Galliford Try predicts return to profit after £59.7m loss
Galliford Try has forecast a return to profit in 2021, after it suffered a £59.7m pre-tax loss in the year to 30 June 2020.
The business, which sold its Linden Homes and partnership and regeneration divisions to Bovis Homes for £1.1bn in January this year, reported a decline in revenue from to £1.1bn for the year, down from £1.4bn the year before.
It made a pre-tax loss before exceptional items of £59.7m, compared to a £17.2m loss the previous year.
Nonetheless, the contractor pointed to its strong order book, which stands at £3.2bn, up from £2.9bn in 2019, with 90% of its revenue for the 2021 financial year already secured.
It predicted a profit margin of 1.4% to 1.6% on revenues of £1.1bn to £1.3bn in its 2021 financial year.
Chief executive Bill Hocking 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.”