Galliford Try Holdings PLC (LSE:GFRD) has raised its full-year guidance after a strong first half, with revenue and adjusted profit before tax now expected to exceed the top end of market expectations.
The construction group reported a 12.7% rise in revenue to £923.2m for the six months to December 31, while adjusted profit before tax climbed 22% to £20.5m.
"The group's excellent performance in the first half of the financial year provides increased confidence and improved revenue, margin and profit expectations for the full year," said chief executive Bill Hocking.
Galliford Try, which focuses on infrastructure and public sector projects, said its order book had grown to £3.9bn, up from £3.7bn a year earlier, providing strong visibility on future revenue.
It has already secured 98% of projected revenue for the full financial year and 81% for the following year.
"The improved guidance entirely reflects the strong trading performance and momentum," said CEO Hocking.
The business benefited from continued growth in its Building and Infrastructure divisions, with the latter seeing strong activity in water sector frameworks.
The divisional adjusted operating margin improved to 2.7%, up from 2.5% last year, and the company made progress towards its 4% target for 2030.
"Our recent major long-term framework wins and order book provide clear visibility and security of future workloads well beyond the current financial year," Hocking said, adding that the company was well placed to support the UK government’s push for infrastructure investment.
The strong performance allowed Galliford Try to raise its interim dividend by 37.5% to 5.5p per share. The company also launched a £25m unsecured revolving credit facility, giving it further financial flexibility.
Net cash at the end of December stood at £210 million, largely unchanged from six months earlier, while average month-end cash over the past year rose 32.9% to £176.4m. The company also highlighted its strong payment record, with 97% of invoices settled within 60 days.
Galliford Try said it continues to make progress on its sustainable growth strategy, with good early results against its 2030 targets. The company sees a strong pipeline of future opportunities across key sectors, including transport, water and commercial development.