Galliford Try profit falls 4%, but forecasts annual profits toward upper end of expectations

Writer, Stock Market Wire
Wednesday, February 13, 2019 - 07:50

House-builder Galliford Try said Wednesday it expected full year performance would be toward the upper end of market expectations despite reported a slip in first-half profit on declining revenues.

The company forecasts underlying profit before tax for the year ending 30 June 2019, in the upper range of market expectations of between £158.8m and £192.5m.

For the six months to 30 June, reported pre-tax profit fell 4% to £53.8m. Revenue fell 4% to £1,344m, with construction revenue falling 13% weighed down by a 'more cautious bidding and project deferrals owing to clients' macro uncertainty,' the company said.

Reported profit was weighed down by an exceptional cost of £26.0m arising from the completion of the Aberdeen Western Peripheral Route contract. The profit and loss account also included an exceptional charge of £4.4m related to pension costs, the company said.

The Linden Homes and Partnerships & Regeneration built 3,069 total new homes, up from 2,878 a year earlier.

The interim dividend was cut to 23.0p a share for half from 28p a share a year earlier, in-line with the company's policy for the dividend to be covered two times by earnings, as previously announced, the company said.

'We remain cautious of the impact of the current political uncertainty on consumer and business confidence, and the medium-term outlook for the macro economy, but believe our focused strategic objectives, strong order book and disciplined approach will deliver a full year out-turn toward the upper end of the analysts' current range,' the company said.

Related content

Galliford Try wins contract to build 725 homes at Meridian Water development in the Lea Valley

Housebuilder Galliford Try said it had been selected by Enfield Council to build the first 725 homes at the £6bn Meridian Water development in the...

Thu, 25/04/2019 - 08:11

JD Sports, IWG, Galliford Try and other news


The Easter holidays have seen plenty of news from retailers for investors to keep tabs on. Chiming with a British Retail Consortium report which suggested...

Thu, 18/04/2019 - 00:00

Broker Forecast - Liberum Capital issues a broker note on Galliford Try PLC

Liberum Capital today reaffirms its buy investment rating on Galliford Try PLC (LON:GFRD) and cut its price target to 865p (from 970p).

Broker Forecasts data...

Wed, 17/04/2019 - 09:00

JD Sports’ winning formula and Galliford Try issues profit warning

“The FTSE 100 should today close at a record high for 2019 if it can sustain the momentum seen in early trading on Tuesday. Propping...

Tue, 16/04/2019 - 10:19

Broker Forecast - Peel Hunt issues a broker note on Galliford Try PLC

Peel Hunt today downgrades its investment rating on Galliford Try PLC (LON:GFRD) to hold (from buy) and cut its price target to 700p (from 885p)....

Tue, 16/04/2019 - 09:00