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Only 111mil shares, £2 written all over it, my experience tells me if I sell it will go up lol.
In my experience this share has never been quick to move. Also they are XD with dividend paid tomorrow - which I suggest is why there aren't many big trades lately? Be interesting to see what this does long term. I was introduced to this stock in 2019 as a high income stock - unfortunately with Carillon that year then COVID it hasn't played out. I will keep this share in my pension and ISA for another 6 months to see the dividend payments - I may well dilute for a few months though if there is no movement into next month.
This is such I Frustrating share, of all the shares I bought this was the one I was least worried about thought it was a no brainer to 200 plus. It just never seems to month, I guess I should have bought the airlines with no income and massive debts - weird market doesn't make any sense at all IMO.
I know haha 700m 6 year extension hopefully the good news is digested next week and the share price reflects that. GLA
And the share price went ballistic!
Bill Hocking, Chief Executive of Galliford Try, commented: "The water sector remains a key focus for the infrastructure side of our business and I am delighted that we have renewed our position on this framework. We are a long-term partner for Scottish Water and look forward to continuing our excellent relationship, providing high-quality solutions for their investment programme needs."
Hi raffles
I was invested here and I am in the construction as a bricklayer, my only problem here is that profit margin.
Can’t see how you can price contracts that can run for two to three years with a margin on 1-2%.
Not deramping but it scared me of especially with the labour shortage and brexit.
Interesting trading statement from Berkeley group last week,worth a read and draw your own conclusions.
I hope this helps one way or another.
Good luck all
I was drawn to investigate Galliford based on the fact that it seems on the surface that you get the business for free given that the market cap is broadly in line with the cash at hand.
However, if we take net current assets (from the HY report), we have £-22M.
I was hoping the roughly £150M average month-end cash position would act as a bottom line in terms of a liquidation value for the company. Given that the profit margin is so low, I wouldn't be investing in this because I love the business, I'd be investing because there's the potential for a decent upside if they hit their future operating margin and revenue targets, and the downside would be minimal if it's backed by such a high amount of cash. I think based on some of the other comments here others are approaching it the same way. The problem with this approach is that if they did shut up shop tomorrow, I assume they'd still need to pay off their liabilities, leaving the shareholders with no tangible assets left. Maybe I'm wrong, but that's they way I'm looking at this cash pile.
Thanks Raffles really appreciate your opinion on the shares, all the best :)
I would think it all depends on contracts and keeping busy. I see profit in them... but welcome other thoughts .
Hi Raffles, any idea on price in a years time if everything gets back to normal? I was hopeful of around 200 - 250 does that seem feasible? I asked the same question about BAB and 400 was mentioned. Thanks for the quick reply BTW. Has anyone had a look at HSS hire also seems pretty cheap.
Hi they sold off the house building division, also they were stung by the corrilian collapse. The good news is they have plentybcash in the bank, some good contracts too. I would think they should tick higher over the year. I hope so as I have a large investment in them .
Does anyone have a real idea of what Galliford Try shares are realistically likely to be worth in a years time if everything goes back to fairly normal and there are no more shocks to the market? I noticed there is a massive share price fall from before covid but also believe the business is much smaller now - how much smaller is the business and does that mean the shares would be worth a value of the new size of the business but at pre-crash prices so around 700 a share so say half the size that would be 350 - does anyone know how to work this out? thanks in advance :)
Is anyone attending the live presentation on investor meet company tomorrow. I have tried to pre submit a question a question but can't .
shandypants2 - take your point about net asset value. The civil engineering sector tends to be inhabited by companies with poor looking balance sheets (Kier’s is horrible for example, they have mentioned an equity raise but the market will not have forgotten the horror show of their last one!). Ever since the Carillion fiasco there is quite a lot of nervousness about civil engineers carrying debt. GFRD makes a refreshing change in that respect. It is well placed.
Agree with your valuation, but would hope for more longer term.
Toon, i agree the market cap is on the low side but the net assets are £125m as per interims yesterday so that's c113p per share and this includes quite a bit of goodwill / intangibles.
I think they've stated YE profit will be c£10m which is pretty low for a company with over £1bn of rev.
Gross profit margin is due to rise to over 2% next year but still quite a low profit.
A very stable, if unspectacular share IMHO.
Having said that with revenues so secure if divi can be a little more ambitious (e.g. equivalent to a 4 or 5% dividend yield) a £200m valuation, c180p a share seems reasonable.
LIBERUM RAISES GALLIFORD TRY PRICE TARGET TO 200 (150) PENCE - 'BUY'
Yes dividend is disappointing but it is a start.
This is a rare company in this sector - no debt and sitting on a stack of cash. In fact the market cap of the company is more or less equal to the value of the cash it is holding - so the business of the company is valued at close to zero. And this is a company with an order book of £3.3 billion. The stock market does throw up some weird valuations at times!
Disappointing reaction today, I shouldn’t be surprised. Maybe a few people disappointed with the amount of dividend. I was hoping it might be more but still company needs to be prudent during these times.
Thank you Toonman for that. Clearly wishful thinking on my part.
Galliford Try sold its housebuilding business at the beginning of 2020. That business is now separately listed under the name of Vistry. So comparisons of GFRD's current financial performance with previous years are not meaningful.
Hi just looking at this share and past dividends which looked good. Does anyone think they will get anywhere near these and was share price much higher at the time. Newish to share dealing. Thanks
i think whilst great they are back in profit these results are a bit underwhelming, as evidenced by the share price reaction.
As previously guided i was expecting a higher profit - nearer £10m based on 2% margin.
It would appear there is also a small YE profit downgrade as revenue guidance and margin has both been slightly reduced - i'm now assuming revenue of £1.2bn and 1.5% profit margin so £18m (although not sure if some central costs will need to be taken off this figure).
So all in all a profitable, steady , unspectacular business.
Regarding dividend i did get this one wrong but it is only the interim dividend, YE one will be higher.
At 1.2p that's only £1.33m so about a 1/3 of the £4m profit.
YE one could be 5p plus if all goes to plan, based on 2 x cover.
Still think cash pile seems a little excessive - a special dividend of say 20p (£22m) would not be unreasonable at some point in the near future.
1.2p or 0.08%
Wee profit, wee dividend. Good signs of a recovery.