Galliford Try Holdings PLC (LSE:GFRD, FRA:3WC) chief financial officer, Kris Hampson, talked with Proactive about the company’s strong half year results, upgraded 2026 guidance, and a strategic acquisition in the passive fire protection market.
The UK tier one construction group reported its 11th consecutive period of half year revenue and profit growth. Revenue rose 1.3% to nearly £935 million, while adjusted profit before tax increased more than 20% to £24.7 million, significantly ahead of revenue growth. Adjusted operating margin improved to 3.2%, up from 2.7% at the previous half year.
Hampson said: “This is exactly the sort of story that we want to be telling,” highlighting disciplined project selection, improved commercial terms, and a growing contribution from higher-margin specialist services.
The order book increased nearly 5% year-on-year to £4.1 billion, supported by long-term frameworks in public and regulated sectors. Average month-end cash rose 6.3% to nearly £190 million, enabling a dividend increase of almost 18% to approximately 6.5p. The company has no drawn debt and no pension liabilities.
Galliford Try Holdings also upgraded expectations for 2026, with revenue and adjusted profit before tax now expected to be above the top end of market forecasts.
Alongside organic investment, the company announced the acquisition of Valley Fire and Acoustics Limited, strengthening its position in the regulation-led passive fire protection market. The acquisition is cash funded and expected to be margin accretive from year one.
Proactive: Hello, you're watching Proactive. I'm joined by Galliford Try Holdings Chief Financial Officer Kris Hampson. Kris, very good to speak with you. Could you give us an introduction to Galliford Try Holdings for those who may not already know it?
Kris Hampson: Thanks, Stephen. Galliford Try Holdings is a leading, high-quality UK tier one construction company. The company constructs critical economic and social infrastructure including schools, prisons, affordable housing, hospitals, roads and water infrastructure. Alongside this, it has specialist services and technology businesses. Five years ago, when the group came together in its current structure, the focus was on creating a sustainable tier one construction group. The half year results reflect further progress, supported by strong UK market dynamics and a culture of high-quality delivery. The company targets engineering projects on long-term frameworks in public and regulated sectors, which it considers non-cyclical and supported by government spending commitments.
Proactive: You released half year results this morning. What were the highlights?
Kris Hampson: It was another strong and consistent set of results, marking the 11th consecutive period of half year revenue and profit growth. Revenue grew 1.3% to nearly £935 million, slightly ahead of expectations despite the transition from AMP7 to AMP8 in water. The order book increased nearly 5% year-on-year to £4.1 billion. Adjusted operating margin improved by 54 basis points to 3.2%, driven by disciplined project selection, improved commercial terms and higher-margin specialist services. Adjusted profit before tax rose more than 20% to £24.7 million. Cash conversion was strong, with average month-end cash up 6.3% to nearly £190 million. The dividend increased nearly 18% to around 6.5p. The company has no drawn debt and no pension liabilities. Expectations for 2026 revenue and profit have been raised, and the company remains on track for its 4% margin target by 2030.
Proactive: What gives you confidence to upgrade expectations again?
Kris Hampson: The business is trading well across both core divisions and ahead of expectations. Strong first-half performance and visibility into the second half and beyond provide confidence. Revenue and adjusted PBT are expected to be above the top end of market expectations. The strategy of disciplined project selection, quality delivery and growing higher-margin specialist businesses has consistently delivered results.
Proactive: What are the focus areas for organic investment?
Kris Hampson: A strong balance sheet is a differentiator for clients, the supply chain and recruitment. It also provides firepower for growth. In the last 12 months, the company opened a joint fabrications and specialist water technology facility in Paisley, Scotland, and a pipe specials facility in Keighley, West Yorkshire. These investments expand specialist services capacity and support margin progression toward the 4% target by 2030.
Proactive: You also announced an acquisition today. What can you tell us?
Kris Hampson: The company acquired Valley Fire and Acoustics Limited, a fast-growing passive fire protection business. The acquisition strengthens the existing fire protection offering in a regulation-led and growing market. The deal is cash funded and expected to be margin accretive from year one. The Valley Fire brand will be retained and combined with the existing fire protection business to support national growth.