31st Mar 2020 11:52
(Alliance News) - Galliford Try Holdings PLC said Tuesday it is cancelling its interim dividend but is confident it is able to withstand the fallout caused by Covid-19.
The construction firm said it remains well-capitalised and has no debt or bank covenants.
"The government is continuing to support our sector, for example through the Cabinet Office Procurement Policy Note which provides guidance on payment by public bodies during the Covid-19 outbreak, and 83% of our order book is in the public and regulated sectors," Galliford said.
The company also noted its cash levels remain in line with internal expectations, with average month-end cash for the second half of the financial year to June 30 expected to remain over GBP100 million.
Galliford said it has shut down its sites that do not meet the new government guidelines on hygiene and social distancing.
The company continued: "The group is implementing additional measures, including the furloughing of personnel, to manage its working capital and preserve its liquidity through this period of disruption."
Galliford said it is confident it is well placed to withstand the uncertainty caused by the virus outbreak.
Chief Executive Bill Hocking said: "These are extremely challenging times and our upmost priority remains the health and safety of our employees and the wider community. We are a well-capitalised business, taking all necessary steps through the present circumstances to ensure that we are well placed to support economic recovery."
Shares in Galliford Try 8.7% higher in London on Tuesday at 128.91 pence each.
By Paul McGowan; [email protected]
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