(Alliance News) - Galliford Try Holdings PLC on Wednesday said it expects financial 2024 revenue to be around 5% above current market expectations.
The building and infrastructure construction company, operating under the Galliford Try and Morrison Construction trade names, said it was performing well with "strong momentum" in the first half period that ended December 31.
Uxbridge, England-based Galliford Try said trading was above the equivalent period a year earlier and the board's expectations, which was previously increased in September with its results for the financial year that ended June 30.
"With good visibility over the second half, revenue for the full financial year is now expected to be approximately 5% ahead of current market expectations, with an equivalent increase in expected profit before tax," the company said.
"We are pleased with our recent acquisition of AVRS Systems in November 2023, and the progress of the integration of this specialist business in our growing Environment division. Together with our acquisitions of Ham Baker and MCS at the start of the last financial year, the Environment division is developing its adjacent market strategy as planned."
Galliford Try's order book at December 31 stood at GBP3.7 billion, up from GBP3.5 billion a year earlier. It said this remains predominantly in long term frameworks and provides "good visibility of future workload, well beyond the current financial year".
"We continue to see a robust pipeline of opportunities across our chosen sectors, supported by our strong track record and focus on the public and regulated sectors alongside high-quality private clients," the company said.
"We recently announced our appointment to build the GBP87 million new build-to-rent development at Brent Cross Town, north London for Related Argent and Invesco Real Estate, our second appointment on this development.
"In the first half of the year our Building business was also appointed to undertake the GBP72 million remodelling and refurbishment of Adelaide House in central London and our Investments and Building businesses signed contracts with a major build to rent operator for a GBP52 million development in Cardiff."
Average month-end cash at December 31 stood at GBP149 million, up from GBP135 million on June 31, while period-end cash stood at GBP209 million, up from GBP196 million a year earlier.
Galliford Try said its "strong" balance sheet "supports our ability to secure high quality contracts and frameworks, attract a highly skilled supply chain and continue to invest in the business."
On replacing outgoing Finance Director Andrew Duxbury, whose departure to become chief financial officer at housebuilding rival Persimmon PLC was announced in November, Galliford Try said it was "making good progress" on hiring a successor and an update will be made in "due course".
Shares in Galliford Try were up 3.7% to 250.00 pence each in London late Wednesday. Persimmon shares were down 5.5% to 1,387p each.
By Greg Rosenvinge, Alliance News senior reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2024 Alliance News Ltd. All Rights Reserved.
Galliford Try (GFRD)
Persimmon (PSN)