Last checked at 7 Nov 2018 13:00
7 November 2018
Galliford Try plc
Update on Aberdeen Western Peripheral Route and Current Trading
Galliford Try plc ("Galliford Try" or the "Group"), the housebuilding, regeneration and construction group today issues an update on the Aberdeen Western Peripheral Route ("AWPR") contract and Group trading. This statement covers the period 1 July 2018 to 7 November 2018.
On AWPR, the completion date for the final section, including the bridge over the River Don, is now expected to be in December owing to increased complexity and weather delays in implementing repairs to the bridge. As a result of higher than anticipated direct costs, and the further delay to completion, our estimate of the final costs to complete the contract has increased by approximately £20m. The final impact on the Galliford Try's financial results will be determined more importantly by the result of the Group's significant claim, in respect of which the Board continues to pursue constructive discussions with the client.
The underlying Construction business continues to trade in line with expectations.
Linden Homes continues to make good progress against its strategic targets. Sales rates are lower than levels achieved in FY 2018, but prices and margins remain in line with expectations and the business expects to achieve its targets for the full year.
Partnerships & Regeneration is trading strongly in both mixed-tenure and contracting, with continuing strong demand across all regions, backed by resolute political support for this sector.
The Group expects to report a FY 2019 pre-exceptional profit before tax in line with previous guidance. Average net debt for FY 2019 is expected to remain in the previously guided range of £170m to £190m before any recoveries in relation to the AWPR contract.
This announcement contains inside information.
For further enquiries please contact:
Galliford Try
Peter Truscott, Chief Executive 01895 855001
Graham Prothero, Finance Director
Tulchan Communications
James Macey White 020 7353 4200
Martin Pengelley
Elizabeth Snow
Notice of results
Galliford Try will hold its Annual General Meeting at 10:30 am on Friday 9 November 2018 at the offices of CMS Cameron McKenna Nabarro Olswang LLP, Cannon Place, 78 Cannon Street, London, EC4N 6AF.
Galliford Try expects to announce its interim results for the six months to 31 December 2018 on 13 February 2019.
The person responsible for making this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel & Company Secretary.
Notes to editors
Galliford Try is listed on the London Stock Exchange and is a member of the FTSE 250. Housebuilding - through our Linden Homes business - develops private and affordable homes in prime locations. Galliford Try Partnerships - our regeneration business - delivers mixed-tenure solutions working with housing association, local authority and private sector partners. Operating as Galliford Try and Morrison Construction, our Construction business carries out building and infrastructure projects with clients in the public, private and regulated sectors. At the end of the last financial year to 30 June 2018, the Group generated revenue of £3.1 billion.