Galliford Try sees profits drop and books Carillion charge

Galliford Try workers on-site.
Galliford Try workers on-site.
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Construction firm Galliford Try has reported an 11 per cent drop in pre-tax profits to £56.3m, but saw revenues jump 14 per cent to £1.5bn.

The company has taken a £25m exceptional charge as it expects to pump extra cash into a project that had been a joint venture with Carillion, which collapsed last month.

Chief executive Peter Truscott said: “We have delivered a strong financial and operational performance in the first half, with revenue growth across all three businesses and excellent progress against our 2021 strategy.

“We have reviewed the impact on our business from the compulsory liquidation of Carillion, which has resulted in a further reassessment of the likely out-turn from our participation in the Aberdeen Western Peripheral Route (AWPR) joint venture, leading to an exceptional charge of £25m.

“Reflecting the additional financial obligations arising from this contract, we have today announced our plans for a capital raise of £150m.”

Mr Truscott said political uncertainty in the UK still poses economic risks but added the company is on track for growth.

“We continue to maintain strict control over net debt, which is consequently better than our guided level.

“We enter the second half of the year with a solid foundation to build on and strong fundamentals for the housing market.

“While we remain cautious of the impact of the current political uncertainty and the medium-term outlook for the macro economy, we believe our focused strategy, strong order book and disciplined approach will deliver further growth and shareholder value.”