Galliford Try has announced a strong set of results for the financial year to 30 June 2021, outperforming analysts’ expectations.
The business has achieved a profit before tax of £11.4m on revenues of £1.125bn, which represents a divisional operating margin of 2%. The company said its ‘exceptionally strong’ balance sheet has been further underlined with good cash generation, with average month-end cash through the year at £164m. Its order book has also grown to £3.3bn which underpins any future performance.
This firm foundation has provided the opportunity to put in place its new strategy to 2026. Robust risk management will remain a cornerstone of the business as Galliford Try sets out to grow its operating margin to 3% on revenues towards £1.6bn and maintain its strong cash generation while paying sustainable dividends.
The company’s Sustainable Growth strategy has set four new priorities: progressive culture, socially responsible delivery, quality and innovation and sustainable financial returns incorporating refreshed targets across the Group’s six pillars of sustainability. This is in addition to the recent commitment by the business to reach net zero carbon across the Group’s own operations by 2030 and across all activities by 2045.
The updated strategy elevates the Group’s ambitions, aligning profit with purpose, and will be driven by digitalisation, decarbonisation and social value, increasing the long-term operational and financial resilience of the organisation.
Bill Hocking, Chief Executive of Galliford Try, said: “Over the last year, we have emerged stronger, returning to profitability and confirming our position as a leading UK construction group.
“Our commitment to robust risk management, careful contract selection and operational excellence underpins our performance and prospects. With an excellent order book and balance sheet and position in our chosen sectors, we are strongly positioned to meet the increasing demand for social and economic infrastructure in the UK.
“This secure foundation provides the basis for our Sustainable Growth strategy, which will ensure that we develop our business sustainably and profitably.
“The outlook is positive and the management team and Board look forward to the new financial year with confidence. My thanks and appreciation go to all our staff, supply chain and clients who have worked so well together to keep our projects safely on track, despite the challenging circumstances. I am proud to lead a team of passionate, dedicated and skilled individuals who are all so aligned to our purpose.”
Meanwhile, Galliford Try’s Highways business has claimed the top awards for ‘Best Use of Technology’ and ‘Health, Safety and Wellbeing Excellence’ at this year’s Construction News Awards, while being shortlisted for ‘Supply Chain Excellence’.
Galliford Try’s introduction of Eave’s ‘smart’ ear defenders across all its Highways sites has enabled operatives to be constantly aware of ambient noise, while protecting themselves against noise-induced hearing loss, a commonly reported occupational health problem among road workers.
The active ear defenders, which use a best-in-class ‘hear-through’ technology, are unlike standard passive ear defenders as they allow wearers to hear environmental sound such as that from vehicles, vastly improving their safety. The headsets also monitor and map noise exposure, displaying it via a cloud-based software platform, and allowing the business to analyse in real-time each worker’s noise exposure across a site.
Judges praised the amalgamation of hearing protection and exposure tracking as “a real game-changer for an under-explored space” and said Eave and Galliford Try Highways had joined forces to provide “great examples of how genuine working improvements have been generated as a consequence of the technology”.