9th Jan 2020 08:53
(Alliance News) - Galliford Try Holdings PLC said Thursday it entered the new year with a "high-quality" order book following the disposal of Linden Homes and Partnerships & Regeneration divisions.
In a trading update for the half year ended December 31, the UK construction group said began the new year with an order book of GBP3.2 billion, and secured contract wins including appointment to the YORCivil four-year civil engineering framework with Sheffield City Council, in South Yorkshire, England.
The company said its underlying construction business has continued to perform in line with management's expectation for the financial year ending June 30, 2020.
Galliford Try added that it expects its performance to be weighted to the second half of the financial year due to market uncertainty.
On January 3, Galliford completed disposal of its Linden Homes and Partnerships & Regeneration divisions to Bovis Homes PLC, which changed its name to Vistry Group PLC after the deal.
The deal saw Bovis issue 63.8 million new shares to Galliford, valued at GBP675 million, paid GBP300 million in cash, and took over Galliford's GBP100 million 10-year private debt placement.
The transaction valued the two Galliford businesses at a combined GBP1.14 billion, and gave Galliford a 29% stake in the expanded Bovis group. It left Galliford with its construction business.
"The completed transaction means Galliford Try is a well-capitalised construction business," the Galliford said on Thursday.
As at 31 December, company's pro forma cash balance was GBP225 million, with average month end cash balances for the second half of the financial year expected to be in excess of GBP100 million, the company explained.
Chief Executive Bill Hocking added: "Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth.
"I am very excited about the future opportunities for Galliford Try. There is good momentum in the business, reflected by a number of significant wins through the first half of the year and the strength of the high-quality order book."
In September, Galliford Try had reported revenue which included share of joint ventures, of GBP2.86 billion for the year to June 30, 8.6% lower compared to GBP3.13 billion a year earlier. Revenue, excluding joint ventures, was down 7.5% to GBP2.71 billion from GBP2.93 billion.
As a result, pretax profit had declined 27% to GBP104.7 million from GBP143.7 million year-on-year.
Galliford Try shares were up 7.1% in London at 154.34 pence each on Thursday morning.
By Loreta Juodagalvyte; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Galliford TryVistry Grp