Galliford Try, the construction and infrastructure group, delivered full-year profit ahead of market expectations, capping a sixth straight year of growth.
Adjusted pre-tax profit rose 24.2% to £55.9 million in the year to 30 June, up from £45 million, with no exceptional items in the period.
Revenue edged up 3% to £1.93 billion, driven by a strong showing in Highways and the transition to the latest regulatory spending cycle in its water business.
The group's divisional operating margin widened to 3.5% from 3%, continuing a steady climb.
Cash pile funds bigger returns
Galliford Try ended the year debt-free and with no pension liabilities, holding net cash of £259 million, up 9%.
That strength allowed the board to lift the total dividend by 23.7% to 23.5p a share, and to launch a fresh £15 million share buyback.
The payout follows a £10 million buyback completed earlier in the year.
Order book underpins outlook
The company pointed to a high-quality order book of £4.3 billion, up from £4.1 billion, spanning water, highways, education, defence, custodial work and health.
It has already secured 90% of forecast revenue for the current year and 62% of the year after, giving unusually clear visibility.
Chief executive Bill Hocking said disciplined risk management, careful project selection and quality delivery continued to underpin the group's success.
He added that investment in water, transport, affordable housing, custodial infrastructure and defence remained a major national priority.
Building held back
Not every division fired evenly, as building revenue slipped 1.4% to £951 million after political uncertainty delayed the conversion of public sector contracts.
Even so, the division lifted operating profit 17.8% to £33.1 million as bidding margins improved.
Infrastructure revenue climbed 7.7% to £971.6 million, helped by three major road schemes opening to traffic.
Galliford Try said it expected similar revenue growth and further margin gains this year, as it works towards 2030 targets of revenue above £2.2 billion and a 4% divisional margin.
The company also confirmed a £15 million buyback in a separate announcement alongside the results.
