Galliford Try said today that the restructuring of its construction arm has been completed and pre-tax profits for the year are set to be in line with expectations.
The FTSE 250 giant, which has been cutting its exposure to Central London’s subdued housing market and scaling back its core construction business, seemed to ease investor jitters slightly this morning as shares rallied 2.5 per cent to 626p.
Recently-promoted chief executive Graham Prothero, who has been cutting back the firm’s role in the troubled construction sector, said today that the company had continued to perform well on the back of good housing demand.
“The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively,” he added.
According to estimates compiled by Galliford, annual profits before tax are expected to be in the range of between £112.7m and £116.4m.
Prothero’s turnaround plans comes amid wider woes facing the construction sector, which has been faced with growing business uncertainty in many parts of the UK.
The group has warned that a no-deal Brexit could result in a “severe decline in consumer confidence and economic activity in general”.
In February the FTSE 250 firm reported a four per cent rise in pre-tax profits for the second half of 2018, despite being hit by a loss-making scheme to build a new bypass around Aberdeen.