Shares in Galliford Try Holdings PLC (LSE:GFRD, FRA:3WC), the UK construction and infrastructure group, rose 4% to 553p on Wednesday after the company reported first-half profits ahead of analyst expectations and announced a fresh acquisition.
Pre-tax profit for the six months to December reached £24.7 million, a 21% increase on the same period last year and ahead of forecasts from Peel Hunt, the broker.
The result was driven by margin growth across the group's divisions, with the overall margin expanding by 54 basis points (hundredths of a percentage point) to 3.2%.
Average net cash held by the business increased to £190 million, in line with guidance issued in January.
Management confirmed that full-year trading is running ahead of the top end of the consensus forecast range among analysts.
Galliford also announced a bolt-on acquisition in fire safety services for approximately £10 million, its fifth such deal in five years.
The order book grew 5% over the period, with management citing a strong pipeline and continued operational momentum.
Peel Hunt raised its earnings per share estimate for the current financial year by 7%, following a 4% upgrade in January, and lifted its forecast for the following year by 9%.
The broker, which carries a 'buy' rating and a target price of 610p on the stock, said the shares offered attractive value at roughly 12.7 times its June 2027 earnings estimate.