Galliford Try has posted a near £60m pre-tax loss in its latest annual financial results, but the company remains confident about returning to profit and increasing margins to 1.6% next year.
Announcing its full-year results for the financial year to 30 June 2020, the company posted a pre-tax loss of £59.7m on revenue of £1,09bn. This follows a loss of £17.2m in 2019, on revenue of £1.4bn.
However, the company, which sold its Linden Homes and Partnerships housing divisions to Bovis Homes for £1.1bn earlier this year, reported an increased order book of £3.2bn - compared to £2.9bn last year – with a net cash balance of £197.2m compared to a £56.6m deficit last year.
The company claims it has made good progress towards its refocussed strategic goals over the past 12 months, despite the inevitable economic disruption caused by the Covid-19 pandemic, and says the final results are in line with expectations, with the business well-placed for the new financial year.
It says a new disciplined approach to risk management and contract selection continues to build a high-quality orderbook in its targeted sectors, and improved risk management and business processes are beginning to bear fruit, creating a platform to return to profitability in the upcoming financial year.
The group expects to return to profitability in the financial year to 30 June 2021 with operating margins expected to be 1.4% to 1.6% on revenues of £1.1bn to £1.3bn. Average month end cash is expected to be in the range £125m to £145m.
Bill Hocking, Galliford Try chief executive, said: "This year has been a period of significant change for the group. We have successfully transitioned to a well-capitalised UK construction business and I am confident about our future.
“The group responded rapidly and effectively to the challenge of the Covid-19 pandemic and I have been particularly impressed by, and thankful for, the outstanding efforts of our staff throughout this period. All of our construction sites are now operational, and productivity is close to normal levels. Working with all stakeholders we will continue to maintain the highest safety, wellbeing and Covid-19 secure practices throughout all aspects of our operations.
“The group is performing well and focusing on its core strengths of building, highways and environment. In recent months we have secured a number of significant project wins and we are well placed to benefit from planned future investment in our areas of operation.
“Our strategy is focused on sustainable growth, careful cash management and margin progression. This strategy is underpinned by our commitment to operating sustainably, balancing financial performance with our obligations to all stakeholders, in order to drive long-term value creation.
“The group is well capitalised with a strong order book. We are well positioned to make progress on our strategic priorities and margin improvement targets. The management team and board look forward to the new financial year with confidence."