Galliford Try Holdings PLC (LON:GFRD) has given itself an extra year to hit its divisional operating margin target.
The construction group had previously indicated a divisional 2% margin target by 2021; it is now targeting a minimum divisional 2% margin across Building and Infrastructure by 2022, with the objective of achieving a group-wide 2% margin, in the medium term, after allowing for public/private partnerships and central costs.
Galliford Try pushes profit target back https://t.co/tnc7GF5pWU #constructionnews #construction #news pic.twitter.com/i7hmoXuG7S
— Construction Index (@TCIndex) March 12, 2020
The company completed the disposal of Linden Homes and Partnerships divisions at the beginning of the year, and in its results covering the six months to the end of June it released two sets of figures, one just for continuing operations and the other on a “statutory basis”.
Statutory revenue fell to £669mln from £728mln the year before but the company made a profit before tax of £16.6mln, versus a loss the year before of £24.7mln.
Excluding exceptional items, the continuing business of Galliford Try saw revenue fall to £636mln from £728mln, while it made a loss before tax of £5.6mln, versus a profit the previous year of £2.2mln.
The group's order book at the end of the year was effectively unchanged from a year earlier at £3.2bn.
The board has recommended an interim dividend of 1.0p; there was no interim dividend in 2018.
“The restructured group is performing well with a number of recent significant project wins,” said Bill Hocking, who took over as chief executive at the beginning of this year.
The company said it is mindful of the potential risks around the coronavirus and is taking appropriate preparatory steps to mitigate harm and disruption.