Galliford Try Holdings PLC (LSE:GFRD) said it will pay shareholders a 12p per share special dividend and invest in its growth strategy after agreeing a settlement with a major infrastructure fund.
In settling the long-standing dispute over three contracts, the construction group will receive a cash payment of £26mln and make a non-cash write-off of £3mln in the current financial year.
The special dividend is expected to be paid on 27 October, after the group publishes its results for the year to 30 June 2023.
Galliford Try’s work on these contracts formally ceased in August 2018. According to its subsequent sets of results, the company submitted claims and variations to the value of around £95mln after it said costs were significantly impacted by client-driven changes to the scope of the contracts, though it was felt highly probable not to result in a significant reversal.