Galliford Try Holdings Plc (LON:GFRD) has said it expects to return to paying a dividend at the half-year stage after it had an “excellent” start to its financial year.
Trading from the start of its financial year on July 1, 2020, is expected to see the construction group return to profitability, it said in a statement alongside its annual general meeting on Friday, which is close to shareholders due to coronavirus.
For the previous year to end-June, the group reported a loss before tax of £34.6mln, having made a small gain from the sale of its housing arm at the start of 2020.
The resumption of dividends will coincide with the interim results it said, having cancelled payouts in March during the first UK coronavirus lockdowns when it had to use the government furlough scheme.
All its projects have been fully operational during the period, with productivity close to normal levels even during the current second lockdown.
“Our strategy and sector focus mean that the group is positioned to emerge strongly from the pandemic, supporting the government's planned investment in infrastructure and economic recovery,” the company said.
Recent contract wins include two lots of Thames Water’s AMP7 £590m four-year framework, a £105mln commercial and private rented accommodation development at Monk Bridge in Leeds, the £85mln M56 junctions 6 to 8 works for Highways England, a £60mln Winchburgh Schools project in West Lothian and the £50mln refurbishment project at 280 Bishopsgate in London for Arax Properties.
Shares in the company shot up 10% to 90.17p in early trading.