Profits bounce back at Galliford Try but bypass woes loom
Galliford Try’s profits soared 145 per cent in the last 12 months, in a sign that the construction group is recovering from a series of setbacks it suffered earlier in the year.
Pre-tax profits jumped from £58.7m to £143.7m in the year leading up to the end of June 2018, pushing Galliford’s share price up more than seven per cent in morning trading.
Government incentives such as Help to Buy and the cut in first-time buyer stamp duty have both helped the FTSE 250 firm to bounce back after a challenging start to the year, when it was hit by a spate of poor weather and the liquidation of Carillion.
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However, the group has taken an additional £20m hit on its flagging Aberdeen bypass venture, which it had been jointly contracted to build with Carillion, taking the firm’s losses on the project to £45m for the full financial year.
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Galliford Try boss Peter Truscott said: "The underlying construction business performed well and continues to see a pipeline of suitable opportunities, with new projects delivering improved margins. We have made good progress towards completion of the [Aberdeen Bypass] contract, with significant sections of the road open to traffic and the final section expected to be open by late Autumn 2018."