Thursday 9 January 2020 8:49 am

Galliford Try boasts new contract wins after sale of housing arm

Galliford Try shares soared this morning as the construction group touted a number of contract wins after the £1.1bn sale of its residential business.

Chief executive Bill Hocking said the business had “good momentum” and a strong order book.

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Galliford, which completed the sale of its residential arm to Vistry Group, previously known as Bovis Homes, last week, said its current order book stands at 3.2bn.

Shares in the London-listed company rose seven per cent this morning, valued at 154.6p.

The Cowley-based firm won contracts with Sheffield Council, Yorkshire Water and Southern Water, as well as a number of road maintenance jobs.

Meanwhile in the private sector, it won the Project Nash development in central London for the Portman Estate.

In a first-half trading update, Hocking said: “The successful completion of the disposal of the housing and partnerships divisions means Galliford Try is now a well-capitalised and focused UK construction group.

“Our robust financial position combined with market-leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth.

“I am very excited about the future opportunities for Galliford Try. There is good momentum in the business, reflected by a number of significant wins through the first half of the year and the strength of the high-quality order book.”

Hocking predicted that average month-end cash balances for the second half of the financial year would be more than £100m.

Read more: Bovis Homes completes £1.1bn Galliford Try acquisition

To boot, the firm expects performance to be weighted to the second half of the financial year in June. 

This is in part because of market uncertainty and the settlement of a number of claims in the first half.