Construction firm expects to return to profitability next year

The FTSE 250 company reported a loss for the second year running, but said it expects to resume dividend payouts next year as margins improve and a year-on-year increase in its order book helped it secure 90 per cent of planned revenue for 2021.

Bill Hocking, CEO of Galliford Try, said: “We have successfully transitioned to a well-capitalised UK construction business and I am confident about our future. The group is performing well and focusing on its core strengths of building, highways and environment."

Galliford, known for the re-development of the Wimbledon tennis venue, forecast revenue between £1.1bn and £1.3bn pounds for the year ending June 2021.

The company’s operating margins had taken a massive hit from the pandemic in the 2020 financial year and it has been opting for smaller contracts to avoid unexpected cost hits from larger, fixed-price contracts.

Excluding one-time items, Galliford reported a pre-tax loss of £59.7m for the year ended June 30, compared with a loss of £17.2m last year. Revenue fell 22 per cent to £1.09bn.

Peel Hunt analysts said the reinstated guidance was confident, given the company’s “well-bid order book, attractive infrastructure markets and the sector-leading balance sheet.”