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Builder Galliford Try has a cash pile worth more than its shares
Shares in construction company Galliford Try (LSE: GFRD) have plummeted in 2020. That was largely due to a demerger at the start of the year. Even after that, though, the share price continued to fall significantly.
It reported a big cash pile of £197m at the end of June. The company’s total market capitalisation is little more than half of that, at £112m. That means that if the company was dissolved, it could pay out a lot more than today’s price for each share – in cash!
The company is set to put that money to good use instead. It is currently focused on infrastructure projects and residential building schemes. With the government keen to spend recovery funds on infrastructure projects and an ongoing boom in housing demand, Galliford Try looks like the sort of prime recovery play I’d choose among cheap UK shares. A positive indicator is its recent announcement that it expects to resume dividends early next year. Shares have already started to climb – but I think they have further gains to make as the business returns to normal.
cash in bank wont last long the way gfrd loses money on contracts
..this is going one way
You can not look at the last big dividend this is when GFRD including linden homes that made all the profit 58p was when the share price was 700+, I think they declared a 1p dividend not sure if it ever got paid.
linden homes went to bovis that made huge profits
GFRD the partnership went to Bovis and made small profits.
GFRD construction remained losses every year for last pass 4 year
Last divi was 9.2% yield.
stupid question but was the last dividend 58 pence
I look at the net cash/debt and i always look at the Non-current assets when a company is not making huge profits incase there is a chance of losses, because i feel these numbers then become very important.
I think if I was to pick out of these 3 I would pick in this order. numbers from memory could be wrong.
COST bigger profit margins on pass profits, lower losses, better asset positions. semi-safe bet with 179m net including Non-current assets 140m.
GFRD smaller profit margins more losses than COST smaller asset position semi-safe safe with 120m net including 157m Non-current assets.
KIER bigger profit margins huge losses huge debt very risky 250m net inc 1.3 billion of Non-current assets very risky.
Gratz on people that called it correctly, I did not see this happening, these are the days you live for when playing the stock market 26% up.
Not selling anything under 200p...period.
We all knwo where this is going....
Monday gap and go....
well done all long term holders....buy here and stay with it. All about numbers here. Cash!! and Reveneu is king here.
near 200p by xmas
Buying here - excellent news today - business doing really well/ profit/ rev up and devi back.... way to go
all the way to 200p....was cheaper before covid and now even better.
Monday should be very good here, as it moves to 120/30p first leg.
"The Board expects the Group to return to profitability in the first half of this financial year and a resumption of dividend with the interim results". £900 million approx in new contracts announced today.
My view is if you are going to buy in this sector, Galliford Try Holdings looks the cheapest and safest bet. I see plenty of upside in an area that is very much out of favour and very lowly rated. Strong and growing profits as the Government throws in billions and a generous dividend may change views. Never going to be on a racy price; with no debt more of a comfortable tortoise. An agreed takeover would not surprise though; they sold the housebuilding arm and it would not be a shock if a much bigger company was thinking about an offer. I reckon 225p to 250p all share would be enough....and you get 140 million in cash.
Construction stocks will rebound strongly these next few months. Costain is now moving as well and stick very tight. Make sure you are in both as also a silly cheap price over there. Both cracking business prospects.
...this pop over the £1 mark, albeit briefly!
With infrastructure projects high on the Government agenda and a healthy order book, we should at last make progress. Good to see the divi back, I've held here over 8 years, mainly for the divi, which was quite generous in 'The Good Old Days'.
A lot of ground to make up admittedly, but IF the BoD can avoid further disasters (Abderdeen!), we should be amongst the top dogs.
Buy and tuck away.
No debt, no pension worries, cash about 35 million above mkt cap at 100p. Business valued at less than nothing. Most important thing....dividends to restart so the income funds will start yo buy again. My target is now 125p. Although 150p is likely if the divi is generous. Nothing has changed...we all knew this on the way down to 70p. Just shows you have to add on the way down if you see a bargain.
Great to see this recovering for the LTH who must have suffered in the crazy drops.. i was in months ago and sold at £110 taking a small loss.. read the update and you can see so clearly that the mcap £111m is pitiful. Return to profits, divis returning, cash £145m and mcap £111m... thats before you look at the huge order book.
Back in at 99p second time lucky.
@alwayswrong the name suits you the house building sector of Galliford was losing money that's why they sold it.
See your predictions slightly off Buhahaha
I bought 50 quids worth Galliford @73 last week basically the money I would of spent if the pub was opened last Sunday this must be one of the best placed construction firms coudnt understand why this hadn't moved . they sold their loss making side housing sector plenty of money in the bank happy days to come for costain and Galliford
Good cash position, return to profitability and resumption of dividends..
Good news today too. was sat on high 80s avg.
"GALLIFORD TRY APPOINTED TO THAMES WATER LONDON REGION AMP7 FRAMEWORK
Galliford Try, the leading UK construction group, announces that its Environment business has been appointed to two new lots for the Thames Water AMP7 framework.
The lots, numbered 3 and 6, relate to Thames Water's work in the London region, and represent a total pipeline value of £590m over a four-year period. Of that total, Galliford Try anticipates its place on the lots to be jointly worth up to £60m per annum to the business."
GLA
Just 90p and I will be breakeven. I think the overhang is cleared and I could see 100p if this big rally continues. Down a huge amount and a big cash pile. I would hope they are looking for bigger margins or walking away. "Our Highways team has begun works on the £85m upgrade of the M56 jct 6-8 near Manchester Airport".....from today
This is a share I would definitely avoid for the following reasons...
1..They sold the profitable high margin housebuilding arm and maintained the extremely low margin construction side of their business...one big contract to go wrong is all they need to put them out of business just like Carillon.
2.. Net tangible assets are negative ..I prefer Non current assets that are tangible i.e. that I can 'kick'
3..Covid and it's impact on a business like this which runs on extremely tight margins even in the good times.
I been looking into GFRD thinking of maybe investing they don,t actually in real money have 197 million in cash in so many words.
Total assets of 656 which 245million in tradeable that they are owed and 197 million in cash and 156 million are intangible assets of which 40 million is ppp
Total liabilities 505 million which the big one is Trade and other payables 458 million.
Total net cash/debt is 120 million but then if you think about it out of the 157million intangible asset it is not real money so you could argue that they have no money or maybe 20 to 30 million depending on ppp investments if I have understood it correctly.
Carillion had 1.5 billion in intangible assets 2 billion in total Total non-current assets it counted for nothing when they made a huge loss and went bust.
I know GFRD is nothing like this but if GFRD makes a loss for a 5th year in a row in real terms they will have to borrow.
70.00
I think if it gets too 60ish sp I might invest some into GFRD depending on what other funds are doing tho I do not think this will happen it should not happen Greed v risk v reward.
You could argue with that 197 million they could afford a few bad years to try and get things sorted to get that 2% returns
I think with a track record of losing lots of money every year since 2016 between 15 and 80 million per year like on a post I did few pages down, even tho a few of those years they said everything is looking good and then another write-down.
The target profit margins of 2% been put off until 2022, I am guessing their target is 1% for next year, I think I read somewhere that they intend to pay a percentage of the profits out in dividends.
With 197 million cash this must truly feel like a money trap.
A possible 10 to 15 million profit v just 1 project going over budget or being sued or something going wrong and losing 10,s of millions again.
No statement from the board
The board from what others have said are on pay structure from when it was GFRD group which means they could end up owning % points of the company with there share bonus schemes due to the value of the company tho this is here say I have not checked this, all the time while they hoard the 197 million cash.
Is GFRD going to go bust no
Is GFRD ripe for a take over yes will it happen who knows.
It's just dire. This thread unfortunately gets updated every day it seems...
All the construction companies are getting battered. KIE - 52-wk low, COST and MGNS not far off. What I don't understand with GFRD - we have enough cash, no debt, winning contracts, board are happy with directions. It's not as if construction activities have stopped. It's not as if raw materials/labour has gotten more expensive. It's not as if we are getting less than what we have been on these contracts. Ok the macro economics might not be great at the moment, but the operational environment hasn't changed. I just don't get it. If anyone can enlighten me on this...