Construction firm Galliford Try has exceeded expectations with both revenue and profit growth, as a surge in building and infrastructure projects bolstered the company’s performance.
The Uxbridge-based company reported a 27.2% increase in revenues for the year ending June 30, reaching £1.77 billion.
Shares in the firm rose by 4.3% in early trading on Thursday as executives expressed confidence in the company’s future prospects. Galliford Try’s chief executive, Bill Hocking, pointed to a “strong pipeline” of new opportunities and praised the firm’s focus on careful risk management and contract selection, saying, “Our strong progress, well ahead of plan, provided us with the confidence to reset our ambitions over the mid-term.”
The company’s building division posted a 17.7% increase in revenues, totalling £938.3 million. This growth was attributed to projects that had been delayed by public sector procurement issues and inflationary pressures, which are now back on track.
Galliford Try’s infrastructure division, which focuses on highways and environmental projects, saw an even larger increase of 38.8%, with revenues climbing to £819.8 million.
Pre-exceptional profits before tax surged by almost 40% to £32.7 million, reflecting the company’s year-on-year solid performance. Hocking emphasised that Galliford Try would continue to focus on “delivering strong performance,” supported by its robust balance sheet and solid client relationships.
Julie Palmer, partner at Begbies Traynor, commended the company’s resilience in a challenging year for the construction sector, noting the rise in insolvencies across the industry. “Galliford Try has adeptly weathered the storm, delivering a solid performance,” she said, adding that the results are particularly impressive in light of the sector’s economic pressures.
Despite concerns about potential challenges in the wider construction market, the company remains optimistic, buoyed by its current order book and future opportunities.