Galliford Try Holdings PLC (LSE:GFRD) said it expects annual profit before tax and exceptionals to be at the upper end of analysts’ current forecasts.
The construction group’s underlying pre-tax profit forecast for the year to June 30 ranged from £16.4m to £18.0m at the start of this month.
There was “good performance” across all of the group’s operations, including an increase in revenue and pre-exceptional profits and “encouraging progress” towards its target profit margins, it said in a press release. end of the year.
The group said it was working closely with its supply chain and customers and to mitigate material shortages and inflation, “with no overall impact on our financial performance”.
“We are making good operational progress in line with our sustainable growth strategy, supporting our financial targets through 2026,” Chief Executive Bill Hocking said.
With around £218m in cash at year end and an average of £174m at month end over the financial year, Hocking said such strength in the balance sheet was “a even more important differentiator for our customers and suppliers in the current economic environment, as well as a quality order book mainly in the public and regulated sectors”.
The backlog 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 emphasizing that it continues to prioritize a disciplined approach to tenders and comprehensive risk management, a strong pipeline of new opportunities was also reported in its chosen public and regulated sectors, where the group has won a series of new framework contracts or places since January, including the £1.8bn North West Framework and the latest Midlands Highways Alliance Plus Framework.
Building on the acquisition of NMCN’s water business in the past year, this has been augmented in the new fiscal year with the purchase of MCS Control Systems.
“We approach the new fiscal year with confidence and are well positioned to deliver strong future performance and long-term sustainable value for all stakeholders,” Hocking said.