Galliford Try Holdings PLC (LSE:GFRD) said it expects full-year profit before tax and exceptional items to be at the upper end of current analyst forecasts.
Forecasts for the construction group’s underlying profit before tax for the year to 30 June ranged from £16.4mln to £18.0mln at the start of this month.
There was a “strong performance” across the group’s operations, including increased revenue and pre-exceptional profit and “encouraging progress” towards its targeted profit margins, it said in a year-end trading statement.
The group said it is working closely with its supply chain and clients and to mitigate material shortages and inflation, “without any overall impact on our financial performance".
“We are making good operational progress in line with our sustainable growth strategy, supporting our financial targets to 2026,” said chief executive Bill Hocking.
With circa £218mln of cash at year-end and averaging £174mln at month-end during the financial year, Hocking said such balance sheet strength was “an even more important differentiator for our clients and suppliers in the current economic environment, as well as a high-quality order book predominantly in the public and regulated sectors”.
The order book was reported at £3.4bn, up from £3.3bn a year ago, and 90% of revenue for the new financial year has already been secured, the company said.
While stressing that it continues to prioritise a disciplined approach to bidding and overall risk management, a strong pipeline of new opportunities was also reported across its chosen public and regulated sectors, where the group has won a string of new contracts or framework places since January, including the £1.8bn North West Framework and latest Midlands Highways Alliance Plus Framework.
Building on the acquisition of the NMCN water business during the past year, this has been augmented in the new financial year with the purchase of MCS Control Systems.
“We move into the new financial year with confidence and are well placed to deliver strong future performance and long-term sustainable value for all stakeholders,” said Hocking.