a Technical Administrator on the Scottish
Water contract, where her engineering
background has supported a smooth
transition. Viktoria found the process simple
and efficient, and highly recommends
Explore as a clear example of how the
company supports employee growth
and values their skills.
401
promotions during the year, equating
to 9.7% of all employees.
67
of our people used Explore to move
roles internally during the year.
Environment and
Climate Change
Our objectives are to adopt sustainable
resourcing and consumption practices
and take measures to mitigate carbon
production and climate change, to protect
our environment and biodiversity.
32
Galliford Try
Key UN sustainable
development goals
Strategic report
33
Annual Report and Financial Statements 2025
Performance in the year
As we report our carbon and energy data in
calendar years, the following section represents
our carbon and energy performance for
Galliford Try for the calendar years 2024
and 2023, unless otherwise stated.
Scope 1 and 2 carbon emissions
Our Scope 1 emissions predominantly relate to
fuel use in company cars and vans, and on-site
plant and equipment. Our Scope 2 emissions
relate to consumption of electricity across our
sites and permanent offices, and EV charging
of company cars.
In 2024, our Scope 1 emissions relating to
company cars and vans continued to trend
down, reducing by a further 12% compared
to 2023, as we complete the transition to
EV/Plug-in Hybrid Electric Vehicles (PHEVs).
This was partially offset by a 30% increase in
Scope 2 emissions relating to EV charging of
company cars. However net emissions across
both scopes reduced by 8%. As at 30 June
2025, full battery electric and plug-in hybrids
represented 98% of our company car fleet.
Emissions relating to the use of diesel on our
sites increased to 9,185 tonnes CO
2
e (2023:
4,612 tonnes CO
2
e) in the year. This was driven
by several factors, the most significant being:
High rates of growth in our Highways and
Environment businesses, which have the
highest intensity of diesel use.
Increased use of diesel-powered pumps
to dewater sites, due to exceptional levels
of rainfall.
Increased use of diesel generators as a result
of delays in getting connections to the mains
electricity grid.
As outlined in our Net Zero Route Map, which
we published in September 2024, we are
committed to achieving diesel-free construction
by 2035. We have refreshed our guidance to
staff on opportunities to reduce our use of
diesel through deployment of energy-efficient
plant and equipment, and transitioning to
lower carbon alternative fuels. Our Green Site
set-up Working Group continues to engage
with the industry and our projects to find new
opportunities. We will continue to monitor the
impact through improved diesel reporting.
Ambition
FY25
FY24
FY23
Scope 1 and 2 carbon emissions
(market-based) (CO
2
e tonnes)
10,751
2
10,486
2
14,811
42%
reduction
by 2030
1
14,811
Ambition
FY25
FY24
FY23
Verified scope 3 emissions
(CO
2
e tonnes)
8,545
2
7,128
2
8,874
42%
reduction
by 2030
3
8,874
Ambition
FY25
FY24
FY23
Waste intensity
(tn/£100k revenue)
21.8
17.7
12.4
YoY
reduction
12.4
Ambition
FY25
FY24
FY23
Waste diverted from landfill
(including waste reused on site) (%)
94.5
95.3
96.0
100
96.0
1
42% reduction by 2030, based on 2021 baseline.
2
Restated to reflect disposal of Rock & Alluvium.
3
42% reduction in total Scope 3 by 2030, based on
2021 baseline.
34
Galliford Try
Because electricity represents an increasing
proportion of our Scope 1 and 2 emissions,
and we purchase 90% of our electricity on
renewable tariffs (2023: 86%), we use market-
based Scope 2 emissions within our headline
Scope 1 and 2 emissions KPI. This also aligns
with our science-based target, which reflects
market-based Scope 2 emissions. The market
basis uses emissions factors that reflect
our actual electricity supply contracts and
therefore allows us to demonstrate the impact
of purchasing our electricity on renewable
tariffs. The location basis uses the average
generation mix for the UK and as such, is
susceptible to changes that are outside of
our control.
Our total Scope 1 and 2 emissions increased
41.2% year-on-year on a market basis, and by
35.0% on a location basis. These increases were
driven by the significant increase in emissions
relating to diesel used on site, offset slightly
by the net reduction in emissions relating to
company cars and vans.
Growth of the business has a significant impact
on both Scope 1 and 2 emissions. We therefore
monitor emissions intensity, measured in tonnes
(t) of carbon dioxide (CO
2
) equivalent (tCO
2
e)
per £100,000 of revenue in the corresponding
calendar year, to provide a clearer picture of the
impact of our emission reduction initiatives.
Our Scope 1 and 2 (market-based) emissions
intensity increased by 15% from 0.69 in 2023
to 0.79 in 2024. This reflects the fact that the
highest rates of growth are in our Environment
and Highways businesses, which have the
highest intensity of diesel use.
Despite these increases, we have reduced
our reported Scope 1 and 2 emissions by
51% since 2012, and by 59% on a like-for-like
basis, adjusting for acquisitions, disposals and
improvements to methodology. We remain
committed to achieving our target of achieving
net zero by 2030.
Verified Scope 3 emissions
We include certain categories of Scope 3
emissions within the boundary of the external
verification where we have sufficiently reliable
source data, such as business travel expense
claims, and information regarding employee
commuting to calculate emissions using a
distance-based method.
Our verified Scope 3 emissions increased by
22.4% from 7,128 tonnes CO
2
e in 2023 to 8,874
tonnes CO
2
e in 2024. The biggest contributor
to this increase was ‘Fuel and Energy Related
Activities’, which increased by 34.7% and is an
estimate of the transportation, transmission
and distribution losses associated with the
energy use reported in Scope 1 and 2. Emissions
from Business Travel and Employee Commuting
increased by 24% and 15% respectively. These
increases reflect the growth in employee
numbers, as well as an increase in air travel.
Full Scope 3 emissions
In 2022, we estimated our full Scope 3
emissions using a spend-based approach.
This involved analysing our expenditure by
type of products and services, mapping those
items to industry categories, and then applying
generic spend-based emissions factors for
those industries to estimate emissions.
This method is supported by the GHG Protocol
Corporate Accounting and Reporting Standard
for initial carbon footprinting, while working on
improving data quality and accuracy, and gave
us the following insights:
Scope 3 emissions represent circa 98% of
our total carbon footprint.
Emissions relating to the materials and
subcontracted services that go into our
projects represent circa 89% of our total
carbon footprint.
Concrete and steel are by far the largest
source of emissions, due to the volume of
these materials that we use, and their high
carbon intensity.
However, weaknesses in the spend-based
methodology, as acknowledged in the
GHG Protocol reporting standard, limit its
effectiveness for monitoring carbon reduction
progress. For example, in 2023, our Morrison
Construction team began using Electric Arc
Furnace (EAF) steel on all educational projects.
Environment and Climate Change
continued
Case study
Northumbrian
Water low-carbon
concrete trial
Concrete is a major source of
carbon emissions, with estimates
suggesting its production and use
is responsible for around 8% of
global CO
2
. To help us to achieve net
zero carbon emissions across our
operations by 2045, Galliford Try
is delivering innovation activity to
trial new solutions that will replace
traditional concrete.
Working with partners including Cemex,
Northumbrian Water, the Graphene
Engineering Innovation Centre (GEIC)
at the University of Manchester and Sika,
we secured Innovate UK funding to develop
a low-carbon concrete mix as part of the
Combining Micronised Limestone and
Graphene (CoMLaG) project. One issue
with lower carbon concrete alternatives
is that they often require longer curing
periods than traditional concrete to reach
the required compressive strength. This
could result in project delays, supply chain
disruption and increased economic pressure,
and be a substantial barrier to adoption
across the UK construction industry. Our
project team identified this barrier and
addressed it by incorporating Graphene,
a 2D material additive, into the mix.
Graphene-related materials can increase
compressive strengths and the speed at
which they are achieved. The innovative
low-carbon concrete developed by the
team also integrated micronised limestone,
as a low-carbon replacement for Ordinary
Portland Cement.
The project consisted of multiple
laboratory tests carried out at the GEIC
and at Cemex batching plants, trialling
different combinations of materials. Once
an optimum mix was determined, the
Galliford Try team delivered a test pour
of 15 cubic metres, creating a new access
road at a Northumbrian Water Sewage
Treatment Works. The live concrete pour
was a success. The poured concrete has a
strength equivalent to traditional concrete
and a carbon saving of 49%. We are now
looking forward to working further with
our CoMLaG partners to support market
development for the finished product.
Strategic report
35
Annual Report and Financial Statements 2025
The manufacturing process of EAF steel
significantly reduces the use of fossil fuels,
delivering a circa 77% saving on carbon,
compared to traditional manufacturing
processes. However, using the spend-based
methodology, the estimated emissions
associated with using this steel would show no
carbon saving and may even result in higher
emissions, depending on the market price of
the material.
Therefore, having completed our initial full
Scope 3 footprinting exercise, we are continuing
to focus on developing a quantity-based
approach to estimating emissions and have
suspended reporting of estimated full Scope 3
emissions using the spend-based methodology.
We are working with our supply chain and
technology partners to develop and trial
technology solutions that allow us to estimate
our supply chain carbon emissions using
actual quantities and product- specific
emissions factors.
Waste
Our waste intensity decreased from 17.7 tonnes
per £100,000 of revenue in calendar year
2023 to 12.4 tonnes per £100,000 of revenue
in calendar year 2024. Waste continues to be
an area of focus, with increased use of Modern
Methods of Construction, especially off-site
manufacture, which can reduce the volumes of
waste produced. Our focus on Right first time
also reduces waste, through increased accuracy
of materials required.
We also manage our waste streams to maximise
recycling and minimise waste to landfill, with
96.0% of our waste diverted from landfill
(2024: 95.3%).
Other areas of focus
PAS 2080: 2023 accreditation
We became one of the first organisations
to be certified to both the buildings and
infrastructure elements of PAS 2080:2023
– Carbon Management in Buildings and
Infrastructure, following the expansion of
PAS 2080’s scope to include the entire built
environment. It is the leading standard for
carbon management in the built environment,
covering the design, construction, operation,
use and end of life of new and existing assets,
with the aim to reduce costs and adapt to a
low-carbon future. The achievement further
evidences our ability to work with clients,
consultants and suppliers to deliver low
and net zero carbon projects and to help the
UK transition to a net zero carbon economy
by 2050.
Dedicated carbon learning
Upskilling our teams with the knowledge and
skills they need is one of the critical success
factors in delivering on our carbon reduction
objectives, and one of the key enabling activities
in our Net Zero Route Map.
During the year we reviewed and refreshed
our ‘Journey to Net Zero’ e-learning course.
This is a mandatory course for all staff,
introducing the science of climate change,
the key sources of carbon emissions in the
construction value chain, and the targets and
actions we have committed to as a business.
We have also developed and launched role-
based learning courses, covering key bidding,
design, operational and commercial roles.
These modules go into more detail about
topics that are relevant to those roles, such as
guidance on common relevant carbon reduction
opportunities, how to engage clients, suppliers
and subcontractors to identify and realise
project specific reduction opportunities, and
how project teams should be recording and
monitoring emissions.
‘One in a Million’ employee
engagement initiative
At the beginning of 2024, we launched our
‘One in a Million’ employee engagement
initiative. The aim is to engage our project teams
in carbon reduction, by challenging them to
identify innovative ways of reducing carbon
and reporting their achievements to share best
practice around the Group. The target was
to identify a minimum of one tonne of carbon
(tCO
2
e) savings per £1m of revenue in 2024.
Over the course of 2024, 49 projects from
11 business units across Galliford Try saved
7,225tCO
2
e or 4tCO
2
e/£m for the business.
Savings came from a range of initiatives, project
types and stages, from championing the reuse
of existing structures to fuel saved through use
of hybrid generators. Over 4,800tCO
2
e were
saved through procurement of low-carbon
EAF steel products across several projects.
EAF steel in particular shows the importance
of engaging with the supply chain as early as
possible and capturing actual information,
instead of relying on industry average data.
The One in a Million challenge has continued
into 2025, with our focus this year on increasing
the number of participating projects across
the business.
Energy Savings Opportunity Scheme
(ESOS) Action Plan
ESOS is a compliance programme run by the
Environment Agency, which requires large
organisations to perform an energy audit
once every four years. We completed our
energy audit in August 2024 and submitted
the required action plan, which is based on the
biggest energy saving opportunities identified
in the audit. The plan focuses on four energy
uses: hybrid generators, site cabins, car fleet
electrification, and van fleet electrification.
These four areas were already identified as
priorities in our Net Zero Route Map and the
ESOS action plan therefore aligns with our
existing energy reduction initiatives.
Raising awareness on biodiversity
We recognise the impact that construction
can have on biodiversity. Our aim is to protect,
and where appropriate enhance biodiversity
during our construction activities, for the
benefit of all our stakeholders and society.
To embed this commitment within our
business-as-usual processes, we are integrating
Biodiversity Action Plans (BAPs) into all
our construction projects.
During April, we ran a week-long campaign to
raise awareness of the importance of protecting
and enhancing biodiversity through our
construction activities and to upskill our teams
on how to effectively manage biodiversity risks
on our projects. The week covered a range of
activities including:
An introduction to biodiversity and how our
teams can influence outcomes on
our projects.
Outlining the key processes within our
BMS, to ensure we manage ecological
risk from tender right through to the
construction phase.
Training on the management of invasive
species, both plant and animal, and in
particular how to protect against spread.
A learning session on Biodiversity Net Gain.
Training on the management of fish species
in watercourses and the impact it can have
on when and how we work.
Carbon Disclosure Project (CDP)
We continue to participate in the CDP, a global
disclosure system for organisations to manage
their environmental impacts. In 2025, we
retained our score of B ‘Management level’,
recognising the progress we are making in
embedding climate action into our governance,
strategy and operations.
Looking forward
We will:
Continue to encourage and capture carbon
reduction opportunities realised through
our One in a Million initiative, widening the
target to all projects.
Continue the development of our carbon
data lake and develop enhanced carbon
reporting, delivering on our ambitions for
improved carbon reporting across all scopes.
Review and update our Net Zero Partners
initiative and develop carbon supply chain
engagement plans for all construction
business units.
Begin to develop our ‘Beyond Value
Chain Mitigation’ strategy, in support
of our net zero targets.
Review and update our science-based
targets, to align with the revised
Science-Based Targets Initiative
Corporate Net Zero standard.
Communities
Our objective is to make a positive
impact in communities where
we operate, by delivering greater
social value and improving lives.
36
Galliford Try
Key UN sustainable
development goals
Strategic report
37
Annual Report and Financial Statements 2025
Performance in the year
Social and Local Economic Value
Delivering a legacy of positive social value
outcomes is a key part of our strategy. This is
the right thing to do as a responsible business
and is also increasingly important for our
clients. The Procurement Act 2023, which came
into effect during the year, and the updated
Public Procurement Notice – PPN002 Taking
account of social value in the award of central
Government contracts, reinforced social
value as a priority for public sector clients and
confirmed the requirement that a minimum
of 10% of the evaluation criteria on public
procurement tenders must relate to social
value outcomes.
During the year, we transitioned to the Thrive
platform to enhance how we record, measure
and report on social value outcomes.
On the 18 projects (2024: 24 projects) over
£5m completed during the year, we delivered
£1,076m in Social and Local Economic Value
(SLEV), with 83% of projects exceeding our
benchmark of 25% of project value (2024: 79%).
Thrive allows us to customise our own metrics
in addition to using the IES (Impact Evaluation
Standard) making it easier to align with our
business and project needs. The platform
supports every stage of our social value journey
from planning, bid delivery and evaluation
and has built-in tools for evidence collation
and verification aligning to the Government’s
Procurement Policy Note 002: The Social
Value Model. This approach:
Is aligned with the UK Social Value
Model, ensuring compliance with public
procurement requirements.
Provides robust, evidence-based
estimates of social value for tenders,
bids and reporting.
Helps us report and promote the positive
impacts we have made in the communities
in which we operate.
Ambition
FY25
FY24
FY23
% of completed projects delivering >25%
SLEV as a % of contract value
94%
79%
83%
>60%
83%
Ambition
FY25
FY24
FY23
Considerate Constructors Scheme (CCS)
performance
43.4
42.9
43.9
>39
43.9
38
Galliford Try
Considerate Constructors Scheme
The Considerate Constructors Scheme (CCS)
strives to improve the image of the construction
industry and leave a positive legacy, by
implementing best practice in the areas of
community engagement, the environment and
workforce wellbeing.
CCS scores and benchmarks construction sites
on their positive impact within their locality.
We maintained a high score of 43.9 (2024:
42.9) out of 50, outperforming our target and
remaining above the industry average of 40.6.
Our project teams received two Gold, three
Silver and 15 Bronze awards at this year’s
CCS National Site Awards, reflecting our
teams’ ongoing commitment to setting high
standards across all areas of site operations.
We are also a member of the CCS Social
Impact Group, which has been formed to
help standardise social impact, increasing
understanding, engagement, and
communication of social value for
the supply chain and stakeholders.
Other areas of focus
Mentoring the Next Generation
In September 2024, our mentoring scheme
aimed at encouraging the next generation of
women into construction welcomed the first
cohort of 66 students across five schools. Each
student has been paired with one of 36 female
mentors from our business for the duration of
the three-year programme, which will showcase
the vast and rewarding opportunities in the
sector. Individuals on the programme will
benefit from improving their communication
skills for the workplace, matching careers to
their interests, and guidance with CV writing
and interviewing.
The feedback we have had from students
and their teachers is that the workshops are
engaging and the students look forward to
the sessions.
Following the successful first year, we are
expanding the programme and have enrolled
a further circa 60 students across six schools
in the second cohort.
Open Doors
We took part in Build UK’s Open Doors
initiative again this year, with circa 500
students visiting 17 of our sites. We delivered
presentations covering possible career paths
in construction and the work we participate
in, and gave attendees the opportunity to see
how a live site operates, including how we
work alongside our supply chain. This forms
part of our early careers commitment and our
broader engagement with the communities in
which we operate.
Volunteering and charitable donations
One of the most tangible ways in which we
create a positive legacy is through our staff
and supply chain volunteering their time and
resources to support community projects and
causes. We encourage all employees to take
up to two days of paid leave to undertake
voluntary activities.
During the year, our own staff recorded 7,300
hours of volunteering time. As it is difficult to
capture all volunteering time, including that of
our supply chain partners, we believe the true
amount is significantly higher.
To embed a volunteering culture, volunteer
days are incorporated into our graduate and
trainee training programmes. This includes
requiring our graduates to sign up to become
STEM (Science, Technology, Engineering,
Mathematics) ambassadors, joining a national
network of volunteers who bring real-life
examples of STEM careers into schools,
colleges, and universities across the UK.
In addition to volunteering hours, we donated
time, materials and money to the value of
£470,000 (2024: £365,000) to charitable and
community causes including CRASH, the UK
construction industry charity for the homeless,
which we have been a patron of for 26 years.
Looking forward
Increase our engagement with Crash
by developing a ‘Future Projects
Visibility Schedule’.
Embed Thrive into the business and align
to our social value objectives and evidence
capture processes.
Communities
continued
20
Considerate Constructors Awards
received in the year.
7,300
Hours of volunteering time recorded.
Strategic report
39
Annual Report and Financial Statements 2025
It’s a privilege to be recognised by the
CCS in this way. This industry has given
me so much, and I’ve always strived to
give back by driving positive change
for both people and communities. This
award is as much about the incredible
teams I’ve worked with as it is about me.
Andy Ward
Operations Director for our
Building North West business
Case study
Andy Ward, Operations Director for our
Building North West business, was awarded
a Lifetime Achievement Award by CCS,
earning a place in their Hall of Fame.
Andy is one of only eight people to receive this award and was selected for
his exceptional leadership, commitment to the CCS Code, and dedication
to creating real change in the industry.
Andy’s innovative contributions include introducing dedicated community managers
and pioneering performance management for social value.
1 of 8
Only eight people achieved this
award nationally.
Clients
Our objective is to deliver superior buildings
and infrastructure, with a better social
footprint for clients, through a focus on
innovation, digitalisation and quality.
40
Galliford Try
Key UN sustainable
development goals
Strategic report
41
Annual Report and Financial Statements 2025
Performance in the year
Repeat business in our order book
Our performance is driven by understanding
client priorities, building trusted relationships,
providing technical expertise to solve client
challenges and delivering high-quality buildings
and infrastructure. This is reflected by the
fact that 93% of the work in our order book
is repeat business, with clients who we know
and have collaborative, long-term relationships
with, based on a track record of delivering
high-quality outcomes.
Revenue secured at the start of the
financial year
We continue to have a strong pipeline of work in
our chosen markets, with 92% of FY26 revenue
already secured and 75% of FY27.
Other areas of focus
Strategic partnering through frameworks
Our focus on delivering quality outcomes and
building trusted relationships with our clients is
reflected by the fact that 90% of our order book
is in frameworks. Frameworks are a vehicle
for the public and regulated sectors to procure
projects in a collaborative manner, forming
long-term relationships, improving quality
and creating efficiencies.
Securing positions on frameworks is our
preferred route to market, as it provides us
with greater certainty and the ability to act
strategically. Key benefits include:
Aligned objectives with acceptable risk.
Established and well-understood terms and
conditions, with predictable behaviour.
Transfer of knowledge from project to
project, creating an environment
of continuous improvement.
Efficient and streamlined
procurement processes.
The development of long-term
strategic relationships.
Long-term visibility of the
opportunity pipeline.
Ambition
FY25
FY24
FY23
% of repeat business in our order book
87%
93%
93%
>80%
93%
Ambition
FY25
FY24
FY23
% of full year planned revenue secured
at the start of the financial year
92%
92%
92%
>85%
92%
42
Galliford Try
Clients
continued
Example of our framework visibility
Sector
2025
2026
2027
2028
2029
2030
Environment
(Design and Build)
AMP8
AMP9
DV2
SR21 ESD
SR27/SR 33 DV4
Environment
(Capital
Maintenance)
AMP8
AMP9
Environment Agency Asset
Operation Maintenance Response
Environment Agency Asset
Operation Maintenance Response
Environment
(Water
Technologies)
AMP8
AMP9
Environment Agency MEICA
Environment Agency MEICA
Scottish Water MCC
Scottish Water MCC (DV4)
Scottish Water Chemical Dosing
Scottish Water Chemical Dosing (DV4)
Highways
Midlands Highways Alliance+
Midlands Highways Alliance+
YORcivil3
YORcivil4
National Highways SDF1
National Highways SDF2
National Grid High Voltage Direct Current Converters enabling civils and building works
Defence
Crown Commercial Services
(CCS) CWAS 2
CCS CWAS 3
Defence Estate Optimisation Portfolio
Education
DfE Construction
Framework
DfE Construction Framework 25
Scottish Hub Programme
Commercial
& other
Constructing West Midlands 2
Constructing West Midlands 3
Procure Partnerships
Procure Partnerships
Southern Construction
Framework (SCF) 5
SCF 6
Custodial
CCS
CCS
Ministry of Justice Constructor Services Framework
Health
NHSE ProCure23
NHSE ProCure24
FM
CCS FM Workplace Services
CCS FM Workplace Services
Fusion21
Fusion21
Long Term PPP Hard FM and Lifecycle contracts
NHS Framework
NHS Framework
Security
CCS framework for Security
CCS framework for Security
NHS SBS Framework
NHS SBS Framework
AMP7
AMP8 Security Frameworks
NHS NOE CPC Specialist Estates
NHS NOE CPC Specialist Estates
Affordable
Homes
Communities & Housing Investment Consortium (CHIC) Newbuild Development Framework
Homes England Dynamic Purchasing System
CCS Residential
CCS Residential
South East Consortium DPS
South East
Consortium DPS
Secured
Projected
Strategic report
43
Annual Report and Financial Statements 2025
Embracing new public procurement
regulations and guidelines
During the period we have welcomed the
introduction of the new Procurement Act
aimed at streamlining and improving public
sector delivery.
The Procurement Act came into effect on
24 February 2025, marking a significant
overhaul of UK public procurement and
replacing the EU Procurement Directives and
the Public Contracts Regulations 2015. This
was accompanied by publication of a revised
National Procurement Policy Statement.
The Act provides clarity on the procurement
process and brings in several changes that align
well with our existing approach and strengths.
This provides opportunity for us to differentiate
our offering and remain successful in our
key public sector markets. Some of the most
significant benefits include:
The requirement for Contracting Authorities
expecting to spend over £100m in the next
financial year to publish a ‘Pipeline Notice’
for all contracts over £2m, which will help
us anticipate upcoming opportunities and
improve our pipeline planning.
The change in the assessment of competitive
tenders from ‘most economically
advantageous tender’ to ‘most advantageous
tender’, further embedding the principles
of the Construction Playbook and the shift
towards an efficient, sustainable and
resilient industry.
The Direct Award procedures in specific
circumstances, such as repeat work, urgent
requirements, defence and security, which
present the opportunity for streamlining
the procurement of projects and delivering
value for money for the public purse.
Delivering quality
Delivering quality assured projects for our
clients, right first time, every time, is key to
developing long-term relationships, reducing
our carbon footprint, securing repeat business
with our clients and, therefore, our Sustainable
Growth Strategy.
Our culture and behaviours underpin our
approach, centred on learning and continuous
improvement, coupled with the integration of
digital technologies, systems and processes to
enhance performance and drive efficiencies and
provide confidence in the quality of the assets
we construct.
Our Quality policy summarises the processes
within our Business Management System
and provides an overview of our approach
to delivering right first time. Our quality
processes are supported by using ViewPoint,
Fieldview and other digital tools to ensure
compliance and improved data to drive
continuous improvement.
Looking forward
We will:
Maintain and develop our presence
on frameworks.
Maintain ISO44001 Collaborative
Relationship Standard accreditation,
in support of our collaborative relationships
with our clients and supply chain.
We are upgrading existing infrastructure and improving the overall water treatment process at Burstow Water Treatment Works, as part of one of the area’s largest ever
upgrade of sewers and sewage treatment works programmes focused on improving water quality and network resilience.
Supply
Chain
Our objective is to align our supply
chain with our culture and create
collaborative relationships that
deliver best practice, innovation and
sustainable outcomes for clients,
communities and the environment.
44
Galliford Try
Key UN sustainable
development goals
Strategic report
45
Annual Report and Financial Statements 2025
Performance in the year
Aligned subcontractors
We continue to focus on developing
collaborative, long-term relationships with our
supply chain partners through our Advantage
through Alignment (AtA) programme.
AtA is designed to align our supply chain
with our culture and create relationships
that deliver best practice, innovation
and sustainable outcomes for clients,
communities and the environment. It enables
deep collaboration and supports Aligned
subcontractors through training and education,
by sharing our working practices, values and
our vision, and by giving access to our
behavioural safety programme, Challenging
Beliefs, Affecting Behaviour, BIM training
and Continuing Professional Development.
During the year we reviewed and made further
enhancements to the AtA programme, including
aligning it to our updated Sustainable Growth
Strategy and setting out the focus areas over
the strategy period 2025-2030.
Our core trades spend with Aligned
subcontractors in the year was 59%
(2024: 61%).
Ambition
FY25
FY24
FY23
% of business units core trades spend with
Aligned subcontractors
58%
61%
59%
70–80%
59%
Ambition
FY25
FY24
FY23
Prompt payment – % of invoices paid
within 60 days
98.1%
95.6%
96.9%
>95%
96.9%
46
Galliford Try
Supplier payment
Maintaining the financial resilience of our
supply chain is a key priority for us and we are
therefore committed to paying our suppliers
promptly. Our target is to pay 95% of supply
chain invoices within 60 days. We continue to
outperform this target, with 97% of invoices
paid within 60 days in the year to 30 June
2025 (2024: 96%) and the average days to pay
remains low at 26 days (2024: 26 days).
We were signatories to the Prompt Payment
Code, which was replaced during the year by
the Fair Payment Code. The Fair Payment
Code has Gold, Silver and Bronze Award
categories, underpinned by fair payment
principles. We have achieved the Bronze
Award, which is for companies that can
demonstrate that they are paying at least
95% of all invoices within 60 days, and is
therefore aligned with our existing target.
Other areas of focus
Common Assessment Standard
We have implemented a new supplier
onboarding system which aligns to the Common
Assessment Standard. Developed by Build
UK, Civil Engineering Contractors Association
(CECA) and other assessment bodies and
industry experts, the Common Assessment
Standard standardises the prequalification
process, helping our subcontractors achieve
compliance and mitigate risks across 13 key
areas of risk management. To achieve
certification, subcontractors only need to
evidence their compliance in these areas
once a year on the online portal.
Adopting this standardised approach:
Helps us identify suitably qualified
contractors using less time and resources.
Aligns us with the UK Government’s
recommended standard for construction
procurement in public sector procurement
projects exceeding £5.337m.
Simplifies the tendering process for more
suppliers and encourages them to apply
for more projects.
Gives us more time to focus on the
project-specific areas of the
pre-qualification process.
Supplier performance monitoring
In conjunction with the enhancements to our
AtA programme, we have developed a more
structured supplier performance monitoring
framework, to drive greater consistency across
the Group and provide better insights on
supply chain performance. The framework sets
out the minimum standards of performance
monitoring across the project lifecycle, from
the tender stage through to completion and
lessons learned. The insights gained will be
used to influence which suppliers we work with
on future projects and therefore incentivises
both parties to work together effectively. The
process is supported by an online platform that
provides full transparency, automation and
control of performance across our supply chain.
Supply Chain Sustainability School
The Group is a partner to the Supply Chain
Sustainability School, which is a leading online
resource for businesses within the built
environment supply chain, aiming to upskill the
workforce and improve the understanding of
best practice in sustainability. We have been
recognised for our ongoing support, winning the
Partner award for Supply Chain Engagement.
During the year, our suppliers completed 3,765
of the school’s e-learning modules and accessed
its online learning resources over 34,000
times. In addition, our Group Supply Chain and
Procurement Director is a Board member of
the Supply Chain Sustainability School.
Looking forward
We will:
Leverage our Oracle Enterprise Resource
Planning platform to enhance the efficiency
and effectiveness of our procurement
processes, for example by developing
punch out catalogues that link to suppliers’
e-commerce platforms and therefore
enhance the effectiveness and efficiency
of our procurement processes.
Enhance the resilience of our supply chain
partners, by promoting and supporting the
take up of cyber essentials accreditation.
Develop our supply chain in the residential
sector, to support the growth of our
affordable homes business.
Supply Chain
continued
97%
of our invoices were paid within
60 days.
We regularly hold local supply chain conferences to
recognise excellence and strengthen collaboration with
delivery partners. These events promote shared goals
in safety, sustainability, innovation, and performance
improvement. They also support long-term partnerships
through initiatives like Net Zero Partners and Advantage
through Alignment.
Strategic report
47
Annual Report and Financial Statements 2025
Case study
Exmouth Outfall project for South West Water
The Exmouth Outfall project,
delivered for South West Water
(SWW), represents a remarkable feat
of innovative engineering and supply
chain collaboration. The project involved
the installation of a 900mm diameter
gravity long sea outfall, spanning
804m at Sandy Bay Devon Cliff
Holiday Park, one of the UK’s busiest
caravan sites, with over 2,200 units
and 10,000 weekly visitors, close to
a Blue Flag beach.
Working with P McCormack & Sons, a
Horizontal Directional Drilling (HDD) specialist,
we spearheaded the technically demanding
task of extending the sea outfall 816m offshore,
a noteworthy achievement in land-to-sea drilling.
Some of the key benefits delivered through
our collaboration included:
Minimising risks by reducing reliance on
marine resources through forward reaming
from land (pushing the pipe from land) –
an innovative, yet highly effective approach
for a project of this magnitude.
Seamless progress of the project, with
meticulous attention given to safety
measures, public access considerations,
and environmental protection.
100% recycling of drilling fluids using a
centrifuge system, significantly reducing
water use, lorry movements (mitigating
575 movements, saving 142T eCO
2
),
and environmental impact.
Deployment of flood barriers to contain
drilling fluids and meticulous monitoring
to prevent any environmental incidents.
The use of local supply chains wherever
possible supported the local economy
and reduced logistical emissions,
demonstrating commitment to creating
social value in the community.
Beyond the operational, economic and
environmental benefits, the project fostered
knowledge-sharing among the supply chain,
strengthening expertise and resilience within
the industry.
Human rights and
modern slavery
Ensuring human rights
We are committed to upholding human
rights and take steps to prevent slavery and
human trafficking in our business and supply
chain. We fully support all UK legislation
for human rights, recognising modern
slavery and human trafficking to be the
most significant human rights risks to
UK construction businesses.
48
Galliford Try
Key UN sustainable
development goals
Strategic report
49
Annual Report and Financial Statements 2025
Action and performance
Since the Modern Slavery Act came into force,
we have run awareness campaigns comprising
posters, videos and other educational material,
aimed at helping people to recognise the typical
signs of modern slavery.
We ask our suppliers of equipment and
materials to consider the risk of modern
slavery and to ensure that there is no slavery
or trafficking in their supply chain.
Our independent and confidential
whistleblowing procedure encourages
employees and third parties to raise any
potential concerns.
During the year, we established a Modern
Slavery Working Group to identify and oversee
further action we can take to minimise the risk
of forced labour and modern slavery within
our operations and supply chain. Our actions
in the year include reviewing our Modern
Slavery statement and performing audits of
our preferred supplier labour agencies.
Anti-bribery and corruption
Policy and management
On joining, and every three years, all employees
must complete an online course regarding the
Bribery Act.
Twice a year, every Business Unit managing
director and head of support function is
required to sign a declaration that their
respective teams are aware of the policy
and the Code of Conduct, comply with
their contents, and that any issues have
been reported.
50
Galliford Try
Revenue
Revenue grew for the fifth consecutive year,
increasing by 6.3% from £1,763.7m in the last
financial year to £1,875.2m, reflecting growth in
both Building and Infrastructure.
Building recorded revenue of £964.7m (2024:
£938.3m) up by 2.8%, driven by strong project
delivery across all our core markets including
the completion of the 329-home Park Square
Private Rented Sector (PRS) scheme; Catherine
Infant School, the first Net Zero Carbon in
Operation school in Leicestershire and the
127 Charing Cross Road mixed-use project.
Infrastructure revenue made very strong
progress, with the continuation of the strong
run off of AMP7 deliveries in the second half
alongside early design revenues on AMP8 in
Environment, and increasing activity from our
Highways business as several key projects
started in earnest on site. Revenue was up
11.3% from £810.7m to £902.5m.
Investments’ revenue was £8.0m (2024:
£14.7m). The previous period included financial
close fees related to the division’s first Private
Rented Sector (PRS) scheme, in Cardiff,
as well as the ongoing project management
fees associated with the construction of the
scheme itself.
Revenue growth over the last two years has
totalled more than 33% with a CAGR of circa
14% since 2021, the strength of this growth
aligned with the well trailed transition from
AMP7 to AMP8 in 2026, means we expect
softer revenue growth in the current year
before increasing towards our 2030 targets
from 2027 as supported by our record £4.1bn
diversified, and prudently assessed order book,
which has increased by circa 8% year on year.
A non-cash prior year restatement has been
recorded following a correction to the Group’s
application of IFRS15 contract combination
accounting, and, having made the correction,
management have reconsidered the treatment
of previously-combined material losses on
one framework and restated c.£11.7m as an
exceptional item.
Under its existing IFRS15 accounting policy, the
Group had incorrectly combined contracts on a
small percentage of framework agreements and
as a result, the Group has restated its financial
statements, reducing revenue and increasing
cost of sales in 2024 with an aggregate impact
to reported profit before tax of £11.7m
with associated tax and working capital
corrections. Full details of the restatement can
be found in note 34. As a result of identifying
the error, management have reconsidered
the treatment of material losses on specific
batches of contracts under one framework
agreement, acquired in the nmcn water division
acquisition in 2022, with £11.7m presented as
an exceptional item in the 2024 final results.
Financial review
Significant opportunity for further growth
My first year with the
Group has confirmed
that the strategy that the
business has put in place,
is the right one; focusing on
risk and quality, delivered
through excellent people,
leading to growing financial
returns, and underpinned
by a strong balance sheet.
Galliford Try has delivered
10 half periods of growth
and there remains a
significant opportunity
for further shareholder
value through improved
returns and capital
allocation and returns.
Kris Hampson
Chief Financial Officer
Strategic report
51
Annual Report and Financial Statements 2025
Financial performance
2030 strategic growth targets (indicative).
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.
4
Restated, see note 34.
FY30
FY25
FY24
4
FY23
FY22
FY21
Revenue
1,125
1,237
1,394
1,763.7
1,875.2
>£2.2bn
£1,875.2m
FY30
FY25
FY24
FY23
FY22
FY21
Adjusted profit before tax
1,2
12.4
20.6
22.4
35.0
45.0
£45.0m
FY30
FY25
FY24
4
FY23
FY22
FY21
Profit before tax
11.4
5.4
10.1
19.2
44.1
£44.1m
FY30
FY25
FY24
FY23
FY22
FY21
Average month-end cash
3
164
174
135
155
179
£179m
FY30
FY25
FY24
FY23
FY22
FY21
Adjusted earnings
1,2
per share
10.2
17.1
18.0
29.6
34.4
34.4p
FY25
FY24
FY23
FY22
FY21
Order book
2
3.3
3.4
3.7
3.8
4.1
£4.1bn
FY30
FY25
FY24
FY23
FY22
FY21
Adjusted operating profit
1,2
9.0
17.5
18.0
29.6
40.6
£40.6m
FY30
FY25
FY24
FY23
FY22
FY21
Divisional adjusted operating margin
1,2
2.0
2.4
2.4
2.5
3.0
4.0
3.0%
FY30
FY25
FY24
4
FY23
FY22
FY21
Earnings per share
9.5
5.8
8.7
27.3
33.7
33.7p
FY30
FY25
FY24
FY23
FY22
FY21
Full year dividend per share
4.7
8.0
10.5
15.5
19.0
19.0p
52
Galliford Try
Financial review
continued
No restatements were made to adjusted profit
before tax in 2024 or to the balance sheet at
1 July 2023 and no exceptional losses have
been reported in 2025.
The nmcn frameworks and associated
subsidiaries were acquired out of administration
for £1m in October 2021. Since the integration
of nmcn, revenues of more than £750m have
been delivered, and given its strong market
positioning and long-term water contract
relationships, the Group is forecasting further
revenues of more than £1.5bn on the acquired
nmcn businesses through the strategy period to
2030. Margins are in line with target trajectory,
and the business is performing ahead of the
pre-acquisition investment case.
Adjusted Performance
Measures (APMs)
Pre-exceptional measures are now referred
to as ‘adjusted’. The definitions of adjusted
operating profit, adjusted PBT and adjusted
EPS have been changed during the year to
exclude amortisation of acquired intangible
assets, to better reflect the business’s
underlying and ongoing performance
(see note 32). These changes are in line
with standard practice across the sector.
Adjusted operating profit
Adjusted operating profit increased by 37.2%
to £40.6m (2024: £29.6m). The combined
divisional adjusted operating margin was up
42 basis points at 3.0% (2024: 2.5%), delivering
our previously communicated target one year
early, with improvement in both Building
and Infrastructure.
Of this, Building generated an adjusted
operating profit of £28.1m, (2024: £24.0m),
representing an adjusted operating margin
of 2.9% (2024: 2.6%) up 36 basis points , and
Infrastructure generated adjusted operating
profit of £27.4m (2024: £20.1m), representing
an adjusted operating margin up 50 basis
points to 3.0% (2024: 2.5%). Investments losses
reduced to £0.4m and central overheads were
£14.5m rising in line with Revenue and driven
by inflation and incentive costs versus the prior
year. Further details of divisional performance
are set out in the Operating review.
Adjusted profit before tax was £45.0m, up
28.6% (2024: £35.0m) driven by our robust
risk management model and on-time delivery
of high-quality construction schemes. Having
delivered our 2026 divisional adjusted
operating margin target one year early, and
with our proven model working well, we are
confident in delivering another year of margin
expansion and increased profitability in 2026,
in line with the required trajectory to get to
our 2030 targets.
Tax
The statutory taxation charge of £10.5m
reflects an effective tax rate of 23.9% for the
year to 30 June 2025, after allowing for prior
year tax adjustments, which compares to the
standard effective tax rate of 25.0%.
We have a constructive and open relationship
with HMRC and look to comply with both
the letter and spirit of relevant regulations
and to pay our fair share of tax. Our tax
strategy is available on our website at
https://www.gallifordtry.co.uk/investors/
governance-policies/.
Net interest income
The Group generated net interest of £4.4m
(2024: £6.2m) reflecting non repeat of prior
year exceptional corporate tax interest and
one-time RCF implementation costs.
Earnings and dividends per share
The statutory earnings per share in 2025 were
33.7p (2024 restated: 27.3p). We recorded
adjusted earnings per share for the year of
34.4p, up 16.2% (2024: 29.6p).
The plc Board has proposed a final dividend
of 13.5p per share (2024: 11.5p), bringing the
total dividend for the financial year to 19.0p
per share (2024: 15.5p), up by 22.6%. The full
year dividend in 2025 is covered 1.8 times
(2024: 1.8 times) by adjusted earnings.
At 30 June 2025, the Company had
distributable reserves of £113.5m
(2024: £110.4m).
Financial position
Our strategy is focused on continued
revenue and margin improvement, and our
capital requirements remain low, with strong
operational cash generation.
All parts of the Group have potential, with
growth biased towards higher-margin adjacent
markets and specialist businesses, and while
we have a proven track record of successfully
identifying, acquiring and integrating
companies, our new targets do not assume
any further acquisitions. However, our capital
allocation framework allows further investment
should opportunities arise, in line with our
strategic priorities.
Cash and working capital
The Group is well capitalised, maintaining its
focus on disciplined cash management in line
with our key capital allocation objectives. The
Group operates with daily net cash, no drawn
bank debt facilities, and no defined benefit
pension liabilities. The average month-end
cash for the rolling 12 months ended 30 June
2025 was £178.7m (year to 30 June 2024:
£154.8m) and period-end cash at 30 June
2025 was £237.6m (30 June 2024: £227.0m).
This demonstrates continued robust cash
management throughout the year.
During the second half of the year, the Group
received a request from HMRC to advance its
VAT payments reverting to a historic payment
pattern. The change in payment profile has no
impact on the amount of VAT liability being
settled, but has resulted in cash flows being
pulled forwards, thereby reducing month end
cash balances. In our statutory cashflow, circa
£17m of cash payments were made in 2025,
that would otherwise have been paid in 2026,
which lowered the average cash metric in 2025
by circa £8m. The expected impact on the
average cash position in 2026 will be a further
reduction of circa £18m, and 2025 rebased
would have been £161m had the phasing
change occurred before the start of the
financial year.
We additionally established a Revolving Credit
Facility to provide greater agility and resilience
to our business, as described on page 81.
We are pleased to have received such positive
support from three providers, which alongside
an already strong balance sheet, provides an
excellent platform to take advantage of future
growth opportunities. The facility comprises
£25m for a term of three years, options to
extend for two years and an accordion option
of a further £10m. It is unsecured and provided
by leading clearing banks. We have not drawn
from the facility during the year.
At 30 June 2025, net working capital employed
was £269.1m (30 June 2024 restated:
£286.3m). Total equity at the year end was
£122.1m (2024 restated: £113.6m.)
The Group has recognised a material provision
in respect of the estimated future costs that
will be incurred during a defects liability period
on a specific contract. The provision has been
estimated at £13.1m (2024: £14.6m) with
a reasonable range of outcomes between
£7.3m and £19.2m. The Group has engaged
with experts to support the basis and range
of calculations. Given the range of reasonably
possible outcomes and the judgement involved
in determining whether a provision should
be recognised, it is considered to be a critical
accounting estimate and judgement. Further
details are provided in note 1 and note 20 to
the financial statements.
We continue to be proud of our collaborative
and open approach with all our supply chain.
We are a Bronze member of the new Fair
Payment Code, with 97% of invoices paid within
60 days and average days to pay invoices of
26 days (2024: 26 days).
Strong operational cash leverage and tight
working capital management supported capital
allocation in the form of circa £27.5m (2024:
circa £29.0m) of cash returns to shareholders
in the period via share buybacks and dividends.
Strategic report
53
Annual Report and Financial Statements 2025
53
Investments
At 30 June 2025, the Group directors’ valuation
of our PPP portfolio was £38.6m (2024:
£41.8m), reflecting a blended 7.9% discount rate
(2024: 7.6%). These assets contribute to our
balance sheet strength and generated interest
income in the period of £3.6m (2024: £3.8m).
Capital allocation and dividends
We are committed to maintaining a strong
balance sheet, which provides the Group with
competitive advantage in its market, supports
our growth strategy, and provides confidence
to our clients and supply chain. Our capital
allocation priorities remain unchanged,
as set out overleaf.
Strong balance sheet to support operations
The current outlook across our markets
is encouraging and supports our strategy.
However, we also ensure that we are prepared
for any adverse change in market conditions
that may arise. Our strong balance sheet
is particularly important for the Group to
continue to operate its disciplined approach
to contract selection and focus on operating
margin, irrespective of any short-term economic
concerns. The management of past inflationary
pressures demonstrates the value and
importance of the Group’s risk management
framework and focus.
Invest in the business
Our strong cash balance enables the Group
to react quickly to strategic opportunities,
including bolt-on acquisitions that enhance
our capabilities and increase value, and to
continue to invest in enablers of growth
such as digital capabilities. Allocating capital
to assist the development of our adjacent
markets, was demonstrated by our acquisition
of AVRS Systems in November 2023, and
the acquisitions of nmcn’s water businesses,
and Ham Baker and MCS Control Systems
in previous years, bringing in c£124m more
revenue annualised at the time of acquisition.
Paying sustainable dividends to shareholders
We understand the importance of paying
dividends to shareholders and in setting
dividend policy, we consider the Group’s
profitability, balance sheet, order book and
longer-term prospects. Consistent with this
approach, the Group expects dividend per
share to increase in line with earnings as the
business grows.
The plc Board’s confidence in the outlook led
to an improved dividend policy, announced
in September 2023, of earnings covering the
dividend by 1.8 times. Alongside dividend
growth from our operational performance, this
improvement reflects the low-risk nature of
the PPP asset portfolio and its annuity interest
income and provides a sustainable increase
in dividends to shareholders while retaining
capital to invest in growing the business.
Returning excess cash
We assess the cash requirements of the
business to ensure the Group remains well
positioned to deliver on its strategy and has
sufficient funds to invest in the business.
On 21 May 2025, we completed our second
share buyback programme, announced on
3 October 2024. Under this share buyback
programme, a total of 2,690,861 ordinary
shares of 50 pence each were repurchased,
and subsequently cancelled, at an average
price of approximately £3.72 per ordinary
share, and a total cost of £10m.
On 17 September 2025, we announced
a further share buyback of up to £10m, in
line with our policy to return excess cash to
shareholders, and in response to the strong
cash performance in 2025, our record order
book and our confidence in the future.
Contingent liabilities
The directors ensure that contingent liabilities
are appropriately assessed, documented
and monitored.
More information can be found in note 28.
Internal control framework
We 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
(page 101).
Going concern and
Viability Statement
Our going concern statement, together with
further related information, can be found in the
Directors’ report on page 123. Our Viability
Statement can be found on page 75.
Critical accounting policies
and assumptions
Our principal accounting policies are set out
in note 1 to the financial statements, together
with a description of the key estimates and
judgements affecting the application of
those policies and amounts reported in the
financial statements.
We use adjusted financial performance
indicators to monitor our performance,
alongside standard measures, which are
designed to be useful to investors by providing
a balanced view of our operations.
An explanation of these measures and
reconciliations to the corresponding statutory
measures are included in note 32.
Kris Hampson
Chief Financial Officer
New homes for Milton Keynes
In June 2025, we completed the Park Square Private Rented
Sector scheme, delivering 329 residential apartments on the
site of a former garden centre in the centre of Milton Keynes.
The development comprises four residential buildings, ranging in height
from three, seven, nine and 11 storeys, along with extensive amenities
offered for tenants including an underground parking facility, and a central
courtyard. Each apartment is equipped with smart meters, with sustainable
features, including solar photovoltaic power and EV charging stations.
The complex development incorporated various Modern Methods of
Construction to streamline construction and improve site safety.
54
Galliford Try
Operating review
A strong performance
2025
2024
Revenue (£m)
964.7
938.3
Adjusted operating
profit (£m)
1
28.1
24.0
Adjusted operating
profit margin (%)
1
2.9
2.6
Order book (£m)
2,454
2,294
1
See note 32 for a reconciliation of statutory
numbers to Adjusted Performance Measures.
Revenue continues to grow in line with
the expectations of our Sustainable
Growth Strategy as public sector
procurement remains positive following
the Spending Review, with a particular
strong outlook for our business in the
defence and custodial sectors.
Building won contracts and positions on
frameworks worth £1,125m, (2024: £989m).
This included places on the new £835m NHS
North of England Commercial Procurement
Collaborative framework; the FM business
being appointed to the £835m NHS North
of England Commercial Procurement
Collaborative (NOE CPC) Specialist Estates
Engineering & Maintenance Services
(Hard FM) Framework; the Pagabo £814m
Total Facilities Management Framework;
£44.5m in fire safety improvement projects
for the MOJ at HMP Wakefield and £56m
at HMP Moorland; the second phase of the
major Dolphin Square regeneration scheme;
the £63m single living accommodation scheme
at RAF Digby; and £87m for two commercial
schemes in Central London.
Building
Woodham Academy in County Durham is a new build secondary school funded through the
Department for Education’s School Rebuilding Programme. The school minimises carbon use
through air source heat pumps, solar panels, EV charging stations, a biodiverse green roof,
and several other features that will also reduce running costs. A digital twin is enhancing
long-term building performance by enabling the monitoring of systems in real-time.
Strategic report
55
Annual Report and Financial Statements 2025
2025
2024
Revenue – restated
note 34 (£m)
902.5
810.7
Adjusted operating
profit (£m)
1
27.4
20.1
Adjusted operating
profit margin (%)
1
3.0
2.5
Order book (£m)
1,688
1,546
1
See note 32 for a reconciliation of statutory
numbers to Adjusted Performance Measures.
Infrastructure generated an
adjusted operating profit of £27.4m
(2024: £20.1m), which represents
a margin of 3.0% (2024: 2.5%).
Infrastructure won contracts and positions
on frameworks worth £1,045m (2024: £889m).
We benefited from continued strong delivery
on AMP7 Environment frameworks and we
had successful appointments to the new AMP8
cycle for the Environment business, including
places on frameworks for Wessex Water
and Yorkshire Water. We are working with
all 13 of the UK’s main water and waterway
companies, on average working with each
client for 18 consecutive years.
The Highways business had framework success
of its own, with its appointment to the North
East Procurement Organisation (NEPO) Civil
Engineering & Infrastructure framework,
as well as contracts for the £66.5m Banwell
Bypass, and the £88.9m South Aylesbury
Link Road.
The Environment business underwent a
restructure, with capital maintenance teams
joining the Water Technologies business stream
to form a new Asset Maintenance business,
better equipped to leverage opportunities
in this key market and secure growth within
water and adjacent sectors.
Infrastructure
Our £85m project at Melton Mowbray will create a new route that will reduce traffic, improve air
quality and provide greater access to employment and economic growth.
56
Galliford Try
Operating review
continued
Performance
2025
2024
Revenue (£m)
8.0
14.7
Operating loss (£m)
(0.4)
(1.0)
Net interest
income (£m)
3.5
3.8
Directors’
valuation (£m)
38.6
41.8
Investments has continued to move
its focus towards co-development of
Private Rented Sector (PRS) projects.
Revenue was £8.0m (2024: £14.7m) with an
operating loss of £0.4m (2024: £1.0m loss). This
includes the recognition of initial development
fees related to the financial close of the PRS
scheme referred to on page 50, as well as the
ongoing project management fees associated
with the construction of the scheme itself.
At 30 June 2025, the Group directors’ valuation
of our PPP portfolio was £38.6m (2024:
£41.8m), reflecting a blended 7.9% discount rate
(2024: 7.6%). These assets contribute to our
balance sheet strength and generated interest
income in the period of £3.6m (2024: £3.8m).
Investments
Strategic report
57
Annual Report and Financial Statements 2025
Strategy in action
A high-quality Group order book
Our order book underpins our plans
and gives us excellent medium-term
visibility of pipeline, meaning that
no part of the business needs to
take on levels of risk that fall outside
our appetite.
What makes our order book high-quality?
Our focus on core sectors increases our
understanding of contract risk, our ability
to put appropriate mitigations in place,
and our ability to successfully deliver
quality projects.
We actively target and maintain places on
public sector frameworks in the UK, as they
help mitigate risk by enabling us to work
within established terms and conditions
and provide consistent pipelines of work.
At 30 June 2025, 90% of our order book
was in frameworks (2024: 86%).
At 30 June 2025, 93% of our order
book was in the public and regulated
sectors (2024: 91%), and 7% in the private
sector (2024: 9%) with carefully selected
blue-chip clients.
High visibility of the following year’s revenue
gives us further confidence to bid with the
appropriate discipline and selectivity.
A
B
C
D
E
F
Building
£2.4bn
£m
A
Defence
701
B
Custodial
490
C
Education
446
D
Commercial & other
403
E
Facilities Management
382
F
Health
32
A
B
Infrastructure
£1.7bn
£m
A
Environment
1,071
B
Highways
617
Strong visibility of workload
Order book by sector
92%
of planned revenue FY26 secured
(2024: 92%).
75%
of planned revenue FY27 secured
(2024: 70%).
58
Galliford Try
Risk management
Our ability to identify, assess and
manage risks and uncertainties is one
of the key enablers for delivering our
Sustainable Growth Strategy.
It is vital that we understand the potential risks
associated with every project opportunity and
ensure that we only bid for projects that align
to our risk appetite and our ability to manage
the risks. Our embedded culture of risk
awareness enables us to identify and manage
the risks associated with operating in a dynamic
external environment. It also helps us identify
and monitor the development of emerging
risks, including the potential impact of climate
change – both the physical risks and the risks
associated with the transition to a low-carbon
economy (see pages 63 to 74).
Our approach to managing risk is structured,
pragmatic and targeted, with key risk mitigation
measures embedded into management
processes and activities. These include:
A Business Management System with
processes and procedures designed to
give us control and confidence in
commercial decisions.
Project-level controls and management
oversight of project forecasts.
Monthly cross-disciplinary contract review
meetings on all projects.
Standardised formats for monitoring
and reporting project performance
and forecasts.
Comprehensive commercial training.
A programme of commercial ‘health checks’
to provide an independent assessment of the
project team’s reported project performance
and forecast outturn.
These activities are supported by a governance
structure that provides oversight of key risks from
the plc Board through to individual projects.
Our risk management process
The Group’s risk management and
governance structure is designed to
facilitate both a bottom-up and top-down
view of principal and emerging risks and
is summarised in the diagram opposite.
plc Board
Has overall responsibility for setting the risk appetite of the business and
maintaining oversight of our processes for identifying, assessing, managing
and reporting on principal risks. Reviews principal and emerging risks at
least three times a year.
Executive Board
Responsible for implementing the strategy and risk appetite set by the plc
Board and ensuring that appropriate risk management and internal control
procedures are embedded in our day-to-day operations. Reviews principal
and emerging risks at least three times a year.
Business unit Boards
Maintain a business unit risk register that records the key risks applicable
to that business, key mitigations and further actions required to manage
the risk. Risk registers are reviewed twice a year, with one of the reviews
facilitated by the Risk and Internal Audit team.
Project teams
Create a project Risk and Opportunity Register at the bid stage and maintain
it throughout the life cycle of the project. Review the risk and opportunities
at key checkpoints and as part of the monthly contract review meetings.
Executive Risk Committee
Chaired by the General Counsel & Company Secretary and comprises the
CFO, Director of Risk and Internal Audit, representatives from each of
Building, Infrastructure and Specialist Services, and heads of sustainability,
procurement, HR and legal. Meets three times a year to review and update
principal and emerging risks, based on the risks reported up from the
business units, and to consider any emerging risks that may have an impact
on the business in the longer term.
Responsible for keeping
under review the adequacy
and effectiveness of our risk
management processes and
systems of internal control.
Responsible for reviewing
and approving statements
included in the Annual Report
concerning internal controls,
risk management and the
Viability Statement.
Facilitates the identification,
reporting and management
of risk throughout the
governance structure.
Provides a risk update,
including the updated
principal and emerging risks,
to the Executive and plc
boards at least three times
a year.
Audit Committee
Risk and Internal Audit
Effective risk management
Strategic report
59
Annual Report and Financial Statements 2025
At a Group level, the plc Board monitors
risk using the following four principal risks,
a detailed analysis of which is provided below:
Work winning.
Project delivery.
Resources.
Regulatory compliance.
This approach facilitates a targeted focus on
the most significant risks and the actions being
taken to manage them.
At business unit level, our risk management
process captures and monitors risks and
mitigations using more detailed risk themes.
These are aligned to the four principal risks
so that we can take more targeted actions to
address issues that are specific to the regions
and sectors in which they operate.
Principal risks
1 Work winning
Risk description
We fail to secure an appropriate
pipeline of projects to achieve our
revenue and profitability targets.
Key risk indicators
Percentage of planned revenue secured.
Percentage of order book in frameworks.
Order book by client type.
Percentage of repeat business.
Link to our strategic priorities
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We aim to secure a forward order book
that provides a high degree of certainty of
current year and following year revenue,
while reflecting appropriate margin,
cash and risk attributes.
Maintaining discipline in the projects
that we take on is a fundamental element
of our internal control framework. We
will only accept projects where we are
confident that we have the experience,
knowledge and supply chain to deliver
effectively and where the client
relationships and commercial terms
support a collaborative approach to
managing risk.
Potential causes of risk
A significant and sustained reduction
in Government investment in building
and infrastructure projects reduces
the opportunity pipeline.
Increased costs make some schemes
economically unviable, leading to
delays or cancellation of projects.
Delays to and/or reduced levels of
private sector investment, due to
macroeconomic conditions.
Failure to secure positions on key
procurement frameworks.
Failure to develop a competitive
low-carbon construction capability.
Poor-quality bid submissions.
Failure to maintain discipline in
project selection.
Insufficient resources to support
bid preparation.
Pipeline in our chosen markets remains strong, supported by
Government policy on infrastructure spending and growing
demand in the water sector.
Our growth into affordable homes presents an opportunity
to grow margins in the Building business, without taking
additional excessive risk. These projects will undergo the
same diligent assessment as all other prospective projects.
Falling interest rates and longer-term forecast inflation
reductions to near the Bank of England target are giving clients
and funders greater cost visibility, reducing the delays we
have experienced in moving from preferred bidder to agreeing
contract values, and ultimately project starts.
The long-term transition to low-carbon buildings and
infrastructure is creating market opportunity, including
net zero new builds and energy-efficient refurbishments
and retrofits.
The Building Safety Act introduces additional regulatory
requirements which increase compliance risk and planning
timelines which may deter some private sector developers
and investors. However, in the longer term, it will help to
create demand from building owners who need to comply
with regulation. Also, the Government’s recent Spending
Review means we expect more suitable opportunities to
come to market, particularly in affordable housing, helping
us to grow into this adjacent sector.
Emerging risks
We innovate or adopt new technologies too early, incurring
costs associated with being an early adopter, or too late, losing
market share.
Client attitudes to sustainability shift at differing rates, leaving
some clients focused on construction cost and others on
whole-life cost and carbon performance.
Changes to planning policy and regulations to deliver the
UK’s net zero ambition limit our clients’ ability to pursue
new build construction schemes.
We manage the potential impact of
an economic downturn by building
a high-quality order book with projects
that meet our strict risk profile. We
concentrate on sectors where we have
core strengths and clients with long-
term growth and profitability potential.
We focus on securing positions on
key procurement frameworks and
repeat business with key clients
through a centralised, dedicated
pre-construction team. This allows for
strategic planning, better collaboration
and reduced risk of project failure.
Each time we bid for a contract, we
follow our internal “heat map” process,
identifying risks across a range of
criteria including the client and its
advisors, project location and our local
supply chain, our technical experience,
our internal resources and capacity,
the procurement method, contractual
terms and conditions, and price.
All contracts over £25m in value, or
which have a heightened risk indicator
on any other measure, are reviewed by
the Executive Board prior to approval
to bid. We typically target lower-risk
contract types.
We carry out peer reviews of bids
where relevant, to ensure robust review
and challenge of risks and assumptions
and to promote knowledge sharing
across the business.
Adjacent markets strategy, including
PRS and the acquisitions in our
Environment business, expand our
target markets in a risk-managed way.
60
Galliford Try
Risk management
continued
Principal risks
2 Project delivery
Risk description
We fail to deliver projects safely,
on time, in agreement with
contractual terms, or to
a high quality for our clients.
Key risk indicators
RIDDOR and AFR scores (see page 25).
Safety Lead Indicators (eg Director Safety
Tours, Safe Behaviour Discussions).
Forecast project margins.
Link to our strategic priorities
People-orientated, progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We prioritise health and safety above
everything else and believe that nothing is
so important that we cannot take the time
to do it safely. We will not tolerate poor
quality and strive to deliver high-quality
buildings and infrastructure for our
clients, which offer safe environments
for the occupiers and users of the
assets. We aim to provide realistic
and transparent forecasts of project
performance, with potential risks to
programme and margins identified and
addressed before they materialise.
Potential causes of risk
Changing regulations.
Non-compliance with health and
safety regulations and/or poor
safety behaviours.
Programme delays and cost escalation.
Poor control of client and
subcontractor variations and
claims processes.
Contractual notices not given
as per contract requirements.
Poor record-keeping and
document management.
Poor design quality and/or
co-ordination.
Acquired businesses fail to deliver
expected benefits.
Business units operate outside of
acceptable risk tolerances.
Failure to comply with quality
control procedures.
Extended periods of adverse weather.
Poor subcontractor performance
and/or insolvency.
Unrealistic estimates, including cost
to complete, inflation estimates,
outcomes of disputes and final value
included in project forecasts.
Material unavailability and extended
lead times.
Interest rate rises causing investment
and cashflow issues within the
supply chain.
Failure to manage the adoption of new
low-carbon materials and technology.
Health and safety remains our first priority and our Lead
Indicators approach is now established in the business.
Staff shortages and cost of living pressures increase the sense
of workers feeling stretched, which could impact on safety
and wellbeing.
High levels of recruitment to support strategic growth plans
require a greater focus on employee onboarding and training.
Although we have experienced periods of extreme heat
and intense rainfall, they have not resulted in a significant or
widespread impact on our operations.
Additional quality checks implemented to comply with the
Building Safety Act are becoming more efficient, with more
accurate and reliable allowances made in construction
programmes and project teams implementing and sharing
learnings from each review.
Our acquisition strategy is being further refined, to define
how potential acquisitions will be assessed, completed
and integrated.
Emerging risks
We fail to adapt our processes to meet clients’ requirements
to have better and more reliable data about the assets we
design and build for them.
Future global pandemics, or other supply-side shocks,
have a significant impact on the construction industry.
Building designs and construction methodologies fail to adapt
to the physical effects of climate change, including more
regular and more extreme weather events, leading to reduced
productivity, programme delays and cost overruns.
Materials availability will become more challenging when
demand from the housebuilding sector increases.
We continue to reinforce our
behavioural safety programme
Challenging Beliefs, Affecting
Behaviours, and use Lead Indicators
which target no harm.
We take a values-driven approach
to project delivery, focusing on close
collaboration and client satisfaction
to achieve end goals for both parties.
We undertake robust review and
approval of contractual terms,
pre-contract, to ensure we do not sign
up to contracts with onerous terms.
This includes the employment of
margin thresholds and escalation to the
Executive Board of any contracts that
do not meet our criteria.
We apply rigorous quality control in our
BMS policies and procedures and adopt
digitalisation to improve data, quality
and efficiency.
We maintain and adhere to relevant
operational accreditations, including
ISO45001 and ISO14001.
We carry out due diligence to
select competent designers and
subcontractors and use specialist
consultants at key review stages.
We provide comprehensive
commercial training.
We have standardised formats for
monitoring and reporting project
performance and forecasts.
We undertake monthly cross-
disciplinary contract review meetings
on all projects, to enable a robust
assessment of programme status,
risks and commercial forecasts.
We have upgraded our ERP systems.
We carry out a programme of
commercial ‘health checks’ to provide
an independent assessment of the
project team’s reported project
performance and forecast outturn.
Operational controls, including health
and safety site risk assessments,
are monitored through a regular
audit process.
Our Technical and Business Support
Forums drive process improvements
across health and safety, digitalisation,
carbon reduction, procurement,
design management, mechanical and
electrical, and commercial activities.
Escalation processes respond promptly
and appropriately to incidents.
Strategic report
61
Annual Report and Financial Statements 2025
3 Resources
Risk description
We fail to secure the right people
and other resources necessary to
deliver our projects and manage
our business.
Key risk indicators
Material and trade shortages.
Voluntary staff churn rate.
Time to hire.
Fair Payment Code performance statistics.
Average month-end cash.
Subcontractors not paying staff and
suppliers promptly.
Link to our strategic priorities
People-orientated, progressive culture.
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We aim to recruit employees from a
diverse talent pool, who are aligned to our
values and behaviours. We seek to work
with financially resilient subcontractors,
suppliers and joint venture partners who
share our values in relation to safety,
quality and sustainability.
Potential causes of risk
We are unable to retain, develop
and/or attract the right staff to meet
our future needs, we mismatch our
staffing levels to peaks and troughs
in activity, or lack diversity.
Lack of capacity in the supply
chain due to high levels of activity
in the construction sector.
Subcontractor and/or
client insolvency.
Failure to comply with fair
payment practices.
Material cost inflation has reduced as demand/supply
imbalances have stabilised and energy prices have fallen.
However, we continue to take sensible measures to manage
material cost inflation, such as early procurement, supply chain
engagement and risk allowances in tenders.
Lead times for bulk items such as steel and bricks have returned to
normal. The supply chain currently tends to prefer working with
us over high-volume discounted residential house builders due to
our more-manageable volumes and slightly higher margins.
Subcontractor insolvency remains a risk, with some failing
as a result of ISG’s demise. We manage this by being selective
in who we work with, monitoring our exposure and ensuring
we pay our suppliers promptly. After the demise of ISG,
we contacted our supply chain members to establish if
their operations would be impacted.
It remains a competitive market for talent. Large infrastructure
schemes and a mismatch between skilled worker supply and
demand continues to drive up salaries and increases the risk
of employees leaving for higher reward packages. Our ‘Grow
Together’ campaign is helping to engage our employees
through our Employee Value Proposition, which is part of
the broader ‘retain and gain’ people strategy.
We have implemented a new Career Paths website and tool
to further help employees to develop both professionally
and personally.
We have grown our internal resourcing capability which
is demonstrably facilitating better and more affordable
recruitment, especially across standard role types. This is
helping to mitigate the increasing cost of employment.
The results of our employee survey indicate that we have
high levels of employee engagement and advocacy, and we
continue to improve the way we promote the business and
develop our employee offering.
We have published an AI policy and guidance note, to help the
business to work within acceptable parameters.
Emerging risks
There is a generational shortage of skills, as more experienced
staff retire and are not replaced in sufficient numbers because
the construction sector cannot compete with other sectors in
attracting talent.
Potential difficulty in disseminating and engraining cultural
standards into acquired businesses – albeit the refined acquisition
strategy and a new digitised induction will help to limit this.
Innovations in the use of technology will require us to attract
a workforce with a different set of skills.
Failure to embrace and successfully implement AI tools.
Depletion or increased scarcity of non-renewable materials
may lead to greater volatility in prices and more regular
disruption to supply.
The drive towards net zero construction may lead to an
increased risk of defects and quality issues, as we start to use
new, low-carbon materials whose long-term performance
is unproven.
Availability of lower-carbon materials will become more
challenging, as more main contractors look to secure the
same resources.
Our HR strategy is based on best
practice principles and relevant
legislation and includes the regular
review of remuneration and benefits
packages, to ensure we remain
competitive, as well as focusing
on wellbeing.
Our succession planning and talent
management processes enable
continuity and identification of
future leaders.
We support our people’s career
ambitions and provide them with
opportunities to progress. We promote
opportunities for internal mobility
through our Explore programme.
We operate graduate, trainee and
apprenticeship programmes to develop
our own pipeline of talent.
We develop long-term relationships
with key suppliers and subcontractors,
so we remain a priority customer
when resources and materials are
in short supply.
Our Advantage through Alignment
programme facilitates greater
engagement with our key supply chain
members and provides them with
greater visibility of our pipeline
of projects.
We are committed to paying 95% of
supply chain invoices within 60 days
and achieving the Fair Payment Code’s
Bronze standards. This is reinforced
by our strong balance sheet and net
cash position.
We carry out enhanced supply
chain checks and monitor
subcontractor financial performance
and reputational risks.
Each business unit reviews its cash
forecast weekly and monthly, and
the Group prepares a detailed daily
cash book forecast for the following
eight-week period, to highlight any risk
of intramonth fluctuations. Forecasts
are reviewed at business unit, division
and Group level.
62
Galliford Try
4 Regulatory compliance
Risk description
We fail to comply with the
requirements of the various legal
and regulatory regimes in which we
operate, resulting in a high-profile
breach and regulatory censure.
Key risk indicators
Number of external enforcement cases.
Link to our strategic priorities
Socially and environmentally
responsible delivery.
Quality and innovation.
Sustainable financial returns.
Risk appetite
Current risk environment
Mitigations
We have zero tolerance for non-
compliance with regulations. We expect
all employees and subcontractors to be
aware of all regulations relevant to their
role and to comply at all times. We also
expect our people to speak up if they
observe or suspect non-compliance.
Potential causes of risk
Failure to update our procedures
to reflect changes to key legislation
and regulations.
Failure to provide sufficient and
effective training to all staff.
Failure to implement effective
compliance monitoring processes.
The Building Safety Act has provided greater clarity on the
requirements and responsibilities in relation to building safety
and is driving greater quality in construction. The Act also has
the potential for consequences in relation to the extended
period in which certain defect claims can be made.
We continue to invest in cyber security tools, recognising the
potential risk of cyber attacks, especially linked to the conflict
in Ukraine, and the wider geopolitical environment.
We are on track with reviewing and updating our internal
controls framework ahead of Provision 29 of the UK Corporate
Governance Code becoming effective for our financial year
ending 30 June 2027. We will undertake testing before then,
so that any control failures are addressed before the plc Board
needs to complete its effectiveness review of the Company’s
risk management and internal controls framework.
The regulatory landscape in relation to ESG reporting is
evolving quickly and requires us to monitor and publish more
information and comply with new standards, such as those
from the International Sustainability Standards Board.
Emerging risks
New legislation to combat climate change, such as carbon taxes
or a ban on the use of diesel, could have a significant impact on
our operations.
Biodiversity and water use regulations may become more
stringent and result in increased compliance costs.
Galliford Try has comprehensive
policies and guidance at every level
including our Code of Conduct,
mandatory regulatory and cyber
security e-learning for all employees,
an anonymous and independent
whistleblowing helpline, regular legal
updates and briefings, six-monthly
compliance declarations, and conflict of
interest registers and authorisations.
The Ethics and Compliance Committee
provides ongoing monitoring and
oversight of policy and compliance
activity in relation to key areas
of legislation.
Our information security standards
and procedures are accredited to the
ISO 27001 standard.
Risk management
continued
Principal risks
Task Force on Climate-related Financial Disclosures (TCFD)
Accelerating our action on climate change
Strategic report
63
Annual Report and Financial Statements 2025
We are taking action to ensure that our business continues
to adapt and thrive in a changing climate.
The built environment is responsible for
around 40% of global carbon emissions,
therefore as a business operating in the
construction sector, we have a responsibility
to play our part in reducing emissions. We
have reduced the carbon emissions within
our own operations by 59% since 2012 and
have set ambitious targets to drive further
carbon reduction across the business.
We have committed to achieving net zero
within our own operations (Scope 1 and 2
emissions) by 2030 and across our full
value chain (Scope 1 and 2 and Scope 3
emissions) by 2045 (pages 32 to 35). In this
context, we define net zero as reducing our
carbon emissions as much as possible by
the target year and offsetting any remaining
emissions using high-quality, removals-based
carbon offsets.
The Group remains compliant with Financial
Conduct Authority (FCA) listing rule UKLR
6.6.6(8)R by making disclosures consistent
with the TCFD Recommendations and
Recommended Disclosures. In accordance
with LR 6.6.8G, in assessing our compliance
with the recommendations of the TCFD,
we have taken into account the guidance for
all sectors in section C of the 2021 version
of the TCFD guidance ‘Implementing the
Recommendations of the Task Force on
Climate-related Financial Disclosures’.
We have also reviewed the other guidance
documents referred to in LR 6.6.9G, and
as we have published net zero targets,
we have particularly focused on the TCFD
guidance on metrics, targets and transition
plans. Based on this guidance, we have
made disclosures that are aligned with the
TCFD core element areas of Governance,
Strategy, Risk Management and Metrics
and Targets and comply with the 11 specific
recommended disclosures, with the
exception of the following recommendation
where we are partially compliant:
Strategy recommendation b – we have
not disclosed quantitative assessment
of the potential financial impacts of the
risks and opportunities identified, see
Financial Impact section on page 67.
We have assessed the requirements
of the Companies (Strategic Report)
(Climate-related Financial Disclosure)
Regulations 2022 and consider the
disclosures we have made in relation to
TCFD to address these requirements.
This year’s TCFD disclosures reflect our
increasing focus on climate change and some
of the key developments and achievements
during the year, including:
Ensuring that our Sustainable Growth
Strategy to 2030 continues to reflect
climate-related risks and opportunities.
Enhancing our articulation of the key
climate-related risks and opportunities,
particularly in relation to extreme
weather events.
Achieving PAS 2080 Carbon
Management in Buildings and
Infrastructure certification.
Maintaining a CDP Climate Change
score of B, Management Level – ‘taking
coordinated actions on climate issues’.
Achieving the London Stock Exchange
‘Green Economy Mark’ in recognition
of the proportion of our revenue that is
derived from green activities.
Climate change considerations are
embedded into our existing governance and
risk management framework. Therefore
to avoid duplication, the key disclosures in
relation to the 11 TCFD recommendations
are included in the relevant sections of the
Annual Report, as indicated in the table
overleaf. In this section, we have provided
information on the disclosures that are not
addressed in other sections.
64
Galliford Try
Task Force on Climate-related Financial Disclosures (TCFD)
continued
TCFD pillar
Recommended disclosure
How we addressed the disclosure
Governance
Disclose the
organisation’s
governance around
climate-related risks
and opportunities.
a. Describe the plc Board’s oversight
of climate-related risks and
opportunities.
Governance of climate-related risks and opportunities is embedded into
our business-as-usual governance and risk management processes and
structures. This approach allows us to assess climate-related risks and
opportunities in the context of the broader risk environment and develop
pragmatic responses that are aligned with our overall Sustainable
Growth Strategy.
During the year, the plc and Executive boards reviewed the detailed
assessments of climate-related risks and opportunities performed by
the Executive Risk Committee.
For further information on management’s role in assessing risk, please
refer to our Risk Governance framework outlined on page 58 and broader
Governance framework outlined on page 84.
b. Describe management’s role in
assessing and managing climate-
related risks and opportunities.
Strategy
Disclose the actual and
potential impacts of
climate-related risks
and opportunities
on the organisation’s
businesses, strategy,
and financial planning
where such information
is material.
a. Describe the climate-related risks
and opportunities the organisation
has identified over the short, medium,
and long term.
See ‘Our climate-related risks and opportunities’ sections on pages 69 to 74.
b. Describe the impact of climate-
related risks and opportunities on the
organisation’s businesses, strategy,
and financial planning.
‘Environment and Climate Change’ is part of the ‘Socially responsible
delivery’ cornerstone of our Sustainable Growth Strategy (page 16).
See Market review on pages 10 to 15 and our Sustainable Growth Strategy
on pages 16 to 19. See also ‘Managing climate-related risks’ on page 65 and
‘Financial Impact’ on page 67.
c. Describe the resilience of the
organisation’s strategy, taking
into consideration different
climate-related scenarios, including
a 2°C or lower scenario.
We have performed a qualitative analysis of the effect of different climate
scenarios on our climate-related risks and opportunities. See pages 65 to
66 for an explanation of the approach we have taken and pages 69 to 74
for our summary conclusions for each risk and opportunity.
Risk management
Disclose how the
organisation identifies,
assesses, and manages
climate-related risks.
a. Describe the organisation’s
processes for identifying and
assessing climate-related risks.
The identification, assessment and management of climate-related risks
and opportunities is embedded within our broader risk management
structure and processes.
For further information on our risk management process, please refer to
the Principal risks section on page 58 to 62.
b. Describe the organisation’s processes
for managing climate-related risks.
See ‘Managing climate-related risks’ on page 65.
c. Describe how processes for
identifying, assessing, and managing
climate-related risks are integrated
into the organisation’s overall
risk management.
Climate-related risks are considered as cross-cutting risks that can have an
impact on a number of the principal risk themes we monitor at a business
unit and Group level, such as work-winning or project delivery. For further
information on our risk management process, please refer to the Principal
risks section on pages 58 to 62.
Metrics and
targets
Disclose the metrics
and targets used
to assess and
manage relevant
climate-related risks
and opportunities
where such information
is material.
a. Disclose the metrics used by
the organisation to assess
climate-related risks and opportunities
in line with its strategy and risk
management process.
See ‘Metrics and Targets’ section on page 68.
b. Disclose Scope 1, Scope 2, and, if
appropriate, Scope 3 greenhouse gas
(GHG) emissions, and the related risks.
Information on our GHG emissions performance and net zero targets are
included in the Environment and climate change section on pages 32 to 35.
c. Describe the targets used by the
organisation to manage climate-
related risks and opportunities and
performance against targets.
See ‘Metrics and Targets’ section on page 68.
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Annual Report and Financial Statements 2025
Our climate-related risks
and opportunities
We continue to monitor our key climate-related
risks and opportunities along with our principal
and emerging risks, a process that is overseen
by the Executive Risk Committee, which
meets three times a year. The March meeting
of the Committee focuses on climate-related
risks and opportunities with the key output
being a summary of the key climate-related
risks and opportunities which is reviewed by
the Executive and plc boards. The Executive
Risk Committee uses the Primary Climate
Related Risk and Opportunity Drivers within
the CDP framework to identify the risks and
opportunities that are most relevant to our
sector, business model and strategy. Given
the inherent uncertainty in relation to the
financial impact of each risk and opportunity,
the Executive Risk Committee assesses
materiality based on a qualitative assessment
of the nature of the risk and opportunity
and how fundamental it is to achieving our
strategic objectives. The most significant
risks and opportunities are summarised on
pages 68 to 75.
Climate-related risks are also considered during
the business unit risk review process. The
approach we take at a business unit level is to
treat climate change as a cross-cutting risk that
can have an impact on a number of the principal
risk themes we monitor in the business unit
risk registers, such as work winning or project
delivery. Business units are required to review
and update their risk register twice a year.
Managing climate-related risks
The climate-related risks we face are managed
through our existing strategic and operational
management processes. For example,the risk
and opportunity created by the increased
carbon reduction requirements and
expectations of clients is one of the key drivers
of our Sustainable Growth Strategy. This is
supported by operational responses, led by the
Executive Board, to deliver the strategy. These
responses include investment in new carbon
reduction roles, creation of cross-disciplinary
working groups, development of new processes
and tools, and upskilling our own people and our
supply chain.
Climate scenario analysis
We have developed three scenarios that are
broadly defined by the pace and extent of
climate change mitigation and the associated
impact on the physical effects of climate change.
In developing our scenarios, we used the UK
Shared Socioeconomic Pathways (UK SSPs),
that have been developed by the UK Climate
Resilience Programme and are aligned to the
global SSPs used by the IPCC in their sixth
Assessment Report. We have used SSPs as the
basis for our scenario analysis because they
are grounded in the socioeconomic context
in which Government policy and market
responses to climate change will emerge and
therefore are particularly relevant to assessing
transition risks and opportunities. This context
includes important socio-economic drivers such
as economic development, demography, public
attitudes and international relations.
The UK SSPs are particularly relevant to
our business model because in addition to
being developed in the context of the UK,
they factor in considerations in relation to
future investments in sectors where we have
a strategic focus, including infrastructure,
health, education, affordable homes, and green
technology. The SSPs have been supplemented
with Representative Concentration Pathways
(RCP) scenarios that are consistent with each
SSP and provide a recognised framework for
assessing the potential physical impacts of
climate change under different scenarios.
The key features of each scenario are
summarised in the table on page 64.
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Task Force on Climate-related Financial Disclosures (TCFD)
continued
Scenarios
UK-SSP scenario
UK-SSP1 Sustainability
UK-SSP2 Middle of the road
UK-SSP5 Fossil-fuelled development
RCP scenario
RCP2.6
RCP4.5
RCP8.5
Abstract
The policy agenda is driven by
changing societal attitudes with
greater focus on equality and
environmental protections.
The policy agenda initially
does not change significantly,
but then requires radical reform
with increased reliance on
public-private finance.
The policy agenda is driven
by a focus on strong economic
growth and maintaining energy
and food security.
Key physical features
CO
2
e emissions
Global emissions falling to
net zero around 2075.
Global emissions remain at current
levels until mid-century, then falling
but not reaching net zero by 2100.
Global emissions triple by 2075.
Estimate of global
warming by 2100
1.8
2.7
4.4
Climate impacts
In all scenarios, the UK experiences milder, wetter winters and hotter, drier summers. More regular extreme
weather events such as heatwaves, droughts, flooding and storms are virtually certain in all scenarios,
and become more frequent and more extreme as estimated global warming increases.
Key transition features
Regulation
Strong environmental regulations
are introduced, especially in
relation to carbon emissions
and environmental protection.
More stringent land use and
planning regulations are gradually
introduced to combat the
increasing degradation of the
natural environment.
Environmental legislation is
relaxed to support the focus
on economic development.
Investment
Increase in public spending on
infrastructure with a focus on
repurposing and transformation
of infrastructure, to drive energy
efficiency and wider access to
good quality public services in
education and healthcare and
other public infrastructure.
Initially increased investment
on connectivity and transport
infrastructure, then public
spending shifts to focus on
technology to support smart
cities, vertical agriculture, etc.
Public-private partnerships result
in slightly increased investments
in education, health care and other
public infrastructure.
High levels of public spending
on infrastructure, health and
education are maintained,
funded by and in support of
economic growth.
Energy
Renewables, with significant
public and private investment
in wind and solar as well as
nuclear generating capacity.
Continued reliance on fossil fuels,
and renewables becoming an
increasing part of the energy mix.
The private sector finances large-
scale infrastructure projects for
renewable energy (eg barrages).
Energy policy prioritises
development of North Sea
and shale gas reserves. Investment
in renewables decreases due
to lack of incentive with
renewables only remaining
when economically feasible.
We have used these scenarios to provide a qualitative assessment of how the climate-related risks and opportunities we have identified on
pages 68 to 75 may change under the different potential pathways.
In assessing the likely timeline
when risks and opportunities will
begin to have an impact on the
business, we have applied the
definitions below. Although a risk
or opportunity may have been
assessed as beginning to have
an impact in the short term, the
impact may, in some cases, extend
into the medium or long term.
Short term
(0 – 3 years)
Aligns to our current pipeline of
opportunities and projects and
reflects issues and trends that
are already having some impact.
Medium term
(3 – 10 years)
Issues or trends that are already
visible, but are not yet having
a significant impact.
Long term
(10 – 30 years)
Potential issues or trends that are
foreseeable, but there is a high
degree of uncertainty on how they
develop and what impact they will
have on the business.
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Annual Report and Financial Statements 2025
Resilience of our strategy
The nature and scope of our activities
and the commercial environment in which
we operate provide us with a number
of inherent advantages in terms of the
resilience of our strategy and our exposure
to climate-related risks:
We do not have significant amounts of
capital tied up in production facilities or
other assets that could be at risk of
stranding, ie their useful economic life
being curtailed due to the transition to
a low carbon economy.
Our operations are entirely in the UK and
therefore, while still exposed to rising mean
temperatures and more severe weather
events, we have limited exposure to the
climate extremes that are predicted to
make human life unsustainable in some
regions of the world.
Our presence in sectors such as
Environment position us to deliver on the
UK’s requirement to address the impacts of
climate change such as storm overflows.
Our businesses are largely project based
and are geographically dispersed, which
limits our exposure to damage to a business-
critical facility due to extreme weather.
We are not exposed to rapid and
unpredictable shifts in consumer
preferences and behaviour as our work
is for long-term repeat clients, largely in
the public and regulated sectors.
We are not exposed to the capital
investment cost or risk associated with
developing new, low carbon alternatives to
existing product ranges as this is typically
carried out by our supply chain partners.
Where we have good visibility of rising
costs, these can be priced into our bids
and recovered from clients.
The qualitative scenario analysis we have
performed provides further demonstration
of the resilience of our Sustainable Growth
Strategy. The strength of existing client
relationships, our investment in developing our
low carbon construction capability and ongoing
collaboration with our supply chain position us
well to manage the risks and capitalise on the
opportunities of a rapid transition to a net zero
economy. In the event of a slower or even no
transition to net zero, there will still be market
demand for construction services, albeit the
investment drivers will have a greater focus on
climate change adaption rather than mitigation.
Financial impact
For each of our climate-related risks and
opportunities, we have identified the category
of the potential financial impact. Given the
nature of our most significant risks and
opportunities, the potential impacts are on the
income statement and relate to decreased or
increased revenue or decreased or increased
operating costs.
We have not disclosed any quantitative
assessment of the potential financial impacts.
We acknowledge the importance of being
able to quantify the potential financial impact
of climate-related risks and opportunities,
however, we also recognise the need for such
disclosures to be meaningful and comparable.
This is currently extremely challenging for
a number of reasons:
In the absence of consistent and detailed
guidance on methodologies that should
be adopted to quantify financial impacts,
there is a risk that we adopt a quantification
methodology that is not consistent with
other reporters, resulting in potentially
misleading disclosures.
Because we are constantly responding
to the evolving expectations of clients
and the market, it is extremely difficult to
disaggregate the impact of climate-related
risks from business as usual risks.
Similarly, assessing the impact of risks
without mitigation is extremely difficult
to do because ‘doing nothing’ is not an option
and the mitigation is embedded in our
business as usual.
Any quantification would be based on
scenarios which have been developed
for modelling purposes and therefore
do not represent forecasts of actual
financial impacts.
The risks and opportunities are interrelated
and therefore any quantification in isolation
would be potentially misleading.
Until further consistent and definitive
guidance around quantification methodologies
for climate-related financial impacts is
available, we will continue to disclose how
each risk or opportunity could have an impact
on our financial performance and provide
a qualitative assessment of the level of risk
under different scenarios.
We have however considered the potential for
any material financial impacts, such as asset
write-downs, increased capital investment
requirements, or liabilities for environmental
remediation to be disclosed, and have
concluded that there are no material climate-
related financial impacts to be disclosed.
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Metrics and targets
We have added further detail to our GHG emissions reduction targets to align with our validated science-based targets, and to recognise that as
the business grows, we need to monitor emissions intensity as well as absolute emissions to provide a clearer picture of the impact of our emission
reduction initiatives.
We have performed a classification of our revenue, using the FTSE Russell Green revenues Classification System. This is a significant metric to help us
monitor transition risks and opportunities as it demonstrates the extent to which we are positioned to take advantage of the transition to a low carbon
economy and the limited reliance on non-green revenue generating activities.
Most of the metrics are existing KPIs and further information on our performance in the year is provided in the ‘Operating sustainably’ section of the
report. We will look to develop additional metrics and targets that are more closely aligned to the climate-related risks and opportunities we have
identified over the next two-three years.
Metric category
Metric
Calendar year 2023
Calendar year 2024
Target
GHG emissions
Scope 1 and 2 emissions –
market-based (tCO
2
e)
10,486
14,811
Net zero by 2030 (with
a 43% reduction compared
to 2021 baseline)
Scope 1 and 2 emissions
intensity (tCO
2
e per
£100K revenue)
0.69
0.79
0.60 tCO
2
e by 2030
(43% reduction compared
to 2021 baseline)
Scope 3 emissions –
verified (tCO
2
e)
1
7,128
8,874
Net zero by 2045
Full Scope 3 emissions
(tCO
2
e)
2
Not reported for both years
43% reduction by 2030
compared to 2021 baseline
Net zero by 2045
% of company car fleet that is
EV or PHEV
92%
98%
100% by 2027
% of purchased electricity on
renewable tariffs
86%
90%
100% by 2025
Waste intensity
Tonnes of waste per
£100k revenue
17.7
12.4
Year-on-year reduction.
Transition risks
and opportunities
CDP Climate Change score
B
B
A
Green revenue as a % of
total revenue
58%
67%
>50%
Remuneration
% of Executive bonus linked
to emissions reduction
3
Not applicable
3%
3%
Transition Plan
We have reviewed the disclosure framework
and sector specific guidance published by
the Transition Plan Taskforce (TPT) and will
work towards integrating the TPT disclosure
framework guidance as we develop and
publish our Transition Plan.
Notes:
1
Scope 3 verified emissions are those emissions that have been calculated and included in the scope of the external verification.
2
Scope 3 estimated emissions are those emissions that have been estimated, but not externally verified.
3
See Remuneration Committee section on page 104 onwards for details of Executive bonus performance criteria.
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Annual Report and Financial Statements 2025
Risk
Fail to develop a competitive low carbon construction capability
Time horizon
Potential impact on financial performance
Link to our principal risks
Medium term.
Decreased revenues.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is greatest under the ‘Sustainability’ scenario, as client expectations in relation to low carbon construction will evolve more quickly
and across more sectors, driven by increased regulation and changing stakeholder sentiment. Under the other two scenarios, this risk is much
reduced as the regulatory and market drivers will not be focusing on low carbon construction.
Risk description and potential impact on the business
Risk mitigation
Our clients, in both the public and commercial sectors, are increasingly
required to operate low carbon buildings and infrastructure.
They expect us to have the capability to model the embedded and
operational carbon, use lower carbon materials and extend the life
of their existing assets through retro-fitting. In support of this, some
clients are beginning to include carbon reduction targets within the
project requirements.
Planning policies and building regulations may also move towards
ensuring that embedded and/or operational carbon targets are
incorporated into the design and construction of buildings and
infrastructure.
If, together with our supply chain, we fail to develop these capabilities
quickly enough, we may not remain competitive and may not be
able to win positions on key frameworks which may result in
reduced levels of revenue and profits.
We have committed to achieving net zero across our own operations
by 2030 and across all value chain operations by 2045. To do this,
we have developed our Net Zero Route Map and are taking multiple
actions to achieve our carbon reduction targets including:
Working closely with our clients to understand their carbon
reduction ambition and targets, and developing solutions to meet
those objectives.
Investment in key low carbon construction roles.
Carbon literacy training for all staff.
More detailed role-based training for key roles.
Supply chain engagement and upskilling.
Development of carbon reduction management process accredited
to the PAS 2080 standard.
Use of carbon calculators to model embodied and operational carbon.
Development of systems and applications to improve carbon data
and reporting.
Level of risk
High
Moderate
Low
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Task Force on Climate-related Financial Disclosures (TCFD)
continued
Risk
Increased frequency of extreme weather events
Time horizon
Potential impact on financial performance
Link to our principal risks
Short term.
Increased direct costs.
2
Project delivery.
3
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
In all scenarios, the UK will experience milder, wetter winters and hotter, drier summers. More regular extreme weather events such as heatwaves,
droughts, flooding and storms are virtually certain in all scenarios, and become more frequent and more extreme as estimated global warming increases.
Risk description and potential impact on the business
Risk mitigation
A significant amount of construction activity happens outside and
therefore is exposed to the weather. The latest Met Office UK Climate
Projections (UKCP August 2022) predict warmer, wetter winters and
hotter, drier summers, along with an increase in the frequency and
intensity of extreme weather events including heatwaves, storms,
intense rainfall and flooding. Such events could lead to disruption to
our construction activities in a number of ways:
Prolonged periods of rainfall may lead to poor ground conditions
that may cause programme delays due to the curtailment of
certain activities, especially bulk earth movement on our
Infrastructure projects.
Prolonged, extreme temperatures, such as in heatwave conditions,
may require modifications to working practices to maintain worker
welfare which may increase costs and reduce productivity.
Intense storm events, including intense rainfall and high winds may
cause damage to works under construction and curtail certain
activities, such as crane lifts or earthworks, which could result in
project delays and additional costs.
High winds may increase safety risks for operatives and members
of the public for example through tower crane or scaffold collapses
or other structures and objects becoming unsecured.
Damage to transport and utilities infrastructure caused by severe
weather may make it more difficult for staff and deliveries to get
to sites.
Extreme drought conditions could result in restrictions on
water usage which may make it impossible to maintain site
welfare or restrict certain activities, such as concrete pouring
and dust suppression.
Extreme weather events in other parts of the world could lead
to supply chain disruption (unavailability, longer lead times and
increased costs).
As extreme weather events become more frequent, we may also
see clients look to transfer risk. Traditional contractual protections,
including force majeure clauses and definitions of what constitutes
‘exceptional’ weather, may be reviewed and challenged.
An increase in the frequency of material damage claims may lead to
higher insurance costs.
Changes in temperature extremes can also have an impact on the
resilience of building materials and therefore determine the materials
we are able to use and could lead to a greater number of latent defect
claims. Similarly, changes in climate may influence the heating and
cooling systems that we specify which may increase the costs of
the buildings and infrastructure we build.
We are experienced in developing and amending site operating
procedures in response to specific health and safety risks. Examples
of adaptations we make include:
Increased provision of welfare facilities, including access to shade,
water and sunscreen during periods of hot weather.
Flexible working patterns to limit work in the hottest part of the day.
Increased use of off-site and other MMC to shorten programmes and
reduce the number of people on site.
Similarly, we are experienced in managing the impact of unexpected
events on construction programmes and have a number of operational
and contractual mechanisms to mitigate the risks, including:
Resequencing of activities, such as laying hard surfaces to external
areas earlier in the programme, to reduce the potential impact of
seasonal weather patterns on operations.
Increasing the amount of dewatering activity to maintain
ground conditions.
Staggering of shifts to extend the working day.
Securing extensions of time.
Insurance cover for damage to property.
We continually assess new weather norms, including looking at more
recent history rather than longer-term trends, and ensure that adequate
risk provisions are included in our tenders.
We remain vigilant to unreasonable risk transfer in contracts and ensure
that the terms we accept in our client contracts are reflected in our
downstream contracts.
Level of risk
High
Moderate
Low
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Annual Report and Financial Statements 2025
Risk
Increased material costs make projects unaffordable
Time horizon
Potential impact on financial performance
Link to our principal risks
Short term.
Decreased revenues due to reduced
demand for products and services.
1
Work winning.
3
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario as there will be the greater urgency to transition to low carbon energy and materials,
exacerbating the supply and demand imbalances. The extension of carbon pricing and other regulatory pricing incentives to reduce carbon
emissions is also more likely under the Sustainability scenario.
Risk description and potential impact on the business
Risk mitigation
There are a number of climate-related drivers that may result in
sustained increases in materials costs in the construction sector.
This is driven through a combination of the market dynamics of
supply and demand imbalances, as well as Government policy to
incentivise carbon reduction. Our bidding disciplines and contractual
protections largely insulate us from the direct impact of cost increases.
However, the indirect consequence of rising construction costs could
be potential projects becoming unaffordable for our clients, leading
to a reduction in opportunities or delays in project starts due to
clients’ budgets constraints.
Manufacturers are developing innovative, lower-carbon materials
all the time and this is vital if we are to reduce the embodied carbon
of the buildings and infrastructure we construct. However, as new
products come on to the market and establish credibility, demand for
these materials could grow more quickly than the production capacity,
resulting in higher material costs.
In the short to medium term, the supply and demand imbalances in
global energy markets are likely to be sustained as countries manage
the twin challenge of decarbonising electricity generation and
increasing security of supply. Energy prices will continue to have
a significant impact on the cost of materials that have energy intensive
manufacturing processes, such as steel, concrete, and glass.
In addition to the market imbalances, regulatory moves to use carbon
pricing to incentivise carbon reduction may add further upwards
pressure on the price of carbon-intensive materials. The introduction
of the UK Carbon Border Adjustment Mechanism (CBAM) from 2027
may increase the cost of importing carbon-intensive construction
materials such as steel.
Maintain bidding and contracting discipline to protect ourselves
from short-term cost inflation and maximise cost recovery.
Use of BIM and carbon calculators to optimise designs and reduce
the amount of carbon-intensive materials.
Increase the adoption of off-site manufacture and other MMC
to reduce costs through minimising waste and shortening
construction programmes.
Work with clients to support design solutions that minimise
the material requirements eg transitioning from new build to
retro-fitting and refurbishment.
Level of risk
High
Moderate
Low
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Task Force on Climate-related Financial Disclosures (TCFD)
continued
Risk
Failure to manage the adoption of new technology
Time horizon
Potential impact on financial performance
Link to our principal risks
Medium term.
Increased direct costs.
2
Project delivery.
3
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of risk
The risk is highest under the ‘Sustainability’ scenario as there will be the greater urgency to deploy new technology, driven by regulatory
requirements and market expectations.
Risk description and potential impact on the business
Risk mitigation
As the focus on embodied carbon increases, we expect to increasingly
be required to use lower carbon alternatives for construction materials,
especially carbon-intensive materials such as steel, concrete and glass.
There is a risk associated with the adoption of new materials and using
manufacturers and suppliers we have no experience of working with
previously. Without effective product and design evaluation and robust
quality assurance procedures, there is a risk of increased defects,
which in turn could result in the professional indemnity insurance
market responding through further increases in premiums or
restrictions/limitations in cover.
Similarly, to achieve our Scope 1 and 2 net zero by 2030 target,
we will have to significantly reduce (if not eliminate) our use of
diesel-powered plant and equipment. The non-diesel alternatives,
such as Hydrotreated Vegetable Oil, electric and hydrogen, may
not be available in the volumes we require, at an equivalent cost,
or deliver sufficient safety and/or operational performance.
Response includes:
Development and implementation of digital tools to drive quality
such as FieldView, BIM and Dalux.
Investment in employee training including role-specific
carbon training.
Using our Technical and Quality, Research and Development
and Supply Chain teams to evaluate new materials, plant and
equipment and other new technology and support their adoption
across the business.
Quality alerts to share learning and information where potential
issues with particular products have been identified.
Engaging collaboratively with the supply chain to identify and switch
to lower carbon materials and solutions. (See the Supply Chain section
on page 44 for examples).
Level of risk
High
Moderate
Low
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Annual Report and Financial Statements 2025
Opportunity
Increased demand for low carbon buildings and infrastructure
Time horizon
Potential impact on financial performance
Link to our principal risks
Short term.
Increased revenues resulting from increased
demand for our products and services.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of opportunity
The opportunity is greatest under the ‘Sustainability’ scenario, as client requirements and expectations in relation to low carbon buildings
and infrastructure will evolve more quickly and across more sectors, driven by increased regulation and changing stakeholder sentiment.
Conversely, in the ‘Fossil-fuelled development’ scenario, the regulatory and market forces will be weakest and will not drive investment in
low carbon construction.
Opportunity description and potential impact on the business
Opportunity realisation
In order to decarbonise the built environment in the UK, and meet
emerging energy efficiency standards, there is a need for our clients
to ensure that existing assets are either replaced with new, more
energy-efficient assets, or increasingly, ensure that they are modified
to extend their life and improve their energy efficiency. Demand
for both new build and retrofit of existing assets with low embodied
and operational carbon performance is likely to create a pipeline of
opportunities, particularly in sectors where we already have a strong
presence such as education and health.
The actions we are taking to realise the opportunities are similar to the
actions we are taking to mitigate the risk of failing to develop our low
carbon construction capability, ie:
Working closely with our clients to understand their carbon
reduction ambition and targets and developing solutions to meet
those objectives.
Investment in key carbon reduction roles.
Use of carbon calculators to model embodied and operational carbon.
Developed our Carbon and Energy Property Pathway Assessment
(CEPPA) tool to assess the energy efficiency of existing buildings and
model the impact of investment in improvements such as upgraded
insulation, lighting or renewable energy.
Develop capability to design and deliver more energy efficient
wastewater treatment processes.
Level of opportunity
High
Moderate
Low
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Opportunity
Climate resilience and adaption
Time horizon
Potential impact on financial performance
Link to our principal risks
Short term.
Increased revenues resulting from increased
demand for products and services.
1
Work winning.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of opportunity
There is likely to be high demand for the construction of climate-resilient infrastructure in all scenarios. There is already a significant demand within
the water sector, driven by political and public sentiment, and this will only increase as the physical impacts of climate changes become more severe.
Opportunity description and potential impact on the business
Opportunity realisation
As we experience more regular and more extreme weather events,
such as prolonged heatwaves and intense rainfall events, there will be
a need to make our public infrastructure more resilient to the changing
climate. This is already a significant issue for the water sector where
the capacity of the existing sewerage and wastewater treatment
infrastructure is struggling to keep pace with the increasing demands
placed on it by more regular, intense rainfall events, greater run-off
from a more built up environment and population growth. As a result,
there is strong public and political support for significant investment
to improve the resilience of our water infrastructure, with a particular
focus on increasing wastewater storage and treatment capacity and
reducing combined sewer overflow discharges. There is also increasing
demand for sustainable drainage solutions to be incorporated into
developments, in order to reduce surface water run off and therefore
reduce the demand on the sewerage network. There will also be the
need to increase the resilience of water supplies to deal with increased
demand and periods of drought, with associated investment in water
storage, transfer and treatment infrastructure.
We are already extremely well-positioned in the water sector, working
with all the water and sewerage companies in England and Scotland.
The actions we are taking to realise the opportunities include:
Strategic acquisitions in adjacent markets, such as nmcn, MCS Control
Systems, Ham Baker and AVRS, to broaden our capability and
drive margins.
Growing capacity and capability in our Environment business
through targeted recruitment and national presence.
Working with our supply chain to develop new solutions to address
climate resilience issues, such as remote monitoring of river quality.
Opportunity
More efficient use of resources
Time horizon
Potential impact on financial performance
Link to our principal risks
Short term.
Reduced operating costs.
2
Project delivery.
3
Resources.
Scenario analysis
Sustainability
Middle of the road
Fossil-fuelled development
Level of opportunity
The incentives to reduce our consumption of fossil fuels, energy and other resources are likely to be much higher under the ‘Sustainability’ scenario,
with higher energy prices and potential regulatory costs associated with carbon emissions. Therefore the potential cost savings from more efficient
use of resources will be greater under this scenario than under alternative scenarios where the regulatory and market drivers will not be as strong.
Opportunity description and potential impact on the business
Opportunity realisation
The drive to reduce carbon in our own operations also creates an
opportunity to realise the commercial benefits of greater resource
efficiency, for example through reduced levels of business travel,
lower energy and water consumption, and minimising waste.
We are already taking actions to achieve cost savings through more
efficient use of resources, with examples including:
Transitioning our company car fleet to electric and plug in hybrid only.
Using the most energy efficient welfare and office accommodation
cabins available.
Developing baselines and targets for water consumption on our projects.
Combining battery storage with the latest generation of diesel
generators to minimise diesel consumption.
Level of opportunity
High
Moderate
Low
Task Force on Climate-related Financial Disclosures (TCFD)
continued
Strategic report
75
Annual Report and Financial Statements 2025
Viability Statement
As required by provision 31 of the UK Corporate Governance Code,
the plc Board has assessed the prospects and financial viability of the
Group, taking account of the Group’s current position and the potential
impact of the principal risks to the Group’s ability to deliver its business
plan. The assessment of prospects has been made using a period of five
years. The assessment of viability has been made using a period of three
years, which aligns with our budget period and provides reasonable
visibility of future revenue from the existing order book. During the
year, the Group entered a £25m unsecured Revolving Credit Facility
(RCF) agreement with a syndicate of three banks (Barclays, Lloyds
Banking Group and the National Bank of Kuwait) for a term of three
years, maturing in March 2028. The facility includes an accordion option
allowing the Group to request an increase in total commitment by
a further £10m and an option to extend the facility by up to two years,
subject to lender approval. No drawdown has been made since inception,
therefore viability has been assessed in terms of the additional headroom
against available cash reserves.
Assessment of prospects
As outlined in our Strategic Report, the long-term prospects of the
business are supported by a strategy which builds on our existing
strengths and the growth opportunities in our target markets.
Our alignment to the UK’s continued investment in social and economic
infrastructure is a fundamental driver of demand for our services and
plays to our strengths in the health, education, defence, highways and
environment markets. It is worth noting that the UK has had one of the
lowest level of Government investment of the G7 nations in recent years
and with an ageing infrastructure footprint. It is with this context that the
budget was prepared. The budget also recognises the focus on investment
in infrastructure of the Labour Government (as emphasised in the Spring
Budget and recent Spending Review), which provides further support
to the growth assumptions in our modelling. Our ability to achieve
sustainable growth within these markets is underpinned by our position
on the most significant procurement frameworks, our commitment
to supporting the decarbonisation of the built environment and our
investment in digital technologies to drive continuous improvement
in quality and productivity and therefore higher margins.
Our people remain the key to our success and our focus on attracting and
retaining a more diverse workforce as well as increasing the proportion of
apprentices and graduates help us access the skills and expertise required
to deliver on our Sustainable Growth Strategy.
Assessment of viability
The base case for the cash flow projections modelled in our assessment
of viability is the budget for the three years from 1 July 2025
which incorporates appropriate contingencies against plausible
day-to-day downside risks, primarily the Group’s principal risks as
disclosed previously. The base case shows strong levels of average
month end net cash and assumes that the Group continues to operate
without utilising the RCF.
Against this base case, we have stress-tested the latest forecasts and
modelled the impact on cash flow and liquidity of downside scenarios
related to our principal risks. The scenarios modelled and their link to
the underlying principal risks are described below.
Scenario 1 – Reduction in construction volumes
(Link to principal risks: Work winning)
Our cash performance is correlated with earnings growth and therefore
reliant on construction activity being in line with our assumptions,
We have modelled a reduction in construction volumes and associated
monthly cash receipts offset by a proportionate reduction in payments,
relative to our base case forecast.
Scenario 2 – Deterioration in working capital
(Link to principal risks: Resources)
We have modelled the impact of a deterioration in our working capital,
which could be caused by delays in receiving payments from clients
and/or earlier payments to our supply chain.
Scenario 3 – Irrecoverable cost increases
(Link to principal risks: Project Delivery, Resources)
There is a risk of a prolonged period of materials cost inflation and
therefore we have modelled the impact of failing to fully mitigate
these cost increases on our projects.
Scenario 4 – ‘Perfect storm’
(Link to principal risks: Work winning, Resources, Project Delivery)
We also tested the severe but plausible scenario where all of scenarios
1–3 combine at the same time.
In addition to the scenarios above, further stress tests have been
modelled including significant delays to cash receipts to further
demonstrate the robustness of the Group’s balance sheet.
As part of the viability assessment, the Board also considered the
mitigations and interventions available to manage the impact of one
or more of the downside scenarios occurring. The base case already
includes significant cash contingencies, and the Board has considered
further mitigating actions that are available to it.
The directors do not expect the emerging climate change risks to have
a significant impact in the short and medium term, particularly given
the nature of the contractual arrangements in place, although continue
to monitor this, as the Group adapts to the changing environmental
requirements and demands to deliver innovative solutions through
new technologies and methods of construction.
Based on the results of this analysis, the Board has concluded that they
have a reasonable expectation that the Group will be able to continue
in operation and meet its liabilities as they fall due over the three-year
period of its assessment.
76
Galliford Try
Stakeholder engagement
s172(1) statement
Under Section 172 of the UK
Companies Act 2006, directors
must act in the way that they consider,
in good faith, would be most likely to
promote the success of their company.
This statement covers our compliance
with Section 172.
Managing and addressing our stakeholders’
interests is crucial to the long-term success of
our business. Stakeholders are therefore at
the core of the Group’s purpose (page two)
and strategy (page 16).
Stakeholder engagement by the plc Board
takes place through a variety of channels, both
directly and indirectly. The type of engagement
is driven by the needs of each stakeholder
group, ensuring their interests are considered
and addressed in a way that is both effective
and practical. Details of how we engaged with
key stakeholders, their interests and how these
influenced Board decisions during the year are
set out on the next pages.
plc Board oversight via
the ESG Committee
Our ESG Committee reviews and oversees
ESG matters and relationships with the
business’s key stakeholders, including collating
their views and reporting them to the Board,
to ensure their interests are appropriately
considered in Board discussions and decisions.
When developing our initial Sustainable Growth
Strategy in 2021, our ESG Committee (page22)
assessed the relative materiality of various
priorities for different stakeholder groups,
setting KPIs within a Stakeholder Materiality
Matrix. The ESG Committee reviews the KPIs
annually, to ensure they continue to reflect the
priorities of our key stakeholders.
The information obtained in the meetings
complements regular updates and
presentations to the Board, which provide
insights into key interests of our stakeholders
such as health and safety, human resources
matters, sustainability and client and supplier
priorities. These are complemented by site
visits, which enable directors to gain a first-hand
insight into our culture, and meeting with
investors and shareholders through platforms
such as the AGM.
Further information on how the Board complies
with the s172 statement is set out below.
s172(1) (a) The likely consequences
of any decision in the long term
The Board recognises that the decisions it
makes now will have an impact on the long-term
success of the Group. The Board reviewed
progress against its strategic objectives for
the year and to 2030 in each of our businesses,
including delivering organic growth in existing
core markets in Building and Infrastructure,
with the focus on continuing to deliver and
expand into key market sectors, the importance
of contract selections with the right risk profile
and on delivering quality, sustainable products
to clients. Considerations included the current
market landscape, including macroeconomic
factors (see Market review) as well as the
Group’s resources and relationships.
s172(1) (b) the interests of the
company’s employees
The Group’s strategy recognises that employees
are core to the business model and its success
depends on the ability to retain, develop and
gain the right talent to resource its plans. The
Board seeks to ensure that the workforce is first
and foremost provided with a safe environment
in which to work, that its Code of Conduct is
adhered to and that appropriate rewards and
benefits are awarded. These form part of our
Employee Value Proposition, Grow Together,
described in the People section on page 28
and in Stakeholder engagement on page 76.
The Board closely monitors and assesses the
Group’s culture, using a range of methods to
engage with employees and ensure that its
policies, practices and desired behaviours
support the delivery of the Group’s strategy,
values and purpose. This is achieved via site
visits, management meetings, inductions,
the Employee Forum, employee surveys and
KPI reporting from the HR Director.
s172(1) (c) the need to foster the
company’s business relationships
with suppliers, customers and others
The majority of our work is delivered in
partnership with our supply chain so we ensure
our supply chain contributes to the company’s
long-term success and aligns with its ethical and
sustainability goals, and meet the objectives of
our clients.
The Board demonstrates a clear commitment
to prompt payment, being a signatory of the
Fair Payment Code and agreeing our own
Responsible Sourcing Policy and Modern
Slavery Statements.
s1721 (d) the impact of the company’s
operations on the community and
the environment
By integrating environmental and community
considerations into our business model,
we aim to foster long-term, sustainable growth
that benefits both our shareholders and the
wider society.
The majority of our work in communities is
managed at a local level, with Board oversight
guiding our overarching aims. Similarly, we
recognise the impact construction can have
on the environment, and look to protect and
enhance the environment where we can,
with Group level policies providing guidance.
S172(1) (e) the desirability of the
company maintaining a reputation for
high standards of business conduct
Our Code of Conduct, ‘Doing the Right
Thing’ serves as a practical framework for
all employees to align their actions with the
principles of Section 172, covering how we
address the interests of employees, clients,
suppliers, customers, communities, the
environment and shareholders, and highlighting
how managers can support their teams
in upholding our values and behaviours.
The Code emphasises:
Ethical standards:
the standards and principles
that guide how we work and what we value,
ensuring that all actions are legally compliant
and ethically acceptable.
Stakeholder relationships:
the Code
underscores the importance of building strong
relationships with stakeholders, including
employees, suppliers, and the community,
fostering trust and collaboration.
Long-term value creation:
the Code promotes
greater social value, which contributes to the long-
term success and sustainability of the company.
Raising concerns:
the Code promotes the Group’s
whistleblowing hotline and other ways in which
people can speak up if they see wrongdoing.
The Code is promoted to new employees by the
Executive Board when they start employment
with us, and referenced in communications as
part of business as usual.
s172(1) (f) the need to act fairly as
between members of the company
The plc Board seeks to act in a way that meets its
stakeholders’ interests but recognises that those
interests may not always be in alignment across
different members. It balances those views to
ensure the course of action taken best enables the
delivery of the strategy and its long-term ambitions.
Governance and compliance
To ensure adherence to our Code of Conduct,
Galliford Try has implemented robust
governance practices:
Management declarations:
every six months,
management across the Group is required to sign
a declaration to the Chief Executive affirming
that their teams are aware of and comply with
the Code of Conduct and key policies.
Regular training:
mandatory training on key
themes such as diversity, discrimination,
modern slavery, GDPR, anti-bribery and
corruption, and cyber security is provided
to all employees, reinforcing the company’s
commitment to ethical conduct.
Whistleblowing mechanism:
we provide an
independent whistleblowing line, allowing
individuals to report concerns anonymously,
ensuring accountability and transparency.
Further information is provided on
pages 22 to 49.
Strategic report
77
Annual Report and Financial Statements 2025
We are reliant on our people to
achieve our purpose.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Health, safety and wellbeing.
Purpose and culture.
Inclusion.
Investment in learning and development.
Career progression.
Rewards and benefits.
Direct engagement
Designated Non-executive Director
responsible for ongoing workforce
engagement via the Employee Forum.
The plc Board-level Employee Forum
met twice in the period to discuss
matters important to employees. The
main agenda item is a feedback session
during which representatives from the
business provide employee perspectives
and feedback about current and new
business initiatives. Over the financial
period, this included the update to the
Group Strategy to 2030, the Group’s
financial results, an update on the
new family-friendly policies, activities
undertaken as part of the Group’s
Employee Value Proposition and
updates on inclusion.
The Board visited four sites to see our
culture in action. These included two
Environment projects, a Building project
and the new Water Technologies factory,
which will be crucial to the growth we are
targeting in adjacent markets.
The visits enabled the Board to see
first-hand the culture of safety, the way
we go about our work and interaction
between management and employees,
and to gain a deeper appreciation of
operational aspects of the business and
challenges and opportunities in our
work. The Board received presentations
from our businesses, including updates
on key matters including safety, cyber
security, family-friendly policies, people
development, and succession plans.
As part of the CFO’s induction, he visited
all our business units and key sites which
enabled relationship building with our
teams and aided his understanding of
what their priorities and challenges are.
The CEO and CFO hosted a management
meeting for all of the Senior Leadership
team (page 80).
The CEO and CFO periodically took
part in delivering inductions to new
starters which outline our purpose,
strategy, values and business processes,
and give attendees the opportunity to
ask them questions.
The CEO and CFO periodically
introduced our Challenging Beliefs,
Affecting Behaviour safety module
to staff.
The CEO and CFO regularly
communicate directly with employees
through open dialogue, visits to our
sites and offices, employee roadshows,
emails and videos to all staff.
Indirect engagement
The Group conducted a further
Employee Survey this year, where staff
provided their views on matters affecting
their satisfaction in the workplace.
The Board typically receives at least
10 reports a year featuring key employee
statistics and trends, including risks and
opportunities where relevant, relating
to health, safety and wellbeing and
employee matters.
Outcomes
0.09 Lost Time Frequency Rate and
0.03 Accident Frequency Rate.
96% of our people believe we give
Health & Safety a high priority.
87% employee advocacy score.
Were voted number one in the sector
for graduates and apprentices by
TheJobCrowd and retained Platinum
membership of The 5% Club for
early careers.
Our people
Satisfied clients are essential for a
sustainable and profitable business.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Financial stability and ability to deliver.
Safety, time, cost and quality.
Carbon and sustainability objectives.
Creating greater social value.
Direct engagement
The CEO and CFO engaged with key
clients during the year and attended
industry events.
Indirect engagement
The CEO and CFO undertake budget
reviews with all business units which cover
KPIs, financial performance, opportunities,
risks and actions relating to cash and profit
and live projects. These ensure we are on
track with our clients.
The CEO and CFO hold fortnightly video
calls with all of the Senior Leadership
Team (SLT). During these calls, emerging
risks and opportunities above and beyond
day-to-day business are discussed.
The CFO chaired the ESG Committee
four times during the year, which
covers feedback and trends from
client-facing teams.
The Board continued to monitor KPIs
and progress through Board reports.
Outcomes
90% of our order book is in frameworks.
93% is repeat business.
The majority of our work is delivered
in partnership with our supply chain,
so they must be aligned to our values
and objectives.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Health, safety and wellbeing.
Fair treatment and prompt payment.
Pipeline of work.
Collaborative relationships.
Access to training, educational resources
and learning opportunities.
Direct engagement
The CEO and CFO meet with members of
the supply chain during visits to sites.
Indirect engagement
The Group Supply Chain and Procurement
Director provides regular updates to
the Chief Executive on supply chain
matters and is also a Board member of
the Supply Chain Sustainability School,
a leading platform dedicated to promoting
sustainable practices within supply chains.
Supply chain risks and opportunities
are also a key theme of the fortnightly
SLT meeting chaired by the CEO.
The CFO chaired the ESG Committee
four times during the year, which
includes our Group Supply Chain
and Procurement Director.
The Board continued to monitor KPIs
and progress through Board reports.
Outcomes
59% of business unit core trades spend
with Aligned subcontractors.
97% of invoices paid within 60 days.
Gold member of Supply Chain
Sustainability School.
Won Partner Award from Supply Chain
Sustainability School.
Stakeholder engagement
continued
Clients
Suppliers
78
Galliford Try
Strategic report
We want to be welcomed in the
communities we operate in and create
greater social value for them.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
Health, safety and environment.
High-quality buildings and infrastructure.
Use of local labour, resources and
employment, educational opportunities
and wider investment in the community.
Indirect engagement
The CFO chaired the ESG Committee
four times during the year.
The Sustainability Director reports
to the CFO and provides regular updates,
which include horizon scanning,
positional updates and progress and
future requirements.
The Board continues to support and
encourage the volunteering policy, which
offers two days per year per person.
Outcomes
43.9 average CCS score.
20 CCS awards won.
83% of projects exceeded our target
of delivering a minimum of 25% of the
contract value in social and local economic
value, representing £1,076m.
The Board approved the continued support
of CRASH, the construction industry
charity for the homeless.
We want our shareholders to have
confidence in the long-term success
of our business.
Key business and sustainability
stakeholder interests identified in
our Stakeholder Materiality Matrix
A sustainable business model and strategy.
Financial performance and dividend policy.
Corporate governance.
Risks to the business.
Direct engagement
The CEO and CFO engage with
shareholders through investor roadshows,
face-to-face meetings, video or telephone
calls, Capital Markets Days, results
presentations and webcasts, analyst
briefings and AGMs.
Indirect engagement
The CEO and CFO provide regular updates
to the Board from their meetings and
interactions with shareholders.
We issue important information about
our business through our Annual Report,
trading updates, Regulatory News Service
announcements, investor presentations,
our website, press coverage and social
media channels.
Outcomes
19.0p full year dividend per share.
See page 93 in the Governance review.
In the sector, we only own Galliford,
and there’s a reason for that...
They have strong growth trajectories,
with significant tailwinds in the
end-markets they operate in...
Why Galliford and not the others?
Because they have a strong
balance sheet.
Communities
Shareholders
79
Annual Report and Financial Statements 2025
80
Galliford Try
Strategy in action
Engaging our leaders
in our Strategy to 2030
In May 2025, the Chief Executive and Chief Financial Officer held
a face-to-face meeting with the Senior Leadership Team (SLT), which
comprises all business unit directors and the heads of functions such
as HR, IT, Procurement, Pre-construction and Quality.
The day provided an opportunity for Bill Hocking and Kris Hampson to
update the SLT on strategy, following the full and half year financial results,
and discuss key themes for the strategy period. The subjects covered were:
Performance and strategy update.
People.
Cyber security.
Provision 29 of the UK Corporate Governance Code.
Specialist Services.
Water Technologies.
Safety and quality.
For each area, subject matter experts discussed our current position,
expectations, opportunities and challenges for the financial year and
strategy period, potential barriers to progress and upcoming initiatives.
The day provided lively discussion and networking between peers,
and a chance for questions and answers.
Further detail on how the plc Board developed the strategy and considered
stakeholder interests is detailed in the Governance report.
Stakeholder engagement
continued
Strategic report
81
Annual Report and Financial Statements 2025
plc Board decision-making in action
Establishing a new
Revolving Credit Facility
Overview
During the year, Galliford Try established an unsecured Revolving Credit Facility
(RCF). The facility, together with our already strong balance sheet, provides
greater agility and resilience to the business, and an excellent platform to take
advantage of future opportunities as we prepare for the growth to deliver the
2030 sustainable growth targets. The RCF is for £25m for a term of three years,
with options to extend for two years and an accordion option of a further £10m.
When agreeing the facility, the Board considered the
following factors:
Terms of the RCF including interest rate, potential fees including arrangement
fees, annual renewal fees, and non-utilisation fees.
The maximum amount the Group would want to arrange the RCF for.
The nature of any covenants being requested.
Whether the RCF should be secured or unsecured, including flexibility to
make drawdowns and repayments, pricing of each and duration.
The benefits and advantages of each lender’s proposal.
Alternative financing options.
The following stakeholder interests were considered:
The anticipated management resource taken to secure an appropriate facility.
Cash flow needs of the business in the medium term, including existing
payments to suppliers, employees, banks and lenders.
Return on investment and company valuation.
The ability of the RCF to support acquisitions.
Shareholder, client, supplier and employee perspectives on what the use of
the RCF would be – ie growth or operational shortfalls.
Any potential personal guarantees required.
Any potential impact on credit rating.
Who did the Board engage with in making its decision?
The Board reviewed a comprehensive business case compiled by
management, which detailed a rigorous market test and fundraising process.
A confidential, anonymised document was shared with 25 UK and
international banks, outlining the Group’s intention to secure the RCF.
A comprehensive Funding Document was prepared and dispatched to the
interested lenders and individual meetings were conducted with them.
Following these meetings, the CFO and Group Financial Controller produced
a Consensus Term Sheet with approval from the plc Board, setting out the
main terms of the deal.
The proposals from each lender were scored against the Group’s objectives.
The Strategic report is approved by the Board
of Directors and signed on behalf of the
plc Board on 17 September 2025 by Kevin Corbett,
General Counsel & Company Secretary.
It gives me great pleasure to present
the company’s corporate governance
report for the financial year ended
30 June 2025 and to report on the
progress made since our Sustainable
Growth Strategy was announced in
2021. This year’s strong set of financial
results, with revenue and adjusted
profit before tax up 6.3% and 28.6%
respectively, builds on the ambitious
accelerated resetting of our strategic
objectives to 2030 implemented
last year and demonstrates the solid
foundations upon which our strategy
is embedded.
The Board recognises it must balance financial
performance with the needs of all stakeholders,
and the ways in which the Board engages
and is influenced by our workforce and other
stakeholders can be found on pages 93 to 94.
Details of key Board activities during the
financial year are outlined in this report.
Those of particular note include monitoring the
execution of the revised strategic objectives
to 2030; supporting the introduction of new
members of the plc and Executive boards;
delivering a second share buyback programme;
introducing a £25m Revolving Credit Facility;
reviewing the IT and cyber security strategy;
and supporting the updating of a range of
employee benefits.
More information regarding our strategy can be
found on pages 1 to 81.
Board and leadership changes
This year saw significant changes to the Board,
with Kris Hampson joining as Chief Financial
Officer on 2 September 2024, following the
departure of Andrew Duxbury in May 2024.
Kris has a strong financial background and
extensive acquisition experience, having come
from a FTSE 100 listed global business where
he held several senior financial roles. I and the
other Board members would also like to thank
Bill for taking on the additional responsibilities
required to oversee the Group’s financial
performance and deliver the 2024 full-year
results, pending Kris joining the company.
The other notable change was Marisa Cassoni,
Non-executive Director and Chair of the
Audit Committee, stepping down on
28 November 2024. On behalf of the Board,
I wish to thank Marisa for her valuable
contribution and committed service to the
Group, and wish her well in the future.
Marisa served for six years on the Board,
during which time she held the roles of Senior
Independent Non-executive Director and Chair
of the Audit and Remuneration Committees.
During her tenure Marisa oversaw a rights
issue, the disposal of the Group’s housebuilding
business, the performance of the Group over
the Covid pandemic and, more recently, several
strategic business acquisitions and disposals to
strengthen the Environment business.
Kevin Boyd, who joined as a Non-executive
Director on 1 March 2024, assumed the
role of Senior Independent Non-executive
Director and Chair of the Audit Committee
on 28 November 2024, following
Marisa’s departure.
In line with the UK Corporate Governance
Code (the Code), all directors will stand for
re-appointment or re-election at the 2025
AGM. The directors’ performance continues
to be effective, and each director clearly
demonstrates their commitment to the role.
Director biographies, their respective
responsibilities and their external directorships
are set out from page 88.
David Lowery was appointed on 1 July
2024 as an Executive Board member and
as Managing Director of Infrastructure
(comprising Highways and Environment).
David was previously Managing Director of the
Highways business and is an example of our
senior management succession plan coming
to fruition. Thomas Faulkner was appointed
on 15 September 2025 as successor to Mark
Baxter, Executive Board member and Managing
Director of Specialist Services, following
Mark’s decision to retire at the end of 2026.
Thomas will take over Mark’s role in a phased
manner, ensuring continuity of operations.
The Nomination Committee held its annual
review of succession plans for the Board and
senior management roles. This enables business
continuity and the further progression of the
talent pool, to ensure it contains the right skills
mix and experience to deliver our strategies
and develop future leaders.
Board performance evaluation
In March this year, the Board undertook its
externally facilitated evaluation, which the
Code requires to be carried out at least every
three years. The findings were positive overall,
noting the non-executive directors are highly
experienced individuals with a wealth of
valuable skills and a broad range of capabilities,
which are appropriate to delivering the
Group’s strategy, and who understand the
needs of stakeholders.
Our strong corporate
governance framework
is pivotal to the delivery
of our strategy, enabling
the Board to monitor
and review all areas of
significance and provide the
right information to facilitate
effective decision-making.”
Alison Wood
Chair
Governance
Governance at a glance
p84
Our Directors and
Executive Board
p88
Governance review
Our Board’s year:
Activities and site visits
Focus areas in detail
Culture and Board
effectiveness
UK Corporate
Governance
Code compliance
p90
p92
p94
p96
Nomination
Committee report
p97
Audit Committee report
p100
Remuneration
Committee report
p104
Remuneration at a glance
p106
Directors remuneration
policy report
p108
Annual report on
remuneration
p115
Directors’ report
p123
Statement of directors’
responsibilities
p127
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Galliford Try
Chair’s review
Consistently delivering strong, sustainable results
The Board is considered to be highly agile
and responsive and operates effectively. The
continued integration of the new Chief Financial
Officer and further embedding of working
relations among the Board, while providing
a supportive culture that allows effective
challenge to senior management, will help
ensure the Board continues to perform well
in future. Details of the Board review can be
found on page 95.
Equity, diversity and inclusion (EDI)
The Board fully supports the Financial Conduct
Authority’s (FCA) targets regarding gender
and ethnic diversity on Boards and within
senior leadership teams. As a female Chair
myself, and with Sally Boyle being Chair of
the Remuneration Committee, we are proud
of the company’s strategies to improve in this
area but are aware more work is required.
Following Marisa’s departure and the successful
succession plan enabling Kevin’s appointment,
due to his experience, knowledge and skill
set, we are no longer fully compliant with the
FCA’s EDI targets. For the first time since 2020,
the Board meets only one of the three EDI
recommendations, which is for a woman to
hold at least one of the senior Board positions,
and our gender balance on the Board has fallen
to 33%. Information on our strategies and
disclosures can be found on pages 92 and 99.
The Board continues to oversee and monitor
the work to improve gender and ethnic
diversity within our senior management
team and the wider workforce and there are
several strategies in place to support this. New
initiatives include the internal EDI team running
inclusive leadership education and awareness
workshops for senior leadership teams, a pilot
mentoring programme to inspire women to
consider a career in construction and a survey
of all women across the business, to research
and better understand the barriers they have
experienced. We also continue to partner with
Clear Company, a global diversity and inclusion
specialist, to ensure we have robust and
aligned retention and recruitment practices,
to help develop the company as an inclusive
environment for all employees. Please see
our People section on pages 28 to 31.
Implementation of changes to the
UK Corporate Governance Code
The Board is monitoring and reviewing the
implementation of changes required under
the UK Corporate Governance Code, in
particular to Provision 29, which covers the
risk management and internal control
framework. To ensure compliance with the
new requirements in our financial reporting
period ending 30 June 2027, the company
has set up a focused working group supported
by external consultants, who meet regularly
and are following a clear timetable and matrix
of actions. Further details can be found on
page 101.
The Board evaluation process, together with
reviews at the Audit Committee meetings and
the annual review in September, confirmed
the Board’s view that the Group’s system of
internal controls operated effectively during
the financial year.
Environment and climate change
The Board recognises the importance to the
long-term sustainability of the business of
minimising our environmental impact as well
as managing the transition to a low-carbon
economy. We continue to prioritise investment
in people, processes and systems to enhance
the quality of our carbon measurement
and reporting, and to drive performance
improvements to reduce our carbon emissions.
Progress in the financial year includes achieving
PAS 2080 Carbon Management in Buildings
and Infrastructure accreditation, developing a
carbon reporting and analytics platform, and
increasingly the number of our company car
fleet being electric or plug-in hybrid vehicles.
The digital and technology landscape
As businesses become more digital and
technology driven, the impact of having
reliable, secure, integrated systems cannot
be underestimated. The Board continues to
oversee and monitor closely the investment
in the Group’s systems, software and digital
capabilities, to ensure these are strong, robust
and fit for purpose and allow maximum cost
efficiencies to be gained. Cyber security is taken
very seriously at all levels of the business and
the Group has various strategies in place to
ensure maximum protection at all times.
Annual General Meeting (AGM)
The company will hold its 2025 AGM on
Thursday 13 November 2025 at the offices of
Peel Hunt LLP, 7th Floor, 100 Liverpool Street,
London EC2M 2AT at 11.00 am, where the
Board will be pleased to welcome shareholders,
answer questions and encourage shareholders’
participation. If you are unable to attend in
person, please send in any questions relevant
to the AGM to the General Counsel & Company
Secretary at kevin.corbett@gallifordtry.co.uk.
On behalf of the Board, we look forward to
meeting with shareholders at the AGM.
Alison Wood
Chair
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Governance
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Galliford Try
Group governance structure
Board Committees
Board
Nomination
Committee
Remuneration
Committee
Audit
Committee
Other Committees reporting to the Board
Promotes our long-term sustainable success.
Approves strategy, monitors progress, sets culture
and ensures a robust control environment, effective
risk management and good corporate governance.
Oversees financial reporting,
internal control and risk management,
external audit and whistleblowing.
Oversees Board and Committee
composition, succession planning
and the Board evaluation.
Designs Executive and senior
management remuneration and
ensures workforce remuneration
supports long-term success.
Executive
Board
Executive Risk
Committee
ESG
Committee
Employee
Forum
Oversees operational
management and implements
Board-approved strategy
and policies.
Assists with monitoring
and updating the Group’s
principal, emerging and
climate-related risks.
Co-ordinates and oversees
carbon reduction initiatives,
social value practices and
stakeholder relationships.
Provides a valuable two-way
communication channel between
employees and the Board.
Governance at a glance
Framework, responsibilities and activities
85
Annual Report and Financial Statements 2025
Governance
Key Board responsibilities
Role
Responsibilities
Chair
Leads the Board, sets the Group’s purpose, direction and values, and ensures high standards of corporate governance.
Facilitates constructive Board relations and effective contribution of non-executive directors, and ensures directors
receive accurate, timely and clear information.
Chief Executive
Develops the Group’s objectives, strategy, budgets and strategic financial plans, and provides day-to-day executive
leadership and management of the business, including major investments, projects, proposals and bids, managing risk,
and communicating with shareholders and other stakeholders.
Senior Independent
Director
Acts as adviser and sounding board for the Chair and the other non-executive directors. Evaluates the Chair’s
performance, and is an alternative point of contact for shareholders, executive directors and senior management.
Non-executive
directors
Provide an independent view on the running of our business, governance and boardroom best practice, overseeing
and constructively challenging management’s implementation of strategy and Group performance.
General Counsel &
Company Secretary
Ensures the Board receives high-quality and timely papers, advises on all governance matters, works with the Chair
and Committee chairs to ensure the right matters are escalated to the Board and Committees at the appropriate time,
oversees Board induction and evaluation arrangements, supports succession planning and the recruitment of new
non-executive directors.
The Board Committees’ terms of reference and detailed descriptions of the roles of the Chair, Chief Executive and Senior Independent Director
can be found on our website at: https://www.gallifordtry.co.uk/investors/governance-and-policies/.
Key Board activities in 2024/25
Review of strategy:
Reviewed the progress towards key milestones, following the reset and acceleration of sustainable growth targets
to 2030 in May 2024.
Continued to monitor and oversee the delivery of solid and controlled growth in our core markets.
Continued to oversee initiatives to deliver growth in higher-margin adjacent markets by strengthening specialised
capabilities in key areas, winning new strategic contracts and re-establishing relationships in the affordable
homes market.
Board and Executive
succession planning:
Approved appointment of new Chief Financial Officer to the Board.
Approved appointment of new Managing Director of Infrastructure to the Executive Board.
Oversaw and supported the induction of the new Chief Financial Officer and new Executive Board member.
Implemented the planned change of Senior Independent Director.
Financial and
operational
overview:
Received in-depth reviews of budget, revenue and cash flow, and focused on margins to deliver financial growth,
maintain robust discipline and maximise financial performance.
Introduced a new £25m Revolving Credit Facility to provide additional financial agility.
Continued monitoring of investment in systems, software and digital capabilities.
Return to investors:
Launched a second capital return programme to shareholders, which, along with the sustainable dividend policy
and reinvestment in the business, is delivering the capital allocation strategy.
Employees:
Oversaw the updating of a range of employee benefits.
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Annual Report and Financial Statements 2025
86
Galliford Try
Board changes during
2024/25
Kris Hampson joined as Chief Financial
Officer on 2 September 2024.
Marisa Cassoni retired as Senior
Independent Non-executive Director
and Chair of the Audit Committee on
28 November 2024.
Kevin Boyd was appointed Senior
Independent Non-executive Director
and Chair of the Audit Committee on
28 November 2024.
Board priorities
for 2025/26
Further embed and monitor the
execution of the revised strategic
objectives to 2030.
Oversee the continued
development of senior
management succession planning.
Consider and implement
recommendations arising from
the externally facilitated Board
performance evaluation.
Review and implement the 2024 UK
Corporate Governance Code reforms.
Board Skills Matrix
Alison
Wood
Bill
Hocking
Kris
Hampson
Kevin
Boyd
Sally
Boyle
Michael
Topham
Business ethics and integrity
Construction
Commercial
Finance
Governance
Human resources
Strategy and risk
Board balance of roles
Executive
2
Non-executive
4
Gender diversity
Men
4
Women
2
Ethnic diversity
White
6
Ethnically diverse
0
Board tenure
0–2 years
3
3–5 years
3
6–10 years
0
Your Board at a glance
As at 30 June 2025.
Governance at a glance
continued
Governance
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Annual Report and Financial Statements 2025
Around the business
The Board carried out four site visits to see
firsthand the working conditions on site,
see health and safety procedures in action,
discuss with employees their experiences
and listen to senior leaders about the on-site
working challenges they face.
1
Adelaide House, London
2
Otterbourne, Southampton
3
The Environmental Factory,
Renfrewshire, Scotland
4
Paisley Grammar School,
Renfrewshire, Scotland
2024/25 Board and Committee meetings
attendance table
Number of meetings
(attended/scheduled)
Board
Audit
Committee
Nomination
Committee
Remuneration
Committee
Alison Wood
Chair
9/9
by invitation
2/2
4/4
Bill Hocking
Chief Executive
9/9
by invitation
by invitation
by invitation
Kris Hampson
1
Chief Financial Officer
7/9
by invitation
n/a
n/a
Sally Boyle
Non-executive Director
8/9
4/4
2/2
4/4
Michael Topham
Non-executive Director
9/9
4/4
2/2
4/4
Kevin Boyd
Non-executive Director
8/9
3/4
2/2
3/4
Kevin Corbett
General Counsel &
Company Secretary
9/9
4/4
2/2
4/4
Former Directors
Marisa Cassoni
2
Former Senior
Independent Director
5/9
2/4
1/2
3/4
1
Kris Hampson was appointed as Chief Financial Officer on 2 September 2024 and attended all but
one of the scheduled Board meetings from this date to the year end.
2
Marisa Cassoni resigned on 28 November 2024 and attended all scheduled Board and Committee
meetings during the financial year until her departure.
1
3
2
4
For further information of the Board site visits
see page 91.
Location of Board site visits around the UK
Michael Topham
Non-executive Director
Appointment date:
Michael was appointed to the
Board on 1 June 2023.
Skills and experience:
Strong strategic planning and
mergers and acquisitions experience. Significant
leadership experience gained through role of Chief
Executive Officer of Biffa and previously Chief
Financial Officer and Divisional Managing Director.
A solid financial background and experienced in
delivering commercial and operational growth.
A chartered accountant, having trained with PwC.
External appointments:
Chief Executive of Biffa.
Chair of the Environmental Services Association.
Kevin Boyd
Senior Independent Director
Appointment date:
Kevin was appointed to the
Board on 1 March 2024.
Skills and experience:
Extensive listed public
company experience, to help strengthen the Board’s
independence. Acts as a solid advisory base to
others on the Board. Strong background both in the
UK and overseas, with operational and strategic
expertise. Substantial leadership experience,
having previously worked as Chief Financial Officer
of Spirax Group plc, Oxford Instruments plc and
Radstone Technology plc, as well as a number
of non-executive roles. A Fellow of the Institute
of Chartered Accountants and the Institute of
Engineering and Technology.
External appointments:
Chair and Non-executive
Director of Genuit Group plc. Audit Committee
Chair and Non-executive Director of Bodycote plc.
Alison Wood
Chair
Bill Hocking
Chief Executive
Sally Boyle
Non-executive Director
Appointment date:
Sally was appointed to the
Board on 1 May 2022.
Skills and experience:
Broad governance and
significant HR and remuneration expertise, along
with extensive financial services experience.
Significant leadership experience gained through
a range of roles including International Head of
Human Capital Management at Goldman Sachs
and as a member of the Goldman Sachs International
Board and Management Committee. Highly
experienced and knowledgeable employment
lawyer, with UK and international human
resources expertise.
External appointments:
Non-executive Director
of Cambridge University Press & Assessment.
Non-executive Director at Evelyn Partners LLP.
Kris Hampson
Chief Financial Officer
Appointment date:
Alison joined the Board
on 1 April 2022 and was appointed as Chair
on 21 September 2022.
Skills and experience:
Substantial strategic planning,
mergers and acquisitions and business development
experience gained through a number of roles
including Global Director of Strategy and Corporate
Development at National Grid plc and Group
Strategic Development Director at BAE Systems plc.
Extensive leadership and governance experience,
having served as Chair, Senior Independent Director
and Remuneration Committee Chair in several FTSE
350 companies. Has a background in engineering,
economics and management and has extensive
corporate experience with international leading
engineering companies.
External appointments:
Senior Independent
Non-executive Director and Chair of the
Remuneration Committee at Oxford Instruments
PLC. Senior Independent Non-executive Director
at Morgan Advanced Materials plc.
Appointment date:
Bill was appointed as
Chief Executive on 3 January 2020.
Skills and experience:
An effective leader, having
held a range of senior leadership positions including
Chief Executive of Galliford Try plc, Chief Executive
of Galliford Try’s Construction and Investment
division and Executive Vice President at Skanska
UK plc. Substantial experience of strategic planning
development and implementation. Significant
commercial and operational experience and
strong track record of delivering operational and
financial results. Extremely knowledgeable of
the construction industry, with over 35 years
of experience as a civil engineer.
Appointment date:
Kris was appointed to the
Board on 2 September 2024.
Skills and experience:
Extensive strategic
development and mergers and acquisitions
experience. Significant international financial
experience in listed B2B environments. Broad range
of strategic, financial and project management
leadership experience, having held a number of
finance roles with Rentokil Initial plc and Ford Motor
Company. A prize-winning chartered accountant
with over 20 years’ experience and a Fellow of the
Institute of Chartered Accountants.
Our Board
Directors and Executive Board
Our Board and Leadership
88
Galliford Try
Board Committee membership
Audit Committee
Nomination Committee
Remuneration Committee
Executive Board
Chair
As at 30 June 2025.
For the Board Skills Matrix, please see page 86.
Governance
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Annual Report and Financial Statements 2025
Kevin Corbett
General Counsel & Company Secretary
Ian Jubb
Managing Director, Building
Executive Board members
Vikki Skene
HR Director
Appointment date:
Kevin joined the Executive
Board on 1 February 2012 and was appointed
General Counsel & Company Secretary on
1 March 2012.
Skills and experience:
A solicitor and chartered civil
and structural engineer who has held numerous
senior leadership roles, both UK and international-
focused, including Chief Counsel Global for AECOM.
A broad skill set of construction and corporate
law, finance, governance, strategy and corporate
secretarial practice. Extensive knowledge and
experience of dealing with complex commercial
legal matters and corporate transactions.
A trusted advisor to the Chair, Chief Executive
and Non-executive Directors.
External appointments:
Non-executive Director
of the Construction Industry Council and the
construction industry charity, CRASH.
Appointment date:
Ian was appointed to the
Executive Board on 3 January 2020.
Skills and experience:
Over 40 years’ experience
in the construction industry, the last 20 years at
director level, with senior positions with Miller
Construction and Taylor Woodrow. A strong leader,
experienced in leading diverse teams to consistently
deliver complex projects throughout the UK.
Proven track record of significant margin growth
delivery. Demonstrated ability to achieve successful
business integrations, process improvements
and restructuring.
Appointment date:
Vikki joined the Executive Board
on 3 January 2020.
Skills and experience:
Over 20 years’ experience
as a senior HR leader, primarily in the construction
industry and holding directorship roles in both
Balfour Beatty and Galliford Try. Experienced in
the strategic development and building of HR teams
to deliver high-quality HR services to the company
and its employees. A passion for proactively
supporting learning and development, to support
employees with further developing their careers.
Oversees policies and processes to embed an agile
and inclusive working culture, to provide access
to working in construction to all groups in the
working population.
David Lowery
Managing Director, Infrastructure
Thomas Faulkner
Managing Director, Specialist Services
Mark Baxter
Managing Director, Specialist Services
Appointment date:
David was appointed to the
Executive Board on 1 July 2024.
Skills and experience:
Highly accomplished
chartered construction professional and civil
engineer, with 25 years’ national and international
industry experience across multiple sectors.
Dynamic business leader with significant strategy
development, business planning and policy-setting
skills, to drive cultural and organisational change.
Extensive experience in leading and delivering
complex major projects with a focus on sustainable,
cash-backed and profitable outcomes. Proven track
record of leading and developing diverse, high-
performing teams to deliver customer satisfaction
and shareholder value. More recently, integrated
three of the Company’s latest acquisitions to develop
specialist services to the environment sector and
support the Group’s Sustainable Growth Strategy.
Appointment date:
Thomas joined the Executive
Board on 15 September 2025.
Skills and experience:
Thomas is a chartered
civil engineer with 30 years of experience in
construction. He most recently spent 10 years
as UK Executive Vice President at Skanska and has
a strong background in the infrastructure sector,
covering water, environment, highways, rail and
specialist services.
Thomas will succeed Mark Baxter, Executive
Board member and Managing Director of Specialist
Services, taking up his new role in a phased manner,
leading to Mark’s retirement at the end of 2026.
Appointment date:
Mark was appointed to the
Executive Board on 3 January 2020.
Skills and experience:
A chartered accountant
with a wealth of experience in the construction
industry, gained through numerous directorial and
senior commercial roles in Galliford Try and Miller
Construction. Extensive knowledge of a wide range
of government-backed finance schemes, including
public private partnerships and private finance
initiatives, to delivery complex projects for various
public sector bodies. Excellent project management
and leadership skills, successfully delivering projects
from inception through construction, development
and into full operations. Experience of driving
long-term value over the life span of a project
and developing investment portfolios and joint
venture capability.
The Executive Board members above are not members/directors of the plc Board.
As at 17 September 2025.
New Executive Board member
90
Galliford Try
Delegated authorities
The table below summarises the matters reserved for the Board and those it delegates to management, which are reviewed annually.
Matters reserved for the Board
Matters delegated to management
Group values and standards
Operational management of Group
Group strategy, business plans and annual budgets
Implementation of Group policies
Acquisitions, disposals and contracts over a prescribed value
Allocation of Group resources
Material joint arrangements
Contracts up to a prescribed value
Approval of Group policies
Management succession planning
Material changes to Group share capital
Risk management
Group borrowing facilities
Approval of circulars and financial reports
2024
July
Board and Committee
meetings
.
Reviewed and agreed
annual budget, ensuring
sufficient resources in place
to achieve objectives.
Approved trading update.
Announced appointment
of Kris Hampson,
Chief Financial Officer.
Board site visit to Adelaide
House – a Building project.
September
Board and Committee
meetings
.
Approved delay of
financial results.
2025
February
Board and Committee
meetings
.
Approved the 2024/25
half-year financial results
announcement.
Approved the 2024/25
interim dividend payment.
Approved new £25m
unsecured Revolving
Credit Facility.
April
Board meeting and
Strategic Review
.
Conducted a strategic
and financial review.
Held deep dive business
review sessions with
Executive Board members.
Reviewed and discussed
health and safety and
sustainability reports.
Reviewed and discussed
people and succession
planning.
Board site visit to The
Environmental Factory in
Paisley, Renfrewshire –
an Environment project.
Board site visit to
Paisley Grammar
School, Renfrewshire –
a Building project.
May
Board and Committee
meetings
.
Board and Committee
performance
evaluation review.
Update on strategic review.
Non-executive directors-only
meeting held.
Board timeline of key activities
The timeline shows key examples of how the Board addressed the matters it is responsible for throughout the financial year.
October
Board meeting
.
Approved the 2024 financial
results announcement.
Proposed the 2024 final
dividend payment.
Approved announcement
of a second £10m share
buyback programme.
Approved the revised
AGM date.
Approved the appointment
of Kevin Boyd as Senior
Independent Director.
Approved enhanced
pension, maternity and
paternity policies.
Board site visit to
Otterbourne in Southampton
– an Environment project.
November
Board meeting
.
Annual review of health
and safety strategy
and performance.
AGM held.
December
Board and Committee
meetings
.
Review of IT and cyber
security arrangements.
Governance review
Our Board’s year – activities and site visits
Governance
Site visits
Board visits align the Board’s vision with operational reality, provides first-hand
oversight, and fosters a stronger connection between leadership and the teams
driving the business every day.
July 2024
Adelaide House,
London Bridge, London
The Board visited the Building project
Adelaide House, London Bridge, to review the
progress made on the extensive remodelling
and refurbishment of the Grade II-listed,
nine-storey, contemporary office space.
The Board also met with senior management
and staff to engage with the workforce, gain
an understanding of how health and safety
is applied and a deeper knowledge of the
challenges faced by the operational site teams.
April 2025
The Environmental Factory,
Paisley, Renfrewshire
The Board visited the Group’s new
manufacturing facility to see the progress made
with its strategic commitment to invest and
expand further in the Environment division.
The centre contains 640sqm of modern,
manufacturing space and, due to its location,
and by bringing together three in-house
industry-related businesses in the same facility,
it enables a more customer-focused service to
be provided to clients, including additional off-
site build capabilities. Visiting the site enabled
the Board to review the health and safety
differences between a manufacturing facility
and a construction site, to meet employees
new to the Group and better understand some
of the technical aspects of the Environment
projects undertaken.
April 2025
Paisley Grammar School,
Renfrewshire
The Board visited this £69m campus, built to
provide educational facilities to 1,380 pupils,
including all-weather sports pitches and
a 300-seat theatre and performing space.
The Board met the senior management team
and discussed the innovative design techniques
used in the project, including the use of ‘green
steel’, a steelmaking process that significantly
reduces carbon dioxide emissions, and the use
of a test rig system developed in collaboration
with BE-ST, which enabled external details to
be tested prior to installation on site. Several
staff on the project had also come through the
trainee/graduate training programme, enabling
the Board to discuss culture, training, human
resources planning and health and safety
matters with staff.
April 2025
Strategy Review Board Meeting
The Board held its two-day strategic
review meeting in April to assess progress
made during the year and discuss the
key areas and further plans to achieve
the Group’s 2030 strategic objectives.
In addition to financial performance,
the areas considered included: horizon
scanning opportunities within key
market sectors and the Government’s
approach to various projects and funding
commitments; and in-depth discussions
with each divisional Managing Director
regarding strategy, prospects, clients
and the challenges faced, as well as
focusing on ways to become further
embedded within key markets, achieve
higher margins, expand the geographical
footprint and increase internal
cross-selling opportunities.
A presentation on the Group’s health
and safety performance and the strong
progress made since 2020 was discussed
and a deep dive was undertaken into
carbon and climate change matters,
including the Group’s overall approach
in this area, the progress made on its
milestone targets for reductions to 2030
and consideration of such targets for
its stakeholders. People and succession
planning were also discussed, to ensure
a pipeline of the right skills was being
developed, as well as staff recruitment
and training initiatives.
October 2024
Otterbourne
Water Supply Works
The Board visited the Otterbourne Water
Supply Works site, part of an Environment
project, and discussed the importance of
long-term strategic relationships with clients
operating contractual framework systems
over several years. The Board was also shown
the innovations utilised within the design and
how the cross-selling of products and services
provided by other Galliford Try businesses
enabled the work to be carried out more
efficiently. The importance of strong, reliable
supply chain relationships for such work was
also considered.
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Galliford Try
The Board is responsible for setting
the Group’s strategy and overseeing
its implementation by monitoring and
reviewing its performance against its
strategic objectives to meet the needs
of its key stakeholders.
It does this in a variety of ways, including holding
Board and Committee meetings throughout
the year, where it is provided with reports and
presentations from the Chief Executive, Chief
Financial Officer and other senior management,
to ensure it has the right information at the right
time to enable strategic decisions, policies and
other key updates to be fully discussed. These
meetings are complemented by regular site
visits, which enable directors to gain a firsthand
insight into our culture, and meetings with
investors and shareholders such as at the AGM.
The Chair, supported by the General Counsel
& Company Secretary, ensures the meeting
agenda is carefully structured to include
strategic and operational matters and various
standing items such as reports on health,
safety and environment (HSE), sustainability,
share price performance, market analysis and
shareholder feedback, and employee insights
and feedback. The agenda is also structured
to allow time for open discussion, which
builds in scope and flexibility to discuss any
other matters.
The Board also receives updates and in-depth
reports from external advisers on specialist
matters, as necessary.
The non-executive directors provide
independent insight gained from a breadth
of skills and experience to support and
challenge the executive directors, and all
Board members are encouraged to continue
their own professional development to ensure
their working and best practice knowledge
remains up to date.
Delivering and
implementing strategy
The Board reviewed progress against its
strategic objectives for the year and to
2030 in each of its businesses, including
delivering organic growth in its existing core
markets in Building and Infrastructure, with
the focus on continuing to deliver and expand
into key market sectors, the importance of
contract selections with the right risk profile
and on delivering quality, sustainable products
to clients.
For the Specialist Services businesses, the
focus was on developing further growth for
the recently acquired nmcn, MCS Control
Systems, Ham Baker and AVRS businesses,
as the highly specialised work attracts higher
margins, and builds further on inter-company
cross-selling opportunities. For Environment,
attention was directed towards winning further
lots on new framework opportunities as they
come up for renewal during the year, with
achievements including being appointed to
the new Southern Water Capital Programme
Strategic Delivery Partner Framework as part
of the AMP8 investment cycle and to Lots 1
and 3 of the Wessex Water Capital Delivery
Framework AMP8.
Sustainability
The Board has delegated responsibility for
operational oversight of ESG matters to
the ESG Committee chaired by the Chief
Financial Officer. Through the Chair, the Board
maintains strategic oversight by receiving
updates from the ESG Committee, including
reviewing minutes of all meetings of the
Committee, monitoring performance against
the Group’s sustainability commitments
and targets, and reviewing key external ESG
disclosures, such as our climate-related risks
and opportunities. The Board also received
a presentation on the progress the company
is making against our net zero targets and
the actions being taken to reduce emissions.
See page 22 in the Strategic report for further
information on the ESG Committee.
Culture, resources and people
The Code of Conduct ‘Doing the Right Thing’
sets out our overall organisational policies and
procedures and defines expected behaviours.
Group policies define our approach to managing
health, safety, environmental and social
matters. During the financial year, the Executive
Board reviewed and refreshed the policies,
procedures and authority matrices under which
the central functions and businesses operate,
with certain key policies published on our
website. See page 94 for further information.
The health, safety and wellbeing of our
employees is the number one priority for our
business. At every Board meeting a health
and safety update is provided by the Chief
Executive, along with any trends or new
initiatives being carried out to further enhance
health and safety standards. Once a year, the
HSE director presents to the Board to enable
a deep dive review to be carried out. This year,
due to the excellent health and safety statistics
achieved across the business, a further review
of health and safety targets was discussed to
evaluate whether they should be raised in
order to drive standards even higher.
To deliver on its commitment to support
suppliers, the company applied for the
Fair Payment Code (which replaced the
Prompt Payment Code) and was awarded
the Bronze level for paying at least 95% of
all invoices in 60 days.
A key element of the people strategy is to
ensure good succession planning is in place
and that career opportunities are available for
all. A review of talent and succession planning
of key management positions is carried out
twice a year and internal advancements made
where appropriate.
Our strategy is to be a people-orientated,
progressive employer driven by values and,
during the year, the Board supported and
monitored the implementation of a range of
initiatives to further embed work on improving
the EDI culture in the company, including a pulse
survey to research barriers to women working
in construction, a pilot mentoring programme
on inspiring women into construction and
rolling out an EDI course to all senior leaders
within the business.
The Board values its employees and fully
supports the agile-working policy that enables
job opportunities within the company to be
available to a wider population. As part of
our Retain and Gain people strategy, the Board
supported enhancements to a range of family-
friendly policies including increased maternity,
adoption and paternity benefits and a returner
bonus for those returning from maternity
leave. See page 30 in the People section for
further information.
The Employee Forum takes place at least
twice a year and is chaired by the Chair of the
Remuneration Committee, to hear firsthand
the experiences of employees. See page 94
for more information.
Key to stakeholders:
Clients
Shareholders
People
Suppliers
Communities
Governance review (continued)
Our Board’s year – focus areas in detail
Governance
93
Annual Report and Financial Statements 2025
Financial oversight
At each meeting the Board reviews the Group’s
financial performance and key metrics such
as revenue, margin growth, earnings and
cash management, to ensure these are being
maximised and are delivering in line with
budget and forecast.
The focus of capital allocation is to prioritise
a strong balance sheet to support internal
operations, reinvestment in the business and
new adjacent markets to support organic
growth and consider the external market
opportunities for further growth. Such strength
gives stability and confidence to employees,
clients and the supply chain to move forward
with the business.
During the financial year the Board delivered
on its commitment to return excess cash to
shareholders through its second share buyback
programme of £10m and operates a sustainable
dividend policy in line with earnings growth,
so shareholders are rewarded for their
investment in the company.
The Board agreed to enter into a Revolving
Credit Facility of up to £25m to ensure added
agility and flexibility via ongoing access to
additional cash resources.
The Board also reviewed and agreed the
Group’s approach to risk and principal risk
management, and the work carried out by
the internal audit team.
The Board received a deep-dive report into the
Group’s software, technology infrastructure
and digital security, to help it oversee and
monitor the current systems in place and
ensure they remain fit for purpose. Following
the further integration of the Group’s new,
cloud-based, resource planning system last
year, a simplified secure network was now in
place, generating cost efficiencies through
improved system integration and better
planning support for internal teams. With the
additional information provided by the system,
more data analysis is carried out, enabling
enhanced management focus and improved
performance measures.
The Board has always taken cyber security very
seriously and to further strengthen resilience
against a possible cyber attack, the Board has
overseen a number of enhancements to its
digital security measures including: updating
the cyber security strategy and incident
response plan; increasing the internal cyber
team; producing short video messages for
staff to promote awareness of possible cyber
attacks; the all-employee cyber e-learning
course being rewritten and strengthened; more
frequent and complex phishing test simulations;
and amendments to HR policies to increase the
consequences for employees who continually
fail internal phishing tests.
Board engagement with shareholders
Our shareholders consist of global investment
funds and institutions based primarily in the UK,
UK regional funds, and retail and small private
investors, which include current and former
colleagues. In line with the Code, the Board is
committed to maintaining regular contact and
engagement with shareholders, to ensure it
has a clear understanding of their views on the
Company’s governance, performance against
strategy and other significant matters. It does
this in a variety of ways, to reach as many
current and potential shareholders and
analysts as possible.
Board information flow regarding investor
views
– The Board is kept informed on investor
relations matters through updates at Board
meetings, feedback from investor meetings,
detailed reporting from its external investor
relations consultants, presentations from
corporate brokers, monitoring its share price
and events in its key markets, and receiving
questions and feedback from investors and
analysts throughout the year.
The Board approved its investor relations
strategy, which included: educating
stakeholders about the industry; increasing
share demand by further raising the Company’s
profile and targeting new investor and sales
desks; increasing liquidity through extended
quality sell coverage opportunities; and
increasing communication methods with
institutional shareholders, analysts and
retail shareholders.
Institutional investors and analysts
– There
are several ways in which the Board engages
directly with investors and analysts across
the financial reporting calendar. The Chief
Executive and Chief Financial Officer regularly
meet with existing and prospective institutional
shareholders and make themselves available
for conferences and ad hoc meeting requests
throughout the financial year. Meetings were
held with 48 institutional funds, including
21 shareholders who together represented
circa 47% of the share register, as well as 27
potential investors, with increased interest
from non-holders following the half-year results
in March. In addition, the management team
attended four investor conferences where
there was an opportunity to meet UK and
European institutional funds. The Company’s
brokers are proactively targeting new holders
and organised two non-holder investor days
outside of the results roadshows. Key areas of
discussion included the Company’s strategy
and targets, dividend policy, capital allocation,
future pipeline and ESG factors, as well as
macro-economic factors such as inflation.
Four presentations were made to sales
teams at UK investment banks, an important
audience for ensuring the equity story is clearly
articulated to their clients.
Management has also continued to focus on
building strong regional investor relationships,
engaging with a third-party specialist advisory
business to schedule private client broker
roadshows, arranging meetings with 16 retail
investors in the year, and providing further
research coverage.
Retail and prospective shareholders
–
The Board continued to run a targeted
outreach programme aimed at retail and small
private investors, who provide an important
source of liquidity for the shares. Using the
Proactive Investors platform, video interviews
with the Chief Financial Officer are posted
after each results announcement, supported
by digital content following all news updates.
The Executive Directors also present on
the Investor Meet Company platform after
each results announcement, giving retail
shareholders an opportunity to engage
directly with them.
Separately, the Chair undertakes regular
engagement with shareholders and, as well
as the Chair, the Senior Independent Director
and other non-executive directors are available
to attend meetings with shareholders and
address any significant concerns which
shareholders may have.
In addition, the Board adopts a culture of
open communication with its shareholders
throughout the year, with the Company
Secretary ensuring full responses are provided
to appropriate questions received.
The AGM provides a valuable opportunity
for the Board to meet shareholders in person,
answer their questions directly and provide
information regarding company performance,
strategy and policies. All shareholders are
welcome and encouraged to attend. Details of
this year’s AGM can be found on page 83.
94
Galliford Try
Monitoring our culture
The Board recognises the importance of
closely monitoring and assessing the Group’s
culture, acknowledges that this is a continuous
process and is aware of the strengthening of
the Code in this area to ensure desired cultures
become embedded. The Board uses a range of
methods to engage with employees to develop
a positive and progressive culture and
ensure that its policies, practices and desired
behaviours are aligned with and support the
delivery of its strategy, values and purpose.
This is achieved via:
Site visits:
During the financial year, the Board
visited four varied sites, each containing a
different project type, where they met site
managers and staff, had an opportunity to
discuss the project in detail, interacted with
site employees and saw firsthand the working
operations and health and safety procedures
in place. Details can be found on page 91.
Management meetings:
As part of the
site visits, the Board met with a variety of
senior managers, enabling the Board to hear
their views directly, strengthening their
understanding of the workplace environment
and the impact of the policies and procedures
put in place by the Board.
Employee survey:
Each year a Group-wide
employee engagement survey is conducted,
with answers anonymised to enable full
confidentiality. In general, the questions are
similar to past surveys to enable comparisons
with previous years and identify trends, but
they are also updated where appropriate.
The results of the survey are presented to
the Executive and plc Boards. An action
plan tailored for each business unit is then
developed, implemented and communicated
to the staff.
Employee Forum:
This is a forum, chaired by the
Chair of the Remuneration Committee, where
employees meet to discuss workplace policies
and procedures – further details opposite.
Inductions and the Code of Conduct:
‘Doing
the Right Thing’ is the Group’s formal Code
of Conduct, which outlines the values and
behaviours the Group expects of its staff
and other stakeholders. This is also a focal
point of the induction process for all new
starters, to ensure the right approach and
expectations are set and the right behaviours
become embedded. During the financial year
a new highly interactive induction process
was developed, to provide a more positive
experience and give guidance for new starters
on ways to support their own development.
Other initiatives to support such behaviours
include management presentations, e-learning
and on-site training.
Oversight and reporting:
The Board is also
kept up-to-date with regular reports and
metrics on a range of key areas relating to
culture, through direct presentations and
reports, and via the Chief Executive’s regular
reports and other management meeting
minutes. These include: a health and safety
report showing key statistics, trends and any
areas for improvement; and people-related data
such as employee turnover and sickness rates.
Whistleblowing and business ethics matters
are also reported and considered.
Biannually the Board receives analyst
presentations regarding the macro-economic
environment, budget and Government policy,
to ensure the Board is fully informed when
making policies that may impact Company
performance and staff.
Informal channels are also used, such as
the general engagement and take-up of
internal courses, feedback on Group
briefings and questions arising from the
Chief Executive roadshow.
Board engagement
with our workforce
As a people-focused company, our employees
are one of our greatest assets and the Board
recognises the value that a progressive and
committed workforce brings to the business.
A combination of mechanisms, including the
Employee Forum, are used to engage with
the workforce and to ensure Board and staff
communications remain effective.
Employee Forum
The Employee Forum gathers the views of
staff to strengthen the ‘employee voice’ in the
boardroom, enabling the Board to hear directly
from employees on key matters by providing
a two-way mechanism, while also gauging the
impact of its employee-related policies and
processes. Overall, the Employee Forum leads
to better engagement with the workforce, acts
as a representative body for communications
with, and feedback from, employees about
workplace policies and procedures, strengthens
the internal communication process and
supports good governance.
The Board has chosen one of the three methods
suggested under Provision 5 of the Code,
namely to have a designated non-executive
director to chair the Employee Forum and Sally
Boyle, our Non-executive Director and Chair
of the Remuneration Committee undertakes
that role. Other senior leaders also attend,
including the General Counsel & Company
Secretary, HR Director and Director of Group
Communications, and the Employee Forum
meets at least twice per year.
Employee representatives from a range
of roles across the Company make up the
Employee Forum. Employee membership is
reviewed annually to ensure it remains fresh
and continues to appropriately represent the
workforce. The matters raised are discussed
at Executive and plc Board meetings and the
minutes of the meeting are included in the
Board packs.
During the financial year, the Forum had an
opportunity to listen to and discuss employees’
views on a range of themes, including:
Business performance:
Overview of business results
and performance.
Progress against the Group strategy
in market sectors.
Analyst views of business performance.
People updates:
Salary review update.
Results of employee engagement survey.
Update and feedback on our
People Pledge – Grow Together.
Progress with equity, diversity and
inclusion plans.
Pension scheme review.
Discussion of family-friendly policies.
Outcome:
Management considered employees’ views and
feedback and implemented some key initiatives:
Salary review
– the Board was mindful of the
ongoing external pressures on the cost of
living when carrying out the salary review.
Pension scheme review
– introduction of
a new pension scheme for new and existing
employees, to remove age-related pension
contribution milestones. Existing employees
are given the option to stay in the current
scheme or move to the new scheme.
Family-friendly policy review
– further
enhanced maternity and paternity benefits,
including extending the payment of full pay
for maternity leave and increasing the period
of paid paternity leave. A returner bonus for
those returning from maternity leave was
also introduced.
Board engagement with other stakeholders –
see Strategic report on pages 76 to 79.
Governance review (continued)
Culture and Board effectiveness
Governance
95
Annual Report and Financial Statements 2025
Board performance review:
2025 update and 2024
performance evaluation
In line with the Code, the Board reviews its
own effectiveness and that of its Committees
each year, with an externally facilitated review
at least every third year (the last one being
undertaken in 2022).
2025 Board effectiveness review
The 2025 Board evaluation process was
externally facilitated by Clare Chalmers Limited
(Clare Chalmers). The Board considers Clare
Chalmers to be independent, as it has no other
connection to Galliford Try or its Directors.
The brief for the process was agreed with the
Chair following a scoping meeting and the
evaluation was undertaken throughout
March and April 2025, with the findings
presented to the May Board meeting.
The evaluation process with Clare Chalmers
included:
interviewing plc Board members and
selected members of the Executive Board;
an online questionnaire for all Board
members and analysis of the results; and
a report produced for the Board and
discussion of findings at a Board meeting.
Clare Chalmers’ report was positive about the
functioning of the Board. Overall, the evaluation
confirmed the Board and its Committees
are continuing to operate effectively and the
composition of the Board was appropriate for
the size and structure of the business.
The report also included several
recommendations and suggested actions,
which were discussed with the Chair and
General Counsel & Company Secretary, and
presented to the Board meeting in May 2025.
A number of key areas of focus were identified
and agreed, as set out to the right. The Board
will monitor progress against these and any
ongoing areas of focus will form part of the
2026 internal evaluation.
The Chair’s performance is assessed through
the annual Board evaluation process and
through a separate annual meeting of the
non-executive directors, led by the Senior
Independent Director without the Chair
present. In June 2025 the Senior Independent
Director consulted with all Board members
to discuss and evaluate the performance of
the Chair and concluded the Chair was
performing effectively.
The 2024 Board effectiveness review
The 2024 Board evaluation exercise was internally facilitated and the process followed those
undertaken in previous years. The findings were presented to the May 2024 Board meeting and,
as shown below, the Board has successfully addressed the actions arising from the effectiveness
review in 2024:
Recommendation
Actions taken
Focus on strategy, monitor
progress and development.
A deep dive into strategy for each business was carried out
at the Board strategy day. Ongoing monitoring was continued
throughout the year at each Board meeting, to review progress
towards targets for the year and to the 2030 strategy.
Relationships: to continue
to support new appointees
to encourage questions,
challenge senior management,
ensure a culture of openness
and debate is continued
and allow time to evolve
into their roles.
A thorough induction programme is in place for new Board
members. Face-to-face time with each non-executive director
was provided, as was time with key advisers and senior
management. All existing members are aware of their role in
providing advice and support to new members and new members
are encouraged to challenge and debate on matters under
discussion, and their views are welcomed.
Information: information
on margin at project level
to be provided in the
financial papers.
The key contents to be included in commercial project approval
papers were reviewed and changes implemented.
External auditors: to continue
to work collaboratively with
the external auditors to
strengthen working relations,
and to agree and implement
strategies for improvement.
Earlier and more detailed timetabled planning has been put in
place to assist the half-year review and full-year audit, which is
also backed up with weekly meetings between the audit team and
senior managers. Monthly meetings between the Audit partner
and Chief Financial Officer are also in place and the external
auditors presented at the Group’s Finance Conference to
improve visibility and understanding of their requirements.
Recommendations arising
from 2025 Board effectiveness
review include:
Composition:
composition and
development of the Board, both
non-executive and executive director
roles, to continue to be an area of focus.
Succession:
carefully monitor the
Group’s overall non-executive director
and management succession planning.
Mentoring:
further develop the regular
interaction sessions of the Chair/Chief
Executive and the Audit Committee
Chair/Chief Financial Officer.
Stakeholders:
consider engagement
with clients and key suppliers through
site visits where appropriate.
KPIs:
refresh and simplify Board
reporting together with appropriate
measures to monitor performance.
Board topics:
develop a forward
planner to include topics identified
by the Board.
96
Galliford Try
The Board confirms that during the financial year ended 30 June 2025, the Board has applied the Principles and complied with all the Provisions of
the 2024 Code. With regard to Provision 29 (the monitoring of the Company’s risk management and internal control framework and carrying out
an annual review of its effectiveness), the Company is continuing to apply the 2018 Code in this area and has a working party in place to ensure
compliance for the deadline in 2026 – see page 101 in the Annual Report.
The table below sets out where the required information can be found in this Annual Report.
UK Corporate Governance Code 2018 compliance
Area of the code
Location
Board leadership and company purpose
Role of the Board
Pages 84-85, 90
Purpose, values and strategy
Page 92
Board oversight of culture
Page 94
Board decisions and outcomes
Page 85
Stakeholder engagement, including shareholders
and the workforce
Pages 92-94
Workforce policies and practices
Page 94
Business model, opportunities and risks
Pages 58-74,
102
Section 172 statement
Page 76
Whistleblowing
Page 103
Division of responsibilities
Role of the Chair, Chief Executive
and Senior Independent Director
Page 85
Division of responsibilities between
the Board and management
Pages 85, 90
Non-executive directors’ role
and time commitments
Pages 85, 99
Chair and non-executive
director independence
Pages 85, 98
Role of the Senior Independent Director
Page 85
Board and Committee meetings
Pages 87, 90
Role of the General Counsel
& Company Secretary
Page 85
Area of the code
Location
Composition, succession and evaluation
Board and Committee composition
Pages 88-89
Director appointments and appointment process
Page 98
Succession planning
Page 98
Diversity, equity and inclusion
Pages 83, 92, 99
Annual Board and Committee evaluation
Pages 95, 99, 101
Role, composition and activities
of the Nomination Committee
Page 97
Director election and re-election
Page 82
Audit, risk and internal control
Internal and external audit
Pages 101-102
Integrity of financial and narrative statements
Page 127
Fair, balanced and understandable assessment
Page 103
Risk management and internal
control framework
Page 102
Role, composition and activities
of the Audit Committee
Pages 100-101
Directors’ responsibilities
Pages 85, 100, 127
Emerging and principal risks
Pages 58-75,
102
Effectiveness of the internal control framework
Page 102
Viability statement and going concern
Pages 75, 125
Remuneration policy
Remuneration policy
Pages 105-114
Role, composition and activities of the
Remuneration Committee
Pages 104-105,
121
Workforce remuneration
Page 114
Non-executive director remuneration
Pages 110, 115,
122
Remuneration consultant
Page 121
Share schemes, including post-employment
holding requirements
Pages 109-110,
112-118
Use of discretion, and malus and clawback
Pages 107, 111
Pension arrangements for executive directors
Page 108
Notice periods and terms of appointment
Page 113
Governance
97
Annual Report and Financial Statements 2025
N
Alison Wood
Nomination Committee Chair
Alison Wood
Nomination Committee Chair
Kevin Boyd
Senior Independent Director
Sally Boyle
Non-executive Director
Michael Topham
Non-executive Director
The Committee’s main focus this year was to
recommend the appointment and support the
induction of Kris Hampson, Chief Financial
Officer, who joined on 2 September 2024, and
review and monitor the succession planning
of our senior leadership team, following the
successful internal appointment of David
Lowery to the Executive Board on 1 July 2024,
as the Board will do with Thomas Faulkner’s
appointment to succeed Mark Baxter (page
82). The Committee also oversaw other
internal directorship changes, considered
the progression of our key talent pool and
supported the implementation of further
and enhanced equity, diversity and inclusion
(EDI) strategies.
Composition and remit
Further details of the Committee’s members
can be found on page 88. The majority of
members are independent non-executive
directors, complying with Provision 17 of the
Code. During the financial year, the Committee
reviewed its terms of reference in line with best
practice, requiring only minor changes, and the
current terms of reference can be found on the
Group’s website (www.gallifordtry.co.uk) or by
scanning the QR code below.
2024
December
Succession planning for
leadership roles at Executive
level and key level below.
Employee talent pool review.
Impact of Retain and Gain
strategies on the talent
pipeline, including:
– early careers resourcing;
–
review and update of the
induction programme;
–
promotion of internal
mobility programme;
– EDI strategies;
–
research project on
barriers faced by women
in construction; and
–
learning and development,
including promotion of
ongoing learning.
2025
May
Non-executive directors’
appointment review
and Board Committee
membership.
Terms of reference review
and approval.
Board and Board Committee
externally facilitated
performance review.
Executive Board
performance review.
Monitor and review of senior
leadership succession plans.
Impact of Retain and
Gain strategies on the
talent pipeline.
Calendar of 2024/25 Committee activities and areas of focus
During the financial year, the Committee prioritised the activities and areas of focus set out below:
Nomination Committee report
98
Galliford Try
Board appointment process
The appointment of Kris Hampson, Chief
Financial Officer, was announced on 11 July
2024 and, in line with all new appointments
to the Board, was subject to formal, rigorous
and transparent procedures. A full description
of the process can be found on page 96 of the
2024 Annual Report.
Director induction process
All new directors undertake a comprehensive
induction programme. The programme is
tailored to take account of the individual’s
skills, knowledge and experience, and
designed to ensure they feel supported and
can operate effectively as early as possible.
The induction programme includes a series of
independent meetings with the Chair, the Chief
Executive, the General Counsel & Company
Secretary, other Board members, members
of the Executive Board and meetings with
senior leaders of wider support teams where
appropriate to the role. In-depth information
on all key areas is also provided, including the
terms of reference of the Board and its key
Committees and recent Board and Committee
packs to ensure there is awareness of recent
past events. These meetings are further
supported by business briefings as well as site
visits and introductions to key external advisers.
Board and Committee changes
Changes to the Board and its Committees are
set out in the Chair’s letter on pages 82 to 83
and details of the members of the Nomination
Committee can be found on page 88.
Senior leadership succession planning
Succession planning at senior levels below
the Board was a key area of focus for
the Committee during the financial year.
A detailed update was received from the
HR Director on progress with implementing
the Group’s succession plan, noting that stable
leadership teams were in place and identifying
which key leadership positions had internal
successor candidates. Timescales were
identified for developing those coming forward,
with coaching, training and development
opportunities. Initiatives to support a diverse
talent pool of employees who demonstrate
a high potential for promotion were also
discussed. The Group’s employee Retain and
Gain people strategy was further developed
to ensure employees were proactively engaged
and trained, to support staff retention. Other
initiatives to increase diversity across our wider
business included the Women in Construction
research project and the Early Careers
programme, including a pilot scheme to mentor
the next generation, as noted in the People
section of our Strategic report on page 28.
Review of the Board’s composition
As at 30 June 2025, the Board comprised
the Chair, three independent Non-executive
Directors, the Chief Executive and the
Chief Financial Officer. All Non-executive
Directors, including the Chair, are independent
and provide challenge to the executive
directors, leadership team and senior
managers as appropriate.
The Committee reviews the composition of the
Board and its Committees at least annually,
as part of the Board performance review
process. The Committee considered the balance
of the directors’ skills, experience, knowledge
and diversity of opinion, to ensure each can
continue to contribute to the Group’s longer-
term sustainable success and that, overall,
the Board remains suitable for the Group’s
structure and can effectively deliver its strategy
and objectives. The Committee also considered
the directors’ time commitments, to ensure
they can continue to discharge their
responsibilities effectively.
On reviewing the Group’s size and structure,
the Nomination Committee agreed it was
not necessary to appoint a replacement for
Marisa Cassoni on her planned departure
on 28 November 2024, given the successful
succession planning appointment of Kevin
Boyd on 1 March 2024. The Committee found
the composition and size of the Board and
its Committees remain appropriate for the
forthcoming year. Further details on the Board
evaluation and its outcomes can be found on
page 95.
The Board and its Committees’
performance review
The externally facilitated performance review
was carried out during the financial year and
identified a small number of actions for the
Committee, including the development of
a more mature skills matrix to easily identify
Nomination Committee report
continued
Kris Hampson’s induction
Kris Hampson received a tailored and extensive
three-month induction programme. This
included business briefings and key materials
on appointment, such as financial statements,
trading updates and financial presentations.
Kris also received share dealing, insider
information and market abuse regime policies;
governance structures such as Board and
Committee Terms of Reference, roles of Board
members and schedule of Board meetings;
internal risk and audit plans, including risk
registers; shareholder and investor relations
information; key reports such as the Gender
Pay Gap report; and a range of Group policies
such as modern slavery, insurance and
sustainability plans.
One-to-one meetings were held with the
Chief Executive, the General Counsel &
Company Secretary, the Chair and each
Board member, to discuss Group strategy,
areas of priority and any ongoing matters
of significance, and to develop strong
working relationships.
Kris also had one-to-one meetings with each
Executive Board member, to learn about
their division and understand the strengths,
opportunities and challenges in each area.
In addition, Kris met the senior leaders of
departments such as Health and Safety, IT,
Group Communications and Technical and
Quality, to understand how internal teams
support the business functions.
As required for all new starters, Kris has
completed e-learning courses that ensure we
have a common approach and set of values.
These cover topics such as cyber security,
data protection, workplace discrimination,
competition law, tackling tax evasion and
financial crime. Our Code of Conduct
supports these courses by sharing our strong
ethical standards and corporate values.
As Chief Financial Officer, it is important for
Kris to have a strong working relationship
with the external auditor. He therefore had
meetings with the external audit partner, to
build this relationship and better understand
the auditor’s requirements. This was useful
in understanding the delay to the release
of the 2024 accounts and to help develop
a working plan to assist the full-year audit
process for 2025.
Kris was also briefed on analyst and
shareholder views and held meetings with
the investor relations team and advisers.
By the end of the financial year, Kris had
toured every business unit and completed
over a dozen site visits.
Governance
99
Annual Report and Financial Statements 2025
which skills and experience are well represented
on the Board and which could be further
strengthened to support business growth as
directors rotate. The review concluded that
the Nomination Committee remains effective
and met its performance requirements for
the financial year.
Culture of equity, diversity
and inclusion
A key focus for the Committee is continuing
to ensure EDI is embedded in the Sustainable
Growth Strategy, to provide a supportive and
progressive culture for all. The Committee fully
supports the inclusion and diversity disclosures
in the Listing Rules and ensures such matters
are considered in all its policies and practices.
During the financial year, the Committee
considered and monitored the further
development of the EDI initiatives implemented
last year. The outcomes of this included the
roll-out of a planned Inclusive Leadership
programme to senior leaders, business units
and functional heads, and the development
of an Active Bystander workshop for roll-out
to all employees. This followed the creation
of a dedicated inclusion team within the HR
function in 2023, and continued working with
Clear Company, an EDI and culture consultancy,
which provides objective and constructive
feedback and guidance on our retention and
recruitment practices.
The Committee also considered an extensive
range of EDI working practices, to ensure
the Group can attract the best candidates
from as wide a section of the population as
possible. The practices include agile and hybrid
working, and supporting industry initiatives
such as the National Association of Women in
Construction and the Supplier Diversity Group.
The Group is also an accredited Disability
Confident employer. In 2023 the Women in
Construction research project was launched,
focusing on the challenges women face in their
careers, including the specific barriers faced
in operational roles in construction, and the
results of this survey have identified areas for
further action. Further information on the EDI
initiatives implemented can be found in the
People section commencing on page 28.
Statement on compliance of
Board and Committee equity,
diversity and inclusion
EDI is a key consideration when assessing the
composition of the Board and its Committees,
to ensure there are no barriers to attracting
the best candidates, developing a diverse
pipeline for succession and creating an inclusive
environment. The Committee considers a broad
definition of diversity when setting policies
and appointing directors, which includes
ethnicity, religion, socio-economic background,
gender and sexual orientation, age, disability,
partnership status, culture, personality and
professional experience. As detailed above,
the Committee continues to work hard to
ensure the Board is sufficiently diverse to
support its future strategic developments.
However, while the Board considers diversity
to be a key factor in its recruitment, the Board
prioritises appointments on merit, which
includes the candidate’s skills and experience.
The Board is fully supportive and mindful of the
Financial Conduct Authority (FCA) target for
at least 40% of Board members to be female,
for a woman to hold at least one of the senior
Board positions and for at least one member
of the Board to come from a minority ethnic
background. In order to collect the data for
the gender and ethnic diversity disclosures,
the Board and its senior management team
were each sent a series of questions to complete
asking how they self-identify in each of the
designated categories under the FCA Listing
Rules disclosure.
The Board had complied with the two gender-
related targets since 2021. However, following
Marisa Cassoni’s departure, the proportion of
female Board members has fallen to 33%.
The Board therefore confirms that as at 30 June
2025 (being the reference date selected by the
Board for the purposes of this disclosure), it
does not fully comply with the UKLR 6.6.6R (9)
(a) and the FTSE Women Leaders Review, as it
does not meet the target for at least 40% Board
members to be female. With a female Chair of
the Board, the company does comply with the
requirement that a woman must hold at least
one of the senior Board positions.
The company also does not presently meet
the UKLR 6.6.6R(9)(a iii) (formerly Listing Rule
9.8.6R(9)) target to have at least one individual
on its Board from a minority ethnic background
and acknowledges that further work is required
to become more ethnically diverse. In its most
recent search for new appointees to the Board,
the Committee expressly sought to identify
candidates from a minority ethnic background.
Directors’ time commitments
When making a new appointment, the Board
takes into account other significant demands on
a director’s time. Any significant commitments
must be disclosed prior to appointment for
consideration by the Board. Any additional
external appointments may then only be
undertaken with the Board’s written approval
and if it is considered that the director’s time
and other commitments allow.
Executive directors require the Board’s
approval to accept any external appointments
as a non-executive director and retain any
associated fees. These measures are in place
to ensure all directors have sufficient time
and capacity to focus on the work required by
the company.
Non-executive directors’ letters
of appointment
The roles and responsibilities of the non-
executive directors are specified in their letters
of appointment. The letters of appointment
are available for inspection on request at the
Group’s registered office and will be available
immediately prior to and during the 2025 AGM.
Alison Wood
Nomination Committee Chair
Board and Executive management gender identity table
As at 30 June 2025
Number of Board
members
Percentage of
the Board
Number of
senior positions
on the Board
(CEO, SID
and Chair)
Number in
Executive
management
1
Percentage of
Executive
management
1
Men
4
67
2
4
80
Women
2
33
1
1
20
1
Those included in the number in Executive management consist of those who make up the Executive Board but who are not plc Board members.
Board and Executive management ethnic identity table
White British or other White (including minority-White groups)
6
100
3
5
100
1
Those included in the number in the Executive management column consist of those who make up the Executive Board but who are not plc Board members.
100
Galliford Try
A
Kevin Boyd
Audit Committee Chair
Kevin Boyd
Audit Committee Chair
Michael Topham
Non-executive Director
Sally Boyle
Non-executive Director
On behalf of the Board, I am pleased to present
my first Audit Committee Report for the
financial year ended 30 June 2025.
I would like to extend my sincere thanks
to Marisa Cassoni for her chairing of this
Committee, prior to her stepping down on
28 November 2024. I would also like to thank
Bill Hocking, Chief Executive, who bridged the
gap and took responsibility for overseeing the
full-year financial performance of the Group,
following the resignation of Andrew Duxbury,
former Finance Director in May 2024, pending
Kris Hampson joining as Chief Financial Officer
on 2 September 2024.
Composition of the Committee
The Committee continues to comply with
Provision 24 of the Code as, at the financial
year end, all members were independent
non-executive directors. In addition,
both Michael Topham and I are chartered
accountants and have previously held chief
financial officer roles in listed companies, as
well as various other senior financial roles, and
so meet both the Code requirement of having
recent and relevant experience in finance and
the Disclosure and Transparency Rule 7.1.1A(2),
which states that at least one member must
have competency in accounting or auditing or
both. In addition, Sally Boyle has significant
legal and commercial experience both
internationally and in the UK, and this combined
skill and experience ensures there is the
required level of competence among Audit
Committee members to meet their duties.
The Committee continues to ensure each
member has sufficient knowledge and access
to training to stay up to date and contribute
effectively to the Committee’s work. Further
details of the Committee’s members can be
found on page 88.
In addition to the members of the Committee,
regular attendees who join the meetings by
invitation include the Chair of the Board, the
Chief Executive, the Chief Financial Officer,
the Director of Risk and Internal Audit, and
the Group Financial Controller. The General
Counsel & Company Secretary, or his delegate,
acts as secretary to the Committee and
provides support as required. The external
auditor also attends Committee meetings
by invitation.
Remit and activities
The Committee held three planned meetings
during the financial year, which it deems
appropriate to its role and responsibilities. The
Committee’s delegated authorities and calendar
of prioritised work remain in line with previous
years and within the Code’s requirements.
The Committee’s key responsibilities are:
delegated responsibility from the Board for
financial reporting;
monitoring external audit, internal audit,
risk and controls; and
reviewing instances of whistleblowing and
the Group’s procedures for detecting fraud.
The Committee also continues to meet with
the Director of Risk and Internal Audit and
the external audit teams without Executive
management present, in order to discuss any
matters which they may wish to raise.
The Committee reviewed and updated its terms
of reference in line with best practice during the
financial year, requiring only minor changes, and
the current terms of reference can be found on
the Group’s website (www.gallifordtry.co.uk)
or by scanning the QR code below.
Audit Committee report
Governance
101
Annual Report and Financial Statements 2025
FRC audit quality review
The Financial Reporting Council’s audit quality
review (AQR) selected BDO LLP’s (BDO) audit
of the Group’s financial statements for the
year ended 30 June 2023 as part of its annual
inspection of the audit firms.
The FRC has provided a copy of their
confidential report to the Chair of the Audit
Committee, which has been reviewed and
discussed by the Committee with BDO.
BDO worked during the audit for the year
ended 30 June 2024 to embed the points
raised by the FRC.
The Committee is satisfied that the comments
raised by the AQR have been incorporated into
the work carried out by the external auditor
and the audit continues to be effective.
Committee evaluation
The externally facilitated Board evaluation
process considered the performance and
effectiveness of the Audit Committee and
concluded the Chair was effective in overseeing
the Committee’s area of responsibility. The
Committees are generally felt to fulfil their
remits well and provide a good range of useful
inputs to the work of the Board.
Please see page 95 for further information
on the Board and its Committees’
performance review.
Corporate governance internal
controls review
In May 2024, the Committee reviewed a report
on the requirements under Provision 29 of the
UK Corporate Governance Code 2024 and
agreed a plan to achieve compliance. A working
group was tasked to undertake the scoping,
project planning and testing of the operational
effectiveness of our internal controls, scenario
planning and stress testing for resilience
and, where necessary, strengthening the
processes already in place. The working group
is continuing to make good progress towards
compliance for the financial reporting period
ending 30 June 2027.
The working group is chaired by the Chief
Financial Officer and consists of a number of
senior finance and non-finance members.
It also actively engages with external advisers.
It meets on a regular basis to ensure focus
and progress against the agreed timetable.
Key activities include:
Ensuring that the owners of the material
controls and the current control and
verification processes identified
and understood.
Identification and agreement of the key
and material controls used to manage the
most significant risks across five key
business areas, namely: financial, entity
level, operational, IT and reporting level,
to be reached.
A detailed review to be completed to assess
and validate whether the evidence of
assurance for each key control is sufficient
to enable the overall controls framework
to be effective and robust.
Regular review meetings to consider the
progress being made and any slippage
against timetable investigated.
The Audit Committee will continue to monitor
the working group’s progress.
2024
September
Review of year-end planning
and resources.
Overview of contract
accounting judgements.
Committee review of 2024
full-year results, including
external auditor presentation,
going concern review and
viability statement, and
approval of the ‘fair, balanced
and understandable’ process.
Review of draft 2024 annual
results statement.
Review of draft external
audit opinion.
Review of risk, internal audit
and whistleblowing reports.
2025
February
Overview of contract
accounting judgements.
Committee review of 2025
half-year results, including
external auditor presentation,
going concern review and
approval of the ‘fair, balanced
and understandable’ process.
Reflections on the 2024
audit process.
Review of draft half-year
2025 results statement.
Review of risk, internal audit
and whistleblowing reports.
2025
May
Review and approval of the
internal audit charter and
internal audit plan 2025/26.
Review of the Group’s
year-end planning and
finance team structure.
Approval of the external audit
plan and proposed audit fees.
Anti-money laundering
compliance update.
Review of risk, internal audit
and whistleblowing reports.
Review of terms of reference
and non-audit fee policy.
Progress report of the
working group regarding
Provision 29 of the 2024 UK
Corporate Governance Code.
Calendar of 2024/25 Committee activities and areas of focus
102
Galliford Try
External audit
The company’s external auditor is BDO and
is led by the audit partner, Peter Latham, who
has been a partner at BDO for 2 years. Peter
Latham became our audit partner following
the stepping down of Edward Goodworth in
September 2024 as he reached the maximum
mandatory five-year period as partner on our
account. The appointment of BDO followed an
audit tender process undertaken in the second
half of 2018, which was carried out to maintain
independence and ensure a fresh approach, and
was subsequently approved by shareholders.
During the financial year, the Committee
formally met with the external auditor as part of
the interim review, audit planning and year-end
audit findings. During the planning phase of the
audit, the Committee gave its views on various
elements including the materiality, key risks
and the associated audit approach to those
risks. The Committee meets privately with the
auditor, and the Chair of the Committee speaks
regularly with the audit partner throughout the
financial year.
Each year, the Committee assesses the
independence, objectivity and effectiveness
of the external audit process, which includes
discussing feedback from the members of the
Committee and key senior management within
the Group and from regulatory sources. The
Committee is satisfied that the external audit
relationship is effective and that BDO remains
sufficiently independent in accordance with
the relevant professional ethical standards.
A resolution is to be proposed at the
forthcoming AGM for the reappointment of
BDO as auditor of the Group, with its terms of
engagement and rate of remuneration to be
determined by the Committee.
Non-audit services
The Group has policies and review mechanisms
governing the provision of material non-audit
services and safeguarding the objectivity and
independence of the external auditor. These
remained in force throughout the financial year.
The policy specifies: the types of non-audit
service for which the use of the external auditor
is pre-approved (ie approval has been given in
advance as a matter of policy); the services for
which specific approval from the Committee is
required before the auditor is contracted; and
the services from which the external auditor is
excluded. In respect of pre-approved services,
a financial threshold is in place of £100,000,
applicable to individual and aggregated services
in any year. Furthermore, should the total value
of non-audit service engagements exceed the
defined percentage of 50% of the total Group
audit fee for the previous financial year, the
Committee shall consider and give specific prior
approval for any subsequent non-audit service
engagements in excess of £50,000. During the
financial year, and in line with previous years,
BDO provided a standard non-audit-related
assurance service for the half-year review,
details of the fees for which can be found in
accounting note 7. There were no other
non-audit services provided by BDO during
the period and the Committee is satisfied
that the non-audit-related assurance service
provided does not impair BDO’s independence
and objectivity.
Internal audit
Each year, the Committee monitors and reviews
the effectiveness of the internal audit function,
approves the scope of the internal audit plan for
the following year, assesses the adequacy of the
team’s resources and oversees, and challenges
as necessary, management’s response to the
findings of internal audits.
During the financial year, the Internal Audit
team continued to deliver its agreed internal
audit plan and provided commercial and risk
management support across the Group, at the
request of the Audit Committee, the Executive
Board and senior management. Results from
the biannual commercial health checks, based
on a sample of 12 contracts from across the
business, are reported to the Committee.
Projects included in the commercial health
checks provide a representative mix of business
units, project values, current commercial
performance and stage of completion.
In addition, in September 2024 the Chartered
Institute of Internal Auditors published
a revised Internal Audit Code of Practice.
Though compliance with this revised Code
is not mandated, our processes already met
the majority of the new requirements. These
include, for example, documenting how
any material errors would be resolved and
disclosed, how to decide to place reliance on
another assurance provider, and how data
analytics are utilised.
Overall, the Internal Audit function operated
effectively and contributed strongly to the
Group’s governance framework.
Risk management
The Executive Risk Committee reports
to the Executive Board and the plc Board.
It reviews the Group’s risks, reviews and
documents emerging risk themes that could
have a significant impact on our business,
and considers climate-related risks and
opportunities, in support of our Task Force
on Climate-related Financial Disclosures
(TCFD) reporting.
In line with Provision 29 of the Code, the
Board undertook an annual assessment of
the appropriateness and effectiveness of the
Group’s risk management and internal control
systems, prior to approving the full-year results.
This review covers material controls, including
financial, operational and compliance controls.
Following these reviews, the Committee
concluded the company’s system of risk
management and internal control was effective
and appropriate for the size and complexity of
the Group.
For further information regarding the management
of risks, please see pages 58 to 62.
Internal control framework
The day-to-day management of our principal
risks is supported by an internal control
framework which is embedded in our
management and operational processes.
The most significant elements of the Group’s
internal control framework have remained
consistent with the previous financial year
and include the following:
Organisational structure:
Each business
unit is led by a managing director and
management team, providing a clear
hierarchy and accountabilities.
Code of Conduct:
The Group promotes
a culture of acting ethically and with
demonstrable integrity. Our ethical
standards and approach are set out in ‘Doing
the Right Thing’, our Code of Conduct. It
is supported by training modules and its
themes and importance are communicated
to new starters as part of their induction.
Contractual review and commitments:
The Group has policies and procedures for
entering into contracts that apply across
its business units and operations and
are enforced through the Group’s legal
authorities matrix.
Operational activity:
Site operations are
performed in line with established business
management systems and processes that
incorporate all operational activities,
including health, safety and environmental
(HSE) procedures, regular performance
monitoring, quality management and
external accountability to stakeholders.
Financial planning framework:
A detailed
annual budget is prepared for each financial
year, which is approved by the Board.
This is supplemented by the Group’s
strategy to 2030.
Operational and financial reporting:
An exacting profit and cash reporting and
forecasting regime is in place across the
Group. This emphasises cash flow, income
and balance sheet reporting, as well as HSE
matters within monthly operational reports.
Internal audit:
The Internal Audit team
develops and delivers an annual programme
of internal audits, which includes business
unit key control reviews, audits of Group
processes and other specific risk areas, and
reviews of significant change programmes.
Assurance provided by non-audit functions:
A number of other Group functions
provide assurance in areas including,
but not limited to, HSE, legal contract
reviews and compliance, and construction
industry regulation.
Audit Committee report
continued
Governance
103
Annual Report and Financial Statements 2025
Fair, balanced and understandable consideration
As requested by the Board and in line with its terms of reference, the Committee has reviewed
the 2025 Annual Report and financial statements and considered whether, in terms of the form
and content of the strategic, governance and financial information taken as a whole, it is fair,
balanced and understandable and enables shareholders to assess the Company’s position
and performance, business model and strategy. The process was as follows:
Significant issues and other
accounting judgements
The Committee reviewed the integrity of the
Group’s financial statements and all formal
announcements relating to the Group’s financial
performance. This included an assessment of
each critical accounting policy, as set out in
note 1 to the financial statements, as well
as review and debate on the following areas
of significance:
Contract revenue and provisions:
In conjunction with the annual audit,
the Committee continued to review
key judgements in respect of revenue
recognition and contract provisions, in
relation to certain significant long-term
construction contracts.
Contract rectification provision:
The
Committee considered whether a material
rectification provision as disclosed in the
critical accounting estimates and judgements
in the financial statements appropriately
met the criteria for a provision and was
appropriately estimated and disclosed.
The Committee also considered the levels
of other required provisions.
Going concern and viability:
The Committee
considered key commercial, economic and
other risks to the Group’s going concern
status and longer-term viability and reported
to the Board on its findings.
Significant transactions:
The Committee
has given particular consideration to
the accounting for and presentation
of individually significant transactions,
and areas where adjusted performance
measures are required to ensure that the
financial statements give a fair, balanced
and understandable view of the Group’s
performance, and that statutory measures
are equally clear and prominent.
PPP portfolio valuation:
The Committee
reviewed the discount rate used to
determine the fair value of each of the
Group’s PPP investments.
Whistleblowing
The Group has an independent and anonymous
whistleblowing procedure, allowing any
employee or third party to confidentially
raise concerns. The Committee reviewed any
whistleblowing reports at its meetings during
the year, ensuring that the whistleblowing
procedure remains effective and that
any matters reported are appropriately
investigated and resolved.
External legal advisers review the Annual Report Governance section
draft to ensure compliance.
Management considers key judgements and significant changes,
and how such matters should be disclosed.
The General Counsel & Company Secretary and finance team ensure
that the balance of information provided is consistent with the balance
of discussions at the plc Board.
Drafts of the Annual Report are provided to the Committee members in
advance, for consideration and review.
Management prepares papers for the Committee, setting out key
judgements in preparing the Annual Report and how such matters
are disclosed.
The Committee, once satisfied the requirements have been met,
recommends that the fair, balanced and understandable review process
is approved at its September meeting.
The Board considers the Committee’s recommendation that the
fair, balanced and understandable statement be applied to the
2025 Annual Report and financial statements.
The Board approved the Committee’s recommendation that the fair, balanced and
understandable statement could be applied to the 2025 Annual Report and financial
statements and this can be found in the Directors’ report on pages 123 to 126.
Kevin Boyd
Audit Committee Chair
104
Galliford Try
R
Sally Boyle
Remuneration Committee Chair
Sally Boyle
Remuneration Committee Chair
Alison Wood
Board Chair
Kevin Boyd
Senior Independent Director
Michael Topham
Non-executive Director
On behalf of the Board, I am pleased to present
the Directors’ Remuneration report for the
financial year ended 30 June 2025.
The Remuneration report is divided into three
parts: the Annual Statement; the Directors’
Remuneration Policy; and the annual report
on remuneration, which sets out how the
Remuneration Policy was applied during
the financial year.
Remuneration and performance
in 2024/25
Despite the difficult macro-economic
environment, the Group has continued to
deliver a strong operational and financial
performance in its key markets to progress
towards the accelerated Sustainable Growth
Strategy targets to 2030. In line with the
2024/25 targets of the Annual Bonus Plan
(ABP), the Committee has approved payments
for the financial year at 97% of maximum.
For the Long Term Incentive Plan (LTIP), the
Committee has approved the vesting of awards
granted to the Chief Executive under the LTIP
in September 2022. Based on performance up
to the financial year, 95.3% of the September
2022 LTIP will vest on 23 September 2025,
three years after grant. All awards are made
in accordance with the Remuneration Policy
approved by shareholders at the company’s
AGM on Friday 10 November 2023. Further
details of remuneration can be found in the
following pages.
During the year the Committee considered a
range of factors when determining the average
annual salary award to employees, including
the performance of the UK economy generally,
inflation levels, interest rates and market
sector trends, general salary trends, sector
benchmarking and business affordability, and
agreed an average annual salary award budget
of 3.25%. The Board also reviewed the LTIP
performance metrics to ensure alignment to
the Group’s update strategic targets, including
considering Total Shareholder Return (TSR)
as a future performance metric. It was agreed
that the current performance metrics should
continue to apply for the time being.
The Committee has continued to apply the
recommendations of the UK Corporate
Governance Code and decisions relating
to remuneration matters are set out in the
relevant sections of this report. The Committee
confirms the changes brought in by the 2024
UK Corporate Governance Code relating to
remuneration were implemented during 2025.
This report has been prepared in accordance
with the relevant provisions of the Companies
Act 2006, The Companies (Directors’
Remuneration Policy and Directors’
Remuneration Report) Regulations 2019,
the Large and Medium-sized Companies and
Groups (Accounts and Reports) (Amendment)
Regulations 2013 and the Financial Conduct
Authority’s Listing Rules.
Board and Committee changes
As previously reported, Kris Hampson
was appointed Chief Financial Officer on
2 September 2024. His joining salary was
£380,000 and, in line with the company’s
workforce policy, a pension contribution of
8% of salary. He is eligible to participate in the
2024/25 bonus and for a grant under the 2024
LTIP, pro rata in line with the Remuneration
Policy. Kris’s base salary represents a reduction
against the outgoing Finance Director and
was awarded, taking account of Kris’s previous
experience and market competitive rates.
Full details of his package can be found in this
report and details of his appointment and
induction process can be found on page 98
of the Nomination Committee report. The
Committee approved a buyout in line with the
Remuneration Policy for recruiting Executive
Directors to compensate Kris Hampson for
awards forfeit on resignation from his previous
position. Full details can be found on page 118.
Further details of the Committee’s members can be
found on page 88.
Remuneration Committee report
Governance
105
Annual Report and Financial Statements 2025
Remuneration Policy
The Remuneration Policy was submitted to
shareholders for approval at the AGM held in
November 2023, where it was subjected to
a binding vote and was overwhelmingly
approved by 99.3% of shareholders who voted.
The structure of the Remuneration Policy,
which was largely unchanged from the previous
Policy, comprises base salary, pensions,
benefits, annual bonus and Long Term Incentive
Plans (LTIP) and has again been adopted and
implemented throughout this financial year. The
three-year life of the Remuneration Policy will
expire at the 2026 AGM, where shareholder
approval will be sought for a new binding Policy.
The full Policy is set out on pages 108 to 114.
Application of Remuneration Policy
in 2025/26
The key elements of the Remuneration Policy
being applied are set out below:
Base salaries:
The Committee continues
to monitor and review pay and conditions
across the Group and the external market.
Taking into account cost of living and
external market conditions, an overall salary
budget of 3.25% was approved for annual
staff salary increases across the Group
from 1 April 2025. Bill Hocking’s salary was
increased by 2.88% and Kris Hampson’s
salary was increased by 3.16%, both of which
being below the budgeted average salary
increase awarded across the workforce.
Annual Bonus Plan (ABP):
The scorecard
for the Annual Bonus Plan for 2025/26
is in line with the 2024/25 scorecard and
will continue to include ESG metrics.
All bonus awards will be subject to the
Committee’s discretion, taking into account
health and safety performance and the
underlying performance of the Group.
2025/26 targets will be disclosed as usual
in the 2026 Annual Report.
LTIP:
No changes to metrics or structure are
proposed for the 2025 awards. The metrics
will continue to comprise earnings per share
(EPS) and average cash management.
There will be one advisory vote at
the AGM in November 2025 on the
Directors’ Remuneration report.
Sally Boyle
Remuneration Committee Chair
2024
July
Review of recent market
developments in executive
remuneration.
Review of LTIP metrics and
market practice trends.
Review of LTIP 2024 grant
of awards.
Update on 2023/24 annual
bonus forecast, performance
and proposed 2024/25
annual bonus scheme.
Consideration of
bonus discretion and
Committee guidance.
Long Term Bonus Plan
(for roles below Executive
Board level) and interim
award 2024 proposals.
Review of draft
2024 Directors’
Remuneration report.
2024
September
Consideration of 2024
LTIP and Annual Bonus
Plan awards.
Review of 2023/24 Long
Term Bonus Plan awards.
Review of employee annual
bonus performance to
30 June 2024.
Approval of the
2024 Directors’
Remuneration report.
Review of Employee Share
Trust purchase programme.
2025
February
2025 salary and
benefits review
(effective 1 April 2025).
Review of terms of reference.
Employee Share Trust update.
Briefing from the HR Director
on remuneration and other
considerations for the
wider workforce.
Calendar of 2024/25 Committee activities and areas of focus
106
Galliford Try
Remuneration at a glance
The following is a summary of the
Executive Directors’ remuneration
in 2024/25 and proposed application
of the approved Remuneration
Policy (Policy).
Remuneration Policy and framework
Our approach to remuneration and our
Policy are set out on pages 108 to 114 of this
report. The elements of executive directors’
remuneration are:
Fixed element:
Comprises base salary,
taxable benefits (such as a company car or
cash equivalent allowance, private medical
and permanent health insurance, and life
assurance), and contribution to a pension.
Variable element:
Annual bonus, which
incentivises and rewards the achievement
of stretching annual targets (both financial
and non-financial) that support the
Group’s annual and strategic objectives,
with two-thirds of any bonus earned in
excess of 50% of salary required to be
deferred into restricted shares.
Long-term element:
The LTIP incentivises
the achievement of sustained long-term
financial and operational performance over
a three-year performance period. Any share
awards that vest are subject to a two-year
holding period.
Actual remuneration in 2024/25
The following table summarises the executive directors’ remuneration in 2024/25:
Director
Role
Fixed
remuneration
1
£000
Variable
remuneration
2,3
£000
Total
remuneration
3
£000
Bill Hocking
Chief Executive
573
2,271
2,844
Kris Hampson
Chief Financial Officer
341
341
682
1
Comprises base salary, taxable benefits and pension contributions. See page 115 for further information.
2
Comprises annual bonus awarded and LTIP vesting with reference to performance during the financial year. See pages 116 to 117 for further information.
3
The figures shown here for Kris Hampson cover the period from his joining the company to 30 June 2025 and include a payment of £35,857 relating to the buyout from
his previous position, to be paid in Galliford Try shares in October 2025. See page 118 for further information.
Variable pay outcomes
Annual bonus payments for 2024/25
The annual bonus payments made to the Executive Directors are summarised in the table below.
Director
Maximum bonus
(% of salary)
1
Achieved bonus
(% of salary)
1
Cash
£000
Shares
£000
Bill Hocking
120%
116.4%
375
230
Kris Hampson
100%
97%
206
99
1
See page 116 for further information.
Governance
107
Annual Report and Financial Statements 2025
LTIP outcomes
Vestings relating to 2022 to 2025 performance
The LTIP awards granted to Bill Hocking on 23 September 2022 were based on 75% underlying EPS performance and 25% on average month-end
cash as a percentage of annual turnover in the final year to 30 June 2025. The September 2025 vesting is summarised below:
Stretch EPS
condition
Actual EPS
performance
Stretch average
month-end
cash
1
condition
Actual average
month-end cash
1
performance
% Vesting
Value of award
vesting
£000
2
Bill Hocking
28.4p
33.3p
10%
9.5%
95.3%
1,666
1
As a percentage of annual turnover.
2
Estimated based on the average share price over the three months to 30 June 2025.
Proposed application of the Policy in 2025/26
Element
Bill Hocking
Kris Hampson
Base salary
£535,000
£392,000
Pension
8%
8%
ABP
Maximum bonus opportunity of 120% of salary for the Chief Executive and 100% of salary for other executive directors.
LTIP
Award of up to 150% of salary, with three quarters based on earnings per share and one quarter on a cash performance
metric, measured as an average month-end cash as a percentage of revenue.
Performance targets
EPS: The target EPS to be achieved in the final year of the performance period (1 July 2027 to 30 June 2028) is 46.0p.
Achieving 41.4p would generate 25% vesting and 50.6p would generate 100% vesting on a straight-line basis.
Cash: The target is average month-end cash in the final year of the performance period of 9% of annual turnover.
Achieving 8% would generate 25% vesting and 10% would generate 100% vesting on a straight-line basis.
Holding period
Any vested LTIP shares must be held for two years after vesting (after payment of tax).
Malus and clawback
Malus and clawback apply in circumstances of error, material misstatement, misconduct, reputational damage or corporate
failure as a result of poor risk management.
108
Galliford Try
Directors’ Remuneration Policy report
The Remuneration Policy report was
subject to a binding shareholder vote
at the 2023 AGM and was passed
with 99.3% support. There have been
no changes to the Policy during the
financial year.
The main objectives of the Group’s
Remuneration Policy are to:
ensure that remuneration packages are
appropriately positioned and structured to
promote a Sustainable Growth Strategy for
all stakeholders and which takes into account
pay and conditions and market practice;
engender an inclusive and progressive
culture, which enables all individuals to reach
their potential and positions Galliford Try
as an employer of choice;
deliver a significant proportion of total
executive pay through performance-related
remuneration and in shares; and
ensure the achievement of strong
and sustained long-term financial and
operational performance with no reward
for failure.
How the Remuneration Policy aligns with the UK Corporate Governance Code
The Committee has continued to apply the recommendations of the UK Corporate Governance Code and decisions relating to remuneration matters
are set out in the relevant sections of this report. The Committee confirms the changes brought in by the 2024 UK Corporate Governance Code relating
to remuneration were implemented during 2025.
The full Remuneration Policy is detailed in the table below and contains no material changes to the Policy agreed in 2023.
Component and link to strategy
Operation
Framework to assess performance and
maximum opportunity
Salary
To provide a competitive and
appropriate level of basic
fixed pay, sufficient to retain,
motivate and attract executive
directors of high calibre, able
to develop and execute the
Group’s strategy.
Normally reviewed annually, with any changes
typically taking effect from 1 April.
The Committee sets salaries at competitive rates,
taking into consideration pay and employment
conditions across the Group, the economic
environment, the responsibilities and accountabilities
of each role, the experience of each individual, their
marketability and the Group’s key dependencies
on the individual.
Reference is also made to salary levels among relevant
construction peers and, other companies of broadly
similar size and complexity.
The Committee reserves the right to reduce
salary levels (and has done so in the past) if the
circumstances warrant it.
When reviewing salaries, both Group and individual
performance are considered.
While there is no prescribed maximum, the
Committee’s policy on salary increases for executive
directors is for increases to be broadly in line with
the average across the workforce, unless there is
a promotion or material change in role or business
circumstances in which case increases may be higher.
Salaries for the year ahead are set out in the
Annual Report on Remuneration.
Benefits
To provide cost-effective and
market-competitive benefits.
Benefits provided to executive directors may include
entitlements to a company car or cash equivalent
allowance, private medical and permanent health
insurance, and life assurance.
The benefits provided may be subject to minor
amendment from time to time by the Committee and
Executive Directors may be allowed to participate
in any new benefit plan introduced for the wider
workforce on equivalent terms.
Where a director is asked to relocate, relocation
allowances or similar benefits may be provided.
Executives may also be reimbursed for any reasonable
expenses (and any income tax payable thereon)
incurred in performance of their duties.
The cost of benefit provision varies from year to year,
depending on the cost to the Group, and there is no
prescribed maximum limit. Benefit costs are monitored
and controlled to ensure they remain appropriate and
represent a small element of total remuneration costs.
Pension
To provide a contribution
towards retirement.
The executive directors may each receive contributions
to a money purchase pension scheme or salary
supplement in lieu of company pension contributions
(or a combination of both).
The rate offered of 8% for the Chief Executive and the
Chief Financial Officer is in line with that offered across
the employee population. Any new executive director
would also receive a pension contribution in line with
the wider workforce.
Governance
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Annual Report and Financial Statements 2025
Component and link to strategy
Operation
Framework to assess performance and
maximum opportunity
Annual Bonus Plan
Rewards the achievement of
stretching annual goals that
support the Group’s annual and
strategic objectives.
Compulsory deferral of part of
the bonus into shares provides
alignment with shareholders.
Executive directors and selected senior management,
subject to invitation and approval by the Committee,
may participate in the Annual Bonus Plan.
For executive directors, two thirds of any bonus earned
in excess of 50% of salary is required to be deferred
into restricted shares. Although beneficially held by the
participants, the restricted shares are legally retained
by the trustee of the Galliford Try Employee Benefit
Trust (EBT) for three years, and are subject to forfeiture
provisions, unless otherwise agreed by the Committee.
Subject to continued employment, the restricted
shares are legally transferred to participants on the
third anniversary of allocation.
The Committee operates recovery and withholding
provisions within the Annual Bonus Plan, which
facilitate the retrieval of payments made to directors
and executive management in circumstances of
error, material misstatement, misconduct, reputational
damage or corporate failure as a result of poor
risk management.
The maximum opportunity is 120% of salary for
the Chief Executive and 100% of salary for other
executive directors.
No more than half of the maximum opportunity is
earned for target performance. For financial elements,
bonuses normally start to be earned from 0% of salary
for achieving threshold performance. The Committee
may apply a higher threshold where this is appropriate
given the nature of particular performance objectives,
but this will not exceed 25% of the maximum bonus.
Vesting is dependent on achieving specified financial
(no less than 50% of the bonus) and strategic or
non-financial targets.
The Committee may, at its discretion, acting fairly and
reasonably, adjust bonus outcomes if it considers the
payout is inconsistent with the company’s underlying
performance during the year, taking into account
factors including safety and ESG.
The 2024/25 bonus target incorporates a 12% target
for ESG factors that includes: people, carbon emission,
community and supply chain metrics. For the avoidance
of doubt this can be 0% and bonuses may not exceed
the maximum levels detailed above.
Any use of such discretion would be subject to
shareholder consultation if materially to the benefit
of the executive management and detailed in the
Annual Report on Remuneration.
Long Term Incentive Plan (LTIP)
Rewards the achievement of
sustained long-term financial
and operational performance
and is therefore aligned with
the delivery of value
to shareholders.
Facilitates share ownership
to provide further alignment
with shareholders.
Making of annual awards
aids retention.
Executive directors may be granted awards under
the rules of the LTIP approved by shareholders on
29 November 2019 and adopted by the company
in January 2020. The LTIP provides for awards of
free shares in the form of nil or nominal cost options
or conditional awards that vest dependent on the
achievement of performance conditions and
continued service.
Any share awards that vest (after allowing for sales
to cover any tax liabilities) are subject to a two-year
holding period during which time they cannot be sold
(unless exceptional circumstances apply).
The LTIP provides clawback and malus powers to
the Committee, which can facilitate the retrieval
of payments made to directors and executive
management in circumstances of error, material
misstatement, misconduct, reputational damage or
corporate failure as a result of poor risk management.
Dividends may accrue on LTIP awards over the vesting
and holding periods and, subject to the discretion
of the Committee, be paid out either as cash or shares
on vesting, in respect of the number of shares that
have vested.
Performance metrics for FY25 comprise 75% based
on earnings per share and 25% on a full-year cash
performance metric based on average month-end
cash as % of turnover.
The Committee may vary the measures and targets
that are included in the plan and the weightings
between them from year to year. Measures may
be related to financial performance, share price
performance and ESG. Any material changes to the
choice of measures would be subject to consultation
with the company’s major shareholders.
The Committee may, at its discretion, acting fairly
and reasonably, adjust LTIP vesting outcomes if it
considers the payout is inconsistent with the company’s
underlying performance over the performance period.
For the avoidance of doubt, this can be to zero and
vesting may not exceed the maximum levels detailed
below. Any use of such discretion would be subject
to shareholder consultation if to the benefit of the
executive management and detailed in the Annual
Report on Remuneration.
Under the LTIP rules, the maximum value that may
be granted in any financial year to any individual is
150% of salary.
Up to 25% of the relevant part of the award may vest
for achieving threshold performance.
All-employee schemes
To encourage employee
share participation.
The Group may from time to time operate tax-
approved or other share plans (such as an approved
Save As You Earn (SAYE) scheme for the benefit of all
staff) for which executive directors could be eligible
on the same terms as other staff.
Schemes are generally subject to the limits set
by HM Revenue & Customs (HMRC) and may be
further limited at the Committee’s discretion.
110
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Directors’ Remuneration Policy report
continued
Component and link to strategy
Operation
Framework to assess performance and
maximum opportunity
Shareholding guidelines
To ensure the interests of the
executive directors are aligned
to those of shareholders.
The Group’s share retention policy requires executive
directors to build and maintain a shareholding
equivalent in value to at least 200% of basic salary.
Executive directors are required to retain a minimum
of half the after tax number of vested share awards
(deferred bonus and LTIP) until the guideline is met.
On leaving the company, executive directors
are required to retain the lesser of their in-post
shareholding guideline and their actual shareholding
on departure for two years. This requirement applies
to shares earned from share awards granted to
executive directors following the 2020 AGM.
The Committee will assess the guideline annually
and take into account vesting levels and personal
circumstances when assessing progress against
the guideline.
–
Non-executive fees
To provide a competitive
and appropriate level of
fees sufficient to attract,
motivate and retain a Chair
and non-executive directors
of high calibre.
The Chair is paid a single fixed fee. The remaining
non-executive directors are paid a basic fee.
Non-executive directors chairing a Board Committee,
the Senior Independent Director and the Chair of
the Employee Forum are paid an additional fee to
reflect their extra responsibilities.
The level of these fees is reviewed periodically by
the Committee and Chief Executive for the Chair,
and by the Chair and executive directors for the
non-executive directors.
Fees are set taking into consideration market levels in
comparably sized FTSE companies and relevant sector
peers, the time commitment and responsibilities of the
role and the experience and expertise required.
Non-executive directors, including the Chair, are
entitled to reimbursement of business expenses
reasonably incurred in performing their duties
(and any personal tax that may become payable).
Non-executive directors cannot participate in any of
the Group’s annual bonus or share plans and are not
eligible for any pension entitlements from the Group.
The Chair is eligible to participate in the Group’s
medical assurance plan.
The Committee and the executive directors are
guided by the general pay increase for the broader
employee population, but on occasions may need
to recognise, for example, changes in responsibility
or time commitments, whether on a permanent or
temporary basis.
Current fee levels are disclosed on page 122.
Governance
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Annual Report and Financial Statements 2025
Notes to the Policy table
Performance measure selection and approach
to target setting
Measures used under the ABP and LTIP are
reviewed annually to reflect the Group’s main
short- and long-term objectives and reflect
both financial and non-financial priorities,
as appropriate.
Targets applying to the ABP and LTIP are
also reviewed annually, based on a number
of internal and external reference points.
Performance targets are set to be stretching
but achievable, with regard to the particular
strategic priorities and economic environment
in a given year. Under the bonus, target
performance typically requires meaningful
improvement on the previous year’s outturn,
and, for financial measures, targets are
typically in line with market consensus.
Discretions retained by the Committee in
operating incentive plans
The Committee may make minor amendments
to the Policy for regulatory, exchange control,
tax or administrative purposes or to take
account of a change in legislation without
obtaining shareholder approval.
The Committee will operate the ABP and LTIP
according to their respective rules, the Policy
set out above and in accordance with the Listing
Rules and HMRC rules where relevant. The
Committee, consistent with market practice,
retains discretion over a number of areas
relating to the operation and administration of
these plans, subject to any limitations set out
in the rules of the applicable plan or, in the case
of executive directors, in the Policy set out on
pages 108 to 114.
These include (but are not limited to)
the following:
who participates in the plans;
the timing of grant of an award and/or
a payment;
the size of an award and/or a payment;
the choice of (and adjustment of)
performance measures, weightings and
targets for each incentive plan in accordance
with the Policy set out above and the rules
of each plan;
discretion relating to the measurement of
performance in the event of a change of
control or reconstruction;
determination of a good leaver (in addition
to any specified categories) for incentive plan
purposes based on the rules of each plan and
the appropriate treatment under the plan
rules; and
adjustments required in certain
circumstances (rights issues, corporate
restructuring, on a change of control and
special dividends).
Any use of the above discretions would, where
relevant, be explained in the Annual Report
on Remuneration and may, as appropriate, be
the subject of consultation with the company’s
major shareholders.
Executive Director remuneration scenarios
Illustration of application of Remuneration Policy
Remuneration (£000s)
Bill Hocking
Kris Hampson
Minimum
Target
Maximum
Max +
50% share price
Minimum
Target
Maximum
Max +
50% share price
£585
£1,308
£2,030
£2,431
£424
£914
£1,404
£1,698
100%
45%
25%
32%
26%
31%
40%
50%
29%
24%
100%
46%
21%
28%
23%
32%
42%
52%
30%
25%
Fixed pay
Annual bonus
Long Term incentives
The individualised potential Executive
reward charts have been prepared using
the following assumptions:
For minimum remuneration: Only fixed
salary, benefits and pensions payments
have been included.
For on-target remuneration: Fixed salary,
benefits and pension plus 50% payout of
the ABP and 50% of the LTIP (face value)
awards have been included.
For maximum remuneration: Fixed salary,
benefits and pension plus full payout
under the ABP and full vesting of the LTIP
(face value) awards have been included.
For maximum plus share price growth:
same values as the maximum scenario plus
a 50% increase in the value of the LTIP
(face value) awards have been included.
Salary levels are based on those applying on
1 April 2025 and the value of taxable benefits
is estimated based on the cost of supplying
those benefits (as disclosed) for the year
ended 30 June 2025. Executive directors
can choose to participate in all employee
share schemes on the same basis as other
employees but, for simplicity, the value that
may be received from participating in these
schemes has been excluded.
112
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Directors’ Remuneration Policy report
continued
Policy on recruitment
In cases where the Group recruits a new executive director, the Committee will align the new executive’s remuneration with the approved
Remuneration Policy. In arriving at a value for individual remuneration, the Committee will take into account the skills and experience of the candidate,
the market rate for a candidate of that experience and the importance of securing the preferred candidate.
The Committee also has the discretion to meet certain other incidental expenses (for example, relocation costs and travel and subsistence payments)
to secure recruitment of preferred candidates. Further details of the Recruitment Policy are set out in the table below.
Element
General policy
Specifics
Salary
At a level required to attract the
most appropriate candidate.
Discretion to pay lower base salary with incremental increases (potentially
above the average increase across the Group), as the new appointee becomes
established in the role.
Pension and benefits
In line with the policy for existing
executive directors.
In line with the Policy, pension contribution rates will be aligned with those
offered across our employee population.
Relocation expenses or allowance, legal fees and other costs relating to
recruitment may be paid as appropriate.
ABP
In line with existing schemes.
Where a director is appointed part way through a financial year, different
performance measures could be introduced to reflect the change in role and
responsibilities. The annual bonus limit remains at 120% of base salary for
a Chief Executive and 100% for other directors.
Pro-rating applies as appropriate for intra-year joiners.
Where an individual is appointed to the Board, different performance measures
from those for continuing directors may be set for the period of time remaining
in that performance year.
LTIP
In line with Group policies
and LTIP rules.
An award of up to 150% of salary may be made in accordance with the
Remuneration Policy. An award may be made in the year of joining or can be
delayed until the following year. Targets would normally be the same as for
awards to other directors.
Other share awards
The Committee may make an
incentive award to replace deferred
pay forfeited by an Executive
leaving a previous employer.
Awards would, where possible, be consistent with the awards forfeited in terms
of structure, value, vesting periods and performance conditions.
The Committee reserves the right to award additional remuneration in excess of the Remuneration Policy at appointment, exclusively to replace lost
rewards or benefits. In determining the appropriate form and amount of any such award, the Committee will consider various factors, including the
type and quantum of award, the length of performance period, and the performance and vesting conditions attached to each forfeited incentive award.
The maximum payment (which may be in addition to the normal variable remuneration) should be no more than the Committee considers is required to
provide reasonable compensation to the incoming director.
The Committee may make use of the flexibility provided in both the Listing Rules and the approved Remuneration Policy, to make awards outside the
existing parameters of the LTIP.
For internal promotions to executive director positions, the Committee’s policy is for legacy awards or incentives to be capable of vesting on their
original terms (which may involve participation in schemes that operate exclusively for below-Board employees) or, at the discretion of the Committee,
they may be amended to bring them into line with the policy for executive directors.
For a new non-executive chair or non-executive director, the fee arrangement would be set in accordance with the approved Remuneration Policy.
Governance
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Annual Report and Financial Statements 2025
Directors’ service contracts and policy for payments to departing executive directors
The service contracts and letters of appointment for the Board directors serving as at 30 June 2025 are detailed below:
Contract date
1
Notice period
2,3
(months)
Non-executive directors
Alison Wood
1 April 2022
6
Sally Boyle
1 May 2022
6
Michael Topham
1 June 2023
6
Kevin Boyd
1 March 2024
6
Executive directors
Bill Hocking
3 January 2020
12
Kris Hampson
28 March 2024
12
1
Date shown is the director’s contract as an executive or non-executive director of the Group. Executive directors have a rolling notice period as stated. Non-executive
appointments are reviewed after three years and their appointments are subject to a rolling notice period as stated. All directors will stand for election or re-election at
the 2025 AGM.
2
There are no contractual provisions requiring payments to directors on loss of office or termination, other than payment of notice periods. The Committee may seek to
mitigate such payments where appropriate.
3
Subject to the Nomination Committee’s recommendation, the Group’s practice is to agree notice periods of no more than six months for non-executive directors and no
more than 12 months for executive directors.
The executive directors’ service contracts and
letters of appointment for the non-executive
directors are available at the Group’s registered
office and will be available for inspection
immediately prior to and during the 2025 AGM.
For executive directors, at the Group’s
discretion, a sum equivalent to 12 months’
salary and benefits may be paid in lieu of
notice. The contracts include mitigation
provisions to pay any such lump sum in monthly
instalments, subject to offset against earnings
elsewhere. This will also be the case for any
future appointments.
An executive director’s service contract
may be terminated summarily without
notice and without any further payment or
compensation, except for sums accrued up to
the date of termination, if they are deemed to
be guilty of gross misconduct or for any other
material breach of the obligations under their
employment contract.
The Group may suspend executive directors or
put them on a period of gardening leave during
which they will be entitled to salary, benefits
and pension.
For ‘good leavers’, bonuses may be payable
pro rata for the proportion of the financial
year worked, at the Committee’s discretion.
Depending on the circumstances, the
Committee may consider additional payments
in respect of an unfair dismissal award,
outplacement support and assistance with
legal fees.
Any share-based entitlements granted to an
executive director under the Group’s share
plans will be determined based on the relevant
plan rules. The default treatment is that any
outstanding awards lapse on cessation of
employment. However, ‘good leaver’ status
can be applied at the Committee’s discretion,
taking into account the individual’s performance
and the reasons for their departure.
For ‘good leavers’, LTIP awards may vest at the
normal time (other than by exception) to the
extent that the performance conditions have
been satisfied. The level of vested awards will
be reduced pro rata, based on the period of
time after the grant date and ending on the date
employment ceased relative to the three-year
performance period, unless the Committee,
acting fairly and reasonably, decides that such
a scaling back is inappropriate in any particular
case. Deferred bonus shares of ‘good leavers’
vest on cessation of employment.
On a change in control, LTIP awards may vest
based on the Committee’s determination of the
extent to which the performance conditions
have been satisfied based on performance to
date. The level of vested awards will be reduced
pro rata based, unless the Committee, acting
fairly and reasonably, decides that such a
scaling back is inappropriate in any particular
case. Deferred bonus shares will vest in full.
The overriding principle will be to honour
contractual remuneration entitlements and
determine on an equitable basis the appropriate
treatment of deferred and performance-related
elements of remuneration, taking into account
the circumstances. Failure will not be rewarded.
114
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Directors’ Remuneration Policy report
continued
External directorships
Any additional external appointments can
only be undertaken with the Board’s written
approval and if time and commitments allow.
Executive directors require the Board’s
approval to accept external appointments
as non-executive directors and retain any
associated fees.
Shareholder consultation
Where appropriate, the Committee will
consult relevant institutional shareholders in
advance of substantial changes to the Policy
or individual executive director remuneration
packages. Relevant institutional shareholders
were consulted ahead of the introduction of
the current Remuneration Policy, which was
approved at the 2023 AGM.
Wider workforce remuneration and
how the views of employees have
been taken into account
When setting pay for the executive directors,
the Committee considers remuneration
structures elsewhere in the Group, including
the overall salary increase budget and incentive
structures. The Committee also takes into
account available market sector data obtained
through benchmarking, as well as Government
policies and advice from the Executive
management team.
The total package on offer remains competitive
at all levels of the Group. The comprehensive
range of benefits includes flexible working
arrangements, a minimum of 28 days’ holiday
and the opportunity to purchase further days,
a company pension plan, paid volunteering
days, car allowance, a regular SAYE scheme
and health insurance plan. These wider
benefits are communicated to staff via Galileo,
the company’s intranet system, and via the
Employee Value Proposition, a summary
letter to all employees detailing the wider
benefits available.
The Board does not consult employees on
executive remuneration but does ensure
it understands employee views on matters
including rewards and benefits, which are
an agenda item for the Employee Forum.
The Employee Forum is chaired by Sally Boyle,
Remuneration Committee Chair, and also
discusses business updates and feedback
from employee representatives on key topics
such as people and engagement initiatives,
communication and wellbeing, as well as
rewards and benefits.
The Employee Forum ensures employees have
a voice in the boardroom, strengthens internal
communications, enables employees to offer
ideas, champions change and supports good
governance. It can also act as a representative
body for communicating with employees and
obtaining feedback about matters that may
affect their employment. Further information
on the Employee Forum can be found on
page 94.
Governance
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Annual Report and Financial Statements 2025
This part of the Directors’
Remuneration report sets out how the
Remuneration Policy was implemented
over the year ended 30 June 2025.
It will be put to an advisory vote at the
2025 AGM. Certain sections of this
annual report on remuneration have
been subject to audit.
The Directors’ Remuneration report has been
prepared in accordance with The Companies
(Directors’ Remuneration Policy and Directors’
Remuneration Report) Regulations 2019
(applying to financial years starting on or after
10 June 2019), the Large and Medium-sized
Companies and Groups (Accounts and Reports)
(Amendment) Regulations 2013 and the
Financial Conduct Authority’s Listing Rules.
The auditor is required to report on
the remuneration data disclosed in the
Directors’ Remuneration report section
and state whether, in its opinion, that part
of the report has been properly prepared in
accordance with relevant provisions of the
Companies Act 2006 (as amended).
Directors’ remuneration and single-figure annual remuneration (audited)
The remuneration of the directors serving during the financial year, together with 2024 comparative figures, was as follows:
Salary | Taxable | Total fixed | Annual | Total variable | Total | |||||||||||||||
and fees | benefits 1 | Pensions 2 | remuneration | bonus 9 | LTIP | Sharesave | remuneration | remuneration | ||||||||||||
£000 | £000 | £000 | £000 | £000 | £000 | Buyout 11 | £000 | £000 | £000 | |||||||||||
2025 3 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 4 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
Executive directors | ||||||||||||||||||||
Bill Hocking | 524 | 502 | 7 | 6 | 42 | 40 | 573 | 548 | 605 | 558 | 1,666 | 845 | – | – | – | – | 2,271 | 1,403 | 2,844 | 1,951 |
Kris Hampson 10 | 320 | – | 0 | – | 21 | – | 341 | – | 305 | – | – | – | 36 | – | – | – | 341 | – | 682 | – |
Non-executive directors | ||||||||||||||||||||
Alison Wood | 192 | 183 | – | – | – | – | 192 | 183 | – | – | – | – | – | – | – | – | – | – | 192 | 183 |
Sally Boyle | 56 | 53 | – | – | – | – | 56 | 53 | – | – | – | – | – | – | – | – | – | – | 56 | 53 |
Michael Topham | 51 | 49 | – | – | – | – | 51 | 49 | – | – | – | – | – | – | – | – | – | – | 51 | 49 |
Kevin Boyd 5 | 63 | 16 | – | – | – | – | 63 | 16 | – | – | – | – | – | – | – | – | – | – | 63 | 16 |
Former directors | ||||||||||||||||||||
Andrew Duxbury 6 | – | 370 | – | 3 | – | 21 | – | 394 | – | – | – | – | – | – | – | – | – | – | – | 394 |
Marisa Cassoni 7 | 27 | 63 | – | – | – | – | 27 | 63 | – | – | – | – | – | – | – | – | – | – | 27 | 63 |
Terry Miller 8 | – | 21 | – | – | – | – | – | 21 | – | – | – | – | – | – | – | – | – | – | – | 21 |
1
Includes the value of benefits such as car allowance and medical insurance.
2
This is a salary supplement paid to the directors in lieu of direct pension contributions.
3
On 1 April 2025 salaries for the non-executive directors increased by 3%. The salary for Bill Hocking increased by 2.88% and for Kris Hampson increased by 3.16%.
This is below the average salary budgeted increase across the workforce of 3.25%.
4
The 2021 LTIP awards vested on 7 October 2024. The LTIP figures reported in 2024 and the corresponding single figure for that year were based on an estimated share
price, being the average share price over the three months to 30 June 2024. These have now been updated with the actual value at vesting of £1,110,587 for Bill Hocking
using the share price as at the date of vesting of £3.27.
5
The fee paid to Kevin Boyd in 2024 is the annual fee pro-rated to reflect that he joined on 1 March 2024.
6
Andrew Duxbury resigned from the Board on 31 May 2024. The payment above reflects his time in the role of Finance Director and Andrew did not receive a salary
increase during the year 2023/24. Details of his leaving arrangements are set out on page 120 of the 2024 Annual Report. His outstanding LTIP and deferred bonus awards
lapsed with immediate effect and no bonus was payable for 2023/24.
7
Marisa Cassoni resigned from the Board on 28 November 2024.
8
Terry Miller resigned from the Board on 31 October 2023.
9
The annual bonus figure quoted is the total bonus including the deferred share element associated with the performance conditions in that year. See page 109 for further
explanation of the rules relating to the Annual Bonus Plan.
10 The salary, benefits, pension and bonus paid to Kris Hampson are pro-rated annual amounts to reflect that he joined on 2 September 2024.
11 The buyout figure is the value paid to Kris Hampson as compensation for the forfeited benefits from his previous employer. See page 118 for further information.
Annual report on remuneration
continued
116
Galliford Try
2025 Annual bonus outcome (audited)
For the financial year ended 30 June 2025, the annual bonus measures, targets, weightings and performance are set out in the table below.
Senior management were subject to similar targets, which were applied to their respective business performance.
| Performance target | ||||||
Threshold (% of | On-target (% of | Maximum (% of | Actual | Payout % of bonus | ||
Measure | Weighting | maximum bonus) | maximum bonus) | maximum bonus) | performance | maximum |
Pre-exceptional full-year | 45% | £33.3m | £35.0m | £40.3m | £43.6m | 45% |
Group profit before tax 1 | (0%) | (22.5%) | (45%) 1 | |||
Pre-exceptional half-year | 15% | £14.4m | £16.0m | £18.4m | £20.0m | 15% |
Group profit before tax | (0%) | (7.5%) | (15%) | |||
Group cash management | 20% | 95% of budget | 100% of budget | 110% of budget | 110% | 20% |
(10%) | (10%) | (20%) | ||||
Construction order book | 8% | 83.0% secured | 85.0% secured | 87.0% secured | 92% secured | 8% |
(0%) | (4%) | (8%) | ||||
ESG 2 : | ||||||
Employee: based on employee | 3% | <80% | >80% | >80% | 87% | 3% |
advocacy | (0%) | (3%) | (3%) | |||
Carbon emissions: based on | 3% | 5% reduction | 7.5% reduction | 10% reduction | 41.2% increase | 0% |
annual reduction of Scope 1 and 2 | (0%) | (1.5%) | (3%) | |||
emissions (marked based) | ||||||
Community: based on CCS score | 3% | <38 | >38 | >38 | 43.9 | 3% |
(0%) | (3%) | (3%) | ||||
Supply chain: payment of supply | 3% | <95% | >95% | >95% | 96.9% | 3% |
chain invoices within 60 days | (0%) | (3%) | (3%) | |||
Health and safety: based on | Underpin | Discretional | ||||
discretionary assessment of | adjustment | |||||
H&S performance | ||||||
Total payout (% of maximum bonus) | 100.0% | 10% | 54.5% | 100% | 97% | |
1
The full-year Group profit before tax was calculated on a pre-exceptional basis when the bonus measures for this scheme were put in place, although there were no
exceptional items to take into account this year. See Note 32 for further information.
2
The ESG metrics are aligned to the Group’s published strategy with the targets based on industry guidelines, averages or the Group’s stated ambition. The 2021 carbon
comparative metric was reinstated in 2023 onwards to incorporate the operation of nmcn (acquired October 2021).
The Group achieved a strong performance against targets set at the start of the financial year. Taking into account the Group’s profitability and
enhanced dividends to shareholders, the Committee determined that the bonus level produced by the scorecard of 97% is an appropriate reward given
the Group’s operational and financial performance. This treatment is consistent with that applied for all participants of the ABP. The ABP 2024/25
bonus target in 2024 onwards incorporated a 12% target for ESG factors, which include people, carbon emission, community and supply chain metrics.
Under the approved Policy, the Committee may, at its discretion, acting fairly and reasonably, adjust bonus outcomes if it considers the payout is
inconsistent with the Group’s performance during the year, taking into account factors including safety and ESG. In considering bonus awards the
Committee took the Group’s health and safety performance and ESG initiatives into consideration. The Group achieved an overall Accident Frequency
Rate (AFR) of 0.03 for 2024/25, (AFR for 2023/24: 0.04) with 13 of the 21 business units achieving an AFR of zero during the year.
The Committee determined that, in respect of the year to 30 June 2025, the resulting annual bonus awards were as follows:
Actual bonus | |||||
payable for | |||||
On-target bonus | Maximum bonus | 2024/25 | Cash | Shares | |
(% of salary) | (% of salary) | (£000) | (£000) | (£000) | |
Bill Hocking | 65.4% | 120% | 605 | 375 | 230 |
Kris Hampson 1 | 54.5% | 100% | 305 | 206 | 99 |
1
The bonus figure for Kris Hampson is pro-rated from his joining the company on 2 September 2024 to 30 June 2025.
Two-thirds of the bonus earned in excess of the 50% of salary threshold is required to be deferred into restricted shares. Although beneficially held
by the participants, the allocated restricted shares are legally retained by the Employee Share Trust and are subject to forfeiture provisions, unless
otherwise agreed by the Committee. Subject to continued employment, the restricted shares are legally transferred to participants on the third
anniversary of allocation. Recovery provisions apply at any time within the three-year period post-vesting or payment of cash bonuses in circumstances
or error, material misstatement, misconduct, reputational damage or corporate failure as a result of poor risk management.
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Annual Report and Financial Statements 2025
LTIP awards vesting in September 2025 (audited)
The LTIP awards granted to Bill Hocking on 23 September 2022 were based on 75% underlying EPS performance and 25% on average month-end
cash as a percentage of annual turnover over the three years to 30 June 2025. In total, 95.3% of the maximum award was vested as a result of the
performance achieved. The Committee was satisfied that this outcome reflected the true performance of the Group and no discretion was applied.
The awards will be subject to a two-year post vesting holding period in accordance with the existing Remuneration Policy. More details on each of the
performance conditions are set out below.
Stretch | |||||||||
Threshold | average | Element | |||||||
average | month- | of value | |||||||
Threshold | Stretch EPS | month- | end cash 1 | Value of | attributable | ||||
EPS | condition | end cash 1 | condition | % of overall | award | to share | |||
condition | (100% | Actual | condition | (100% | Actual | award | vesting 2 | growth 2 | |
(25% vesting) | vesting) | performance | (25% vesting) | vesting) | performance 1 | vesting | (£000) | (£000) | |
Bill Hocking | 23.2p | 28.4p | 33.3p | 8% | 10% | 9.5% | 95.3% | 1,666 | 987 |
1
As a percentage of annual turnover.
2
Estimated based on the average share price over the three months to 30 June 2025.
Directors’ share plan interests (audited)
Outstanding awards held by Bill Hocking and Kris Hampson during the year are detailed in the table below.
Number | Number | |||||||||
of awards | of awards | Value of | ||||||||
outstanding | outstanding | awards | Actual or | |||||||
Share price | at 1 July | at 30 June | vested during | anticipated | ||||||
Director | Plan | Grant date | at grant | 2024 | Granted | Vested | Lapsed | 2025 | financial year | vesting date |
Bill Hocking | LTIP 1 | 23.09.21 | £1.788 | 385,067 | – | 339,629 | 45,438 | – | £1,110,587 | 07.10.24 |
ABP 2 | 23.09.21 | £1.7694 | 118,684 | – | 118,684 | – | – | £388,097 | 07.10.24 | |
LTIP | 23.09.22 | £1.61 | 442,546 | – | – | – | 442,546 | – | 23.09.25 | |
ABP 3 | 28.09.22 | £1.60 | 133,875 | – | – | – | 133,875 | – | 28.09.25 | |
LTIP | 25.09.23 | £2.36 | 315,572 | – | – | 315,572 | – | 25.09.26 | ||
ABP 4 | 27.09.23 | £2.349 | 46,462 | – | – | 46,462 | – | 27.09.26 | ||
LTIP 5 | 08.10.24 | £3.23 | – | 241,486 | – | – | 241,486 | – | 08.10.27 | |
ABP 5,6 | 10.10.24 | £3.228 | – | 63,982 | – | – | 63,982 | – | 10.10.27 | |
Kris | LTIP 5 | 08.10.24 | £3.23 | – | 176,470 | – | – | 176,470 | – | 08.10.27 |
Hampson |
1
Awards are based on a maximum percentage of salary. The number of shares shown in the table represents the maximum number of shares, ie 150% of salary.
2
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 16 September 2021 was 176.94 pence.
3
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 21 September 2022 was 160 pence.
4
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 27 September 2023 was 234.90 pence.
5
The 2021–2024 Long Term Incentive Plan award and the 2021–2023 Annual Bonus Plan grant were due to vest on 23 September 2024, however, vesting was
postponed following the delay in announcing the 2024 full-year financial results (originally planned to be announced on 19 September 2024). These results were
announced on 3 October 2024, enabling these awards to be calculated and vest on 8 October 2024.
6
In accordance with the rules of the Annual Bonus Plan, the average of the company’s closing share price for the five business days following (and including)
the announcement of the annual results on 3 October 2024 was £3.228.
Payments to former directors
Marisa Cassoni resigned from the Board during the year and, in line with the Policy, received her fee up to 28 November 2024.
Annual report on remuneration
continued
118
Galliford Try
Remuneration arrangements for new Chief Financial Officer, including compensation for forfeited awards
On 2 September 2024 Kris Hampson was appointed Chief Financial Officer. On appointment his remuneration consisted of
salary of £380,000;
a pension contribution in line with the company’s workforce policy of 8% of salary;
maximum bonus opportunity of 100%; and
maximum LTIP grant of 150%.
In line with the Remuneration Policy, the Committee also approved a buyout to compensate Kris Hampson for awards forfeited on resignation from
his previous position. Under the terms of this buyout he will receive the value forfeited based on the performance conditions of his previous employer,
which will be determined at the time of the normal vesting of the forfeited awards. Two LTIP awards were forfeited and the buyout will be aligned to the
vesting schedule of his former employer and replaced with Galliford Try shares in October 2025 and October 2026.
The first of these has been assessed to be worth £35,857 based on the vesting percentage, dividend equivalents and share price of the former
employer. This amount will be delivered in Galliford Try shares in October 2025. Full details of the second forfeited award will be provided in the
2026 Annual Report.
Awards granted during the year (audited)
On 10 October 2024, the following conditional LTIP awards were made to Bill Hocking and Kris Hampson.
Share price used to | |||||
Number of shares | determine level | ||||
Director | Date of grant | awarded | Basis of award | of award £ | Face value £ |
Bill Hocking | 8 October 2024 | 241,486 | 150% of base salary | £3.23 | 780,000 |
Kris Hampson | 8 October 2024 | 176,470 | 150% of base salary | £3.23 | 570,000 |
The performance conditions attached to these awards made in October 2024 are as follows:
Date of grant | Performance conditions |
October 2024 | Vesting of up to 75% of the award is based on underlying EPS. 25% of the element will vest for 33.9p, increasing |
to 100% vesting on a straight-line basis if 41.5p underlying EPS is achieved during the final year of the three-year | |
performance period (1 July 2026 to 30 June 2027). | |
Vesting of up to 25% of the award is based on average month-end cash as a percentage of annual turnover in | |
the year ending 30 June 2025. 8% would generate 25% of the element vesting and 10% would generate 100% | |
vesting on a straight-line basis. | |
Any shares that vest will be subject to a two-year post-vesting holding period, in accordance with the | |
Remuneration Policy. | |
Malus and clawback apply at any time within a three-year period post-vesting, in the case of material misstatement, | |
misconduct, reputational damage or corporate failure as a result of poor risk management. |
Directors’ share interests (audited)
As at 30 June 2025, the Directors held the following beneficial, legal and unvested ABP interests in the Group’s ordinary share capital.
Legally owned 1 | Total | % of salary held | ||||
Deferred | under share | |||||
bonus awards | ownership | |||||
Measure | 30.6.25 | 30.6.24 | LTIP (unvested) | (unvested) | 30.6.25 | guidelines 2 |
Executive directors | ||||||
Bill Hocking | 1,069,126 | 826,221 | 999,604 | 244,319 | 2,313,049 | 1,030% |
Kris Hampson 4 | 6,250 | 6,250 | 176,470 | – | 182,720 | 7% |
Non-executive directors | ||||||
Alison Wood 3 | – | – | – | – | – | n/a |
Sally Boyle 3 | – | – | – | – | – | n/a |
Michael Topham 3 | – | – | – | – | – | n/a |
Kevin Boyd 3 | 8,000 | 8,000 | – | – | 8,000 | n/a |
1
Either held by the individual or connected persons.
2
Under the current Remuneration Policy, the share ownership guideline for executive directors is 200% of base salary.
3
Alison Wood and Sally Boyle joined the Board on 1 April and 1 May 2022. Michael Topham joined the Board on 1 June 2023 and Kevin Boyd joined 1 March 2024.
4
Kris Hampson joined the Board on 2 September 2024 and held 6,250 shares in the company on appointment.
Total Shareholder Return (TSR) graph
Value (£) (rebased)
500
400
300
200
100
0
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
Jun
15
16
17
18
19
20
21
22
23
24
25
Galliford Try
FTSE All Share
Source: Datastream from Refinitiv.
The graph shows the TSR for Galliford Try shares over the last 10 financial years. It shows the value to 30 June 2025 of £100 invested in Galliford Try
on 30 June 2015 compared with the value of £100 invested in the FTSE All-Share Index, this being a broad-market index of which the company has been
a constituent over the full period shown.
The closing mid-market quotation for the company’s shares on Monday 30 June 2025, was 419.50p. The high and low during the year were 425.0p
and 244.0p.
The total gross remuneration of the Chief Executive and the percentage achieved of the maximum ABP and LTIP awards are shown in the table below
for the past 10 financial years.
2016 1 | 2017 | 2018 | 2019 2 | 2020 3 | 2021 | 2022 | 2023 | 2024 | 2025 | |
Total remuneration (£000) | 1,461 | 1,043 | 1,448 | 824 | 660 | 1,027 | 1,937 | 2,429 | 1,951 | 2,844 |
Annual bonus (% of maximum) | 74% | 46.3% | 86.5% | 57.0% | 36.7% | 100.0% | 100.0% | 70.4% | 93.4% | 97% |
LTIP (% of maximum) | – | 16.5% | 36.6% | 16.5% | – | – | 89% | 97.2% | 88.2% | 95.3% |
1
Peter Truscott was appointed Chief Executive on 1 October 2015 and stepped down as Chief Executive and from the Board on 26 March 2019.
2
Graham Prothero was appointed Chief Executive on 26 March 2019, succeeding Peter Truscott. He stepped down from the Board and as Chief Executive following
the successful completion of the sale of the housebuilding divisions to Vistry Group plc on 3 January 2020.
3
Bill Hocking was appointed Chief Executive on 3 January 2020. A full-year remuneration figure based on the aggregate paid to Bill and Graham is shown here to
aid comparison.
Governance
119
Annual Report and Financial Statements 2025
Annual report on remuneration
continued
120
Galliford Try
CEO pay ratios
Under Option B (gender pay data), three employees have been identified as the best equivalents to represent the lower, median and upper quartiles.
Option B provides a clear methodology involving fewer adjustments to calculate full-time equivalent earnings.
All UK | ||||||
Year | Method CEO single figure | employees | Lower quartile | Median | Upper quartile | |
2019/20 | Option B | £660,587 | Ratio | 24:1 | 15:1 | 9:1 |
Total pay | £27,407 | £43,165 | £74,351 | |||
Salary | £25,500 | £35,249 | £61,057 | |||
2020/21 | Option B | £1,026,671 | Ratio | 27:1 | 19:1 | 14:1 |
Total pay | £37,399 | £54,374 | £73,385 | |||
Salary | £36,134 | £43,781 | £66,927 | |||
2021/22 | Option B | £1,936,788 | Ratio | 62:1 | 36:1 | 26:1 |
Total pay | £31,128 | £53,976 | £73,920 | |||
Salary | £27,875 | £44,720 | £62,275 | |||
2022/23 | Option B | £2,428,970 | Ratio | 66:1 | 45:1 | 31:1 |
Total pay | £36,562 | £54,444 | £79,638 | |||
Salary | £29,411 | £48,003 | £65,950 | |||
2023/24 | Option B | £1,950,670 | Ratio | 44:1 | 35:1 | 27:1 |
Total pay | £44,125 | £55,120 | £72,918 | |||
Salary | £42,272 | £49,554 | £66,725 | |||
2024/25 | Option B | £2,844,086 | Ratio | 73:1 | 50:1 | 35:1 |
Total Pay | £38,913 | £57,037 | £80,968 | |||
Salary | £36,223 | £53,608 | £73,550 | |||
The Chief Executive figure includes earnings from the Long-Term Incentive Plan. Long-term incentives are operated for the most senior Group
employees only, namely those responsible for strategy development and execution. The payouts from such plans are expected to be volatile from
cycle to cycle.
The Committee is comfortable that the resulting calculations are representative of pay levels at the respective quartiles and that the applicable
relativities are appropriate given the profile of the workforce.
Relative importance of spend on pay
2023/24 | 2024/25 | Change | |
Total overall spend on pay (£m) | 284.2 | 311.6 | 27.4m |
Dividends (£m) | 24.2 | 17.5 | (6.7)m |
Share buyback (£m) | 4.4 | 10.0 | 5.6m |
Group corporation tax charge (£m) 1 | 5.4 | 10.7 | 5.3m |
Effective tax rate (%) 1 | 15.4 | 23.9 | 8.5pts |
1 Adjusted tax.
The equivalent total overall spend on pay in 2024/25 is disclosed in note 5 to the financial statements. The total overall spend on pay equates to average
remuneration per staff member of £72,533 per annum as at 30 June 2025 (2024: £68,947).
Governance
121
Annual Report and Financial Statements 2025
Composition of the Remuneration
Committee and attendance
In addition to the Chair, Sally Boyle, the other
Committee members were Alison Wood,
Michael Topham and Kevin Boyd. Marisa
Cassoni was a Committee member until
24 November 2024 when she stepped down
from the Board. The General Counsel &
Company Secretary acts as Secretary to the
Committee. The Chief Executive has a standing
invitation to attend all Committee meetings.
The HR Director attends certain meetings at
the invitation of the Committee. No director,
the General Counsel & Company Secretary
or HR Director is present when their own
remuneration is being considered. Attendance
at Committee meetings is shown in the table
on page 87.
The Committee is governed by formal terms of
reference agreed by the Board and is composed
solely of non-executive directors. The terms
of reference were reviewed during the year
and are available on the Group’s website
(www.gallifordtry.co.uk).
Remuneration advice and advisers
The Committee is informed of key
developments and best practice in the field
of remuneration and obtains advice from
independent external consultants, when
required. Mercer Limited (Mercer) was
the Committee’s remuneration consultant
throughout the year. Fees paid to Mercer
during the financial year were £19,233
(2024: £13,300).
Mercer does not provide any other services to
the Group, although Mercer is part of Marsh &
McLennan Companies, a subsidiary of which,
Marsh JLT Specialty Limited, provides insurance
broking services to the Group. The Committee
is satisfied that these services do not impinge on
Mercer’s independence. Furthermore, Mercer
is a signatory to the Remuneration Consultants
Group Code of Conduct, which requires that its
advice be objective and impartial.
The General Counsel & Company Secretary
also advises the Committee as necessary and,
where appropriate, makes arrangements for
the Committee to receive independent legal
advice at the request of the Chair.
Employee Share Trust and dilution
The Employee Share Trust (EST) is the primary
mechanism by which shares required to satisfy
the Executive incentive plans are provided.
Following the announcement of the 2024
full-year results in October 2024 the annual
review of the number of shares held by the
EST was carried out and it was agreed there
were currently sufficient shares in place.
As at 30 June 2025, the EST held 3,066,609
ordinary shares in the capital of the company
(3.00%) (2024: 3,824,949 shares). Under the
terms of the Trust Deed, the Trust may only
hold up to a maximum of 5% of the issued
shares in the company.
During the financial year, 951,335 new shares
were issued arising from share scheme-related
activities under the SAYE share option scheme.
As at 30 June 2025, the total number of shares
outstanding under the SAYE share option
scheme was 2,703,109. The Group has complied
with the dilution guidelines of the Investment
Association (Guidelines).
Applying the Guidelines, the Group has
used 4.78% of the 10% headroom in 10
years’ rule and, on the basis that the Group’s
practice is that all awards granted pursuant to
discretionary plans are satisfied using shares
purchased in the market, the Group has not
used any of the headroom against the ‘5% in
10 years’ rule for discretionary plans.
Shareholder voting on the
Directors’ Remuneration report
The Committee takes account of annual
shareholder voting trends in connection with
the Directors’ Remuneration report. Votes cast
in support of the annual advisory resolution to
approve the Directors’ Remuneration report
during the past five AGMs are included in the
chart below.
Votes cast
(%)
2020
2021
2022
2023
2024
64.43%
35.57%
0.11%
0.14%
5.12%
0.08%
99.89%
99.86%
94.88%
99.92%
Votes for
Votes against
The Board will continue to engage with
shareholders to ensure their views are fully
understood and considered and can be taken
into account by the Committee in the future.
The Committee and Board are grateful to
shareholders for the strong support provided.
The current Policy was approved by 99.3% of
shareholders who voted at the 2023 AGM and
the advisory vote on the Annual Report on
Remuneration was supported by 94.88%.
Forward-looking implementation
of policy
Base salaries
The 2025/26 salary review was completed
in April 2025. The Committee carefully
scrutinised pay and conditions across the
Group. Taking into account market conditions,
peer group comparisons and the Group’s overall
performance, the overall pay budget increased
by 3.25%. With effect from 1 April 2025,
Bill Hocking’s annual salary increased from
£520,000 to £535,000, an increase of 2.88%,
the increase being below the average pay
increase across the workforce. Kris Hampson
was appointed on a salary of £380,000 on
2 September 2024 and received an annual
salary increase of 3.16% to £392,000 on
1 April 2025.
ABP
For the financial year to 30 June 2026, the
Committee has determined that the existing
bonus structure remains appropriately aligned
to corporate strategy. It will therefore remain in
its current form, with an opportunity of 120%
of salary for the Chief Executive, and 100% for
other executive directors.
Bonus outcomes will be subject to overall
Committee discretion, taking into account
factors including health and safety and the
underlying performance of the Group. The
Committee intends to continue to include ESG
annual bonus measures in 2025/26 aligned to
the Group’s strategy on ESG, with an ESG target
in total of 12%. The ESG measures will include
metrics on the order book, employees, carbon,
community and the supply chain.
Annual report on remuneration
continued
122
Galliford Try
LTIP
Any award granted to the executive directors in 2025 will be within the approved Remuneration Policy and based on performance metrics,
with 75% based on earnings per share and 25% on average month-end cash as a percentage of revenue.
Performance measures applied over a three-year performance period to 30 June 2028 are:
25% of the EPS element will vest if underlying EPS is 41.4 pence, increasing to 100% vesting on a straight-line basis if 50.6 pence is achieved.
25% of the cash element will vest if average month-end cash is 8% of revenue, increasing to 100% vesting on a straight-line basis if 10% is achieved.
Chair and non-executive directors’ fees
The Committee determined that the Chair’s fee for 2025/26 would be increased by 3%. In addition, and following a review of the non-executive
directors’ fees by the Board, it was agreed that the non-executive directors’ fees would increase by 3%.
Accordingly, the annual fees effective from 1 April 2025 are as follows:
Increase/ | |||
2025 | 2024 | Change % | |
Chair | £195,896 | £190,190 | 3.0% |
Non-executive directors | |||
Base fee | £52,275 | £50,752 | 3.0% |
Additional fees: | |||
Senior Independent Director 1 | £9,831 | £5,065 | 94.1% |
Chairs of Board Committees | £9,831 | £9,545 | 3.0% |
Chair of Employee Forum | £4,931 | £4,787 | 3.0% |
1
On 14 November 2024 Kevin Boyd became the Senior Independent Director, following the resignation of Marisa Cassoni, and it was agreed that the Senior Independent
Director fee be increased from £5,065 to £9,545 from November 2024, to align with the Chairs of Board Committees fee. This increased by 3% to £9,831 on 1 April 2025.
For and on behalf of the Board
Sally Boyle
Remuneration Committee Chair
Governance
123
Annual Report and Financial Statements 2025
Directors’ report
The directors present their Annual
Report and audited financial statements
for the Group for the financial year
ended 30 June 2025.
Principal activities
Galliford Try is a trading name of Galliford Try
Holdings plc, a leading UK construction group,
which has an equity securities (commercial
companies) category listing and whose shares
are traded on the main market of the London
Stock Exchange. The Group operates as
Galliford Try and Morrison Construction and
carries out building and infrastructure projects
with clients in the public, private and regulated
plc, registered in England and Wales with
company number 12216008, is the Parent
company of the Group.
More detailed information regarding the
Group’s activities is provided on pages 1 to 81.
The Group’s subsidiaries and joint ventures are
shown in note 33 to the financial statements.
Strategic report
The Strategic report can be found on pages
1 to 81. It contains an indication of the directors’
view on likely future developments in the
Group’s business. In addition, and in accordance
with the Companies, Partnerships and Groups
(Accounts and Non-Financial Reporting)
Regulations 2016, the Strategic report
contains information on employees, social
and environmental matters, human rights and
anti-corruption and anti-bribery matters,
as well as a description of the Group’s policies
and where these are located.
In accordance with section 414CZA of the
Companies Act 2006, the Strategic report
contains a section 172 (1) statement describing
how directors have had regard to the matters
set out in section 172 (1) (a) to (f) of the
Companies Act 2006 when performing
their duty under section 172. Please refer
to pages 76 to 81.
The Annual Report and financial statements
use financial and non-financial key performance
indicators wherever possible and appropriate.
Corporate governance report
The Corporate governance report on pages 82
to 96 is the corporate governance statement
for the purposes of the Financial Conduct
Authority (FCA) Disclosure Guidance and
Transparency Rule 7.2.1.
Results, dividends and capital
The adjusted profit for the year before
income tax was £45.0m, as shown in Note
32. On 5 March 2025, the Board declared an
interim dividend of 5.5p per share, which was
paid to shareholders on 11 April 2025. The
Board has proposed a final dividend of 13.5p
per share. Subject to approval by shareholders,
this will be paid on 5 December 2025 to
shareholders on the register at 7 November
2025, resulting in a total dividend in 2025 of
19.0p per share. Dividend cover is expected
to be 1.8 times earnings.
On 3 October 2024, the Board announced
a further share buyback programme of
a maximum of £10m, reflecting both a
corporation tax refund and our confidence in
future cash generation.
On 17 September 2025, we announced a new
share buyback programme up to a maximum
of £10m.
Please refer to pages 52 to 53 for an overview of
the Group’s capital structure and funding.
Share capital, authorities
and restrictions
The company has one class of ordinary share
capital, with a nominal value of 50 pence. The
ordinary shares rank pari passu in respect of
voting and participation and are traded on the
Main Market of the London Stock Exchange.
At 30 June 2025, the company had
102,141,268 ordinary shares in issue. Votes
may be exercised at general meetings of the
company by members in person, by proxy or
by corporate representatives (in relation to
corporate members). The company’s Articles
of Association (the Articles) set a deadline
for submitting proxy forms (electronically or
by paper) of not less than 48 hours, taking no
account of any part of a day that is not a working
day, before the time appointed for holding the
general meeting or the adjourned meeting (as
the case may be).
The directors are authorised at the AGM each
year to issue shares, to allot a limited number
of shares in the company for cash other than
to existing shareholders, and to make market
purchases of shares within prescribed limits.
The current authorities will expire at the AGM
in November 2025. Resolutions to be proposed
at the AGM will renew these authorities, which
are explained in the Notice of 2025 AGM sent
separately to shareholders.
The company issued 856,343 shares following
the exercise of options under the company’s
Sharesave Scheme. To the date of this report,
the company has purchased 2,690,861 shares
as part of the share buyback programme that
commenced in October 2024. All of these
shares were cancelled and the share buyback
programme was closed on 20 May 2025.
There are no restrictions on transferring the
company’s shares, except for certain shares
held by the Employee Share Trust (EST), which
are restricted during the performance periods
of relevant Group share plans. Directors and
persons discharging managerial responsibilities
are also periodically restricted in dealing in
the company’s shares under the Group’s share
dealing policy, reflecting the requirements of
the FCA Market Abuse Regulation. In certain
specific circumstances, the directors are
permitted to decline to register a transfer in
accordance with the Articles. There are no
other limitations on holdings of securities,
and no requirements to obtain the approval
of the company, or other holders of shares
in the company, prior to the share transfer.
The company is not aware of any agreements
between holders of shares that may restrict
the transfer of shares or voting rights.
There are no shares carrying specific rights
relating to control of the company. The EST
holds shares in the company in connection with
Group share plans that have rights relating to
control of the company that are not exercisable
directly by the employee. The EST abstains
from voting in respect of these shares.
The EST currently holds 3.00% of the issued
share capital of the company for the purposes
of satisfying employee share options or
share awards.
Articles of Association
The Articles, adopted pursuant to a resolution
passed on 5 November 2019, set out the
company’s internal regulations and define
various aspects of its constitution, including
the rights of shareholders, procedures for
appointing and removing directors, and the
conduct of directors and general meetings.
In accordance with the Articles, directors
can be appointed or removed either by the
Board or shareholders in a general meeting.
Amendments to the Articles require
shareholder approval by passing a special
resolution in a general meeting. Copies of
the Articles are available by contacting the
General Counsel & Company Secretary at
the registered office.
124
Galliford Try
Directors’ report
continued
Significant direct and indirect holdings
As at 30 June 2025, being the date of this
Annual Report, the Group had been made
aware of the following beneficial interests in 3%
or more of the company’s ordinary share capital:
Shareholder
Interest
% capital
Aberforth
Partners LLP
10,180,285
9.97%
J O Hambro Capital
Management
Limited
7,814,872
7.65%
Premier Miton
Group plc
6,136,291
6.01%
Between 1 July 2025 and the date of this report,
the following change to the significant direct
and indirect holdings information was received:
Shareholder
Interest
% capital
JP Morgan Asset
Management (UK)
Limited
5,129,134
5.02%
Premier Miton
Group plc
5,081,707
4.97%
Aberdeen
Group plc
Not declared
Below 5%
Change of control provisions
All the Group’s share plans contain provisions
relating to a change of control. The respective
plan rules permit outstanding awards to vest
on a proportional basis and then become
exercisable in the event of a change of control,
subject to the satisfaction of any performance
conditions and Remuneration Committee
approval. Other than in relation to share
schemes as described above, the Group has not
entered into any agreements with its directors
or employees that provide for compensation
for loss of office or employment in the event of
a takeover or change of control of the Group.
The agreements governing the Group’s joint
ventures all have appropriate change of control
provisions, none of which is significant in the
context of the wider Group.
Directors’ interests and indemnities
Summary biographies of the directors of the
company as at 30 June 2025 are on pages 88
to 89. The directors’ interests in the company’s
share capital are set out on page 118 and details
of executive directors’ service contracts and
non-executive directors’ letters of appointment
can be found on page 113.
The Group operates a formal procedure for
disclosing, reviewing and authorising directors’
actual and potential conflicts of interest, in
accordance with the Companies Act 2006.
In addition, the Board reviews and authorises
conflicts of interest, as necessary, on an
annual basis.
The Group maintained Directors’ and Officers’
Liability insurance on behalf of the directors
and General Counsel & Company Secretary
throughout the financial year. In addition,
individual qualifying third-party indemnities are
provided to the directors and General Counsel
& Company Secretary, that comply with the
provisions of section 234 of the Companies Act
2006 and were in force throughout the year and
up to the date of signing this Annual Report.
Employees
The Group is committed to best-practice
employment policies that promote equal
opportunities for all employees. We value
everyone as an individual, recognising that
everyone is different and has different needs at
work. We respect people’s differences and treat
everyone with dignity and respect. We aim to
create a culture in which everyone feels valued
and is motivated to give their best.
The Group gives full and fair consideration to
applications for employment from disabled
persons, taking into account their aptitudes
and abilities. The Group has signed up to the
Government’s Disability Confident scheme.
We carry out regular workplace assessments
and provide occupational health checks and
advice to support both employees and line
managers. Appropriate arrangements
are made for the continued training and
employment, career development and
promotion of disabled persons. If existing
members of staff become disabled, the Group
endeavours to continue employment, either
in the same or an alternative position, with
appropriate retraining and occupational
assistance being given if necessary.
Employee engagement and consultation is
encouraged through the Employee Forum
(see page 94), as well as regular informal
discussions and feedback, formal annual
appraisals, business unit staff forums and
periodic employee surveys.
Details of where to find information regarding
the Group’s employee remuneration policies,
employment practices and employee
involvement are provided in the Strategic
report on pages 1 to 81 and the Remuneration
Policy Report on pages 108 to 114.
Details of where to find information on other
matters of importance to stakeholders such as
environmental, social and community matters,
human rights and anti-corruption, related
policies and their impact can also be found in
the Strategic report.
Significant agreements
There are no persons with which the Group
has contractual or other arrangements that
are essential to its business.
Charitable and political donations
For information regarding charitable donations
made through employees’ volunteering or
donation of materials, please refer to the
Strategic report on page 38.
The Group’s policy is to avoid making political
donations of any nature and none were
made during the financial year. The Group
notes the wide application of Part 14 of the
Companies Act 2006, but does not consider
the construction industry bodies of which it is
a member to be political organisations for the
purposes of the Act.
Emissions
Details of the Group’s greenhouse gas emissions
for the financial year can be found on pages
32 to 35 and are included by reference in
this report.
Governance
125
Annual Report and Financial Statements 2025
Streamlined energy and carbon
reporting (SECR)
The data included in the table below, together
with the Scope 1 and 2 emissions intensity
ratio disclosed on page 34 covers the reporting
requirements detailed in the Companies
(Directors’ Report) and Limited Liability
Partnerships (Energy and Carbon Report)
Regulations 2018. As we report our carbon and
energy data in calendar years, the following
section represents our carbon and energy
performance for the calendar years 2023
and 2024.
Emissions source
Emissions tCO
2
e
Calendar
year
2024
Calendar
year
2023
Emissions from
combustion of
gas (Scope 1)
168
233
Emissions from
combustion of
fuel for transport
purposes (Scope 1)
3,956
4,493
Emissions from fuel
oil supplies ie diesel
consumed (Scope 1)
9,185
4,612
Fugitive emissions
from office facilities
ie air conditioning
systems (Scope 1)
4
–
Emissions from
purchased
electricity (Scope 2,
location-based)
2,018
2,021
Emissions from
purchased
electricity (Scope 2,
market-based)
1,497
1,148
Emissions from fuel
and energy-related
activities (Scope 3)
4,067
3,019
Emissions from
business travel
(Scope 3)
982
791
Emissions
from employee
commuting
(Scope 3)
3,825
3,318
Methodology and conversion factors
Carbon dioxide equivalent emissions (tCO
2
e)
are calculated using the GHG Protocol
Corporate Accounting and Reporting Standard
and the UK Government GHG Conversion
Factors and Methodology for company
reporting 2024. The emissions included in the
table have been externally verified to the ISO
14064-3 greenhouse gas statements standard
by the Carbon Trust. Emissions cover all those
arising from our fleet, gas and electricity in all
offices and sites, and all other fuel used directly
(for example diesel on site) including our share
of emissions from joint ventures. Where data is
obtained in litres used and distance travelled,
these conversion factors have been used to
convert to kWh.
Annual energy usage
Our total energy use, calculated from
Department for Environment, Food and Rural
Affairs (Defra) 2024 conversion factors, for all
our UK activities increased by 36% in 2024 to
69,555,958 kWh (2023: 51,001,569 kWh).
The increase in energy usage in 2024 is driven
by a circa 100% increase in the volume of
diesel used on our projects. As outlined in more
detail on page 33, this reflects high rates of
growth in our Infrastructure and Environment
businesses, which have the highest intensity
of diesel use. The increase in diesel use was
partially offset by reductions in the amount of
purchased electricity and fuel used in company
cars, reflecting recent moves into more
energy-efficient offices and the transition of
our company car fleet to battery electric and
plug-in hybrid only.
Energy consumption is calculated using the
same reporting boundary (operational control)
that we use to calculate our carbon emissions.
This increase reflects the growth of the
business, but has been minimised by energy
efficiency measures, including the transition
to renewable energy.
Creditor payment policy
The Group’s policy is to agree payment
terms contractually with suppliers and
subcontractors, ensure the relevant terms
of payment are included in contracts, and
to abide by those terms when satisfied that
goods, services or assets have been provided
in accordance with the agreed contractual
terms. Following the discontinuation of the
Prompt Payment Code in October 2024,
the Group applied for membership of the
Fair Payment Code, and was awarded the
Bronze award in May 2025. This contains,
among other things, commitments to treat our
supply chain fairly and pay 95% of our supply
chain invoices within agreed contract terms
and within 60 days, which we have consistently
achieved. Our standard payment terms are
a maximum of 45 days.
Financial instruments
Further information regarding the Group’s
financial instruments, related policies and
a consideration of its liquidity and other
financing risks, can be found in the Financial
review from page 50 and in note 23 to
the financial statements.
Important developments during
the year
As announced on 3 October 2024 the Group
launched a share buyback programme for up to
a maximum of £10m consideration, which was
completed on 21 May 2025. See page 53 for
more information.
As announced on 5 March 2025 the Group
successfully entered into a £25m unsecured
revolving credit facility. See page 81 for
more information.
Going concern
In accordance with the Financial Reporting
Council’s Guidance on Risk Management,
Internal Control and Related Financial and
Business Reporting published in 2014, the
requirements of the Code and Listing Rule
6.6.6(3), the Directors have conducted a
rigorous and proportionate assessment of the
Group’s ability to continue in existence for the
foreseeable future. This has been reviewed
during the financial year and the Directors
have concluded that there are no material
uncertainties that may cast significant doubt
on the Group’s ability to continue as a going
concern. Furthermore, the Group has adequate
resources and visibility as to its future workload,
as explained in this Annual Report. As a result,
the Directors are satisfied that the Group has
adequate resources to meet its obligations as
they fall due for a period of at least 12 months
from the date of approving these financial
statements and, accordingly, is able to adopt
the going concern basis in preparing these
financial statements.
126
Galliford Try
Directors’ report
continued
AGM
The 2025 AGM will be held at Peel Hunt
LLP, 7th floor, 100 Liverpool Street, London,
EC2M 2AT on Thursday 13 November 2025 at
11.00am. The Notice convening the AGM, sent
to shareholders separately, explains the items of
business that are not of a routine nature.
Further information on arrangements for the
AGM and voting instructions will be set out fully
in the Notice of AGM and Form of Proxy.
Fair, balanced and understandable
In accordance with the principles of the Code
and as further described on page 103, the
Group has arrangements in place to ensure
that the information presented in this Annual
Report is fair, balanced and understandable.
The directors consider, on the advice of the
Audit Committee, that the Annual Report,
taken as a whole, is fair, balanced and
understandable and provides the information
necessary for shareholders to assess the
Group’s performance, position, business
model and strategy.
Approval of report
This Directors’ report, the Strategic report, the
Corporate Governance report and Directors’
Remuneration report were approved by the
Board of Directors on 17 September 2025.
For and on behalf of the Board
Kevin Corbett
General Counsel & Company Secretary
17 September 2025
Governance
127
Annual Report and Financial Statements 2025
Statement of directors’ responsibilities
Forward-looking statements
Forward-looking statements have been made by the directors in good faith using information up until the date on which they approved this
Annual Report. Forward-looking statements should be regarded with caution due to uncertainties in economic trends and business risks.
The Group’s businesses are generally not affected by seasonality.
The directors are responsible for
preparing the Annual Report and the
financial statements in accordance
with applicable law and regulations.
Company law requires the directors to
prepare financial statements for each financial
year. Under company law the directors have
prepared the Group and Parent Company
financial statements in accordance with UK-
adopted International Accounting Standards.
Under company law, the directors must not
approve the financial statements unless they
are satisfied that these give a true and fair view
of the state of affairs of the Group and Parent
Company and of the profit or loss of the Group
and Parent Company for that period.
In preparing the financial statements,
the directors are required to:
select suitable accounting policies and then
apply them consistently;
make judgements and accounting estimates
that are reasonable and prudent;
state whether they have been prepared in
accordance with UK-adopted International
Accounting Standards and with the
requirements of the Companies Act
2006; and
prepare the financial statements on the
going concern basis, unless it is inappropriate
to presume that the Group and Parent
Company will continue in business.
The directors are responsible for keeping
adequate accounting records that are sufficient
to show and explain the Group and Parent
Company’s transactions and disclose with
reasonable accuracy at any time the financial
position of the Group and Parent Company
and enable them to ensure that the financial
statements and the Directors’ Remuneration
Report comply with the Companies Act 2006
and, as regards the Group financial statements,
Article 4 of the IAS Regulation. They are also
responsible for safeguarding the assets of the
Group and the Parent Company and hence for
taking reasonable steps for the prevention and
detection of fraud and other irregularities.
The directors are responsible for the
maintenance and integrity of the Group
and Parent Company’s website. Legislation
in the UK governing the preparation and
dissemination of financial statements may
differ from legislation in other jurisdictions.
The directors consider that the Annual
Report and Accounts, taken as a whole,
is fair, balanced and understandable and
provides the information necessary for
shareholders to assess the Group and
Parent Company’s performance, position,
business model and strategy.
Each of the directors, whose names and
functions are listed on pages 88 and 89,
confirms that to the best of their knowledge:
the Parent Company financial statements,
which have been prepared in accordance
with UK-adopted International Accounting
Standards, give a true and fair view of the
assets, liabilities, financial position and
profit of the Parent Company;
the Group financial statements, which
have been prepared in accordance with
UK-adopted International Accounting
Standards, give a true and fair view of the
assets, liabilities, financial position and
profit of the Group; and
the Strategic report contained on pages 1 to
81 includes a fair review of the development
and performance of the business and the
position of the Group and Parent Company,
together with a description of the principal
risks and uncertainties that it faces.
In the case of each director in office at the date
the Directors’ Report is approved:
so far as the director is aware, there
is no relevant audit information of which
the Group and Group’s auditors are
unaware; and
they have taken all the steps that they ought
to have taken as a director in order to make
themselves aware of any relevant audit
information and to establish that the
Group and Group’s auditors are aware
of that information.
This confirmation is given and should be
interpreted in accordance with section 418
of the Companies Act 2006.
For and on behalf of the Board
Bill Hocking
Chief Executive
17 September 2025
128
Galliford Try
Opinion on the financial statements
In our opinion:
the financial statements give a true and fair view of the state of
the Group’s and of the Company’s affairs as at 30 June 2025 and
of the Group’s profit for the year then ended;
the Group financial statements have been properly prepared in
accordance with UK adopted international accounting standards;
the Company financial statements have been properly prepared in
accordance with UK adopted international accounting standards and
as applied in accordance with the provisions of the Companies Act
2006; and
the financial statements have been prepared in accordance with
the requirements of the Companies Act 2006.
We have audited the financial statements of Galliford Try Holdings plc
(the ‘Company’) and its subsidiaries (the ‘Group’) for the year ended
30 June 2025 which comprise the Consolidated income statement,
the Consolidated statement of comprehensive income, the Balance
sheets, the Consolidated and Company statements of changes in
equity, the Statements of cash flows and Notes to the financial
statements, including material accounting policy information. The
financial reporting framework that has been applied in their preparation
is applicable law and UK adopted international accounting standards
and as regards the Company financial statements, as applied
in accordance with the provisions of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on
Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under
those standards are further described in the Auditor’s responsibilities
for the audit of the financial statements section of our report. We believe
that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion. Our audit opinion is consistent with the
additional report to the audit committee.
Independence
Following the recommendation of the audit committee, we were
appointed by the Members on 4 November 2019 to audit the financial
statements for the year ended 30 June 2020 and subsequent financial
periods. The period of total uninterrupted engagement including
retenders and reappointments is 6 years, covering the years ended
30 June 2020 to 30 June 2025. We remain independent of the Group
and the Company in accordance with the ethical requirements that are
relevant to our audit of the financial statements in the UK, including
the FRC’s Ethical Standard as applied to listed public interest entities,
and we have fulfilled our other ethical responsibilities in accordance
with these requirements. The non-audit services prohibited by that
standard were not provided to the Group or the Company.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the
Directors’ use of the going concern basis of accounting in the preparation
of the financial statements is appropriate. Our evaluation of the Directors’
assessment of the Group and the Company’s ability to continue to adopt
the going concern basis of accounting included:
We considered the principal risks identified by the Directors that
are associated with the Group’s activities, business environment and
wider economic and macro-level risks. We assessed these against our
views of the risks, based on our understanding of the business and its
performance in the year ended 30 June 2025.
We tested the integrity and mathematical accuracy of management’s
forecast model and assessed its consistency with approved budgets.
We assessed the appropriateness of the Group’s cash flow forecasts
in the context of the Group’s secured ongoing contracts, the secured
new work and forecast potential work which were agreed to the Board
approved forecasts.
We obtained and evaluated the Directors’ downside sensitivities,
which included delays to construction resulting in reduced volume
of work and also assessed the impact of materials and labour price
inflation. As part of these sensitivities, management included a severe
but plausible downside scenario combining the sensitivities mentioned
which we critically evaluated.
We have performed our own sensitivities which included reducing
cash inflows based on reduced margins and delaying unsecured
revenue, assessing their effect on the going concern assessment.
As part of these, we determined the break-even point which involved
aggregating the impact of the sensitivities noted.
We obtained the new agreement entered into by the Group in the
current year in relation to the Revolving Credit Facility to obtain an
understanding of the terms and covenants.
We obtained and assessed management’s covenant calculations at
year-end to check the Group was compliant and further evaluated
forecast covenant compliance and headroom calculations.
We assessed the actual cash performance against forecasts for the
current financial year and post year end to evaluate the Directors’
accuracy and reliability of the forecasts prepared.
We evaluated the adequacy of the disclosures within the Directors’
report in relation to the specific risks posed, the scenarios the
Directors have considered and conclusions made.
Based on the work we have performed, we have not identified any
material uncertainties relating to events or conditions that, individually or
collectively, may cast significant doubt on the Group and the Company’s
ability to continue as a going concern for a period of at least twelve
months from when the financial statements are authorised for issue.
In relation to the Company’s reporting on how it has applied the
UK Corporate Governance Code, we have nothing material to add or
draw attention to in relation to the Directors’ statement in the financial
statements about whether the Directors considered it appropriate
to adopt the going concern basis of accounting.
Our responsibilities and the responsibilities of the Directors with respect
to going concern are described in the relevant sections of this report.
Independent auditor’s report
to the members of Galliford Try Holdings plc
Financial statements
129
Annual Report and Financial Statements 2025
Overview
Key audit
matters
2025
2024
Revenue and profit recognition for
construction contracts
X
X
Recognition and recoverability of claims
and variations
X
Defects liability provision in relation
to a legacy infrastructure contract
X
X
For 2025, the Key Audit Matter on ‘Recognition and
recoverability of claims and variations’ has been combined
with the Key Audit Matter ‘Revenue and profit recognition
for construction contracts’. This change aligns with the
risk assessment, with claims and variations being a key
consideration and input to revenue and profit recognition.
Materiality
Group financial statements as a whole
£5.7m (2024: £5.2m) based on 0.3% (2024: 0.3%)
of revenue.
An overview of the scope of our audit
Our Group audit was scoped by obtaining an understanding of the
Group and its environment, the applicable financial reporting framework
and the Group’s system of internal control. On the basis of this, we
identified and assessed the risks of material misstatement of the Group
financial statements including with respect to the consolidation process.
We then applied professional judgement to focus our audit procedures on
the areas that posed the greatest risks to the Group financial statements.
We continually assessed risks throughout our audit, revising the risks
where necessary, with the aim of reducing the Group risk of material
misstatement to an acceptable level, in order to provide a basis for
our opinion.
Components in scope
The Group comprises 49 legal entities which are predominantly grouped
into divisions based on the nature of their operations. Although each
division includes multiple legal entities, they have their own distinct
management structure, common business characteristics, commonality
of information systems, controls and financial reporting framework.
Group management, and ultimately the Board, monitor the position
and performance of the Group on a divisional basis. Accordingly, these
divisions were considered to be components for the purpose of the
audit. In addition, there are a number of distinct legal entities that fall
outside of these divisions, being the Company and other legal entities
providing services across the Group. These were also determined to
be separate components.
Based on our scoping assessment, twelve components were identified,
which are considered unique due to their specific characteristics.
For components in scope, we used a combination of risk assessment
procedures and further audit procedures to obtain sufficient appropriate
evidence. These further audit procedures included:
procedures on the entire financial information of the component,
including performing substantive procedures and tests of operating
effectiveness of controls
procedures on one or more classes of transactions, account balances
or disclosures
Procedures were performed on the entire financial information
of 3 components, comprising the Building, Highways and
Environment divisions. Procedures were performed on one or
more classes of transactions, account balances or disclosures for
4 other components. Risk assessment procedures were performed
on the remaining components.
The Group engagement team is responsible for the work performed
across all components of the Group.
The Group operates a centralised IT function that supports IT processes
for all components where the entire financial information or classes of
transactions, account balances or disclosures are in scope. This IT function
is subject to specified risk-focused audit procedures, predominantly the
testing of the relevant IT general controls and IT application controls.
Disaggregation
The financial information relating to Group risks of material misstatement
is highly disaggregated across the Group. We performed procedures at
the component level in relation to these risks in order to obtain comfort
over the residual population of Group balances.
Climate change
Our work on the assessment of potential impacts of climate-related risks
on the Group’s operations and financial statements included:
Enquiries and challenge of management to understand the
actions they have taken to identify climate-related risks and their
potential impacts on the financial statements and adequately
disclose climate-related risks within the Annual Report and
Financial Statements;
Our own qualitative risk assessment taking into consideration the
sector in which the Group operates and how climate change affects
this particular sector; and
Review of the minutes of Board and Audit Committee meetings
and other papers related to climate change and performed a risk
assessment as to how the impact of the Group’s commitment as set out
the Annual Report and Financial Statements may affect the financial
statements and our audit.
We challenged the extent to which climate-related considerations,
including the expected cash flows from the initiatives and commitments
have been reflected, where appropriate, in management’s going concern
assessment and viability assessment.
We also assessed the consistency of management’s disclosures included
as ‘Statutory Other Information’ on pages 63 to 74 with the financial
statements and with our knowledge obtained from the audit.
Based on our risk assessment procedures, we did not identify there to be
any Key Audit Matters that were materially affected by climate-related
risks and related commitments.
130
Galliford Try
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the
current period and include the most significant assessed risks of material misstatement (whether or not due to fraud) that we identified, including those
which had the greatest effect on: the overall audit strategy, the allocation of resources in the audit, and directing the efforts of the engagement team.
These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Key audit matter
How the scope of our audit addressed the key audit matter
Revenue and profit
recognition for
construction contracts
Note 1 on page 143 to
the financial statements
gives further detail
regarding the estimates
and judgements made
by the Group in
this regard and the
accounting policy for
construction contracts.
For long term construction
contracts, the Group recognises
revenue over time and
measures progress based on
the input method by considering
the costs incurred to date,
relative to the total estimated
forecast costs, applied to the
estimated forecast revenue.
This process involves significant
estimation in relation to the
outcome of both the total costs
to complete the contract as
well as the final contract value.
These estimates can materially
impact the revenue and profit
recognised, as well as contract
assets and liabilities.
In a number of the Group’s
construction contracts there
are assumptions regarding
amounts contractually due
from customers. Contract
assets can include variations
and claims which have not been
certified or formally agreed
but have been assessed by
management as highly probable
of not reversing, in accordance
with IFRS 15. Judgement
is therefore required to
determine revenue that meets
this recognition criteria, and
that significant estimates are
appropriately disclosed.
In addition, there are some
downstream claims against
subcontractors, designers,
and insurers which are only
recognised once they are
considered to be virtually
certain of recovery, in
accordance with IAS 37
– Provisions, Contingent
Liabilities and Contingent
Assets. Once the recognition
criteria is considered to be
met, significant judgement
is required to determine the
amounts to be recognised.
Control Environment
We obtained an understanding of and evaluated management’s processes and controls
for ensuring construction contracts with customers meet the requirements of IFRS 15.
We evaluated the design and implementation, and tested operating effectiveness, of the
key controls over revenue, profit margin, costs to complete and stage of completion on
construction contracts.
Contract Selection
We focused our work on the contracts we considered to have the greatest estimation
uncertainty, identified using a number of selection criteria including magnitude,
movements in the year, unagreed variations or claims above a determined threshold
or other known issues.
For each of the contracts selected, we carried out the following detailed testing in
relation to contract overview, forecast revenue, forecast costs to complete and stage
of completion:
Contract Overview
We obtained an understanding of the contract, its performance obligations and
performance to date by reviewing the initial contract with the customer and holding
discussions with commercial teams and management, as applicable.
Forecast Revenue
We agreed the contract value included in forecast total revenue to contractual
agreements, supplemental agreements and agreed variations.
For unagreed amounts, we challenged management’s assessment of the expected
recovery of variations, claims and compensation events from customers, to determine
the basis on which the associated revenue was considered to be highly probable of not
reversing. We obtained evidence of historic success rates and evidence of amounts
agreed post year end to support management’s assessment as applicable.
We obtained and reviewed any legal correspondence relating to these claims and
variations and, where necessary, discussed the progress of legal disputes with the
Group’s internal legal team and external legal advisors.
We compared revenue recognised with amounts applied for and amounts certified by
clients. We then understood any difference between these values.
We agreed the amounts received to bank where possible. Where the balance had not
been received into bank, we considered the recoverability of the balance by reviewing
correspondence with the customer.
We re-performed the key calculations behind the margin applied, the stage of completion
and associated profit, and therefore revenue recognised, as well as contract assets
and liabilities.
We assessed the recoverability of contract assets by comparing to the post year end
external certification of the value of work performed, and the payment received post
year end.
We challenged the judgements or estimates made by discussing them with the project
teams as well as senior operational, legal, commercial and financial management.
Independent auditor’s report
continued
Financial statements
131
Annual Report and Financial Statements 2025
Key audit matter
How the scope of our audit addressed the key audit matter
Revenue and profit
recognition for
construction
contracts
(continued)
The Group has to forecast
total costs expected and then
allocate between the amount
incurred on the contract to
the end of the reporting period
and the proportion to complete
in a future periods. The
assessment of the total costs to
be incurred requires estimation.
Having considered the above
we determined that
construction contract revenue
and profit recognition along
with other related contract
balances have an inherently
high degree of estimation
uncertainty with a range of
possible outcomes and hence
we have treated these areas
and the associated disclosures
as a Key Audit Matter.
Forecast costs to complete and stage of completion
We obtained a breakdown of costs to date and forecast costs to complete, agreeing totals
back to the year end cost-value reconciliation (CVR).
We performed a review of forecast costs by type included within the cost-value
reconciliation (CVR) and analysed the stage of completion of each cost type to determine
whether costs are progressing in line with the overall stage of completion. We challenged
management where costs were not in line with our expectations and obtained supporting
documentation as applicable.
We corroborated a sample of forecast costs for significant subcontractor packages to
documentary evidence. Where the subcontractor projected total costs significantly
differed from the total forecast costs in the contract forecast, we challenged management
and obtained supporting evidence for the differences as applicable.
We enquired with commercial Directors on variances between the input method
calculated stage of completion and external certified value. We assessed judgements
and estimates made by the Directors in determining forecast costs and the remaining
contingency on a project, for the possibility of a material misstatement, and obtained
corroborating evidence to support the positions taken.
We compared the percentage of forecast costs that have been procured to the overall
forecast costs and challenged management where there were substantial costs yet
to procure as this presents a greater risk. We corroborated a sample of un-procured
subcontractor costs to documentary evidence.
We challenged the assumptions made by management in respect of estimated recoveries
from subcontractors, designers, and insurers included in the forecast, to determine
whether these could be considered virtually certain of recovery. We obtained evidence
such as signed agreements or the latest correspondence that underpinned management’s
assumptions and also considered the existence of any contradictory evidence.
We discussed with management to understand and challenge other areas of judgement
taken including anticipated completion dates and the impact of any delays, whether there
are any disputes with third parties on the contract and the reason for any movements in
forecasts from tender/prior year to 30 June 2025. We obtained corroborating evidence
for the explanations provided.
We tested a sample of costs incurred in the year and ensured that they had been
accurately recorded and correctly allocated to the relevant project.
We tested a sample of accrued subcontractor costs to the year-end subcontractor
applications and a sample of other accrued costs to applicable supporting documentation.
Other
Where appropriate we reviewed legal correspondence and expert advice obtained
by management in respect of the judgements and estimates and, where necessary,
spoke directly with management’s experts who had provided this advice.
We remained alert for any contradictory evidence or indicators of understatement of
forecast costs or overstatement of revenue while performing our audit procedures,
including site visits, cost testing and payments testing.
We challenged the judgements or estimates made by discussing them with the project
teams as well as senior operational, legal, commercial and financial management.
We performed a stand back review on the key judgements and estimates on each
contract to assess if sufficient appropriate audit evidence had been obtained.
From the latest available contract information post year end, we compared the forecast
out-turn across all contracts to the reported year end positions. We challenged
management on any significant movements and considered whether changes should
be considered in the year end position.
132
Galliford Try
Key audit matter
How the scope of our audit addressed the key audit matter
Revenue and profit
recognition for
construction
contracts
(continued)
Residual Contract Testing
For contracts that didn’t meet the selection criteria, we carried out targeted testing on
a sample basis which included:
obtaining an understanding of the contract and its particulars by obtaining the initial
contract with the customer.
agreeing forecast revenue to contractual agreements, supplemental agreements and
agreed variations.
reconciling revenue recognised with amounts applied for and amounts certified by
clients, agreeing the amounts received to bank. Where the balance had not been
received into bank, we considered the recoverability of the balance by reviewing
correspondence with the customer.
from the specific contract information reviewed for these contracts, we considered
whether there was an indication of greater risk associated with the contract
including delays, significant unagreed variations and un-procured costs for which
we then performed additional procedures from those set out above to address the
identified risk.
Site Visits
We visited a sample of sites across the business. We inspected the physical progress
of the sites and discussed progress with personnel working on the specific sites,
particularly those outside of finance such as individuals in commercial and project
management roles. Where sites were selected for audit testing, we considered whether
the information obtained from the site visit was consistent with the information
obtained from audit testing.
Disclosures
We considered the adequacy of the disclosures in the financial statements in relation
to specific contracts and also the disclosures in respect of significant judgements and
estimates in line with applicable accounting standards.
Key observations
We consider that the estimates and judgements made by management in respect of
construction contract revenue and profit recognition, and the associated disclosures
to be reasonable.
Independent auditor’s report
continued
Financial statements
133
Annual Report and Financial Statements 2025
Key audit matter
How the scope of our audit addressed the key audit matter
Defects liability
provision in relation
to a legacy
infrastructure contract
Note 1 on page 144 to
the financial statements
gives further detail
regarding the estimates
and judgements made by
the Group in this regard.
Note 1 on page 146 to
the financial statements
provides the accounting
policy for provisions.
Refer to Note 20 in
relation to provisions.
The Group regularly enters
into construction contracts
which include defect
rectification warranty periods
which are typically up to three
years in length. A provision
is established to cover the
expected cost of rectification
work and is utilised as defects
are identified and works
are performed.
Included within the rectification
provision of £47.6m at
30 June 2025 is a provision of
£13.1m in respect of a single
infrastructure contract, which
the Group delivered as part of
a joint arrangement with two
other contractors, where the
total defects obligation period
under the contract is twelve
years. As at 30 June 2025, there
were 6 years of the primary
defect obligation remaining.
Given the length of the defect
period in comparison to those
typically entered into by the
Group, and the associated
assumptions that management
has made in estimating the
provision, there is a high degree
of estimation uncertainty
associated with this provision.
The estimation uncertainty and
assumptions required may also
impact the Directors ability
to make a reliable estimate of
the provision and, therefore,
whether the IAS 37 ‘Provisions,
Contingent Liabilities and
Contingent Assets’ recognition
criteria are met, or alternatively,
whether it should be disclosed
as a contingent liability.
In addition, in deriving the
estimate, the Directors have
used a panel of experts (external
and internal), who identified,
a potential range of outcomes,
being £7.3m to £19.2m, which
is greater than our materiality
for the financial statements
as a whole. Therefore, we
considered this provision to
be a key audit matter.
We obtained management’s assessment paper on whether the recognition criteria of
IAS 37 were met and whether a provision should be recognised in respect of this contract.
We assessed this against the requirements of IAS 37. As part of our assessment we
validated the existence of the legal obligations with respect to the defect requirements
through reviewing key terms of the contract.
We also obtained a report prepared by management’s expert as to whether the
recognition criteria were met. We assessed their competence and objectivity by
examining the work they were required to perform and their professional qualifications
and experience. We considered whether their assessment provided any contradictory
evidence to management’s own assessment as well as our own.
We obtained an understanding of and assessed management’s process for the
quantification of the provision, including:
the analysis of specific cost estimates for known, identified rectification works; and
the estimation of lifetime costs expected during the defect period.
We challenged management’s assessment of expected lifetime costs, and therefore the
remaining provision for yet to be identified defects, prepared by drawing information
from a panel of experts.
We evaluated the competence, objectivity and sufficiency of management’s panel
of experts that were utilised in the estimation of expected lifetime costs and the resulting
provision by examining the work they performed, their professional qualifications
and experience.
We met with management’s panel of experts (both external and internal) to corroborate
and understand the basis of opinions given, including understanding any contradictory
evidence, and discussed certain assumptions made by management with them. We
also sought additional sources of evidence. We used this to form our own expectations
of defects incurred on similar types of contracts and assessed whether management’s
assessment was within this range.
In assessing the appropriateness of cost estimates, we assessed if the costs underpinning
the accounting provision represent management’s and the experts best estimate of
expected expenditure, based on the current extent of defect expenditure incurred as
well as any known risks identified but not yet remediated.
We considered the expenditure on defects to date. Though independent research and
enquires with managements panel of experts we considered the potential timing and
value of defect costs over the contractual defect period. We used this information to
estimate expected lifetime costs for expenditure and considered whether this provided
any contradictory evidence to the provision recorded by management.
We assessed the integrity of formulae and mathematical accuracy of management’s
calculations for the various elements of the provision.
We considered the adequacy of the disclosures made, with particular focus on the range
of potential outcomes and areas of estimation uncertainty and challenged management in
regard to their proposed disclosures against the requirements of the applicable standards.
Key observations:
We consider the estimates, judgements and associated disclosures made by management
in respect of the estimation of the provision to be reasonable.
134
Galliford Try
Our application of materiality
We apply the concept of materiality both in planning and performing
our audit, and in evaluating the effect of misstatements. We consider
materiality to be the magnitude by which misstatements, including
omissions, could influence the economic decisions of reasonable
users that are taken on the basis of the financial statements.
In order to reduce to an appropriately low level the probability that
any misstatements exceed materiality, we use a lower materiality level,
performance materiality, to determine the extent of testing needed.
Importantly, misstatements below these levels will not necessarily be
evaluated as immaterial as we also take account of the nature of identified
misstatements, and the particular circumstances of their occurrence,
when evaluating their effect on the financial statements as a whole.
Based on our professional judgement, we determined materiality for the financial statements as a whole and performance materiality as follows:
Group financial statements
Company financial statements
2025
£m
2024
£m
2025
£m
2024
£m
Materiality
5.7
5.2
3.0
2.9
Basis for determining
materiality
0.30% of revenue
0.30% of revenue
1% of total assets
1% of total assets
Rationale for the
benchmark applied
As the Group continues to be profitable, we have
considered what would be a stable basis of operations
and have benchmarked to peers’ materiality as
a proportion of revenue.
Based on this we have set Group materiality at
0.30% (2024: 0.30%) of Group revenue.
We have set Company materiality at the lower of
1% (2024: 1%) of total assets and 95% (2024: 95%)
of Group materiality.
We chose total assets as the benchmark as the Company
does not trade and we believe this to be of most interest
to the users of the financial statements.
Performance materiality
3.6
3.4
1.9
1.9
Basis for determining
performance materiality
On the basis of our risk assessment, together with our assessment of the Group’s and Company’s overall control
environment and history of adjustments, our judgement was that overall performance materiality of the Group and
Company should be set at 62.5% (2024: 65%) of materiality.
Rationale for the
percentage applied for
performance materiality
We determined performance materiality based on our risk assessment procedures, together with our assessment
of the Group’s and Company’s overall control environment, the number of components and the history of audit
adjustments identified in the previous audits.
Component performance materiality
For the purposes of our Group audit opinion, we set performance
materiality for each component of the Group, apart from the Company
whose materiality and performance materiality are set out above,
based on a percentage of between 66% and 95% (2024: 15% and 81%)
of Group performance materiality dependent on a number of factors
including size and our assessment of the risk of material misstatement
of those components. Component performance materiality ranged
from £2.3m to £3.5m (2024: £0.8m to £4.2m).
Reporting threshold
We agreed with the Audit Committee that we would report to them all
individual audit differences in excess of £282,000 (2024: £260,000).
We also agreed to report differences below this threshold that, in our
view, warranted reporting on qualitative grounds.
Other information
The Directors are responsible for the other information. The other
information comprises the information included in the document
entitled the Annual Report and Financial Statements 2025 other than
the financial statements and our auditor’s report thereon. Our opinion
on the financial statements does not cover the other information and,
except to the extent otherwise explicitly stated in our report, we do not
express any form of assurance conclusion thereon. Our responsibility is
to read the other information and, in doing so, consider whether the other
information is materially inconsistent with the financial statements or
our knowledge obtained in the course of the audit, or otherwise appears
to be materially misstated. If we identify such material inconsistencies or
apparent material misstatements, we are required to determine whether
this gives rise to a material misstatement in the financial statements
themselves. If, based on the work we have performed, we conclude that
there is a material misstatement of this other information, we are required
to report that fact.
We have nothing to report in this regard.
Independent auditor’s report
continued
Financial statements
135
Annual Report and Financial Statements 2025
Corporate governance statement
The UK Listing Rules require us to review the Directors’ statement
in relation to going concern, longer-term viability and that part of the
Corporate Governance Statement relating to the Company’s compliance
with the provisions of the UK Corporate Governance Code specified
for our review.
Based on the work undertaken as part of our audit, we have concluded
that each of the following elements of the Corporate Governance
Statement is materially consistent with the financial statements or
our knowledge obtained during the audit.
Going concern
and longer-term
viability
The Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material
uncertainties identified set out on page 125;
The Directors’ explanation as to their assessment of the Group’s prospects, the period this assessment covers and why the period is
appropriate set out on page 75; and
The Directors’ statement on whether they have a reasonable expectation that the Group will be able to continue in operation and
meet its liabilities set out on page 75.
Other Code
provisions
Directors’ statement on fair, balanced and understandable set out on page 103;
Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 58;
The section of the Annual Report and Financial Statements that describes the review of effectiveness of risk management and
internal control systems set out on page 102; and
The section describing the work of the audit committee set out on page 100.
Other Companies Act 2006 reporting
Based on the responsibilities described below and our work performed during the course of the audit, we are required by the Companies Act 2006 and
ISAs (UK) to report on certain opinions and matters as described below.
Strategic report
and Directors’
report
In our opinion, based on the work undertaken in the course of the audit:
the information given in the Strategic report and the Directors’ report for the financial year for which the financial statements
are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and Company and its environment obtained in the course of the audit,
we have not identified material misstatements in the Strategic report or the Directors’ report.
Directors’
remuneration
In our opinion, the part of the Directors’ remuneration report to be audited has been properly prepared in accordance with the
Companies Act 2006.
Matters on
which we
are required
to report by
exception
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to
you if, in our opinion:
adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from
branches not visited by us; or
the Company financial statements and the part of the Directors’ remuneration report to be audited are not in agreement with
the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
Responsibilities of Directors
As explained more fully in the Statement of directors’ responsibilities,
the Directors are responsible for the preparation of the financial
statements and for being satisfied that they give a true and fair view,
and for such internal control as the Directors determine is necessary
to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for
assessing the Group’s and the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either
intend to liquidate the Group or the Company or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the
financial statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of these
financial statements.
136
Galliford Try
Independent auditor’s report
continued
Extent to which the audit was capable of detecting irregularities,
including fraud
Irregularities, including fraud, are instances of non-compliance with laws
and regulations. We design procedures in line with our responsibilities,
outlined above, to detect material misstatements in respect of
irregularities, including fraud. The extent to which our procedures are
capable of detecting irregularities, including fraud is detailed below:
Non-compliance with laws and regulations
Based on:
Our understanding of the Group and the industry in which it operates;
Discussion with management, those charged with governance,
internal legal counsel and the Audit Committee; and
Obtaining an understanding of the Group’s policies and procedures
regarding compliance with laws and regulations;
we considered the significant laws and regulations to be, but not limited
to, the Companies Act 2006, the UK Listing Rules, Corporate tax and
VAT legislation.
The Group is also subject to laws and regulations where the consequence
of non-compliance could have a material effect on the amount or
disclosures in the financial statements, for example through the
imposition of fines or litigations. We identified such laws and regulations
to be the health and safety legislation, data protection legislation,
employment law, the Fire Safety Act 2021 and the Building Safety
Act 2022.
Our procedures in respect of the above included:
Review of minutes of meetings of those charged with governance
for any instances of non-compliance with laws and regulations;
Review of correspondence with regulatory and tax authorities for
any instances of non-compliance with laws and regulations;
Review of financial statement disclosures and agreeing to
supporting documentation;
Involvement of tax specialists in the audit; and
Review of legal expenditure accounts to understand the nature of
expenditure incurred.
Fraud
We assessed the susceptibility of the financial statements to material
misstatement, including fraud. Our risk assessment procedures included:
Enquiry with management and those charged with governance
including the Audit Committee, as well as internal audit regarding
any known or suspected instances of fraud;
Obtaining an understanding of the Group’s policies and procedures
relating to:
–
Detecting and responding to the risks of fraud; and
–
Internal controls established to mitigate risks related to fraud.
Review of minutes of meetings of those charged with governance
for any known or suspected instances of fraud;
Discussion amongst the engagement team as to how and where
fraud might occur in the financial statements;
Performing analytical procedures to identify any unusual or
unexpected relationships that may indicate risks of material
misstatement due to fraud; and
Considering remuneration incentive schemes and performance
targets and the related financial statement areas impacted by these.
Based on our risk assessment, we considered the areas most susceptible
to fraud to be management override of controls that are otherwise
operating effectively through inappropriate journal entries, existence
of revenue recognition over construction contracts and bias in
key estimates.
Our procedures in respect of the above included:
Involvement of forensic specialists in the fraud risk assessment
procedures;
Testing journal entries throughout the year which met defined
risk criteria by agreeing to supporting documentation;
Assessing whether there was evidence of bias by the Directors
within the significant judgements and estimates,
Testing a sample of contracts for accuracy of estimation where
revenue is recognised over time (refer to KAMs above); and
An element of unpredictability in our audit procedures, we sampled
journal entries throughout the year, which did not meet the defined
risk criteria and agreed this to supporting documentation.
We also communicated relevant identified laws and regulations and
potential fraud risks to all engagement team members who were all
deemed to have appropriate competence and capabilities and remained
alert to any indications of fraud or non-compliance with laws and
regulations throughout the audit.
Our audit procedures were designed to respond to risks of material
misstatement in the financial statements, recognising that the risk of
not detecting a material misstatement due to fraud is higher than the
risk of not detecting one resulting from error, as fraud may involve
deliberate concealment by, for example, forgery, misrepresentations or
through collusion. There are inherent limitations in the audit procedures
performed and the further removed non-compliance with laws and
regulations is from the events and transactions reflected in the financial
statements, the less likely we are to become aware of it.
A further description of our responsibilities is available on the Financial
Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.
This description forms part of our auditor’s report.
Use of our report
This report is made solely to the Company’s members, as a body, in
accordance with Chapter 3 of Part 16 of the Companies Act 2006.
Our audit work has been undertaken so that we might state to the
Parent Company’s members those matters we are required to state
to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to
anyone other than the Company and the Company’s members as a body,
for our audit work, for this report, or for the opinions we have formed.
Peter Latham
(Senior Statutory Auditor)
For and on behalf of BDO LLP, Statutory Auditor
London, UK
17 September 2025
BDO LLP is a limited liability partnership registered in England and Wales
(with registered number OC305127).
Financial statements
137
Annual Report and Financial Statements 2025
Notes
2025
£m
2024
Restated
(note 34)
£m
Revenue
3
Cost of sales
(1,723.7 )
(1,644.0 )
Gross profit
Administrative expenses
(111.8 )
(106.7 )
Operating profit
Finance income
6
Finance costs
6
(4.5 )
(3.4 )
Profit before income tax
7
Income tax (expense)/credit
1
8
(10.5 )
Profit for the year
Earnings per share
Basic
Profit attributable to ordinary shareholders
10
Diluted
Profit attributable to ordinary shareholders
10
1
The tax credit in 2024 relates to exceptional items as explained in note 4.
The notes are an integral part of the consolidated financial statements.
Consolidated income statement
for the year ended 30 June 2025
138
Galliford Try
Consolidated statement of comprehensive income
for the year ended 30 June 2025
Notes
2025
£m
2024
Restated
(note 34)
£m
Profit for the year
Other comprehensive expense:
Items that may be reclassified subsequently to profit or loss
Movement in fair value of PPP and other investments
16
(1.9 )
(1.5 )
Total items that may be reclassified subsequently to profit or loss
(1.9 )
(1.5 )
Other comprehensive expense for the year net of tax
(1.9 )
(1.5 )
Total comprehensive income for the year
The notes are an integral part of the consolidated financial statements.
Financial statements
139
Annual Report and Financial Statements 2025
Balance sheets
Notes
Group
Company
30 June 2025
£m
30 June 2024
Restated
(note 34)
£m
30 June 2025
£m
30 June 2024
£m
Assets
Non-current assets
Intangible assets
11
–
–
Goodwill
12
–
–
Property, plant and equipment
13
–
–
Right-of-use assets
14
–
–
Investments in subsidiaries
15
189.7
189.2
PPP and other investments
16
–
–
Deferred income tax assets
22
0.7
0.4
Total non-current assets
190.4
189.6
Current assets
Trade and other receivables
17
–
–
Current income tax assets
–
–
Cash and cash equivalents
18
113.5
110.0
Total current assets
113.5
110.0
Total assets
303.9
299.6
Liabilities
Current liabilities
Trade and other payables
19
(609.1 )
(621.3 )
–
–
Lease liabilities
14
(22.7 )
(20.5 )
–
–
Provisions for other liabilities and charges
20
(48.6 )
(36.2 )
–
–
Total current liabilities
(680.4 )
(678.0 )
–
–
Non-current liabilities
Lease liabilities
14
(31.1 )
(32.5 )
–
–
Total non-current liabilities
(31.1 )
(32.5 )
–
–
Total liabilities
(711.5 )
(710.5 )
–
–
Net assets
303.9
299.6
Equity
Share capital
24
51.1
52.0
Share premium
24
1.6
0.8
Other reserves
26
137.7
136.4
Retained earnings
26
(68.3 )
(75.6 )
113.5
110.4
Total equity attributable to owners of the Company
303.9
299.6
The profit for the Parent Company for the year was £30.1m (2024: £23.3m).
The notes are an integral part of the consolidated financial statements.
Bill Hocking
Kris Hampson
Galliford Try Holdings plc
Chief Executive
Registered number: 12216008
140
Galliford Try
Notes
Ordinary
shares
£m
Share
premium
£m
Other
reserves
£m
Retained
earnings
£m
Total
shareholders’
equity
£m
Consolidated statement
At 1 July 2023
(69.1 )
Profit for the year – restated (note 34)
Other comprehensive expense
(1.5 )
(1.5 )
Total comprehensive income for the
year – restated (note 34)
Transactions with owners:
Dividends
9
(24.2 )
(24.2 )
Purchase of own shares
(12.0 )
(12.0 )
Share-based payments
25
Tax relating to share-based payments
Issue of shares
24
Cancellation of shares
24, 26
(1.1 )
At 30 June 2024 – restated (note 34)
(75.6 )
Profit for the year
Other comprehensive expense
(1.9 )
(1.9 )
Total comprehensive income for the year
Transactions with owners:
Dividends
9
(17.5 )
(17.5 )
Purchase of own shares
(12.3 )
(12.3 )
Share-based payments
25
Tax relating to share-based payments
Issue of shares
24
Cancellation of shares
24, 26
(1.3 )
At 30 June 2025
(68.3 )
Company statement
At 30 June 2023
52.4
–
135.3
115.0
302.7
Profit for the year
–
–
–
23.3
23.3
Total comprehensive income
–
–
–
23.3
23.3
Transactions with owners:
Dividends
9
–
–
–
(24.2)
(24.2)
Share-based payments
25
–
–
–
0.7
0.7
Purchase of own shares
–
–
–
(4.4)
(4.4)
Issue of shares
24
0.7
0.8
–
–
1.5
Cancellation of shares
24, 26
(1.1)
–
1.1
–
–
At 30 June 2024
52.0
0.8
136.4
110.4
299.6
Profit for the year
–
–
–
30.1
30.1
Total comprehensive income
–
–
–
30.1
30.1
Transactions with owners:
Dividends
–
–
–
(17.5)
(17.5)
Share-based payments
25
–
–
–
0.5
0.5
Purchase of own shares
–
–
–
(10.0)
(10.0)
Issue of shares
24
0.4
0.8
–
–
1.2
Cancellation of shares
24, 26
(1.3)
–
1.3
–
–
At 30 June 2025
51.1
1.6
137.7
113.5
303.9
Consolidated and Company statements of changes in equity
for the year ended 30 June 2025
Financial statements
141
Annual Report and Financial Statements 2025
Statements of cash flows
for the year ended 30 June 2025
Notes
Group
Company
2025
£m
2024
Restated
(note 34)
£m
2025
£m
2024
£m
Cash flows from operating activities
Profit for the year
30.1
23.3
Adjustments for:
Income tax expense/(credit)
8
(8.2 )
(0.3)
(0.4)
Net finance income
6
(4.4 )
(6.2 )
–
–
Profit before finance costs and taxation
29.8
22.9
Depreciation, amortisation and impairment of non-current assets
11, 13 & 14
–
–
Dividends received from subsidiary undertakings
(29.8)
(22.9)
Share-based payments
25
–
–
Other non-cash movements
(0.4 )
–
–
Net cash generated from operations before changes in working capital
–
–
Increase in trade and other receivables
17
(14.3 )
(84.5 )
–
–
(Decrease)/increase in trade and other payables
19
(12.2 )
–
–
Increase in provisions
20
–
–
Net cash generated from operations
–
–
Interest received
–
–
Interest paid
(4.5 )
(3.4 )
–
–
Income tax received/(paid)
(0.5 )
–
–
Net cash generated from operating activities
–
–
Cash flows from investing activities
(Increase)/decrease in amounts due from joint ventures
(6.1 )
–
–
PPP loan repayments
16
–
–
Acquisition of business combinations, net of cash acquired
30
(3.5 )
–
–
Dividends received from subsidiary undertakings
29.8
22.9
Proceeds from disposal of subsidiaries
–
–
Acquisition of property, plant and equipment
13
(2.4 )
(1.0 )
–
–
Net cash (used)/generated from investing activities
(5.3 )
(1.3 )
29.8
22.9
Cash flows from financing activities
Repayment of lease liabilities
14
(21.2 )
(16.7 )
–
–
Purchase of own shares
26
(12.3 )
(8.7 )
(10.0)
(4.4)
Dividends paid to Company shareholders
9
(17.5 )
(24.2 )
(17.5)
(24.2)
Net proceeds from issue of ordinary share capital
1.2
1.5
Net cash used in financing activities
(49.8 )
(48.1 )
(26.3)
(27.1)
Net increase/(decrease) in cash and cash equivalents
3.5
(4.2)
Cash and cash equivalents at 1 July
18
110.0
114.2
Cash and cash equivalents at 30 June
18
113.5
110.0
Notes to the financial statements
142
Galliford Try
incorporated, listed and domiciled in the UK , and registered under
the laws of England and Wales . The address of the registered office is
its listing on the London Stock Exchange.
is the currency of the primary economic environment in which the
The consolidated and Company financial statements have been prepared
on a going concern basis. The Group’s business activities, together
with the factors likely to affect its future development, performance
and position are set out in the Viability Statement (on page 75 and the
Strategic Report.
As at 30 June 2025, the Group had substantial cash balances, no loan
payable, and a strong forward secured order book. The directors regularly
review the working capital requirements of the Group while considering
downside sensitivities.
The Group’s forecasts have been prepared in the context of the current
economic conditions and additionally, the directors have considered
a range of downside sensitivities (as discussed in detail in the Viability
Statement on page 75). Even in the severe but plausible downside
scenario, the Group is forecast to continue to meet its obligations and
remain cash positive for a period of at least 12 months from the date
the financial statements are authorised for issue.
After making enquiries and considering the factors and sensitivities
outlined above for a range of scenarios, the directors have a reasonable
expectation that the Group has adequate resources to continue in
operational existence for the foreseeable future being a period of at least
12 months from the date the financial statements are authorised for issue.
Thus, they continue to adopt the going concern basis of accounting in
statements and the Company financial statements have been prepared
in accordance with UK-adopted International Accounting Standards and
with the requirements of the Companies Act 2006, under the historical
cost convention, as modified by the revaluation of PPP and other
first time in this set of financial statements are listed below:
Amendments to IAS 1, Presentation of financial statements on
Non-current liabilities with covenants
Amendment to IAS 7 and IFRS 7 – Supplier finance arrangements
Amendment to IFRS 16 Leases – Leases on sale and leaseback
These standards have been assessed to have no significant impact
on the Group as they are either not relevant to the Group’s activities
or require accounting which is consistent with the Group’s previous
are not yet effective or have not been endorsed. The Group has chosen
not to adopt these early. These may however have an effect on the
Group’s future financial statements:
IFRS 18 Presentation and Disclosure in Financial Statements
Amendments to IAS 21 to clarify the accounting when there is a lack
of exchangeability
Amendment to IFRS 9 and IFRS 7 – Classification and Measurement
of Financial Instruments
Annual improvements to IFRS – Volume 11
Other than IFRS 18 which will change the presentation of the primary
The Group financial statements incorporate the results of Galliford Try
Holdings plc, its subsidiary undertakings and the Group’s share of the
results of joint arrangements. Subsidiaries are all entities over which
the Group has control. The exposure or right to variable returns from its
involvement with an investee, and the ability to influence those returns,
are considered when assessing whether the Group controls another
entity. Subsidiaries are fully consolidated from the date on which control
is transferred to the Group, until the date that control ceases.
The acquisition method of accounting is used to account for the
acquisition of a business by the Group. The cost of an acquisition is
measured at the fair value of the assets transferred, equity instruments
issued and liabilities incurred or assumed at the date of exchange. Costs
directly attributable to the acquisition are expensed to the income
statement. The identifiable assets acquired and liabilities and contingent
liabilities assumed in the business combination are measured initially at
their fair values at the acquisition date, irrespective of any non-controlling
interest. The excess of cost of acquisition over the fair value of the Group’s
share of the identifiable net assets acquired is recorded as goodwill. If the
fair value of the Group’s share of the identifiable net assets is in excess of
the cost of the acquisition, the gain on bargain purchase is recognised as
a credit through the income statement.
Inter-company transactions, balances and unrealised gains on
transactions between Group companies are eliminated. Unrealised
losses are also eliminated but considered an impairment indicator of
the asset transferred. Accounting policies of acquired subsidiaries are
changed where necessary, to ensure consistency with policies adopted
by the Group.
In addition to total performance measures, the Group discloses additional
information including adjusted performance and adjusted earnings
per share. The Group believes that this additional information provides
useful information on underlying trends. This additional information is
not defined under international accounting standards and may therefore
not be comparable with similarly titled profit measures reported by
other companies. It is not intended to be a substitute for, or superior to,
international accounting standards measures of profit.
The Company has elected to take the exemption under section 408 of
the Companies Act 2006 to not present the Parent Company income
Financial statements
143
Annual Report and Financial Statements 2025
1 Accounting policies
continued
As reported in the TCFD disclosures on page 63, and the principal risks
starting on page 59, the directors, in preparing the financial statements,
have considered the risks and potential impact of climate change to the
Group. It is unlikely that these risks will have a material financial impact
in the short (between one and two years) and medium term (between
three to ten years), particularly given the nature of the contractual
arrangements in place.
There has been no material impact identified on the financial reporting
judgements and estimates. The Directors considered the impact of
climate change in respect of the following principal areas:
contract judgements made on the Group’s construction contracts;
going concern and viability of the Group over the next three years;
cash flow forecasts used in the impairment assessments of non-
current assets including the intangible assets and goodwill; and
carrying value and useful economic lives of property, plant
and equipment.
As current legislation stands, there is no material impact expected
from climate change. The Directors are however aware of the
ever-changing risks attached to climate change and will continue to
monitor this, particularly regarding any judgements on construction
contracts, impairment reviews and going concern in preparation of
The preparation of the consolidated financial statements requires
management to make judgements, estimates and assumptions that affect
the application of policies and reported amounts of assets, liabilities,
income and expenses. Critical judgements are those management has
made when applying its material accounting policies, whereas critical
estimates are assumptions and estimates made at the end of the reporting
period that have a significant risk of resulting in a material adjustment to
the carrying amounts of assets and liabilities within the next financial year.
The estimates, judgements and associated assumptions are based on
historical experience and various other factors that are believed to be
reasonable under the circumstances, the results of which form the basis
of making estimates and judgements about the carrying value of assets
and liabilities which are not readily apparent from other sources. Actual
results may differ from these estimates and judgements. The estimates,
judgements and underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates and judgements are recognised
in the period in which the estimate or judgement is revised if the revision
affects only that period, or in the period of revision and future periods if
the revision affects both current and future periods.
Material estimates and judgements are made in particular with regards
to establishing the following policies:
(i) Revenue and profit recognition for long-term contract accounting
(judgement and estimate)
In order to determine the profit and loss that the Group is able to
recognise on its construction contracts in a specific period, the Group has
to estimate the outcome of both the total costs to complete the contract
as well as the final contract value. The Group has to allocate total costs
of the construction contracts between the amount incurred on the
contract to the end of the reporting period and the proportion to
complete in a future period. The assessment of the total costs to be
incurred and final contract value requires a degree of estimation.
Contract modifications are recognised when the Group considers they
have been approved (which also includes consideration of whether
enforceable rights exist in the contract). The estimation of final contract
value includes the assessment of the recovery of variations, claims and
compensation events (contract modifications). The estimate made is
constrained in accordance with IFRS 15 so that it is highly probable not to
result in a significant reversal of revenue in the future. Where the change
in scope results in an increase to the work to be performed that is distinct
and reflects the stand-alone selling price of the distinct good/service, it is
treated as a separate contract. This is assessed on a contract specific basis.
The Group recognises recoveries of claims from clients as revenue where
clear entitlement has been established which can require judgement, such
as through dispute-resolution processes. This includes the recovery of
costs (such as delays to the contract programme) to the extent it is highly
probable not to result in a significant reversal of revenue in the future.
The estimation of costs to complete is based on all available relevant
information such as procured packages and management experience
and includes estimation of final accounts and any potential maintenance
and defect liabilities. Recoveries resulting from actual or potential claims
against subcontractors are accounted for in accordance with IAS 37 and
are recognised only when they meet the virtually certain threshold.
Group management has established internal controls to review and
ensure the appropriateness of estimates made on an individual contract
basis, including any necessary contract provisions. As with most large,
complex construction projects, there is an element of estimation
uncertainty over costs to complete and final account settlements.
This is, however, reduced by the experience of the management team
and the controls that we have in place. The settlement of these final
accounts may give rise to an over or under-recognition of profit or loss
and associated cash flows, which could be material.
As at 30 June 2025, the Group’s contract assets, contract liabilities
and contract provisions amounted to £295.9m, £124.7m, and £48.6m
(2024 restated: £290.5m, £131.3m and £36.2m) respectively as set
out in Notes 17, 19 and 20. The Group has considered the nature of
the estimates involved in deriving these balances and concluded that
it is possible, on the basis of existing knowledge, that outcomes within
the next financial year may be different from the Group’s assumptions
applied as at 30 June 2025 and could require a material adjustment to the
carrying amounts of these assets and liabilities in the next financial year.
However, due to the level of uncertainty, combination of cost and income
variables and timing across the Group’s large portfolio of contracts at
different stages of their contract life, it is impracticable to provide a
quantitative analysis of the aggregated judgements that are applied
at a portfolio level.
The Group’s five largest unagreed variations and claims positions at the
year-end are summarised in aggregate below.
2025 |
2024 |
|
£m |
£m |
|
Overall contract value (including total |
||
estimated end of contract variations |
||
and claims) |
506.0 |
689.5 |
Revenue in the year |
170.9 |
149.2 |
Total estimated end of contract |
||
variations and claims |
90.2 |
72.8 |
Notes to the financial statements
continued
144
Galliford Try
1 Accounting policies
continued
These five positions represent the most significant estimates of
revenue. The total estimated end of contract variations and claims of
the subsequent five largest positions is £26.9m (2024: £17.4m).
These items include estimation uncertainty, with a range of reasonably
possible outcomes of £90.2m to £121.3m (2024: £72.8m to £130.2m).
In respect of contract assets of £295.9m (30 June 2024 restated:
£290.5m) and in assessing receivable provisions calculated on an
expected loss basis, the Group has recorded a provision of £nil
(2024: £nil).
It is unclear whether the outstanding uncertainties will be resolved
within the next 12 months.
(ii) Rectification provision – Infrastructure contract (judgement
and estimate)
The Group regularly engages in contracts with general or defect warranty
rectification requirements, typically less than 3 years. Within the pool of
open warranty period contracts, the Group built, as part of joint operation
with two other partners, a single infrastructure scheme under a contract
that included various defect warranty obligations, with the longest
obligation lasting up to 12 years. At 30 June 2025, there remained 6 years
(2024: 7 years) of the longest warranty liability period remaining.
This is the only contract the Group has that has a general defect warranty
period of this length. The contractual nature of the defect warranty
liability and the completion of the scheme are the obligating events and
the Group, as part of the joint operation, has remediated items since
completion and has other known issues ongoing that will likely result in
future cash outflows, though the timing and quantum remain uncertain.
The Group also believes that there will be further unknown but probable
cash outflows relating to as yet unknown items as scheduled inspections
of various structural elements of the scheme are completed that have
a potentially material range of outcomes. Management has applied
judgement in assessing whether the criteria for recognising a provision
under IAS 37 has been met.
The Group has provided £13.1m (2024: £14.6m) against future defect
costs and this represents management’s best estimate of potential future
payments associated with the warranty rectification responsibilities.
The provision requires a limited number of significant estimates and
assumptions by management, with a significant level of estimation risk
as a result arising from the level of defects and associated cost that
may arise. Management estimates the reasonable range of estimates
to be between £7.3m and £19.2m (2024: £7.3m and £17.5m) at 30 June
2025. During the year £0.1m and £1.3m (2024: £0.1m and £2.3m) of the
opening provision of £14.6m (2024: £16.9m) was utilised and released
respectively, with additions of £0.0m (2024: £0.1m) made in the year.
Management has sought input from external experienced industry figures
and industry bodies to support the provision it has made but the outcome
will depend on actual experience and defects arising.
(iii) Exceptional items (judgement)
Exceptional items are items of financial performance which the
Group believes should be presented separately on the face of the
income statement, to assist in understanding the underlying financial
performance achieved by the Group. Determining whether an item is
exceptional requires judgement. Details of exceptional items included
in the financial statements are included in note 4. The exceptional items
meet the Group’s definition of exceptional, being significant irregular
income and/or expense, that the Group believes assists the users of
the accounts by disclosing separately. There were no exceptional items
during the year ended 30 June 2025.
Other accounting estimates
The Consolidated Financial Statements include other areas of accounting
estimates that do not meet the definition of significant accounting
estimates or accounting judgements under IAS 1. The recognition and
measurement of certain material assets and liabilities are based on
assumptions and/or are subject to longer-term uncertainties as follows:
(i) PPP and other investments measured at fair value through other
comprehensive income (estimate)
At 30 June 2025, £38.6m (2024: £41.8m) of PPP and other investments
were classified as financial assets measured at fair value through other
comprehensive income. In the operational phase, the fair value of these
financial assets is measured at each reporting date by discounting the
future value of the cash flows allocated to the financial asset. Individual
discount rates have been used which equate to an overall blended
discount rate of 7.9% (2024: 7.6%), which reflects the rates typically
experienced in the marketplace. A 0.5% increase/reduction in the
discount rate would result in a corresponding decrease/increase in the
value of the investments recorded in the balance sheet of approximately
Material accounting policies
Exceptional items are significant irregular items of income and/or expense
including taxation which the Group believes should be separately
disclosed in the income statement, to assist in understanding the
underlying financial performance achieved by the Group, by virtue of
their nature or size. Examples of items which may give rise to disclosure as
exceptional items include gains and losses on the disposal of businesses
and property, plant and equipment, significant unanticipated losses on
contracts, cost of restructuring and reorganisation of businesses, cost of
The Group’s reporting segments are based on the types of services
provided. Operating segments with similar economic characteristics have
been aggregated into reportable segments which reflect the nature of
the services provided by the Group. The business segmental reporting
reflects the Group’s management and internal reporting structure.
Segmental results include items directly attributable to the segment,
Revenue is recognised when the Group transfers control of goods
or services to customers. Revenue comprises the fair value of the
consideration received or receivable net of rebates, discounts and
value-added tax. Where consideration is subject to variability, the Group
estimates the amount receivable based on the most likely amount.
Typically, the main factor that impacts the revenue constraint is the
Group’s experience with similar modifications and previous negotiations/
historical success with the same client. Where there is a limited history
of success, the constraint applied is typically greater. This assessment is
carried out on a contract specific basis. Revenue recognised is constrained
to the amount which is highly probable not to result in a significant
reversal in future periods. The Group also assesses whether the costs
incurred on a project depict an appropriate measure of progress, and
constrain revenue accordingly.
Intercompany revenue is eliminated. Revenue also includes the Group’s
proportion of work carried out under joint operations.
Where a modification to an existing contract occurs, the Group assesses
the nature of the modification and whether it represents a separate
performance obligation required to be satisfied or whether it is a
modification to the existing performance obligation.
Financial statements
145
Annual Report and Financial Statements 2025
1 Accounting policies
continued
Revenue for the Group’s continuing operations is recognised as follows:
Construction services
Revenue comprises the value of construction services transferred
to a customer during the period. The results for the period include
adjustments for the outcome of contracts, including jointly controlled
operations, executed in both the current and preceding years.
Fixed price contracts – the amount of revenue recognised is calculated
based on total costs incurred as a proportion of total estimated costs
to complete (input method), applied to the estimated final value and
is recognised over time. The estimated final value includes variations,
compensation events and certain claims (contract modifications) where
it is highly probable that there will not be a significant reversal. Provision
will be made against any expected loss as soon as it is identified. The
Group also recognises revenue over time on the output method based
on payments from customers on a contractual schedule of value that
reflects the timing and performance of service delivery (reference to
milestone reached, units delivered or work certified).
Cost-reimbursable contracts – revenue is recognised based upon costs
incurred to date plus any agreed fee and is recognised over time. Where
contracts include a target price, consideration is given to the impact on
revenue of the mechanism for distributing any savings or additional
costs compared to the target price. Any revenue over and above the
target price, which could include variations and compensation events,
is recognised once it is highly probable that there will not be a significant
reversal in the future.
Facilities management – management services and facilities management
contracts typically represent a single performance obligation. Revenue
is recognised over time as control passes to the customer and is typically
measured on a straight-line basis as this is considered to be a reliable
estimate of the pattern of transfer to the customer.
Recoveries from claims against third parties
The recognition of expected reimbursements resulting from certain
third-party claims such as against the supply chain or through insurance
recoveries is accounted for in accordance with IAS 37 Provisions,
Contingent Liabilities and Contingent Assets. This requires recovery
Grants (including research and development expenditure credits) are
recognised when there is reasonable assurance that the Group will
comply with the conditions attaching to them and the grants will be
received. The grants are recognised in the income statement over the
periods necessary to match them with the related costs which they are
Finance income and cost is recognised on a time proportion basis,
using the effective interest method. Finance cost also includes the
Current income tax is based on the taxable profit for the year. Taxable
profit differs from profit before taxation recorded in the income
statement because it excludes items of income or expense that are
taxable or deductible in other years or that are never taxable or
deductible. The liability for current tax is calculated using rates that have
been enacted, or substantively enacted, by the balance sheet date.
Deferred income tax is provided using the balance sheet liability
method, providing for all temporary differences between the carrying
amount of assets and liabilities for financial reporting purposes and the
amounts used for taxation purposes, with the exception of the initial
recognition of goodwill arising on an acquisition. Deferred tax is measured
at the tax rates that are expected to apply in the periods in which the
timing differences are expected to reverse, based on rates and laws that
have been enacted or substantively enacted by the balance sheet date.
A deferred tax asset is only recognised when it is more likely than not
that the asset will be recoverable in the foreseeable future out of
taxable profits from which the underlying temporary differences can
be deducted.
Deferred income tax is provided on temporary differences arising on
investments in subsidiaries and associates, except where the timing of the
reversal of the temporary difference is controlled by the Group and it is
probable that the temporary difference will not reverse in the foreseeable
future. Deferred income tax assets and liabilities are offset when there
is a legally enforceable right to offset current tax assets against current
tax liabilities and when there is an intention to settle the balances on
a net basis.
Deferred income tax is charged or credited through the income
statement, except when it relates to items charged or credited through
the statement of comprehensive income or to equity, when it is charged
or credited there.
The Group has applied the mandatory exception to recognising and
disclosing information about deferred tax assets and liabilities related to
Goodwill arising on consolidation represents the excess of the fair value
of the consideration given over the fair value of the net assets acquired.
It is recognised as an asset and reviewed for impairment at least annually
or when there is a triggering event, by considering the net present
value of future cash flows. For purposes of testing for impairment,
the carrying value of goodwill is compared to its recoverable amount,
which is the higher of the value in use and the fair value less costs to sell.
Any impairment is charged immediately to the income statement.
Goodwill is allocated to Cash Generating Units (CGUs) for the purpose
of impairment testing. The allocation is made to those CGUs or groups
of CGUs that are expected to benefit from the business combination in
Intangible assets can include brands, customer contracts and customer
relationships acquired on acquisition of subsidiary companies, and
computer software developed by the Group. The intangible assets are
reviewed for impairment when there is a triggering event. Intangible
assets are stated at cost less accumulated amortisation and impairment.
Cost is determined at the time of acquisition as being directly attributable
costs or, where relevant, by using an appropriate valuation methodology.
Intangible assets are amortised over the following periods:
(a) Customer contracts and relationships – on a straight-line basis over up
to 10 years.
(b) Computer software – once the software is fully operational,
All property, plant and equipment are stated at cost less accumulated
depreciation and impairment. Cost includes expenditure that is directly
attributable to the acquisition of the items. Land and buildings comprise
mainly offices.
Depreciation is calculated to write off the cost of each asset to its
estimated residual value over its expected useful life. Freehold land is
not depreciated. The annual rates of depreciation on cost, applied on
a straight-line basis, are as follows:
Freehold buildings |
2% |
Plant and machinery |
15% to 33% |
Fixtures and fittings |
10% to 33% |
Notes to the financial statements
continued
146
Galliford Try
1 Accounting policies
continued
In addition to systematic depreciation, the book value of property, plant
and equipment is written down to estimated recoverable amounts should
any impairment in the respective carrying values be identified. The asset
residual values, carrying values and useful lives are reviewed on an annual
basis and adjusted if appropriate at each balance sheet date.
Repairs and maintenance expenditure is expensed as incurred, on an
The Group applies IFRS 11 to all joint arrangements. Investments in joint
arrangements are classified as either joint ventures or joint operations,
depending on the contractual rights and obligations of each investor.
A joint venture is an entity over which the Group has joint control and
rights to the net assets of the entity. The Group’s interest in joint ventures
is accounted for using the equity method. Under this method the Group’s
share of profits or losses after taxation of joint ventures is included in
the consolidated income statement and its interest in their net assets is
included in investments in the consolidated balance sheet.
A joint operation is a joint arrangement that the Group undertakes
with third parties, whereby those parties have rights to the assets and
obligations of the arrangement. The Group accounts for joint operations
by recognising its share of profits and losses in the consolidated income
statement. The Group recognises its share of associated assets and
PPP and other investments are non-derivatives that are either designated
in this category or not classified in any of the other categories. They are
included in non-current assets unless management intends to dispose
of the assets within 12 months of the balance sheet date. On initial
recognition, the asset is recognised at cost.
The Group applies equity accounting for its investments in PPP/PFI
entities. These investments are treated as associates as the Group has
significant influence over them. On initial recognition, the investments
in these entities are recognised at cost, and the carrying amounts are
increased or decreased to recognise the Group’s share of the profit or loss
of the PPP/PFI entities after the date of acquisition. The Group’s share
of the investments’ profits or losses is recognised in the profit or loss net
of any impairment losses. Distributions received reduce the carrying
amount of the investments.
The debt element of the Group’s PPP/PFI entities is accounted for under
IFRS 9 ‘Financial Instruments’ with fair value movements recorded in
other comprehensive income and with recycling of gains and losses
through the income statement. Tax is recognised on the movements in
other comprehensive income, where we expect the recycling to attract
a tax charge/credit to the income statement. This reflects the fact that
the Group has a demonstrable track record of investing in PFI assets
as part of an overall construction procurement strategy, with a view to
churning these investments on a regular basis. Management has reviewed
the classification of PPP investments and considers that the business
model continues to be hold to collect and sell. The investments therefore
continue to be held at fair value through other comprehensive income.
Any provision for impairment of PPP is established based on an expected
credit loss model (general approach, as detailed under impairment
of financial assets). The amount of any loss is recognised in other
In accordance with IFRS 16, leases are recognised as a right-of-use asset
and a corresponding liability at the date at which the leased asset is
available for use by the Group, except for short-term leases (defined as
leases with a lease term of 12 months or less) and leases for low value
assets. Each lease payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over the lease term at a
constant periodic rate of interest on the remaining balance of the liability.
The right-of-use asset is depreciated over the lease term on a straight-line
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost, using the effective interest method, less
provision for impairment. A provision for impairment of trade receivables
is established based on an expected credit loss model (simplified
approach, as detailed under impairment of financial assets). The amount
of the loss is recognised in the income statement through administrative
expenses unless presented separately.
When a trade receivable is uncollectible, it is written off against the
impairment provision for trade receivables. Subsequent recoveries of
amounts previously written off are credited against costs in the income
statement. Short-term trade receivables do not carry any interest and are
stated at their amortised cost, as reduced by appropriate allowances for
IFRS 9 establishes a model for recognition and measurement of
impairment in financial assets. Loans and receivables and contract assets
apply the ‘Expected Credit Losses’ (ECL) model. All other assets are
classified and measured at fair value, with movements going through
the income statement or other comprehensive income. Expected credit
losses are recognised and measured according to one of three approaches
– a general approach (12 months ECL), a simplified approach (lifetime
ECL) or the ‘credit adjusted approach’. The Group has taken the practical
expedient to apply a simplified ‘provision matrix’ for calculating expected
losses. The provision matrix is based on an entity’s historical default rates
over the expected life of the trade receivables and is adjusted, where
relevant, for forward-looking estimates. For large one-off balances
where there is no historic experience, analysis is completed in respect
Cash and cash equivalents are carried in the balance sheet at nominal
value. For the purposes of the cash flow statement, cash and cash
equivalents comprise cash at bank and in hand, including bank deposits
with original maturities of three months or less. Bank overdrafts met the
requirement for offsetting in the balance sheet and have been off-set
Trade payables and other payables are recognised initially at fair value
and subsequently measured at amortised cost, using the effective
Provisions for liabilities and charges are recognised when, as a result of
past events, the Group has a present legal or constructive obligation,
it is probable that an outflow of resources will be required to settle the
obligation and the amount has been reliably estimated. Provisions are not
recognised for future operating losses.
Provisions are measured at the present value of the expenditures
expected to be required to settle the obligation, using the pre-tax rate
that reflects current market assessments of the time value of money and
the risks specific to the obligation. The increase in the provision due to the
Financial statements
147
Annual Report and Financial Statements 2025
1 Accounting policies
continued
For defined contribution schemes operated by the Group, amounts
Own shares held by the Galliford Try Employee Share Trust (the
‘Trust’) are included in the Group financial statements as a deduction
from retained earnings. The charge made to the income statement for
employee share awards and options is based on the fair value of the
award at the date of grant, spread over the performance period. Where
such shares subsequently vest to the employees under the terms of the
Group’s share option schemes or are sold, any consideration received is
The Group operates a number of equity-settled, share-based
compensation plans. The fair value of the employee services received in
exchange for the grant of the options is recognised as an expense over
the vesting period. The total amount to be expensed over the vesting
period is determined by reference to the fair value of the options granted,
excluding the impact of any non-market vesting conditions such as growth
in earnings per share. Non-market vesting conditions are included in
assumptions about the number of options that are expected to vest.
At each balance sheet date, the Group revises its estimates of the
number of options that are expected to vest. It recognises the impact
of the revision to original estimates, if any, in the income statement,
with a corresponding adjustment to equity.
The proceeds received net of any directly attributable transaction costs
are credited to share capital (nominal value) and share premium when
the options are exercised. The grant by the Company of options over
its equity instruments to the employees of subsidiary undertakings in
the Group is treated as an increase in the cost of the investment
Final dividend distribution to the Company’s shareholders is recognised
as a liability in the Group’s financial statements in the period in which
the dividends are approved by the Company’s shareholders. Interim
Equity instruments, such as ordinary share capital, issued by the Company
are recorded at the proceeds received net of directly attributable
incremental issue costs. Consideration paid for shares in the Company
The Company’s investments in subsidiaries are recorded in the
Company’s balance sheet at cost less any impairment. The directors
Segmental reporting is presented in the consolidated financial statements
in respect of the Group’s business segments, which are the primary basis
of segmental reporting. The business segmental reporting reflects the
Group’s management and internal reporting structure. Segmental results
include items directly attributable to the segment, as well as those that
can be allocated on a reasonable basis. As the Group has no activities
outside the UK, segment reporting is not required by geographical region.
The Chief Operating Decision-Makers (CODM) have been identified
as the Group’s Chief Executive and Chief Financial Officer. The CODM
review the Group’s internal reporting in order to assess performance and
allocate resources. Management has determined the operating segments
of the Group to be Building, Infrastructure, Investments and Central
(primarily representing central overheads).
The CODM assess the performance of the operating segments based
on a measure of adjusted earnings before finance costs, amortisation,
exceptional items and taxation. This measurement basis excludes the
effects of non-recurring expenditure from the operating segments, such
as restructuring costs and impairments when the impairment is the result
of an isolated, non-recurring event. Interest income and expenditure are
included in the result for each operating segment that is reviewed by the
CODM. Other information provided to them is measured in a manner
consistent with that in the financial statements.
Notes to the financial statements
continued
148
Galliford Try
2 Segmental reporting
continued
Income statement
Building | Infrastructure | Investments | Central | Total | |
Year-ended 30 June 2025 | £m | £m | £m | £m | £m |
Revenue | 964.7 | 902.5 | 8.0 | – | 1,875.2 |
Adjusted operating profit/(loss) (note 32) | 28.1 | 27.4 | (0.4) | (14.5) | 40.6 |
Finance income | – | 0.2 | 3.6 | 5.1 | 8.9 |
Finance costs | (1.4) | (2.0) | (0.1) | (1.0) | (4.5) |
Adjusted profit/(loss) before taxation (note 32) | 26.7 | 25.6 | 3.1 | (10.4) | 45.0 |
Amortisation of intangible assets | – | (0.9) | – | – | (0.9) |
Exceptional items (note 4) | – | – | – | – | – |
Profit before tax | 26.7 | 24.7 | 3.1 | (10.4) | 44.1 |
Income tax charge | (10.5) | ||||
Profit for the year | 33.6 |
Infrastructure | Total | ||||
Restated | Restated | ||||
Building | (note 34) | Investments | Central | (note 34) | |
Year ended 30 June 2024 | £m | £m | £m | £m | £m |
Revenue | 938.3 | 810.7 | 14.7 | – | 1,763.7 |
Adjusted operating profit/(loss) (note 32) | 24.0 | 20.1 | (1.0) | (13.5) | 29.6 |
Finance income | 0.1 | 0.3 | 3.8 | 4.6 | 8.8 |
Finance costs | (1.2) | (1.6) | – | (0.6) | (3.4) |
Adjusted profit/(loss) before taxation (note 32) | 22.9 | 18.8 | 2.8 | (9.5) | 35.0 |
Amortisation of intangible assets | (1.0) | (1.1) | – | (0.2) | (2.3) |
Exceptional items (note 4) | – | (10.9) | – | (2.6) | (13.5) |
Profit before tax | 21.9 | 6.8 | 2.8 | (12.3) | 19.2 |
Income tax credit | 8.2 | ||||
Profit for the year | 27.4 |
Inter-segment revenue is eliminated from revenue above. In the year to 30 June 2025, this amounted to £121.1m (2024: £91.8m) for continuing
operations, of which £1.6m (2024: £0.6m) was in Building, £73.6m (2024: £57.8m) was in Infrastructure, £24.5m (2024: £13.8m) was in Investments
and £21.4m (2024: £19.6m) was in central costs.
Financial statements
149
Annual Report and Financial Statements 2025
2 Segmental reporting
continued
Balance sheet
Building |
Infrastructure |
Investments |
Central |
Total |
||
30 June 2025 |
Notes |
£m |
£m |
£m |
£m |
£m |
Goodwill and intangible assets |
40.0 |
57.0 |
– |
– |
97.0 |
|
Net cash |
18 |
143.1 |
115.0 |
(7.0) |
(13.5) |
237.6 |
Non reported segmental net liabilities |
– |
– |
– |
– |
(212.5) |
|
Net assets/(liabilities) |
– |
– |
– |
– |
122.1 |
|
Total Group liabilities |
– |
– |
– |
– |
(711.5) |
|
Total Group assets |
– |
– |
– |
– |
833.6 |
Total |
||||||
Restated |
||||||
Building |
Infrastructure |
Investments |
Central |
(note 34) |
||
30 June 2024 |
Notes |
£m |
£m |
£m |
£m |
£m |
Goodwill and intangible assets |
40.0 |
57.9 |
– |
– |
97.9 |
|
Net cash |
18 |
158.3 |
50.4 |
(7.0) |
25.3 |
227.0 |
Non reported segmental net liabilities |
– |
– |
– |
– |
(211.3) |
|
Net assets/(liabilities) |
– |
– |
– |
– |
113.6 |
|
Total Group liabilities |
(710.5) |
|||||
Total Group assets |
824.1 |
Other segmental information
Building |
Infrastructure |
Investments |
Central |
Total |
||
Year ended 30 June 2025 |
Notes |
£m |
£m |
£m |
£m |
£m |
Contracting revenue |
964.7 |
902.5 |
– |
– |
1,867.2 |
|
Total depreciation |
13 & 14 |
9.0 |
13.3 |
0.3 |
0.9 |
23.5 |
Share-based payments |
25 |
0.8 |
0.6 |
0.4 |
1.6 |
3.4 |
Amortisation of intangible assets |
11 |
– |
0.9 |
– |
– |
0.9 |
Infrastructure |
Total |
|||||
restated |
restated |
|||||
Building |
(note 34) |
Investments |
Central |
(note 34) |
||
Year ended 30 June 2024 |
Notes |
£m |
£m |
£m |
£m |
£m |
Contracting revenue |
938.3 |
810.7 |
– |
– |
1,749.0 |
|
Total depreciation |
13 & 14 |
7.5 |
9.9 |
0.4 |
0.6 |
18.4 |
Share-based payments |
25 |
0.2 |
0.6 |
0.2 |
0.8 |
1.8 |
Acquisition of intangible assets 1 |
30 |
– |
1.0 |
– |
– |
1.0 |
Amortisation of intangible assets |
11 |
1.0 |
1.1 |
– |
0.2 |
2.3 |
1
Notes to the financial statements
continued
150
Galliford Try
Nature of revenue streams
(i) Building and Infrastructure segments
Our Construction business operates nationwide, working with clients predominantly in the public and regulated sectors. Projects include the
construction of assets (with services including design and build, construction only and refurbishment) in addition to the maintenance, renewal,
upgrading and managing of services across utility and infrastructure assets.
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
Fixed price |
A number of projects within these segments are undertaken using fixed-price contracts. |
Contracts are typically accounted for as a single performance obligation; even when a contract (or multiple combined |
|
contracts) includes both design and build elements, they are considered to form a single performance obligation as the |
|
two elements are not distinct in the context of the contract given that each is highly interdependent on the other. |
|
The Group typically receives payments from the customer based on a contractual schedule of value that reflects the |
|
timing and performance of service delivery. Revenue is therefore recognised over time (the period of construction) |
|
based on an input model (reference to costs incurred to date). The Group also recognises revenue over time on the |
|
output method based on payments from customers on a contractual schedule of value that reflects the timing and |
|
performance of service delivery (reference to milestone reached, units delivered or work certified). Un-invoiced |
|
amounts are presented as contract assets. |
|
No significant financing component typically exists in these contracts. |
|
Cost-reimbursable |
A number of projects within these segments are undertaken using cost reimbursable/target-price (possibly with |
a pain/gain share mechanism) contracts. |
|
These projects are often delivered under frameworks. Individual performance obligations under the framework |
|
are normally determined at a project level, however, projects are combined where appropriate. Where projects are |
|
combined, the Group constrains revenue and calculates any pain/gain mechanism at the combined level. |
|
The Group typically receives payments from the customer based on actual costs incurred. Revenue is therefore |
|
recognised over time (the period of construction) based on an input model (reference to costs incurred to date). |
|
Un-invoiced amounts are presented as contract assets. |
|
No significant financing component typically exists in these contracts. |
|
Facilities management * |
Contracts undertaken within the Building segment that provide full life-cycle solutions to clients, are accounted for |
as a single performance obligation, with revenue recognised over time and typically on a straight-line basis. |
*
Facilities management represents around 5% of the total Building segment turnover.
(ii) Investments segment
Our Investments business specialises in managing construction through to operations for major building projects through public private partnerships
and co-development opportunities. The business leads bid consortia and arranges finance, as well as making debt and equity investments (which
are recycled).
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
Investments |
The Group has investments in a number of Public-Private Partnerships (PPP) Special Purpose Vehicles (SPVs), delivering |
major building and infrastructure projects. |
|
Development fees and land sales on co-development private rental schemes represent a performance obligation that is |
|
recognised at a point in time when control is deemed to pass to the customer (on financial close). |
|
The business additionally provides management services and project manages developments under Management |
|
Service Agreements (MSA) or separate development arrangements. Revenue for these services is typically recognised |
|
over time as and when the service is delivered to the customer. |
|
The business additionally provides management services to the SPVs under Management Service Agreements (MSA). |
|
Revenue for these services is typically recognised over time as and when the service is delivered to the customer. |
Financial statements
151
Annual Report and Financial Statements 2025
3 Revenue
continued
Disaggregation of revenue
The Group considers the split of revenue by operating segment to be the most appropriate disaggregation. All revenue in the year has been derived
from performance obligations settled over time (2024: all revenue over time except for £7.3m that was recognised at a point in time within the
investments segment).
Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be
recognised as follows:
2028 |
||||
2026 |
2027 |
onwards |
Total |
|
Revenue – year ended 30 June 2025 |
£m |
£m |
£m |
£m |
Building |
736.6 |
180.1 |
56.4 |
973.1 |
Infrastructure |
500.3 |
176.3 |
52.4 |
729.0 |
Total Construction |
1,236.9 |
356.4 |
108.8 |
1,702.1 |
Investments |
3.1 |
2.7 |
24.4 |
30.2 |
Total transaction price allocated to performance obligations yet to be satisfied |
1,240.0 |
359.1 |
133.2 |
1,732.3 |
2027 |
||||
2025 |
2026 |
onwards |
Total |
|
Revenue – year ended 30 June 2024 |
£m |
£m |
£m |
£m |
Building |
660.1 |
177.0 |
1.9 |
839.0 |
Infrastructure |
572.3 |
157.9 |
16.6 |
746.8 |
Total Construction |
1,232.4 |
334.9 |
18.5 |
1,585.8 |
Investments |
2.8 |
2.5 |
25.3 |
30.6 |
Total transaction price allocated to performance obligations yet to be satisfied |
1,235.2 |
337.4 |
43.8 |
1,616.4 |
2024 |
||
Restated |
||
2025 |
(note 34) |
|
£m |
£m |
|
Contract losses 1 |
– |
(11.7) |
Implementation costs of cloud based arrangements 2 |
– |
(2.6) |
Finance income 3 |
– |
0.8 |
Loss before tax |
– |
(13.5) |
Associated tax credit on items above (note 8) |
– |
3.4 |
Exceptional income tax credit (note 8) 3 |
– |
9.6 |
Total |
– |
(0.5) |
1
Management have classified material losses of £11.7m arising on specific batches of contracts under one framework agreement, acquired in the nmcn water division
acquisition in FY2022, as an exceptional item in the 2024 results. The Group considers the impact to be exceptional given its nature (relating to acquired contracts) and
quantum (being material), and therefore should be separately disclosed.
2
The Group incurred £2.6m of customisation and configuration costs associated with the move to Oracle Fusion during the year to 30 June 2024, a cloud-based computing
arrangement. Taking into account the IFRIC Agenda Decision issued by the IFRS IC in March 2021, the Group has analysed the costs and concluded that these costs should
be expensed in the period. In accordance with the Group’s existing accounting policy, management considers that the costs should be separately disclosed as exceptional
because they are significant and irregular. The move to Oracle Fusion was completed in the year ended 30 June 2024 with no further exceptional costs expected.
3
The Group previously disclosed that it had not recognised an asset in respect of historic trading losses due to the losses being subject to agreement with HMRC. This led to
an uncertain tax position where no asset was recognised as, based on the advice of tax advisors, the Group concluded it was not probable HMRC would accept the claims
to utilise the losses. During the year to 30 June 2024 HMRC agreed a quantum of historic trading losses available and that they could be utilised against historical trading
profits, resulting in a cash tax refund of £9.6m with associated interest of £0.8m, which was received after 30 June 2024. Management considered that the refund should
be disclosed separately as exceptional given it is material in quantum and one off in nature.
In the year to 30 June 2024, an associated net tax credit of £3.4m has been recognised in respect of the exceptional items (excluding the exceptional tax
credit noted in footnote 3 above). No exceptional items have been recognised during the year to 30 June 2025.
Notes to the financial statements
continued
152
Galliford Try
Employee benefit expense during the year
Group |
Company |
||||
2025 |
2024 |
2025 |
2024 |
||
Notes |
£m |
£m |
£m |
£m |
|
Wages and salaries |
250.3 |
229.2 |
– |
– |
|
Social security costs |
28.9 |
27.8 |
– |
– |
|
Other pension costs |
29.0 |
25.4 |
– |
– |
|
Share-based payments |
25 |
3.4 |
1.8 |
– |
– |
Total |
311.6 |
284.2 |
– |
– |
|
All employees are entitled to join the Galliford Try Pension Scheme, a defined contribution scheme established as a stakeholder plan, with a Company
contribution based on a scale dependent on the employee’s age and the amount they choose to contribute. Since 1 July 2013, all non-participating
and newly-employed staff have been auto-enrolled into the separate stakeholder plan and are entitled to increase their contribution rates in line with
existing members. Since 1 April 2009, the Group has operated a pension salary sacrifice scheme, which means that all employee pension contributions
are paid as employer contributions on their behalf.
All pension costs in the current and prior years were in respect of the Group’s defined contribution schemes. Of the total charge, £16.0m (2024: £14.1m)
and £13.0m (2024: £11.3m) were included, respectively, within cost of sales and administrative expenses.
Average monthly number of people (including Executive and non-executive directors) employed
Group |
Company |
|||
2025 |
2024 |
2025 |
2024 |
|
Number |
Number |
Number |
Number |
|
By business: |
||||
– Building |
1,358 |
1,296 |
– |
– |
– Infrastructure |
2,680 |
2,575 |
– |
– |
Construction |
4,038 |
3,871 |
– |
– |
Investments |
58 |
58 |
– |
– |
Central |
200 |
193 |
6 |
6 |
Total |
4,296 |
4,122 |
6 |
6 |
The key management personnel comprise the Executive Board and non-executive directors. The remuneration of the key management personnel
of the Group is set out below in aggregate for each of the categories specified in IAS 24, Related Party Disclosures. Further information about
the remuneration of individual directors, including any interests in the Company’s shares, is provided in the audited part of the Directors’
remuneration report.
2025 |
2024 |
|
£m |
£m |
|
Salaries and short-term employee benefits |
4.7 |
3.5 |
Retirement benefit costs |
0.3 |
0.3 |
Share-based payments |
2.1 |
1.1 |
Total |
7.1 |
4.9 |
Financial statements
153
Annual Report and Financial Statements 2025
2025 |
2024 |
|
Group |
£m |
£m |
Finance income on bank deposits |
5.2 |
4.6 |
Finance income from PPP Investments and joint ventures |
3.7 |
4.2 |
Finance income before exceptional items |
8.9 |
8.8 |
Finance costs on lease liabilities |
(3.5) |
(2.9) |
Other finance costs |
(1.0) |
(0.5) |
Finance costs before exceptional items |
(4.5) |
(3.4) |
Exceptional items |
– |
0.8 |
Net finance income |
4.4 |
6.2 |
The following items have been included in arriving at profit before income tax:
2024 |
|||
Restated |
|||
2025 |
(note 34) |
||
Notes |
£m |
£m |
|
Employee benefit expense |
5 |
311.6 |
284.2 |
Total depreciation |
13 & 14 |
23.5 |
18.4 |
Amortisation and impairment of intangible assets |
11 |
0.9 |
2.3 |
Repairs and maintenance expenditure on property, plant and equipment |
1.5 |
1.6 |
|
Exceptional items |
4 |
– |
13.5 |
In addition to the above, the Group incurs other costs classified as cost of sales relating to labour, materials and subcontractors’ costs.
During the year, the Group obtained the following services from the Group’s auditor at costs as detailed below:
2025 |
2024 |
|
£m |
£m |
|
Fees payable to the Company’s auditor for the audit of Parent Company and consolidated financial statements |
0.2 |
0.2 |
Fees payable to the Company’s auditor for other services: |
||
The audit of financial statements of the Company’s subsidiaries |
2.2 |
2.0 |
Audit-related assurance services |
0.1 |
0.1 |
Total other services |
2.3 |
2.1 |
Total |
2.5 |
2.3 |
The audit of financial statements of the Company’s subsidiaries for 2025 and 2024 includes an amount in respect of additional costs related to the
2024 and 2023 audit respectively. A description of the work of the Audit Committee in respect of the auditor’s independence is set out in the
Notes to the financial statements
continued
154
Galliford Try
2024 1 |
|||
Restated |
|||
2025 |
(note 34) |
||
Group |
Notes |
£m |
£m |
Analysis of expense in year |
|||
Current year’s income tax |
|||
Current tax |
4 |
4.6 |
1.8 |
Deferred tax |
22 |
6.2 |
3.2 |
Adjustments in respect of prior years |
|||
Current tax |
4 |
– |
(9.7) |
Deferred tax |
22 |
(0.3) |
(3.5) |
Income tax expense/(credit) |
10.5 |
(8.2) |
|
Tax on items recognised in other comprehensive income |
|||
Tax recognised in other comprehensive income |
– |
– |
|
Total tax expense/(credit) |
10.5 |
(8.2) |
1
The year ended 30 June 2024 tax reconciliation includes £9.6m within the current tax adjustment in respect of prior year years relating to historic trading losses as
explained in note 4, in addition to the tax impact of the other exceptional items as shown in note 4.
The total income tax charge for the year of £10.5m (2024 restated: credit of £8.2m) is lower (2024: lower) than the expected charge based on the
standard rate of corporation tax in the UK of 25.0% (2024: 25.0%). The differences are explained below:
2024 |
||
Restated |
||
2025 |
(note 34) |
|
£m |
£m |
|
Profit before income tax |
44.1 |
19.2 |
Profit before income tax multiplied by the standard corporation tax rate in the UK of 25.0% (2024: 25.0%) |
11.0 |
4.8 |
Effects of: |
||
Expenses not deductible for tax purposes |
– |
0.2 |
Non-taxable income |
(0.2) |
(0.2) |
Adjustments in respect of prior years |
(0.3) |
(13.1) |
Other |
– |
0.1 |
Income tax expense/(credit) |
10.5 |
(8.2) |
For the year ended 30 June 2024, the adjustments in respect of prior years include £9.6m tax credit for exceptional items, as explained in note 4.
The Group is within the scope of OECD Pillar Two rules. The rules are designed to ensure a minimum effective tax rate of 15% across each country
of operation.
The rules were enacted into UK law in July 2023 and are effective from 1 July 2024 to the Group. Due to the Group trading only in the UK, it is
not expected there will be a significant impact as a result of the implementation of the rules, however the Group continues to review any potential
Financial statements
155
Annual Report and Financial Statements 2025
2025 | 2024 | |||
pence per | pence per | |||
Group and Company | £m | share | £m | share |
Previous year final | 11.9 | 11.5 | 7.7 | 7.5 |
Special | – | – | 12.5 | 12.0 |
Current year interim | 5.6 | 5.5 | 4.0 | 4.0 |
Dividend recognised in the year | 17.5 | 24.2 | ||
The following dividends were declared by the Company in respect of each accounting period presented:
2025 | 2024 | |||
pence per | pence per | |||
£m | share | £m | share | |
Interim | 5.6 | 5.5 | 4.0 | 4.0 |
Final | 13.8 | 13.5 | 11.9 | 11.5 |
Dividend relating to the year | 19.4 | 19.0 | 15.9 | 15.5 |
The directors are proposing a final dividend in respect of the financial year ended 30 June 2025 of 13.5 pence per share (2024: 11.5 pence per share),
bringing the total dividend in respect of 2025 to 19.0 pence per share (2024: 15.5p excluding the special dividend). The final dividend will absorb
approximately £3.8m (2024: £11.9m) of equity. Subject to shareholders’ approval at the AGM to be held on 13 November 2025, the dividend
Basic and diluted earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding
during the year, excluding those held by the Trust, which are treated as cancelled.
Under normal circumstances, the average number of shares is diluted by reference to the average number of potential ordinary shares held under
option in the year. The dilutive effect amounts to the number of ordinary shares which would be purchased using the aggregate difference in value
between the market value of shares and the share option price. Only shares that have met their cumulative performance criteria are included in the
dilution calculation. The Group has two classes of potentially dilutive ordinary shares: those share options granted to employees where the exercise
price is less than the average market price of the Company’s ordinary shares during the year and the contingently issuable shares under the Group’s
long-term incentive plans. A loss per share cannot be reduced through dilution, hence this dilution is only applied where the Group has reported a profit.
The earnings and weighted average number of shares used in the calculations are set out below.
| 2025 | 2024 | |||||
Per share | ||||||
Weighted | Earnings | Weighted | amount | |||
average | Per share | restated | average | restated | ||
Earnings | number of | amount | (note 34) | number of | (note 34) | |
£m | shares | pence | £m | shares | pence | |
Basic EPS | ||||||
Earnings attributable to ordinary shareholders | 33.6 | 99,627,362 | 33.7 | 27.4 | 100,051,095 | 27.3 |
Basic EPS – Adjusted (note 32) 1 | ||||||
Adjusted earnings attributable to ordinary shareholders | 34.3 | 99,627,362 | 34.4 | 29.6 | 100,051,095 | 29.6 |
Effect of dilutive securities: | ||||||
Options | n/a | 4,668,120 | n/a | n/a | 4,315,217 | n/a |
Diluted EPS | 33.6 | 104,295,482 | 32.2 | 27.4 | 104,366,312 | 26.2 |
Diluted EPS – Adjusted (note 32) 1 | 34.3 | 104,295,482 | 32.9 | 29.6 | 104,366,312 | 28.4 |
1
Adjusted EPS – basic and diluted, were previously reported on a pre-exceptional basis which excluded exceptional items only. The adjusted measure excludes the
Notes to the financial statements
continued
156
Galliford Try
Customer |
||||
contracts and |
Computer |
|||
relationships |
software |
Total |
||
Group |
Notes |
£m |
£m |
£m |
Cost |
||||
At 1 July 2023 |
17.7 |
11.5 |
29.2 |
|
Additions |
30 |
1.0 |
– |
1.0 |
At 30 June 2024 |
18.7 |
11.5 |
30.2 |
|
Disposals |
– |
(10.9) |
(10.9) |
|
At 30 June 2025 |
18.7 |
0.6 |
19.3 |
|
Accumulated amortisation and impairment loss |
||||
At 1 July 2023 |
(12.5) |
(11.1) |
(23.6) |
|
Amortisation in year |
(1.9) |
(0.4) |
(2.3) |
|
At 1 July 2024 |
(14.4) |
(11.5) |
(25.9) |
|
Amortisation in year |
(0.9) |
– |
(0.9) |
|
Disposals |
– |
10.9 |
10.9 |
|
At 30 June 2025 |
(15.3) |
(0.6) |
(15.9) |
|
Net book amount |
||||
At 30 June 2025 |
3.4 |
– |
3.4 |
|
At 30 June 2024 |
4.3 |
– |
4.3 |
|
At 30 June 2023 |
5.2 |
0.4 |
5.6 |
All amortisation charges in the year have been included in administrative expenses. Computer software relates to the Group’s reporting systems.
Group |
Notes |
£m |
Cost |
||
At 30 June 2023 |
92.7 |
|
Additions |
30 |
0.9 |
At 30 June 2024 |
93.6 |
|
Additions |
– |
|
At 30 June 2025 |
93.6 |
|
Aggregate impairment at 30 June 2023, 2024 and 2025 |
– |
|
At 30 June 2023, 2024 and 30 June 2025 |
– |
|
Net book amount |
||
At 30 June 2025 |
93.6 |
|
At 30 June 2024 |
93.6 |
|
At 30 June 2023 |
92.7 |
Financial statements
157
Annual Report and Financial Statements 2025
12 Goodwill continued
Goodwill is allocated to the Group’s CGUs identified according to business segment. The goodwill is attributable to the following business segments:
2025 |
2024 |
|
£m |
£m |
|
Building |
40.0 |
40.0 |
Infrastructure |
53.6 |
53.6 |
93.6 |
93.6 |
Goodwill is tested for impairment at least annually. The recoverable amount of a CGU is determined based on value in use calculations. These
calculations use pre-tax cash flow projections based on future financial budgets approved by the Board, based on past performance and its expectation
of market developments. The key assumptions within these budgets relate to revenue and the future profit margin achievable, in line with our strategy
and targets as set out in the Strategic report. Future budgeted revenue is based on management’s knowledge of actual results from prior years and
latest forecasts for the current year, along with the existing secured works and management’s expectation of the future level of work available within
the market sector. In establishing future profit margins, the margins currently being achieved are considered in conjunction with expected inflation rates
in each revenue and cost category. In Building and Infrastructure, the margins currently being achieved are expected to increase in line with the strategy
set out in the Strategic report.
Cash is monitored on a daily, weekly and monthly basis for the purposes of managing both treasury and the business as a whole. Details of the Group’s
treasury management are included within the Financial review in the Strategic report of the Annual Report. The assumptions used are reviewed
regularly and differences between forecast and actual results are closely monitored, with variances being investigated fully. The knowledge gained from
this past experience is used to ensure that the future assumptions used are consistent with past actual outcomes and are management’s best estimate
of the future cash flows of each business unit.
Cash flows beyond the budgeted three-year period are extrapolated using an estimated growth rate within each segment. The growth rate used is the
Group’s estimate of the average long-term growth rate for the market sectors in which the CGU operates. Furthermore, sensitivity analysis has been
undertaken on each goodwill impairment review, by changing the discount rates, profit margins, growth rates and other variables applicable to each
CGU, and the results are noted below.
The pre-tax discount rates for each CGU are noted below.
Building CGU
A pre-tax discount rate of 13.2% (2024: 12.9%) in Building has been applied to the future cash flows, based on an estimate of the weighted average cost
of capital (WACC) of that division.
A long-term growth rate of 2.0% per annum has been applied to the budgeted cash flows (reflecting the Board-approved budget operating margins and
working capital cash flows) into perpetuity and these assumptions result in the recoverable value of this CGU being significantly in excess of the carrying
value of the CGU assets.
The Building CGU is not sensitive to changes in key assumptions and management does not consider that any reasonable possible change in any
single assumption or combination of reasonable possible changes in assumptions would give rise to an impairment of the carrying value of goodwill
and intangibles.
Infrastructure CGU
A pre-tax discount rate of 13.1% (2024: 12.8%) in Infrastructure has been applied to the future cash flows, based on an estimate of the weighted average
cost of capital of that division.
A long-term growth rate of 2.0% per annum has been applied to the budgeted cash flows (reflecting the Board-approved budget operating margins and
working capital cashflows) into perpetuity and these assumptions result in the recoverable value of this CGU being significantly in excess of the carrying
value of the CGU assets.
The Infrastructure CGU is not sensitive to changes in key assumptions and management does not consider that any reasonable possible change in
any single assumption or combination of reasonable possible changes in assumptions would give rise to an impairment of the carrying value of goodwill
Notes to the financial statements
continued
158
Galliford Try
Land and |
Plant and |
Fixtures and |
||
buildings |
machinery |
fittings |
Total |
|
Group |
£m |
£m |
£m |
£m |
Cost |
||||
At 1 July 2023 |
3.3 |
4.2 |
4.3 |
11.8 |
Additions |
0.2 |
0.6 |
0.8 |
1.6 |
Disposals |
(0.2) |
(3.4) |
(0.3) |
(3.9) |
At 1 July 2024 |
3.3 |
1.4 |
4.8 |
9.5 |
Additions |
1.4 |
0.1 |
0.9 |
2.4 |
Disposals |
– |
– |
(1.1) |
(1.1) |
At 30 June 2025 |
4.7 |
1.5 |
4.6 |
10.8 |
Accumulated depreciation |
||||
At 1 July 2023 |
(0.9) |
(0.9) |
(2.8) |
(4.6) |
Charge for the year |
(0.3) |
(0.2) |
(0.5) |
(1.0) |
Disposals |
0.2 |
0.9 |
0.3 |
1.4 |
At 1 July 2024 |
(1.0) |
(0.2) |
(3.0) |
(4.2) |
Charge for the year |
(0.4) |
(0.5) |
(0.8) |
(1.7) |
Disposals |
– |
– |
1.1 |
1.1 |
At 30 June 2025 |
(1.4) |
(0.7) |
(2.7) |
(4.8) |
Net book amount |
||||
At 30 June 2025 |
3.3 |
0.8 |
1.9 |
6.0 |
At 30 June 2024 |
2.3 |
1.2 |
1.8 |
5.3 |
At 30 June 2023 |
2.4 |
3.3 |
1.5 |
7.2 |
There has been no impairment of property, plant and equipment during the year (2024: £nil).
This note provides information for leases where the Group is a lessee.
The Company holds no leases.
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
Cost |
£m |
£m |
£m |
£m |
At 30 June 2024 |
18.8 |
13.0 |
48.5 |
80.3 |
At 30 June 2025 |
19.1 |
16.0 |
56.6 |
91.7 |
Accumulated depreciation |
||||
At 30 June 2024 |
(6.2) |
(4.8) |
(17.9) |
(28.9) |
At 30 June 2025 |
(6.7) |
(8.4) |
(25.5) |
(40.6) |
Net book amount |
||||
At 30 June 2025 |
12.4 |
7.6 |
31.1 |
51.1 |
At 30 June 2024 |
12.6 |
8.2 |
30.6 |
51.4 |
Financial statements
159
Annual Report and Financial Statements 2025
14 Leases
continued
Lease liabilities
2025 |
2024 |
|
£m |
£m |
|
Current |
22.7 |
20.5 |
Non-current |
31.1 |
32.5 |
Total lease liabilities |
53.8 |
53.0 |
Movement in Lease Liabilities from financing activities
Interest |
||||||
payments |
||||||
(presented as |
||||||
Opening |
Financing |
Interest |
operating |
Closing |
||
balance |
cash flows |
New leases |
expense |
cash flows) |
balance |
|
2024 |
39.1 |
(16.7) |
30.6 |
2.9 |
(2.9) |
53.0 |
2025 |
53.0 |
(21.2) |
22.0 |
3.5 |
(3.5) |
53.8 |
The consolidated income statement shows the following amounts relating to leases for continuing operations:
2025 |
2024 |
|
£m |
£m |
|
Depreciation of right-of-use assets: |
||
– Land and buildings |
2.5 |
2.5 |
– Plant and machinery |
5.7 |
4.2 |
– Motor vehicles |
13.6 |
10.7 |
Interest expense (included in finance cost) |
3.5 |
2.9 |
Expense relating to short-term leases (included in cost of sales and administrative expenses) |
16.8 |
13.2 |
Expense relating to leases of low-value assets that are not shown above as short-term leases |
||
(included in administrative expenses) |
1.2 |
0.7 |
Total expenses |
43.3 |
34.2 |
The total cash outflow for leases in the year to 30 June 2025 was £24.7m, of which £3.5m was included in net interest expense – note 6 (2024: £19.6m
and £2.9m respectively).
Maturity of contractual undiscounted future lease payments:
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
As at 30 June 2025 |
£m |
£m |
£m |
£m |
Less than 1 year |
3.1 |
4.6 |
15.0 |
22.7 |
Between 1 and 5 years |
8.1 |
3.6 |
21.2 |
32.9 |
More than 5 years |
6.9 |
0.1 |
– |
7.0 |
Total |
18.1 |
8.3 |
36.2 |
62.6 |
Land and |
Plant and |
Motor |
||
buildings |
machinery |
vehicles |
Total |
|
As at 30 June 2024 |
£m |
£m |
£m |
£m |
Less than 1 year |
3.0 |
4.1 |
13.4 |
20.5 |
Between 1 and 5 years |
8.9 |
1.8 |
24.1 |
34.8 |
More than 5 years |
8.8 |
– |
– |
8.8 |
Total |
20.7 |
5.9 |
37.5 |
64.1 |
Notes to the financial statements
continued
160
Galliford Try
2025 |
2024 |
|
Company |
£m |
£m |
Cost |
||
As at 1 July 2024 and 2023 |
189.2 |
188.5 |
Additions |
0.5 |
0.7 |
At 30 June |
189.7 |
189.2 |
Aggregate impairment |
||
As at 1 July 2024 and 2023 |
– |
– |
At 30 June |
– |
– |
Net book value |
||
At 30 June |
189.7 |
189.2 |
The carrying value of investments was reviewed and no impairment indicator was identified.
The subsidiary undertakings that principally affected profits and net assets of the Group were:
Galliford Try Construction Limited |
|
Galliford Try Infrastructure Limited 1 |
|
Galliford Try Investments Limited |
|
Galliford Try Facilities Management Limited |
|
Galliford Try Services Limited |
|
Galliford Try Limited 2 |
1
Incorporated in Scotland.
2
Shares owned directly by the Company.
Unless otherwise stated, each subsidiary has a 30 June year-end, operates as a construction company, is incorporated in England & Wales and 100% of
ordinary shares and voting rights are held by the Group. Galliford Try Services Limited operates as central administration company to the Group.
On 30 November 2023, the Group disposed of 100% of the share capital of Rock & Alluvium Limited for consideration of £3.9m, of which £1.8m was
satisfied on completion of the disposal, with the balance settled during the year.
2025 |
2024 |
|
Group |
£m |
£m |
At 1 July |
41.8 |
44.6 |
Disposals and subordinated loan repayments |
(1.3) |
(1.3) |
Movement in fair value |
(1.9) |
(1.5) |
At 30 June |
38.6 |
41.8 |
These comprise debt and equity investments in PPP/PFI investments (joint ventures and associates) over which the Group has significant influence.
Debt investments at fair value through OCI
The debt element of the investments represents over 99% of the total portfolio balance and is held at fair value. The fair value reflects a blended
discount rate of 7.9% (2024: 7.6%). A 0.5% increase/reduction in the discount rate would result in a corresponding decrease/increase in the value of the
investments recorded in the balance sheet of approximately £1.3m (2024: £1.5m).
No material financial assets are past their due dates (2024: £nil), and the directors expect an average maturity profile in excess of 10 years. Further
disclosures relating to financial assets are set out in note 23.
The expected credit loss (ECL) was assessed to be minimal and accordingly no ECL recognised.
During the year, there were no additions (2024: £nil) to the Group’s PPP/PFI investments and subordinated loans of £1.3m (2024: £1.3m) were repaid.
Of the total fair value movement in the year of £1.9m (2024: £1.5m), all of it relates to the movement in the fair value of the PPP/PFI investments
(2024: £1.5m) and has been recorded through other comprehensive income.
The Group has commitments of £nil (2024: £nil) to provide further subordinated debt to its investments.
Financial statements
161
Annual Report and Financial Statements 2025
16 PPP and other investments
continued
Equity accounted investments
The Group applies equity accounting to the equity element of its PPP/PFI investments. As the predominant value to the Group is within the debt
element, £nil (2024: £nil) has been recognised through equity accounting. The joint ventures and associates have non-profit distribution agreements or
restrictions on timing and quantum of distributions being made.
The material joint ventures (due to their shareholding and/or issuing listed debt) are disclosed within this note. The net assets disclosed in the income
statement and balance sheet extracts below are not recognised as part of the investment in joint ventures. The information disclosed reflects the
amounts presented in the financial statements or management accounts of the relevant joint ventures and associates and not the Group’s share of
those amounts.
The Group has an investment in Space Scotland Limited which it considers to be a material joint venture by virtue of the companies it is a shareholder.
Space Scotland Limited holds the Group’s investments in several of the PPP/PFI entities to which this note relates. The individual entities are not
considered to be material to the Group. The income statement and balance sheets for Space Scotland Limited is £nil (2024: £nil).
Income statement – extracts
Aberdeen Roads (Finance) Plc |
Aberdeen Roads Limited 1 |
|||
2025 |
2024 |
2025 |
2024 |
|
£m |
£m |
£m |
£m |
|
Revenue 2 |
– |
– |
(2.1) |
(1.9) |
Depreciation and amortisation |
– |
– |
– |
– |
Finance income |
22.4 |
23.3 |
29.0 |
29.7 |
Finance expense |
(22.4) |
(23.3) |
(22.4) |
(23.3) |
Income tax expense |
– |
– |
– |
– |
Profit (100%) |
– |
– |
– |
– |
Other comprehensive (expense)/income |
(1.2) |
(2.1) |
– |
– |
Total comprehensive income (100%) |
(1.2) |
(2.1) |
– |
– |
Group’s share of profit and total comprehensive income |
(0.4) |
(0.7) |
– |
– |
Dividends received by the Group during the year |
– |
– |
– |
– |
Balance sheet – extracts |
||||
Cash and cash equivalents |
0.7 |
0.9 |
28.7 |
28.0 |
Other current assets |
– |
– |
4.8 |
4.9 |
Current assets |
0.7 |
0.9 |
33.5 |
32.9 |
Non-current assets |
496.2 |
515.1 |
505.9 |
520.2 |
Current external borrowings – bank/listed bonds |
(19.1) |
(19.5) |
– |
– |
Other current liabilities |
(3.1) |
(3.4) |
(43.7) |
(39.5) |
Current liabilities |
(22.2) |
(22.9) |
(43.7) |
(39.5) |
Non-current external borrowings – bank/listed bonds |
(430.6) |
(445.3) |
– |
– |
Other non-current liabilities |
(42.9) |
(45.4) |
(495.7) |
(513.6) |
Non-current liabilities |
(473.5) |
(490.7) |
(495.7) |
(513.6) |
Net assets (100%) |
1.2 |
2.4 |
– |
– |
1
Material due to their holdings and/or issuing listed debt.
2
Revenue includes a deduction for the non-profit distribution model (NPD) surplus.
The Group’s share of PPP and other investments’ external bank funding was £221.1m at 30 June 2025 (2024: £233.5m). The Group’s share of these
entities’ other external funding consists of £64.1m (2024: £64.1m) of listed bonds. These balances are non-recourse to the Group.
Details of related party transactions with joint ventures and associates are given in note 29. The Group’s shareholding in each joint venture and
Notes to the financial statements
continued
162
Galliford Try
Group |
|||
2024 |
|||
Restated |
|||
2025 |
(note 34) |
||
Notes |
£m |
£m |
|
Current assets: |
|||
Trade receivables |
47.2 |
43.7 |
|
Less: provision for impairment of receivables |
(0.4) |
(0.4) |
|
Trade receivables – net |
46.8 |
43.3 |
|
Contract assets |
21 |
295.9 |
290.5 |
Amounts due from joint ventures and associates |
6.9 |
0.8 |
|
Research and development expenditure credits |
5.1 |
5.4 |
|
Other receivables |
9.9 |
14.0 |
|
Prepayments |
24.0 |
17.2 |
|
388.6 |
371.2 |
||
The Company has no trade and other receivables (2024: £nil).
Retentions will be collected in the normal operating cycle of the Group and are therefore shown as a current asset. It is expected that £47.8m
(2024: £37.5m) will be collected within 12 months from the balance sheet date.
The Group has no significant capitalised contract costs.
Provisions for impaired receivables have been included in administrative expenses in the income statement. Amounts charged to the impairment
provision are generally written off when there is no expectation of recovering additional cash.
The other classes within trade and other receivables do not contain impaired assets.
The maximum exposure to credit risk at the reporting date is the book value of each class of receivable mentioned above, along with the Group’s cash
and cash equivalents. The Group does not hold any collateral as security.
Management believes that the concentration of credit risk with respect to trade receivables is limited, due to the Group’s customer base being large,
unrelated and predominantly within the public and regulated sectors.
for whom there is no recent history of default and there are no indications that they will not meet their payment obligations in respect of the trade
receivables recognised in the balance sheet that are past due and unprovided. The ageing analysis of these trade receivables is as follows:
2025 |
2024 |
|
£m |
£m |
|
Number of days past due date |
||
Less than 30 days |
5.1 |
9.3 |
Between 30 and 60 days |
3.7 |
0.7 |
Between 60 and 90 days |
0.7 |
0.1 |
Between 90 and 120 days |
0.7 |
1.1 |
Greater than 120 days |
2.0 |
3.3 |
12.2 |
14.5 |
As of 30 June 2025, trade receivables were considered for impairment based on management’s judgement and review of the trade receivables listings.
The amount provided for these balances was £0.4m (2024: £0.4m). The allocation of the provision is as follows:
2025 |
2024 |
|
£m |
£m |
|
Number of days past due date: |
||
Greater than 120 days |
0.4 |
0.4 |
0.4 |
0.4 |
Financial statements
163
Annual Report and Financial Statements 2025
Group |
Company |
|||
2025 |
2024 |
2025 |
2024 |
|
£m |
£m |
£m |
£m |
|
Cash at bank and in hand and per the statement of cash flows |
237.6 |
227.0 |
113.5 |
110.0 |
Cash at bank above includes £23.0m (2024: £21.7m), being the Group’s share of cash held by jointly controlled operations. The Group has no bank
borrowings or loans.
Net cash excludes IFRS 16 lease liabilities (note 14).
Cash and cash equivalents and bank overdrafts are presented on a net (offset) basis. In 2016, the IFRS Interpretations Committee released an update
in respect of IAS 32 ‘Financial instruments: presentation’ specifically in relation to offsetting and cash pooling. This clarified that in order to offset bank
account balances, an entity must have both a legally enforceable right and an intention to do so. The Group’s bank arrangements and facilities with both
HSBC Bank plc and Barclays Bank plc provide the legally enforceable right to offset and the Group demonstrated its intention to offset by formally
Group |
|||
2024 |
|||
Restated |
|||
2025 |
(note 34) |
||
Notes |
£m |
£m |
|
Trade payables |
124.9 |
107.6 |
|
Contract liabilities |
21 |
124.7 |
131.3 |
Other taxation and social security payable |
48.1 |
70.4 |
|
Other payables |
2.8 |
2.4 |
|
Accruals |
308.6 |
309.6 |
|
609.1 |
621.3 |
||
The Company has no trade and other payables (2024: none).
All payables are unsecured. Retentions will be paid in the normal operating cycle of the Group and are therefore shown as a current liability.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the
Provisions for other liabilities and charges
Onerous |
Total |
||
Group |
contracts |
Rectification |
£m |
At 30 June 2023 |
(2.0) |
(27.9) |
(29.9) |
Balance sheet reclassification 1 |
(0.5) |
(4.5) |
(5.0) |
Utilised |
1.6 |
3.6 |
5.2 |
Released |
– |
2.3 |
2.3 |
Additions |
(0.6) |
(8.2) |
(8.8) |
At 30 June 2024 |
(1.5) |
(34.7) |
(36.2) |
Utilised |
0.5 |
11.4 |
11.9 |
Released |
– |
1.3 |
1.3 |
Additions |
– |
(25.6) |
(25.6) |
At 30 June 2025 |
(1.0) |
(47.6) |
(48.6) |
1
Correction of immaterial balance sheet classifications in the previous year.
Onerous contract provisions are made on loss-making contracts the Group is obliged to complete.
Rectification provisions are made for potential claims and defects for remedial works against work completed by the Group, and include provisions for
dilapidations on premises the Group occupies.
As at 30 June 2025 £13.1m (2024: £14.6m) of provision related to one contract. Further details are provided in the critical accounting estimates and
judgements. The remaining balance of the provision relates to a number of immaterial balances. Due to the level of uncertainty, combination of cost
and income variables and timing across the remaining portfolio of contracts, it is impracticable to provide a quantitative analysis of the aggregated
judgements that are applied at a portfolio level and therefore management has not given a range of expected outcomes.
Notes to the financial statements
continued
164
Galliford Try
20
Provisions for other liabilities and charges
continued
Due to the nature of the provisions, the timing of any potential future outflows is uncertain, however they are expected to be utilised within the Group’s
normal operating cycle, and accordingly are classified as current liabilities. Of the total provisions, £36.0m (2024: £24.6m) is likely to be utilised within
12 months, with the remainder utilised in more than 12 months. The impact of discounting is not material.
The Group regularly engages in contracts with general or defect warranty rectification requirements, typically less than 3 years. Within the pool of
open warranty period contracts, the Group built, as part of a joint operation with two other partners, a single infrastructure scheme under a contract
that included various defect warranty obligations, with the longest obligation lasting up to 12 years.
At 30 June 2025, there remained 6 years (2024: 7 years) of the longest warranty liability period remaining. This is the only contract the Group has that
has a general defect warranty period of this length. The contractual nature of the defect warranty liability and the completion of the scheme are the
obligating events and the Group, as part of the joint operation, has remediated items since completion and has other known issues ongoing that will
likely result in future cash outflows, though the timing and quantum remain uncertain.
The Group also believes that there will be further unknown but probable cash outflows relating to as yet unknown items as scheduled inspections
of various structural elements of the scheme are completed that have a potentially material range of outcomes. The Group has provided £13.1m
(2024: £14.6m) against future defect costs and this represents management’s best estimate of potential future payments associated with the warranty
rectification responsibilities. The provision requires a limited number of significant estimates and assumptions by management, with a significant level
of estimation risk as a result arising from the level of defects and associated cost that may arise.
Management estimates the reasonable range of estimates to be between £7.3m and £19.2m at 30 June 2025 (2024: between £7.3m and £17.5m).
During the year £0.1m and £1.3m (2024: £0.1m and £2.3m) of the opening provision of £14.6m (2024: £16.9m) was utilised and released respectively,
with additions of £nil (2024: £0.1m) made in the year. Management has sought input from external experienced industry figures and industry bodies to
support the provision it has made.
Contract assets and liabilities are included within ‘trade and other receivables’ and ‘trade and other payables’ respectively on the face of the
balance sheet. Where there is a corresponding contract asset and liability in relation to the same contract, the balance shown is the net position.
The timing of work performed (and thus revenue recognised), billing profiles and cash collection results in trade receivables (amounts billed to date
and unpaid), contract assets (unbilled amounts where revenue has been recognised) and contract liabilities (customer advances and deposits where
no corresponding work has yet to be performed), being recognised on the Group’s balance sheet.
The reconciliation of the Group opening to closing contract balances is shown below:
2025 |
2024 |
|||
Contract |
Contract |
|||
asset |
liability |
|||
Contract |
Contract |
restated |
restated |
|
asset |
liability |
(note 34) |
(note 34) |
|
£m |
£m |
£m |
£m |
|
At 1 July |
290.5 |
(131.3) |
204.9 |
(106.6) |
Revenue recognised in the year |
1,819.5 |
55.7 |
1,715.9 |
47.8 |
Net cash received in advance of performance obligations being fully satisfied |
– |
(49.1) |
– |
(72.5) |
Transfers in the year from contract assets to trade receivables |
(1,814.1) |
– |
(1,630.3) |
– |
30 June |
295.9 |
(124.7) |
290.5 |
(131.3) |
Revenue allocated to performance obligations that are unsatisfied at 30 June, is expected to be recognised as disclosed in note 3.
The Company has no contract balances (2024: none).
Financial statements
165
Annual Report and Financial Statements 2025
Deferred income tax is calculated in full on temporary differences under the liability method and is measured at the average tax rates that are expected
to apply in the periods in which the timing differences are expected to reverse.
Deferred income tax assets and liabilities are offset when there is a legally enforceable right to offset current income tax assets against current income
tax liabilities. The net deferred tax position at 30 June was:
Group |
||
2024 |
||
Restated |
||
2025 |
(note 34) |
|
£m |
£m |
|
Deferred income tax assets |
11.6 |
18.5 |
Deferred income tax liabilities |
(0.6) |
(0.6) |
Net deferred income tax |
11.0 |
17.9 |
The movement for the year in the net deferred income tax account is as shown below:
Group |
||
2024 |
||
Restated |
||
2025 |
(note 34) |
|
£m |
£m |
|
At 1 July |
17.9 |
15.5 |
Current year’s deferred income tax – expense taken to income statement |
(6.2) |
(3.2) |
Current year’s deferred income tax – credit/(expense) taken to equity |
1.2 |
(0.7) |
Adjustment in respect of prior years |
0.4 |
4.5 |
Transfer (to)/from current tax assets |
(2.3) |
1.4 |
Acquisition of subsidiaries |
– |
(0.2) |
Disposal of subsidiaries |
– |
0.6 |
At 30 June |
11.0 |
17.9 |
All remaining material tax losses have now been recognised. The Group previously disclosed that it had not recognised £53.0m of trading losses due to
them being subject to agreement with HMRC. During the year to 30 June 2024 HMRC confirmed the quantum of the trading losses available and that
they could be utilised against historical trading profits, resulting in a cash refund of £9.6m and associated interest of £0.8m. This was recorded as an
income tax receivable at 30 June 2024 and disclosed as exceptional as explained in note 4.
Movements in deferred income tax assets and liabilities during the year are shown below:
The Company has a deferred tax asset of £0.7m relating to timing differences on share based payments (2024: £0.4m).
Deferred income tax assets
Tax |
||||
losses |
Total |
|||
Share-based |
restated |
restated |
||
payments |
(note 34) |
Other 1 |
(note 34) |
|
Group |
£m |
£m |
£m |
£m |
At 1 July 2023 |
0.3 |
13.2 |
3.1 |
16.6 |
Expense taken to income statement |
(0.3) |
(2.5) |
(0.5) |
(3.3) |
Credit in respect of prior years taken to income statement |
0.8 |
2.7 |
– |
3.5 |
Expense taken to equity |
(0.7) |
– |
– |
(0.7) |
Net transfer from current tax income tax asset |
– |
1.4 |
– |
1.4 |
Credit in respect of prior years taken to equity |
1.0 |
– |
– |
1.0 |
At 30 June 2024 – restated |
1.1 |
14.8 |
2.6 |
18.5 |
Credit/(expense) taken to income statement |
0.1 |
(5.9) |
(0.4) |
(6.2) |
Credit/(expense) in respect of prior years taken to income statement |
– |
0.5 |
(0.2) |
0.3 |
Net transfer (from)/to current tax income tax asset |
– |
(2.3) |
0.1 |
(2.2) |
Credit in respect of prior years taken to equity |
1.2 |
– |
– |
1.2 |
At 30 June 2025 |
2.4 |
7.1 |
2.1 |
11.6 |
1
Deferred tax assets included in the ‘Other’ category relate predominantly to future income tax deductions available from IFRS transition adjustments in respect of
IFRS 15 and IFRS 9 which are expected to be utilised over the next 3 years in line with the requirements of tax legislation.
The Company has a deferred tax asset of £0.7m (2024: £0.4m) relating to share based payments.
Notes to the financial statements
continued
166
Galliford Try
22 Deferred income tax
continued
Deferred income tax liabilities
Accelerated |
Intangible |
||
tax |
assets |
||
depreciation |
acquired |
Total |
|
Group |
£m |
£m |
£m |
At 30 June 2023 |
(0.4) |
(0.7) |
(1.1) |
(Expense)/credit taken to income statement |
(0.1) |
0.2 |
0.1 |
(Expense)/credit in respect of prior years |
(0.1) |
0.1 |
– |
Acquisition of subsidiary |
– |
(0.2) |
(0.2) |
Disposal of subsidiary |
0.6 |
– |
0.6 |
At 30 June 2024 |
– |
(0.6) |
(0.6) |
At 30 June 2025 |
– |
(0.6) |
(0.6) |
The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit
risk and liquidity risk. The Group’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the Group’s financial performance. Financial assets and liabilities are offset and the net amount reported when there is
a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability
simultaneously.
The Group and Company operate within financial risk policies and procedures approved by the Board. It is, and has been throughout the year, the
Group’s policy that no trading in financial instruments shall be undertaken. The Board provides written principles for overall risk management,
as well as written policies covering specific areas such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments
and non-derivative financial instruments, and investment of excess liquidity. The Group’s financial instruments principally comprise cash and cash
equivalents, borrowings, receivables, payables and PPP and other investments that arise directly from its operations and its acquisitions. The
Company’s financial instruments comprise of cash and cash equivalents.
The Group is funded by ordinary shares, retained profits and its strong net cash position (refer to note 18, 24 and 26). The Group’s and Company’s
objectives when managing capital are to safeguard the Group’s ability to continue as a going concern, in order to provide returns for shareholders and
benefits for other stakeholders, and to maintain an optimal capital structure to reduce the cost of capital. During the year to 30 June 2025, the Group
enhanced its capital structure by securing a £25 million Revolving Credit Facility (RCF) as further explained below. The facility provides flexibility to
Financial risk factors
(a) Market risk
(i) Foreign exchange risk
All material activities of the Group take place within the UK and consequently there is little direct exchange risk, other than payments to overseas
suppliers who require settlement in their currency. If there is any material foreign exchange exposure, the Group’s policy is to enter into forward
foreign currency contracts. The Group and Company have no material currency exposure at 30 June 2025 (2024: nil).
(ii) Price risk
Other than a residual interest in equity securities, the Group and Company are not exposed to equity or commodity price risk.
(iii) Interest rate risk
The Group’s income and operating cash flows are substantially independent of changes in market interest rates.
The Group’s interest rate risk arises from movement in cash and cash equivalents as well as interest on any borrowings which can affect net finance
income and cashflow. As noted below, the Group entered into a £25m RCF during the year with a three year term. Amounts drawn under the facility
bear interest at a floating rate based on the Sterling Overnight Index Average (SONIA) plus a fixed margin. As at 30 June 2025, the Group had not
Financial statements
167
Annual Report and Financial Statements 2025
23 Financial instruments
continued
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, deposits and borrowings with banks and financial institutions,
as well as credit exposures to customers, including outstanding receivables and committed transactions. The Group does not hold any debt facilities.
Further details of credit risk relating to trade and other receivables are disclosed in note 17. No credit limits were exceeded during the reporting period,
and management does not expect any material losses from non-performance of any counterparties, including in respect of receivables not yet due.
The Group’s maximum exposure to credit risk at the end of the reporting period is the carrying amount (book value) of each class of financial asset set
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities as well as appropriate level of undrawn committed
facilities. The Group finances its operations through its cash reserves and ongoing retained profits. During the year to 30 June 2025, the Group entered
into a £25 million Revolving Credit Facility (RCF) with a syndicate of three banks. The facility provides greater agility and resilience, which alongside an
already strong balance sheet, provides an excellent platform to take advantage of future growth opportunities. Management monitors rolling forecasts
of the Group’s liquidity reserve on the basis of expected cash flow. This is generally carried out at local level in the operating companies of the Group,
in accordance with practices and limits set by the Group. On a daily basis throughout the year, the bank balances or gross overdrafts in all the Group’s
operating companies are aggregated into a total cash figure, in order that the Group can obtain the most advantageous interest rate.
In accordance with IFRS 9 ‘Financial Instruments’, the Group has reviewed all contracts for embedded derivatives that are required to be separately
Where market values are not available, fair values of financial assets and financial liabilities have been calculated by discounting expected future cash
flows at the prevailing interest rate.
Primary financial instruments held or issued to finance the Group’s operations:
2024 |
|||||
2025 |
Restated (note 34) |
||||
Book value |
Fair value |
Book value |
Fair value |
||
Notes |
£m |
£m |
£m |
£m |
|
Financial liabilities: |
|||||
Current financial liabilities measured at amortised cost |
19 |
436.3 |
436.3 |
419.6 |
419.6 |
Financial assets: |
|||||
PPP and other investments |
16 |
38.6 |
38.6 |
41.8 |
41.8 |
Current assets measured at amortised cost |
17 |
364.6 |
364.6 |
354.0 |
354.0 |
Cash and cash equivalents |
18 |
237.6 |
237.6 |
227.0 |
227.0 |
Prepayments are excluded from the financial assets measured at amortised cost; and statutory liabilities, contract liabilities and provisions are excluded
from financial liabilities measured at amortised cost noted above. A maturity analysis of the Group’s non-derivative financial liabilities is given in note 19.
Borrowing facilities
In March 2025, the Group entered a RCF agreement with syndicate of three banks – Barclays, Lloyds Banking Group and the National Bank of Kuwait.
The facility provides the Group committed borrowing capacity of £25m for a term of three years, maturing in March 2028. The agreement includes the
following features:
An option to extend the facility by up to two years, subject to lender approval, and
An accordion option, allowing the Group to request an increase in total commitment by a further £10m, subject to lender consent and documentation.
As at 30 June 2025, the Group had not drawn any amounts under the facility. The RCF remains undrawn since inception and provides additional
liquidity headroom.
The facility bears interest at a variable rate linked to SONIA plus a margin, with commitment fees payable on the undrawn portion. The agreement
includes customary financial covenants and undertakings, which the Group was in full compliance with as at the reporting date. The RCF is unsecured.
Notes to the financial statements
continued
168
Galliford Try
23 Financial instruments
continued
Fair value estimation
Specific valuation techniques used to value financial instruments are defined as:
Level 1 – Quoted market prices or dealer quotes in active markets for similar instruments.
Level 2 – The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the
use of observable market data and rely as little as possible on entity-specific estimates.
Level 3 – Other techniques, such as discounted cash flow analysis, are used to determine fair value for the remaining financial instruments. The fair
value of other investments is set out in note 16.
The following table presents the Group’s assets and liabilities that are measured at fair value at 30 June:
2025 |
2024 |
|||
Level 3 |
Total |
Level 3 |
Total |
|
£m |
£m |
£m |
£m |
|
Assets |
||||
Fair value through other comprehensive income |
||||
– PPP and other investments |
38.6 |
38.6 |
41.8 |
41.8 |
Total |
38.6 |
38.6 |
41.8 |
41.8 |
There were no transfers between levels during the year.
Valuation processes
A review of the long term UK gilt rates, Bank of England base rates, UK inflation and other external market data (including the secondary market) for
disposals is considered as part of the valuation process, which is ultimately agreed at the Executive Board, plc Board and Audit Committee.
The fair value of financial instruments that are not traded in an active market (for example, over-the-counter derivatives) is determined by using
valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as little as possible on entity
specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2. If one or more of the
significant inputs is not based on observable market data, the instrument is included in Level 3.
Fair value measurements using significant unobservable inputs (Level 3)
2025 |
2024 |
|
£m |
£m |
|
At 1 July |
41.8 |
44.6 |
Movement in fair value |
(1.9) |
(1.5) |
Disposals and subordinated loan repayments |
(1.3) |
(1.3) |
Closing balance |
38.6 |
41.8 |
The fair value is derived via a discounted cash flow. The key assumptions used in Level 3 valuations include the expected timing of receipts, credit risk
and discount rates. The typical repayment period is 10–15 years and the timing of receipts is based on historical data. The fair value of the portfolio
reflects a blended discount rate of 7.9% (2024: 7.6%) and is based on current market conditions. The sensitivity to discount rates is set out in note 16.
Financial statements
169
Annual Report and Financial Statements 2025
Ordinary shares and share premium
Ordinary |
Share |
|||
Number of |
shares |
premium |
Total |
|
Group |
shares |
£m |
£m |
£m |
At 30 June 2023 |
104,869,194 |
52.4 |
– |
52.4 |
Allotted under share option schemes |
1,323,592 |
0.7 |
0.8 |
1.5 |
Cancellation of shares |
(2,217,000) |
(1.1) |
– |
(1.1) |
At 30 June 2024 |
103,975,786 |
52.0 |
0.8 |
52.8 |
Allotted under share option schemes |
856,343 |
0.4 |
0.8 |
1.2 |
Cancellation of shares |
(2,690,861) |
(1.3) |
– |
(1.3) |
At 30 June 2025 |
102,141,268 |
51.1 |
1.6 |
52.7 |
Ordinary |
Share |
|||
Number of |
shares |
premium |
Total |
|
Company |
shares |
£m |
£m |
£m |
At 30 June 2023 |
104,869,194 |
52.4 |
– |
52.4 |
Allotted under share option schemes |
1,323,592 |
0.7 |
0.8 |
1.5 |
Cancellation of shares |
(2,217,000) |
(1.1) |
– |
(1.1) |
At 30 June 2024 |
103,975,786 |
52.0 |
0.8 |
52.8 |
Allotted under share option schemes |
856,343 |
0.4 |
0.8 |
1.2 |
Cancellation of shares |
(2,690,861) |
(1.3) |
– |
(1.3) |
At 30 June 2025 |
102,141,268 |
51.1 |
1.6 |
52.7 |
The Company does not have a limit on the authorised capital and does not hold any shares in treasury.
Number of shares refers to 50p ordinary shares, which are authorised, issued and fully paid. There are no shares authorised and issued but not fully paid.
In September 2022, having reviewed the Group’s strong cash performance and ongoing capital requirements the Group launched a share buyback
programme of up to a maximum of £15.0m. On 17 November 2023 we announced the completion of the share buyback programme with a total of
8,404,148 shares repurchased and subsequently cancelled, representing approximately 7.5% of issued share capital.
On 3 October 2024 the Group launched a share buyback programme of up to a maximum of £10.0m of Company shares. As at 30 June 2025 the
Group had completed the share buyback programme with a total of 2,690,861 shares repurchased and subsequently cancelled, at an average price of
approximately £3.72 per share, representing approximately 2.6% of issued share capital.
Notes to the financial statements
continued
170
Galliford Try
The Group operates performance-related share incentive plans for Executives, details of which are set out in the Directors’ Remuneration report,
as well as long term bonus plans for staff in addition to a Group wide sharesave schemes. The total charge for the year before tax relating to employee
share-based payment plans was £3.4m (2024: £1.8m), all of which related to equity-settled share-based payment transactions.
Savings-related share options
The Company operates an HMRC approved sharesave scheme, under which employees are granted an option to purchase ordinary shares in
the Company at up to 20% less than the market price at grant, in three years’ time, dependent on their entering into a contract to make monthly
contributions into a savings account over the relevant period. These funds are used to fund the option exercise. This scheme is open to all employees
meeting the minimum employment period. No performance criteria are applied to the exercise of sharesave options.
The options were valued using the binomial option-pricing model. The fair value per option granted and the assumptions used in the calculation are as
follows:
Employee |
||||||||||
turnover |
||||||||||
Shares under |
Share price |
Exercise |
Contract |
Expected |
Option life |
Risk free |
Dividend |
before |
Fair value |
|
Grant date |
option |
at grant date |
price |
date |
volatility |
(years) |
rate |
yield |
vesting |
per option |
13.04.22 |
135,276 |
174p |
143p |
01.06.22 |
58% |
3 |
1.5% |
3.3% |
10% |
70p |
14.04.23 |
776,489 |
174p |
137p |
01.06.23 |
54% |
3 |
3.6% |
4.5% |
10% |
67p |
12.04.24 |
852,013 |
244p |
201p |
01.06.24 |
30% |
3 |
4.2% |
4.5% |
10% |
61p |
03.04.25 |
939,331 |
341p |
296p |
01.06.25 |
31% |
3 |
3.8% |
4.1% |
10% |
83p |
The expected volatility is based on historical volatility in the movement in the share price over the past three years up to the date of grant (or since
incorporation of the Company in January 2020). The expected life is the average expected period to exercise. The risk free-rate is the yield on
zero-coupon UK Government bonds of a term consistent with the assumed option life. A reconciliation of savings related share awards over the
year to 30 June 2025 is shown below:
2025 |
2024 |
|||
Weighted |
Weighted |
|||
average |
average |
|||
Number |
exercise price |
Number |
exercise price |
|
Outstanding at 1 July |
2,806,642 |
158p |
3,481,546 |
127p |
Awards |
951,335 |
296p |
936,197 |
201p |
Forfeited |
(123,330) |
170p |
(148,347) |
129p |
Cancelled |
(66,407) |
178p |
(128,780) |
135p |
Expired |
(8,788) |
132p |
(10,382) |
115p |
Exercised |
(856,343) |
135p |
(1,323,592) |
112p |
Outstanding at 30 June |
2,703,109 |
213p |
2,806,642 |
158p |
Exercisable at 30 June |
134,149 |
143.9 |
221,765 |
112p |
The weighted average fair value of awards granted during the year was 83p (2024: 61p). There were 856,343 share options exercised during the year
ended 30 June 2025 (2024: 1,323,592) and the weighted average exercise price at the date of exercise was 135p (2024: 112p). The weighted average
remaining contractual life is 2 years and nil months (2024: 1 year and 10 months).
Performance-related long-term incentive plans
The Group operates performance-related share incentive plans for Executives, details of which are set out in the Directors’ Remuneration report.
The awards that vest are satisfied by the transfer of shares for no consideration. The outstanding options were valued using a Black-Scholes model.
The fair value per option granted and the assumptions used in the calculation are as follows:
Vesting |
Fair |
|||||
Shares |
Share price at |
period/option |
Risk-free |
Dividend |
value per |
|
Grant date |
under option |
grant date |
life (months) |
rate |
yield |
option |
23.09.22 |
1,369,284 |
161p |
36 |
4.0% |
5.0% |
139p |
23.09.23 |
987,710 |
225p |
36 |
4.3% |
4.7% |
195p |
08.10.24 |
1,040,245 |
322p |
36 |
3.9% |
4.8% |
279p |
Financial statements
171
Annual Report and Financial Statements 2025
25 Share-based payments
continued
The expected volatility is based on historical volatility in the movement in the share price of the Company and its comparator group and the correlations
between them over the past three years. The expected life is the average expected period to exercise. The risk free rate is the yield on zero-coupon UK
Government bonds of a term consistent with the assumed option life. A reconciliation of performance-related share awards over the year to 30 June is
shown below:
2025 | 2024 | |
Number | Number | |
Outstanding at 1 July | 3,533,585 | 6,466,295 |
Granted | 1,040,245 | 1,244,171 |
Exercised | (1,037,753) | (3,156,934) |
Forfeited | (138,838) | (1,019,947) |
Outstanding at 30 June | 3,397,239 | 3,533,585 |
Exercisable at 30 June | – | – |
The weighted average fair value of awards granted during the year was 279p (2024: 195p). There were 1,037,753 options exercised during the year
ended 30 June 2025 (2024: 3,156,934). The weighted average remaining contractual life is one year and two months (2024: one year and two months).
Annual bonus plan – deferred shares
Executive directors are eligible to participate in the Company’s annual bonus scheme. The scheme rules dictate that two thirds of any bonus earned
in excess of 50% of the base annual salary is deferred into restricted shares for three years. Participants must remain in employment to receive the
restricted shares, but there are no other associated performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
2025 | 2024 | |
Number | Number | |
Outstanding at 1 July | 725,969 | 821,646 |
Granted | 159,345 | 126,350 |
Exercised | (291,518) | (52,969) |
Forfeited | – | (169,058) |
Outstanding at 30 June | 593,796 | 725,969 |
Exercisable at 30 June | – | – |
The weighted average remaining contractual life is one year and nil months (2024: one year and nil months). The fair value of the awards is the closing
share price on the date of grant.
Long term bonus plan – deferred shares
Certain members of the Group are eligible to participate in the Company’s long term bonus plan. The scheme rules dictate that up to half of the bonus
earned is awarded in restricted shares. The shares are restricted for a period of twelve months. Participants must remain in employment to receive the
restricted shares, but there are no other associated performance conditions.
A reconciliation of performance-related share awards over the year to 30 June is shown below:
2025 | 2024 | |
Number | Number | |
Outstanding at 1 July | 129,136 | – |
Granted | 159,526 | 129,136 |
Exercised | (123,453) | – |
Forfeited | (5,683) | – |
Outstanding at 30 June | 159,526 | 129,136 |
Exercisable at 30 June | – | – |
The weighted average remaining contractual life is three months (2024: three months). The fair value of the awards is the closing share price on the date
Notes to the financial statements
continued
172
Galliford Try
Other reserves and retained earnings
Retained |
|||
earnings |
|||
Other |
restated |
||
reserves |
(note 34) |
||
Group |
Notes |
£m |
£m |
At 1 July 2023 |
135.3 |
(69.1) |
|
Profit for the year – restated |
– |
27.4 |
|
Dividends paid |
9 |
– |
(24.2) |
Share-based payments |
25 |
– |
1.8 |
Tax relating to share based payments |
– |
2.0 |
|
Movement in fair value of PPP and other investments |
16 |
– |
(1.5) |
Purchase of own shares |
– |
(12.0) |
|
Cancellation of shares |
1.1 |
– |
|
At 30 June 2024 – restated |
136.4 |
(75.6) |
|
Profit for the year |
– |
33.6 |
|
Dividends paid |
9 |
– |
(17.5) |
Share-based payments |
25 |
– |
3.4 |
Tax relating to share based payments |
– |
2.0 |
|
Movement in fair value of PPP and other investments |
16 |
– |
(1.9) |
Purchase of own shares |
– |
(12.3) |
|
Cancellation of shares |
1.3 |
– |
|
At 30 June 2025 |
137.7 |
(68.3) |
The Company and Group’s other reserves relate to a merger reserve amounting to £132.2m (2024: £132.2m) and a capital redemption reserve of
£5.5m (2024: £4.2m).
The purchase of own shares represents shares purchased by the Galliford Try Employee Share Trust of £nil (2024: £4.3m) and other share related
transactions of £2.3m (2024: £3.3m), in addition to £10.0m (2024: £4.4m) purchased by the Company as part of the share buybacks announced in
September 2022 (buyback completed on 17 November 2023) and October 2024 (buyback completed on 21 May 2025).
Other |
Retained |
||
reserves |
earnings |
||
Company |
Notes |
£m |
£m |
At 30 June 2023 |
135.3 |
115.0 |
|
Profit for the year |
– |
23.3 |
|
Dividends paid |
9 |
– |
(24.2) |
Share-based payments |
– |
0.7 |
|
Purchase of shares |
15 |
– |
(4.4) |
Cancellation of shares |
1.1 |
– |
|
At 30 June 2024 |
136.4 |
110.4 |
|
Profit for the year |
– |
30.1 |
|
Dividends paid |
9 |
– |
(17.5) |
Share-based payments |
– |
0.5 |
|
Purchase of shares |
15 |
– |
(10.0) |
Cancellation of shares |
1.3 |
– |
|
At 30 June 2025 |
137.7 |
113.5 |
The cumulative amount of goodwill arising on acquisition and written off directly against reserves is 9.5m (2024: £9.5m).
Financial statements
173
Annual Report and Financial Statements 2025
26
Other reserves and retained earnings continued
At 30 June 2025, the Galliford Try Employee Share Trust (the Trust) held 3,066,609 (2024: 3,824,949) Galliford Try Holdings plc shares. The nominal
value of the shares held is £1.5m (2024: £1.9m). No shares were acquired during the year (2024: 1, 807,000 at a net cost of £4.3m) and a further £2.3m
(2024: £3.3m) was paid in relation to other share related transactions with 694,382 (2024: 1,497,612) shares were transferred during the year. The cost
of funding and administering the Trust is charged to the income statement in the period to which it relates. The market value of the shares at 30 June
2025 was £12.9m (2024: £9.1m). No shareholders (2024: none) have waived their rights to dividends.
As part of and as a result of the disposal of the housebuilding operations to Vistry Group plc on 3 January 2020 and the associated scheme of
arrangement completed under Part 26 of the Companies Act 2006, shares held in Galliford Try Limited (formerly Galliford Try plc) as at 3 January 2020
(221,603) were exchanged for an equivalent number of shares in Galliford Try Holdings plc and 127,189 shares in Vistry Group plc (at a rate of 0.57406
Vistry Group plc shares for each Galliford Try Limited share). During the year to 30 June 2024, the Group disposed of the remaining 14,132 shares in
The Group had no commitments for subordinated debt to joint ventures or other investments at 30 June 2025 (2024: £nil), nor any commitment for
The Group has surety bonding facilities and bank guarantees. These are supported by counter indemnities given by the Company and certain
subsidiaries in the Group in the normal course of business. Utilisation of the bonding and guarantee facilities total £154.9m at 30 June 2025
(2024: £182.1m). It is not expected that any material liabilities will arise.
Disputes arise in the normal course of business, some of which lead to litigation or arbitration procedures. While the outcome of disputes and arbitration
is never certain, the directors believe that the resolution of all existing actions will not have a material adverse effect on the Group’s financial position.
Where the Group has received such claims, the directors have made provision in the financial statements when they believe it is probable a liability
exists and it can be reliably estimated, but no provision has been made where the Group’s liability is considered only possible or remote. This is based on
the best estimates of future costs to be incurred after assessing all relevant information and taking legal advice where appropriate
The Group has currently assessed a pool of non-fire safety related claims that meet the contingent liability threshold for disclosure. These claims are of
a similar nature with a collective range of between £nil and £12.0m (2024: £nil and £8.6m). The Group’s assessment of liability and estimates of future
costs could change in the future. Although the Group has appropriate insurance arrangements in place that should mitigate any significant exposure,
the recognition thresholds under IAS 37 would mean a liability could be recognised before a corresponding asset.
The continuing evolution of Government legislation and guidance, such as the Building Safety Act and its implications for cladding solutions used on
historical contracts, also creates ongoing uncertainty that the Group manages.
The Group is tracking a pool of three fire safety claims which meet the definition of contingent liabilities under IAS37. Management do not consider it is
practicable to value the pool because of the lack of supporting evidence from the claimants and the length of time it takes for these cases to evolve and
for any reliable quantum, if any, to be established. Factors include the complexity of the building projects in question, the many suppliers involved in the
supply chain and the potential for reimbursement from subcontractors. The Group believes it has strong legal positions with contractual support on all
the cases, however, at this time, it cannot fully rule out that material settlements may result, should this be the case, management expects there will be
recovery from the supply chain, designers or insurers that can be full or partial.
Notes to the financial statements
continued
174
Galliford Try
Transactions between the Group and its related parties are disclosed as follows:
Group
Sales to |
Amounts owed by |
|||
related parties |
related parties |
|||
2025 |
2024 |
2025 |
2024 |
|
£m |
£m |
£m |
£m |
|
Trading transactions |
||||
Related parties |
69.4 |
79.3 |
39.4 |
35.1 |
Interest and dividend income |
||
from related parties |
||
2025 |
2024 |
|
£m |
£m |
|
Non-trading transactions |
||
Related parties |
4.0 |
3.8 |
Sales to related parties (all of which are to joint ventures and associates) are based on terms that would be available to unrelated third parties. Amounts
owed by related parties consist predominantly of subordinated debt within the PPP and Other Investments portfolio, that if held to maturity would be
due over the next 23 years (2024: 24 years). These receivables are unsecured, with interest rates varying between a range of 9% and 12% (2024: 9% and
12%). Payables are due within one year (2024: one year) and are interest free.
Company
Transactions between the Company and its subsidiaries which are related parties, which are eliminated on consolidation, are disclosed as follows:
Interest and dividend income |
||
from related parties |
||
2025 |
2024 |
|
£m |
£m |
|
Non-trading transactions |
||
Subsidiary undertakings |
29.8 |
22.9 |
The Company has provided performance guarantees in respect of certain operational contracts entered into between joint ventures and
During the year to 30 June 2024, the Group acquired 100% of the share capital AVRS Systems Limited. The Group also finalised the acquisition
accounting of MCS Control Systems Limited and certain contracts and assets of Ham Baker Limited (in administration) having previously reported the
balances as provisional in accordance with IFRS 3.
AVRS Systems Limited
On 8 November 2023, the Group acquired 100% of the share capital of AVRS Systems Limited (“AVRS”), a leading mechanical and electrical engineering
specialist for £4.5m settled in cash. The addition of AVRS’s capabilities is complementary to the operations of Galliford Try’s expanding Environment
asset optimisation and capital maintenance business in line with the Groups strategy. In particular, AVRS provides additional competencies that
complement those acquired with nmcn’s Water business, Lintott Control Systems Limited, MCS Control Systems Limited and the capital maintenance
business of Ham Baker.
The goodwill of £0.9m arising from the acquisition is significantly attributable to the acquired workforce and their technical expertise and the
opportunity to leverage this expertise across the Group to enhance the asset optimisation and capital maintenance strategy.
Financial statements
175
Annual Report and Financial Statements 2025
30 Business combinations
continued
The following table summarises the consideration paid and the fair value of the assets acquired and liabilities assumed.
£m |
|
Recognised amounts of identifiable assets acquired and liabilities assumed |
|
Property plant and equipment (including right-of-use assets) |
1.0 |
Intangible assets |
1.0 |
Trade and other receivables |
2.5 |
Cash and cash equivalents |
1.0 |
Trade and other payables |
(0.9) |
Corporation tax liability |
(0.3) |
Lease liabilities |
(0.5) |
Deferred tax liability |
(0.2) |
Total identifiable net liabilities |
3.6 |
Goodwill |
0.9 |
Total |
4.5 |
Consideration |
|
Cash |
4.5 |
Total |
4.5 |
As part of the conditions of the sale and in addition to the initial consideration of £4.5m, an earn out arrangement is in place, whereby the sellers
are entitled up to an additional £2.5m. Due to the nature of the earn out, this will be treated as remuneration as it requires the sellers to remain in
employment during the earn out period of two years. The earn out accrued during the year is £0.8m (2024: £0.6m).
The acquisition contributed £9.5m of revenue and a profit before tax of £0.4m in the period to 30 June 2024. If the acquisition had taken place at
Events after the reporting date
On 17 September 2025, the Group announced a further share buyback programme of up to a maximum of £10m, details can be found in the
announcement on the Group’s investor website.
Throughout the Annual Report and Accounts, the Group has presented financial performance measures which are used to manage the Group’s
performance. These financial performance measures are chosen to provide a balanced view of the Group’s operations and are considered useful
to investors as they provide relevant information on the Group’s performance. They are also aligned to measures used internally to assess business
performance in the Group’s budgeting process and when determining compensation. An explanation of the Group’s financial performance measures
and appropriate reconciliations to its statutory measures are provided below.
Providing clarity on the Group’s adjusted performance measures
The Group has included this note and the enclosed explanations and reconciliations with the aim of providing transparency and clarity on the measures
adopted internally to assess performance. The APMs adopted by the Group are also commonly used in the sectors it operates in. This additional
information is not defined under international accounting standards and may therefore not be comparable with similarly titled profit measures reported
by other companies. It is not intended to be a substitute for, or superior to, international accounting standards measures of profit.
The Board believes that disclosing these performance measures enhances investors’ ability to evaluate and assess the underlying financial performance
of the Group’s operations and the related key business drivers.
Notes to the financial statements
continued
176
Galliford Try
32 Adjusted performance measures
continued
Measuring the Group’s performance
The following measures are referred to in this report:
Statutory measures
Statutory measures are derived from the Group’s reported financial statements, which are prepared in accordance with UK adopted International
Accounting Standards and in line with the Group’s accounting policies, that can be found in note 1.
The Group’s statutory measures take into account all of the factors, including exceptional items which are not considered to reflect the ongoing
underlying performance of the Group.
Adjusted performance measures
In assessing its performance, the Group has adopted certain non-statutory measures that reflect the underlying performance of the Group.
These typically cannot be directly extracted from its financial statements but are reconciled to statutory measures below:
a) Adjusted performance
The Group adjusts for certain significant irregular (exceptional) items which the Board believes assist in understanding the performance achieved by
the Group as this reflects the underlying and ongoing performance of the business. A reconciliation of the statutory measure to the adjusted measure
is provided in the following tables. Previously, the Group had referred to pre-exceptional performance which excluded the impact of exceptional items
only. The exclusion of exceptional items as well as the amortisation of acquired intangibles seeks to reflect the underlying and ongoing performance
of the business with a consistent methodology across all the adjusted performance measures. The adjusting items and associated tax impacts that the
Group has recognised are shown below.
2024 | ||
Restated | ||
2025 | (note 34) | |
£m | £m | |
Contract losses 1 | – | (11.7) |
Implementation costs of cloud based arrangements 2 | – | (2.6) |
Finance income 3 | – | 0.8 |
Amortisation of acquired intangible assets | (0.9) | (2.3) |
Loss before tax | (0.9) | (15.8) |
Associated tax credit on items above | 0.2 | 3.9 |
Exceptional income tax credit (note 8) 3 | – | 9.6 |
Total | (0.7) | (2.3) |
1
Management have classified material losses of £11.7m arising on specific batches of contracts under one framework agreement, acquired in the nmcn water division
acquisition in FY2022, as an exceptional item in the 2024 results. The Group considers the impact to be exceptional given its nature (relating to acquired contracts)
and quantum (being material), and therefore should be separately disclosed.
2
The Group incurred £2.6m of customisation and configuration costs in the year to 30 June 2024 associated with the move to Oracle Fusion, a cloud-based computing
arrangement, during the year. Taking into account the IFRIC Agenda Decision issued by the IFRS IC in March 2021, the Group has analysed the costs and concluded
that these costs should be expensed in the period. In accordance with the Group’s existing accounting policy, management considers that the costs should be separately
disclosed as exceptional items because they are significant and irregular. The move to Oracle Fusion is now complete with no further exceptional items expected.
3
The Group previously disclosed that it had not recognised an asset in respect of historic trading losses due to the losses being subject to agreement with HMRC. This led to
an uncertain tax position where no asset was recognised as, based on the advice of tax advisors, the group concluded it was not probable HMRC would accept the claims
to utilise the losses. During the year to 30 June 2024 HMRC agreed a quantum of historic trading losses available and that they could be utilized against historical trading
profits, resulting in a cash tax refund of £9.6m with associated interest of £0.8m, which was received after 30 June 2024. Management considers that the refund should be
disclosed separately as exceptional given it is material in quantum and one off in nature.
A reconciliation of the statutory measure to the adjusted measure is provided in the following tables.
Financial statements
177
Annual Report and Financial Statements 2025
32 Adjusted performance measures
continued
b) Adjusted operating profit/(loss) and operating margin
The Group presents operating profit excluding exceptional items and the amortisation of acquired intangible assets as this reflects the ongoing
performance of the business, which is referred to as adjusted operating profit/(loss). Operating margin reflects the ratio of adjusted operating profit/
(loss) and revenue. This differs from the statutory measure of operating profit which includes exceptional items and the amortisation of acquired
intangible assets. Divisional adjusted operating margin is the combined adjusted operating margin of the Building and Infrastructure segments.
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
Building | Infrastructure | Investments | Central | Total | |
£m | £m | £m | £m | £m | |
Year ended 30 June 2025 | |||||
Statutory operating profit/(loss) | 28.1 | 26.5 | (0.4) | (14.5) | 39.7 |
exclude: amortisation of acquired intangible assets (note 11) | – | 0.9 | – | – | 0.9 |
exclude: exceptional items (note 4) | – | – | – | – | – |
Adjusted operating profit/(loss) | 28.1 | 27.4 | (0.4) | (14.5) | 40.6 |
Revenue | 964.7 | 902.5 | 8.0 | – | 1,875.2 |
Adjusted operating margin | 2.9% | 3.0% | n/a | n/a | 2.2% |
Year ended 30 June 2024 | |||||
Statutory operating profit/(loss) – restated (note 34) | 23.0 | 7.3 | (1.0) | (16.3) | 13.0 |
exclude: amortisation of acquired intangible assets (note 11) | 1.0 | 1.1 | – | 0.2 | 2.3 |
exclude: exceptional items (note 4) – restated (note 34) | – | 11.7 | – | 2.6 | 14.3 |
Adjusted operating profit/(loss) | 24.0 | 20.1 | (1.0) | (13.5) | 29.6 |
Revenue – restated (note 34) | 938.3 | 810.7 | 14.7 | – | 1,763.7 |
Revenue on material loss making contracts | – | 18.6 | – | – | 18.6 |
Adjusted revenue | 938.3 | 792.1 | 14.7 | – | 1,745.1 |
Adjusted operating margin | 2.6% | 2.5% | n/a | n/a | 1.7% |
c) Adjusted profit before tax
The Group uses a profit before tax measure which excludes exceptional items and amortisation of acquired intangible assets as noted above, whereas
the statutory measure includes both. Since the prior year, management have changed the definition of adjusted profit before tax by excluding the
amortisation of acquired intangible assets to align with the measurement of adjusted operating profit with the same rationale.
A reconciliation of the statutory measure to the Group’s performance measure is shown below, based on continuing operations:
2024 1 | ||
Restated | ||
2025 | (note 34) | |
£m | £m | |
Statutory profit before tax | 44.1 | 19.2 |
exclude: exceptional items (note 4) | – | 13.5 |
exclude: amortisation of acquired intangible assets | 0.9 | 2.3 |
Adjusted profit before tax | 45.0 | 35.0 |
1
The Group previously disclosed pre-exceptional profit before tax. The adjusted profit before tax measure now also excludes the amortisation of acquired intangible assets.
Notes to the financial statements
continued
178
Galliford Try
32 Adjusted performance measures
continued
d) Adjusted earnings per share
In line with the Group’s measurement of adjusted performance, the Group also presents its earnings per share on the same adjusted basis as adjusted
profit before tax. This differs from the statutory measure of earnings per share which includes both exceptional items and amortisation of acquired
intangible assets. Since the prior year, management has changed the definition of adjusted earnings per share by excluding the amortisation of acquired
intangible assets to align with the measurement of adjusted operating profit with the same rationale.
A reconciliation of the statutory measure to the Group’s performance measure (post-tax) is shown below, based on continuing operations:
2024 |
||||||
2025 |
Restated (note 34) |
|||||
Weighted |
Weighted |
|||||
average |
average |
|||||
Earnings |
number of |
EPS |
Earnings |
number of |
EPS |
|
£m |
shares |
pence |
£m |
shares |
pence |
|
Statutory results |
33.6 |
99,627,362 |
33.7 |
27.4 |
100,051,095 |
27.3 |
exclude: exceptional items (note 4) |
– |
n/a |
n/a |
0.5 |
n/a |
n/a |
exclude: amortisation of acquired intangible assets |
0.7 |
n/a |
n/a |
1.7 |
n/a |
n/a |
Adjusted earnings per share 1 |
34.3 |
99,627,362 |
34.4 |
29.6 |
100,051,095 |
29.6 |
1
Adjusted earnings per share for 2024 was previously reported as 27.9p. The change reflects the adjusted profit measure excluding the amortisation of acquired intangible
In accordance with section 409 of the Companies Act, the following is a list of all of the Group’s undertakings as at 30 June 2025. Galliford Try Limited is
the only subsidiary undertaking held directly by the Company.
Shareholding |
||
(direct or |
||
Entity name |
Registered office or principal place of business |
indirect) |
Charles Grip Surfacing Limited |
Miller House, Pontefract Road, Normanton, WF6 1RN |
100% |
Construction Holdco 1 Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Asset Intelligence Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Building 2014 Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Construction & Investments Holdings Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Corporate Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Employment Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Estates Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Facilities Management Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try HPS Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Infrastructure Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Galliford Try Investments Consultancy Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Investments Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Investments NEPS Limited 1 |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Plant Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Properties Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Financial statements
179
Annual Report and Financial Statements 2025
33 Group undertakings
continued
Shareholding |
||
(direct or |
||
Entity name |
Registered office or principal place of business |
indirect) |
Galliford Try Secretariat Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Digital Infrastructure Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try (Water) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (Leeds) Lift Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (Leicester) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT (North Hub) Investments Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GT (North Tyneside) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Camberwell (Holdings) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Camberwell Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Car Parks Leicester (Holdings) Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Car Parks Leicester Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Galliford Try Developments Limited 2 |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
GT Inverness Investments Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GT Telford Holdings 3 |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GT TMGL Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
GTFM (Cavalry) Limited 4 |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Ham Baker Engineering Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Kingseat Development 1 Limited |
Morrison House, Kingseat Business Park, Kingseat, Newmachar, |
100% |
Aberdeenshire, AB21 0AZ |
||
Leicester GT Education Company Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Lintott Control Systems Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Lintott Environmental Technologies Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
MCS Control Systems Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
AVRS Systems Limited |
Avrs Systems Ltd Lonning End, Ponsonby, Seascale, Cumbria, |
100% |
England, CA20 1BU |
||
Morrison Construction Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
100% |
Morrison Highway Maintenance 3 |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Oak Specialist Services Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Regeneco (Services) Limited 3 |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Regeneco Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
Try Construction Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
100% |
1
Dissolved 15 July 2025.
2
Previously GT Guildford Crescent Limited, name changed 10 September 2025.
3
Dissolved 1 July 2025.
4
Dissolved 9 September 2025.
All subsidiary undertakings are incorporated in the UK unless otherwise specified and are included in the consolidated financial statements
Notes to the financial statements
continued
180
Galliford Try
33 Group undertakings
continued
Proportion of |
Financial |
||
Entity name |
Registered office or principal place of business |
capital held |
year-end |
Aberdeen Roads (Finance) PLC |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
Aberdeen Roads Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
Aberdeen Roads Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
33% |
31-Dec |
ACP: North Hub Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Dec |
GBV JV Limited |
3 Frayswater Place, Uxbridge, UB8 2AD |
50% |
30-Jun |
GT Equitix Inverness Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Mar |
GT Equitix Inverness Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
31-Mar |
Hub South East Scotland Limited |
8 Melville Street, Edinburgh, EH3 7NS |
50% |
31-Mar |
Kingseat Development 2 Limited |
Morrison House, Kingseat Business Park, Kingseat, Newmachar, |
50% |
30-Jun |
Aberdeenshire AB21 0AZ |
|||
Space Scotland Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
83% 1 |
31-Mar |
Urban Vision Partnership Limited |
First Floor, 2 Kingdom Street, Paddington, London, W2 6BD |
30% |
31-Dec |
The above entities are all incorporated in the UK and considered to be joint ventures, based on the shareholding agreements in place.
1
Proportion of |
||
capital held by |
||
Entity name |
Registered office or principal place of business |
class |
Aberdeen Community Health Care Village Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Alliance Community Partnership Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
10% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
||
Galliford Try Qatar LLC |
PO Box 11726 Doha, State of Qatar (incorporated in Qatar) |
49% |
Hub North Scotland (Alford) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (FWT) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (O&C) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (O&C) Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
James Gillespie’s Campus Subhub Holdings Limited |
8 Melville Street, Edinburgh, EH3 7NS |
50% |
James Gillespie’s Campus Subhub Limited |
8 Melville Street, Edinburgh, EH3 7NS |
50% |
LBP DBFM Holdco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
LBP DBFMco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Newbattle DBFM HoldCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Newbattle DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
ELCH DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
ELCH DBFM Holdco Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
WCHS DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
WCHS DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
JICC DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Financial statements
181
Annual Report and Financial Statements 2025
33 Group undertakings
continued
Proportion of |
||
capital held by |
||
Entity name |
Registered office or principal place of business |
class |
JICC DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
KHS DBFM HoldCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
KHS DBFMCo Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
QHS DBFMCo Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
QHS DBFM Holdco Ltd |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
REH Phase 1 Subhub Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
REH Phase 1 Subhub Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
50% |
Hub North Scotland (I&F) Holdings Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub North Scotland (I&F) Limited |
2nd Floor, 2 Lochside View, Edinburgh, Scotland, EH12 9DH |
30% |
Hub South West Scotland Limited |
2 Atlantic Square, 31 York Street, Glasgow, Scotland G2 8AS |
6% |
Hub SW Cumbernauld DBFMCo Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
6% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
||
Hub SW Cumbernauld Holdco Limited |
Avondale House Suites 1b-1e, Phoenix Crescent, Strathclyde Business |
6% |
Park, Bellshill, North Lanarkshire, Scotland, ML4 3NJ |
The above entities are all incorporated in the UK except Galliford Try Qatar LLC, which is incorporated in Qatar.
Notes to the financial statements
continued
182
Galliford Try
A non-cash prior year restatement has been recorded following a correction to the Group’s application of IFRS15 contract combination accounting.
Under its existing IFRS15 accounting policy, the Group had incorrectly combined contracts on a small percentage of framework agreements and
as a result, the Group has restated its financial statements, reducing revenue and increasing cost of sales in 2024 with an aggregate impact to reported
profit before tax of £11.7m with associated tax and working capital corrections. No restatements were required to be made to the balance sheet at
1 July 2023. The full impact of the restatement is shown in the following tables.
There is no impact on the Company.
Consolidated income statement
2024 | 2024 | ||
Previously | |||
reported | Adjustment | Restated | |
£m | £m | £m | |
Revenue | 1,772.8 | (9.1) | 1,763.7 |
Cost of sales | (1,641.4) | (2.6) | (1,644.0) |
Gross profit | 131.4 | (11.7) | 119.7 |
Administrative expenses | (106.7) | – | (106.7) |
Operating profit | 24.7 | (11.7) | 13.0 |
Finance income | 9.6 | – | 9.6 |
Finance costs | (3.4) | – | (3.4) |
Profit before income tax | 30.9 | (11.7) | 19.2 |
Income tax credit | 5.3 | 2.9 | 8.2 |
Profit for the year | 36.2 | (8.8) | 27.4 |
Earnings per share | |||
Basic | |||
Profit attributable to ordinary shareholders | 36.2p | 27.3p | |
Diluted | |||
Profit attributable to ordinary shareholders | 34.7p | 26.2p | |
Financial statements
183
Annual Report and Financial Statements 2025
34 Prior year restatement
continued
Consolidated statement of comprehensive income
The total comprehensive income for the year to 30 June 2024 is restated to £25.9m from £34.7m as a result of the changes noted above.
Consolidated balance sheet
2024 | 2024 | ||
Previously | |||
reported | Adjustment | Restated | |
£m | £m | £m | |
Assets | |||
Non-current assets | |||
Deferred income tax assets | 15.0 | 2.9 | 17.9 |
Other non-current assets | 196.4 | – | 196.4 |
Total non-current assets | 211.4 | 2.9 | 214.3 |
Current assets | |||
Trade and other receivables | 370.8 | 0.4 | 371.2 |
Other current assets | 238.6 | – | 238.6 |
Total current assets | 609.4 | 0.4 | 609.8 |
Total assets | 820.8 | 3.3 | 824.1 |
Liabilities | |||
Current liabilities | |||
Trade and other payables | (609.2) | (12.1) | (621.3) |
Other current liabilities | (56.7) | – | (56.7) |
Total current liabilities | (665.9) | (12.1) | (678.0) |
Non-current liabilities | |||
Total non-current liabilities | (32.5) | – | (32.5) |
Total liabilities | (698.4) | (12.1) | (710.5) |
Net assets | 122.4 | (8.8) | 113.6 |
Equity | |||
Share capital | 52.0 | – | 52.0 |
Share premium | 0.8 | – | 0.8 |
Other reserves | 136.4 | – | 136.4 |
Retained earnings | (66.8) | (8.8) | (75.6) |
Total equity | 122.4 | (8.8) | 113.6 |
The 2023 balance sheet has not been presented as there is no impact to the net assets, with only an increase to both the contract assets and contract
liabilities of £5.4m which is not deemed to be material.
Notes to the financial statements
continued
184
Galliford Try
34 Prior year restatement
continued
Consolidated statement of changes in equity
As a result of the change to the total comprehensive income for the year to 30 June 2024, the retained earnings and total shareholders’ equity is
restated in line with the changes noted in the balance sheet above.
Consolidated statement of cash flows
2024 | 2024 | ||
Previously | |||
reported | Adjustment | Restated | |
£m | £m | £m | |
Cash flows from operating activities | |||
Profit for the year | 36.2 | (8.8) | 27.4 |
Adjustments for: | |||
Income tax credit | (5.3) | (2.9) | (8.2) |
Net finance income | (6.2) | – | (6.2) |
Profit before finance costs and taxation | 24.7 | (11.7) | 13.0 |
Depreciation, amortisation and impairment of non-current assets | 20.7 | – | 20.7 |
Share-based payments | 1.8 | – | 1.8 |
Other non-cash movements | (0.4) | – | (0.4) |
Net cash generated from operations before changes in working capital | 46.8 | (11.7) | 35.1 |
Increase in trade and other receivables | (84.1) | (0.4) | (84.5) |
Increase in trade and other payables | 84.9 | 12.1 | 97.0 |
Increase in provisions | 6.3 | – | 6.3 |
Net cash generated from operations | 53.9 | – | 53.9 |
Net cash generated from operating activities | 56.2 | – | 56.2 |
Net increase/(decrease) in cash and cash equivalents | 6.8 | – | 6.8 |
The are no changes to the investing and financing activities, or the opening and closing cash and cash equivalents balances previously reported.
Segmental results
The impact of the restatement to 2024 impacts the infrastructure segment only.
Trade and other receivables
Previously | |||
reported | Adjustment | Restated | |
£m | £m | £m | |
Current assets: | |||
Contract assets | 290.1 | 0.4 | 290.5 |
Other trade and other receivables | 80.7 | – | 80.7 |
370.8 | 0.4 | 371.2 |
Trade and other payables
Previously | |||
reported | Adjustment | Restated | |
£m | £m | £m | |
Contract liabilities | 121.8 | 9.5 | 131.3 |
Accruals | 307.0 | 2.6 | 309.6 |
Other trade and other payables | 180.4 | – | 180.4 |
609.2 | 12.1 | 621.3 |
Financial statements
185
Annual Report and Financial Statements 2025
Continuing operations
2021
£m
2022
£m
2023
£m
2024
restated
(note 34)
£m
2025
£m
Revenue
1,124.8
1,237.2
1,393.7
1,763.7
1,875.2
Adjusted Profit before taxation
12.4
20.6
22.4
35.0
45.0
Profit before taxation
11.4
5.4
10.1
19.2
44.1
Tax (expense)/credit
(1.0)
0.9
(1.0)
8.2
(10.5)
Profit after taxation attributable to shareholders
10.4
6.3
9.1
27.4
33.6
Fixed assets (including IFRS 16 right-of-use assets), investments in
joint ventures, PPP and other investments
73.2
79.4
90.4
98.5
95.7
Intangible assets and goodwill
82.9
97.0
98.3
97.9
97.0
Net current liabilities
(24.4)
(43.4)
(61.4)
(68.2)
(50.5)
Other long-term assets
14.3
14.0
15.5
17.9
11.0
Long-term payables and provisions
(11.9)
(14.9)
(24.2)
(32.5)
(31.1)
Net assets
134.1
132.1
118.6
113.6
122.1
Share capital
55.5
55.5
52.4
52.0
51.1
Share premium
–
–
–
0.8
1.6
Reserves
78.6
76.6
66.2
60.8
69.4
Shareholders’ funds
134.1
132.1
118.6
113.6
122.1
Dividends per share (pence)
4.7
8.0
22.5
15.5
19.0
Basic earnings per share (pence)
9.5
5.8
8.7
27.3
33.7
Adjusted earnings per share (pence)
10.2
17.1
18.0
29.6
34.4
Diluted earnings per share (pence)
9.1
5.5
8.1
26.2
32.2
The results for 2021, 2022 and 2023 are presented on an adjusted basis in line with the results of 2024 and 2025.
Five-year record (unaudited)
186
Galliford Try
Financial calendar 2025
Half year results announced
5 March
Full year results announced
17 September
Ex dividend date – final dividend
6 November
Final dividend record date
7 November
Annual General Meeting
13 November
Final dividend payment
5 December
Shareholder enquiries
The Company’s registrars are Equiniti Limited. They will be pleased to deal
with any questions regarding your shareholding or dividend payments.
Please notify them if you change your address or other personal
information. Call the shareholder contact centre on 0371 384 2202.
Lines open from 8.30am to 5.30pm, Monday to Friday. Alternatively,
write to them at:
Equiniti Limited
Aspect House
Spencer Road
Lancing
West Sussex
BN99 6DA
You can find a number of shareholder services online via their website
at www.shareview.co.uk, including the portfolio service which gives
you access to more information on your investments such as balance
movements, indicative share prices and information on recent dividends.
You can also register your email address to receive shareholder
information and Annual Report and Accounts electronically.
Share dealing service
A telephone and internet dealing service is available through
Equiniti which provides a simple way of buying and selling Galliford
Try shares. Commission is currently 1.5% with a minimum charge of
£60 for telephone dealing and a minimum charge of £45 for internet
dealing. For telephone sales call 0345 603 7037 between 8.00am
and 4.30pm, Monday to Friday, and for internet sales log on to
www.shareview.co.uk/dealing. You will need your shareholder reference
number as shown on your share certificate. Share dealing services are
also widely provided by other organisations. The Company is listed on
the London Stock Exchange under the code GFRD and the SEDOL
and ISIN references are BKY40Q3 and GB00BKY40Q38.
Group website
You can find out more about the Group on our website
www.gallifordtry.co.uk which includes a section specifically prepared
for investors. In this section you can check the Company’s share price,
find the latest Company news, look at the financial reports and
presentations as well as search frequently asked questions and
answers on shareholding matters. There is also further advice for
shareholders regarding unsolicited boiler room frauds.
Company contact
Contact with existing and prospective shareholders is welcomed by
the Company. If you have any questions please contact the General
Counsel & Company Secretary, either at the registered office or via
email (kevin.corbett@gallifordtry.co.uk).
Analysis of shareholdings at 30 June 2025
Size of shareholding
% of
holders
Number
of holders
% of
shares
Number
of shares
1–10,000
91.99%
2,823
3.01%
3,069,708
10,001–50,000
3.58%
110
2.61%
2,663,478
50,001–500,000
3.13%
96
16.45%
16,798,088
500,001 – highest
1.30%
40
77.93%
79,609,994
Total
100.00%
3,069
100.00%
102,141,268
Registered office
Galliford Try Holdings plc
Blake House
3 Frayswater Place
Cowley
Uxbridge
Middlesex
UB8 2AD
Stockbrokers
Peel Hunt LLP
Panmure Liberum Limited
Bankers
Barclays Bank PLC
HSBC Bank PLC
Lloyds Banking Group plc
National Bank of Kuwait
Registration
England and Wales 12216008
Independent auditor
BDO LLP
Shareholder information
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