Galliford Try Holdings PLC (LSE:GFRD) CEO Bill Hocking talked with Proactive's Stephen Gunnion about the company’s impressive growth, highlighted by their 2024 full-year results.
Proactive: Hello, you're watching Proactive. I'm joined by Galliford Try CEO Bill Hocking. Bill, thank you very much for taking the time to speak with us today. Could you start by giving us an introduction to Galliford Try for those who may not already know you?
Bill Hocking: Yes, of course. We're a large listed construction company operating throughout the UK. We operate predominantly in the public and regulated sectors. About 90% of our business is in these sectors, across various departments such as defense, education, custodial, and health. We also have a significant portfolio of work in water and wastewater, across all UK water companies. Additionally, we have specialist businesses working across infrastructure and building.
Proactive: You've just released your full-year results for 2024, showing a strong performance with revenue and profit growth, strong cash flow, and an increased dividend. What were the drivers of this excellent performance, Bill?
Bill Hocking: Yes, we had revenues of £1.8 billion for the year, up 27% from last year. Our operating margin also improved to 2.5%, an increase of 13 basis points. Profit before tax rose to £32.7 million, up by around 40% compared to the previous year. Earnings per share came in at 27.9p, and we declared a dividend of 15.5p per share, which is a 48% increase. We also announced a £10 million share buyback, following a previous £15 million buyback. On top of that, our order book is robust at £3.8 billion, consisting of high-quality work that supports our margin aspirations.
Proactive: Can you talk us through some of the key factors driving this performance?
Bill Hocking: The key driver is robust risk management. We have strong processes for managing risk, and we are selective about the projects we take on, working with clients who value a solid balance sheet and good reputation. This selective approach results in a robust order book, which enables us to perform consistently. We entered the year with 92% of our work already secured and 70% of next year’s work already in place. This level of visibility allows us to be even more selective.
Proactive: In May, you set out the company’s Sustainable Growth Strategy to 2030. Could you remind us of the key aspects of this strategy?
Bill Hocking: Our goal is to grow the business to £2.2 billion in revenue, with an operating margin of 4% by 2030. We’ll achieve this by growing our major business segments—building, infrastructure (primarily roads and highways), and environment (water and wastewater). In addition, we’re expanding our portfolio of higher-margin specialist businesses. We’re also re-entering the affordable housing market, which we had exited after selling our partnerships business to Vistry in 2020. With those covenants now lifted, we can re-enter this sector, focusing on mid-rise blocks of flats for councils and residential providers.
Proactive: Finally, Bill, could you summarize the investment case for Galliford Try?
Bill Hocking: We have 4,200 excellent employees, strong processes for risk management and project selectivity, and a solid order book of £3.8 billion. We maintain a strong balance sheet with £155 million in average cash for the year, £42 million in PFI assets, no debt, and no pension liabilities. The outlook is positive, driven by the UK’s need for infrastructure development, both social and economic, which underpins the country’s productivity.