16th Sep 2020 09:56
(Alliance News) - Galliford Try Holdings PLC on Wednesday posted a narrowed loss for financial 2020 despite a fall in revenue as it expressed confidence for its new financial year after shedding its UK housebuilding businesses.
Shares in the construction company were trading 2.3% higher at 89.96p pence each on Wednesday in London, having risen to 99.98p earlier in the morning.
Revenue for Galliford Try's financial year ended June 30 was GBP1.12 billion, a 20% decline from GBP1.40 billion recorded the year prior, with the company saying this reflected the business's focus on core sectors and the impact of Covid-19. Following the sale of the Linden Homes and Partnerships housing divisions to the former Bovis Homes, completed in January, Galliford said it is concentrating on its core strengths of building, highways and environment.
Pretax loss narrowed to GBP34.6 million from GBP64.5 million, although excluding exceptional items the loss widened to GBP59.7 million from GBP17.2 million.
No final dividend was declared, following Galliford's decision to cancel the interim dividend in March. However, it said it expects to reinstate dividend payments, following a return to profitability. For comparison, the full year dividend for financial 2019 was 58.0 pence.
Looking ahead, the Uxbridge-based company said it has continued to trade well and entered the new financial year with an order book of GBP3.2 billion, up from GBP2.9 billion a year before, and 90% of revenue already secured. It said it thinks it has a strong platform for return to profitability in financial 2021.
"In recent months we have secured a number of significant project wins and we are well placed to benefit from planned future investment in our areas of operation. The group is well capitalised with a strong order book. We are well positioned to make progress on our strategic priorities and margin improvement targets. The management team and board look forward to the new financial year with confidence," said Chief Executive Bill Hocking.
Net cash as at June end was GBP197 million.
By Ife Taiwo; [email protected]
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