16th Sep 2021 12:18
(Alliance News) - Galliford Try Holdings PLC on Thursday reported profit ahead of its own guidance for the 2021 financial year, as it benefits from increased infrastructure investment.
Revenue increased 0.3% to GBP1.13 billion in the financial year ended June 30, from GBP1.12 billion the previous year. Pretax profit came in at GBP11.4 million, swinging from the prior year's loss of GBP34.6 million. Its order book is worth GBP3.3 billion, up from GBP3.2 billion a year ago.
The London-based firm had guided for pretax profit at the upper end of a GBP9.0 million to GBP11.2 million range, in its trading statement on July 15.
Shares in Galliford Try, which builds public infrastructure such as schools, roads and railways, were up 3.7% to 178.00 pence in London on Thursday afternoon.
The company declared a final dividend of 3.5p per share, bringing the full-year total to 4.7p per share.
In its outlook for financial 2022, Galliford Try said it is trading well and in line with its expectations, and anticipates improved margins in line with its targets.
The company also revealed an updated five-year strategy, targeting revenue "towards GBP1.6 billion" by 2026 and an operating margin of 3.0% across the Building and Infrastructure divisions. It plans to pay "sustainable dividends" between 2.0 times and 2.5 times earnings.
"The group has an excellent order book and balance sheet. We are strongly positioned to meet the increasing demand for social and economic infrastructure in the UK and deliver growth," Chief Executive Bill Hocking said.
By Ivan Edwards; [email protected]
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