City analysts were quick to note that a delay to Galliford Try Holdings PLC (LSE:GFRD)’s full-year results due this Thursday was the result of external auditing factors rather than Galliford’s internal trading performance.
“We recognise that this is an audit process, rather than a trading-related delay,” said house broker Peel Hunt.
The broker also highlighted that “the FRC (Financial Reporting Council) recently identified BDO as having the poorest performance of its Tier 1 audit firms and is being monitored by the FRC”.
In that report, the FRC stated: “Disappointingly, BDO and Forvis Mazars’ performance has fallen significantly below our expectations.
“Both firms are strategically important to the UK audit market and the wider UK economy, so it is vital that they deliver on their agreed improvement plans.
“The FRC’s supervisory work with these two firms will continue to focus on these improvements.”
Peel Hunt noted that Galliford’s full-year outlook remains “consistent with the positive trading update on 11 July 2024”.
“We confidently retain estimates across the horizon,” said analysts, adding that the shares “have excellent value” at 13 times forward earnings per share.