Galliford Try has issued a confident trading update for the half year ended 31 December 2019 following the sale of its Linden Homes and Partnerships & Regeneration divisions of Galliford Try plc to Bovis Homes on 3 January 2020.
The newly-focussed group has been re-admitted to the government's prompt payment code, and says it enters the new year with an order book worth £3.2bn and recent significant contract wins including appointments to the YORCivil four-year major framework for Sheffield Council, AMP7 for Yorkshire Water, AMP7 for Southern Water, the A47 and A303 improvement works for Highways England and, in the private sector, the Project Nash development in central London for the Portman Estate.
The company says its deal with Bovis means Galliford Try is now a well-capitalised construction business. As at 31 December 2019 the Group's pro forma cash balance was £225m, with average month end cash balances for the second half of the financial year expected to be in excess of £100m.
The company also says its underlying construction business continues to perform well and in line with management's expectations for the financial year ending 30 June 2020, though the group expects performance to be weighted to the second half of the financial year due to both market uncertainty and the settlement of outstanding claims in the first half of the year.
Bill Hocking, chief executive, said: "The successful completion of the disposal of the housing and partnerships divisions means Galliford Try is now a well-capitalised and focused UK construction group. Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth. I am very excited about the future opportunities for Galliford Try. There is good momentum in the business, reflected by a number of significant wins through the first half of the year and the strength of the high-quality order book."
The group expects to announce its results for the half year and a strategy update on 12 March 2020.