Galliford Try Hldgs - Trading Statement
GALLIFORD TRY HOLDINGS PLC TRADING UPDATE
· All our construction sites across the
· Well-capitalised, with cash at
· Strong order book up 10% at
Operational and trading update
The Group responded quickly and decisively to the Covid-19 pandemic. The Group's prior investment in smart and agile working facilitated a seamless transition to remote and efficient working practices.
Health and safety remains our top priority. All our sites have implemented new operating procedures, in accordance with Government and industry guidance, to ensure the safety of all employees, subcontractors and others attending our sites. Early in the pandemic we established a
The majority of the Group's construction sites in
The Group made use of the Government's Job Retention Scheme during the period and the majority of affected employees have now returned to work. In addition to the measures implemented following the disposal of our housebuilding operations, the Group has initiated a number of other actions to reduce costs and conserve cash in the business to account for both the impact of Covid-19 and our future business requirements. This included, in response to Covid-19, temporary salary reductions of between 15% and 25% for our most senior employees.
As expected, the combination of site closures and reduced productivity significantly reduced revenue in the final quarter of the financial year. Along with the cost of implementing our new operating procedures and lengthened site programmes, this has led to a material reduction in gross margin in the financial year to
Throughout the lockdown we have been encouraged by the pipeline of new opportunities across our chosen sectors in the public, regulated and private markets together with a number of significant contract wins.
Recent major contract wins include:
a place on the
a place on the
Throughout the pandemic the Group's businesses have worked closely with our suppliers, ensuring Covid-19 secure practices and prompt payments.
Although it is too early to restore guidance, the Group has entered the new financial year with a high-quality, carefully risk managed order book of
The strong order book, with 81% in the public and regulated sectors, and recent Government announcements on capital expenditure mean that the Group is well placed to contribute to the
"Following the disposal of the housebuilding businesses earlier in the year the Group is firmly focused on its core strengths of regional building, highways and environment.
Throughout the Covid-19 pandemic I have been impressed by the energy, commitment and resilience of our employees and subcontractors, as they adapted to the new Covid-19 secure working practices. Their strength of character is exemplary, and I thank them for their efforts.
The financial year just ended was a year of transition for the Group and I am confident about the future for the business. The impact of the global pandemic in the
Whilst these are challenging times, I look forward to the new financial year with confidence. The Group is well capitalised with a strong order book and is well positioned to make progress on its strategic priorities and margin improvement targets."
A conference call for Analysts and Investors will be held at
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Note to Editors
This information is provided by RNS, the news service of the
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