Galliford Try Holdings PLC (LSE:GFRD) shares surged 9% in early afternoon trading on Wednesday after the construction group raised its full-year guidance, citing strong first-half results and robust trading momentum. The company now expects revenue and adjusted profit before tax to exceed the top end of market expectations.
For the six months to December 31, revenue rose 12.7% to £923.2m, while adjusted profit before tax climbed 22% to £20.5m. Chief executive Bill Hocking said the “excellent performance” gave the company greater confidence in its full-year outlook.
Galliford Try’s order book expanded to £3.9bn, providing strong revenue visibility, with 98% of projected full-year revenue already secured. Growth in the Building and Infrastructure divisions, particularly in water sector frameworks, helped boost the company’s adjusted operating margin to 2.7%.
The company increased its interim dividend by 37.5% to 5.5p per share and launched a £25m revolving credit facility. Net cash remained stable at £210m, reinforcing its financial strength.
In the wake of the results, Peel Hunt is upgrading its 2025 profit estimate to £40.5 million from £37 million. It rates the shares 'buy' up to 475p, saying they 'offer excellent value' at current levels.
Panmure Liberum, meanwhile, increased its price target by 50p to 480p, while fellow broker Cavendish called the number 'strong'.
The stock, up 32% in the past month, was trading 31.5p higher on the day at 379.5p.