Galliford Try suffered a 27 per cent slump in profits in its latest financial year, it revealed today, a day after it restarted talks to sell its housebuilding arm to Bovis Homes for £1.1bn.
Pre-tax profits crashed 27 per cent to £104.7m for the 12 months to the end of June, compared to the £143.7m it hauled in in 2018.
Galliford also saw revenue slip 7.5 per cent year on year to fall to £2.71bn.
The construction firm also crashed from a cash position of £98.2m to a net debt pile of £56.6m as earnings per share slumped from 121.1p last year to 78.5p for its latest financial year.
That saw the infrastructure company reduce its full-year dividend by 24 per cent to 58p per share.
What Galliford Try said
Chief executive Graham Prothero said:
The group has continued to perform well and our talented teams across the businesses have delivered a good performance despite the challenges faced.
We continue to make great progress in Linden Homes, focusing on the benefits of standardising our range and rationalising process.
We are building homes more cost effectively while delivering well-designed, high quality units which meet our customers’ needs, as reflected in our improving satisfaction scores.
Partnerships & Regeneration has continued its excellent performance with both revenue growth and margin expansion, as we increase our delivery of affordable new homes.
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.
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 to thrive as strategically focused and well-financed operations with excellent opportunities for growth. The transaction allows Construction to continue trading as a standalone well capitalised business.