15th Jul 2020 10:39
(Alliance News) - Galliford Try Holdings PLC on Wednesday said it expects to post an operating loss for financial 2020 but said productivity levels on its sites are close to normal levels as it highlighted a strong order book for financial 2021 beginning July 1.
The construction group said that while all its construction sites in Scotland were closed during the lockdown, the majority of sites in England continued operations. The closures, along with costs of implementing new operating procedures following the disposal of its housebuilding operations have led to a "material reduction" in gross margin for financial 2020, with divisional operating margins expected to show a loss of around 5%.
Galliford Try however, noted that work was allowed to resume in Scotland in late June and production across the UK have gradually increased, stating that financial 2021 has commenced with productivity close to normal and operating margins expected to improve.
The Uxbridge-based company highlighted its strong order book of GBP3.2 billion, adding that 90% of revenue for financial 2021 has already been secured.
"The financial year just ended was a year of transition for the group. Whilst these are challenging times, I look forward to the new financial year with confidence. The group is well capitalised with a strong order book and is well positioned to make progress on its strategic priorities and margin improvement targets," said Chief Executive Bill Hocking.
As at the end of June, Galliford Try had net cash of GBP195 million.
Full unaudited results for its financial year ended June 30 will be published in September.
The stock was trading 7.7% higher at 108.83 pence each on Wednesday morning in London.
By Ife Taiwo; [email protected]
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