Queensferry Crossing proves a bridge too far for Galliford as profits tumble
Galliford Try, the infrastructure group that was involved in the building of the Queensferry Crossing and the Aberdeen bypass, has seen annual profits tumble 27 per cent after widened losses at its construction arm.
The firm reported pre-tax profits of £104.7 million for the year to the end of June amid “challenges” in the construction division. Total revenue, including the group’s share of joint ventures, fell to just under £2.9 billion from £3.1bn the year before. A full-year dividend of 58p is down from 77p.
The results came after Galliford and Bovis Homes revealed on Tuesday that they had restarted talks over a £1.1bn house-building deal.
Galliford would remain a separately listed construction-focused firm after the proposed deal. But its full-year results exposed the difficult year it has had in construction, with operating losses at the operation widening to £61.5m from £29.1m a year earlier.
Galliford had warned over profits in April, indicating that it would take a hit of up to £40m mainly relating to the Queensferry Crossing joint venture project. It said in its latest results that a recent overhaul of its construction division was “proving effective”.
Chief executive Graham Prothero said: “Construction’s result for the year has been impacted by challenges with both legacy and some current projects and by the restructure, which is now complete.
“The business continues to see good demand in its building and infrastructure divisions and is focusing on disciplined growth across its core sectors of building, water and highways, which we believe will deliver improved margins.”
On the proposed tie-up with Bovis, he added: “The potential combination of our Linden Homes and Partnerships businesses with Bovis Homes represents a superb opportunity, enhancing the prospects for all three of our businesses.”