Projects in the north and north-east have helped construction group Galliford Try to a big jump in profits.
Shares in the company, whose Morrison Construction arm operates throughout Scotland, surged by nearly 6% to 219.5p after it posted pre-tax profits – before one-off items – of £23.4 million for the year to June 30.
This was up by 23% year-on-year as the group cashed in from a “strong performance”, in terms of both profits and revene, across all operations.
Total revenue skyrocketed by nearly 13% to £1.394 billion.
On site in Torry, where new school and community centre are taking shape
Chief executive Bill Hocking told The Press and Journal Galliford Try’s “very good” year was reflected in an equally good performance by Morrison, which employs about 700 people north of the border.
Morrison is currently on site in Torry, Aberdeen, building a new primary school and community centre.
It completed a new school in Countesswells, on the outskirts of the Granite City, and an £8m redevelopment of Aberdeen Railway Station during its 2023 trading year.
Morrison also building Ellon’s new ‘civic hub’
A groundbreaking ceremony for its £11.4m “civic hub” on part of the former Ellon Academy site took place just last week.
The start of construction work for the development, which will deliver new council offices, a family resource centre and library, is imminent and the project is due to be completed by February 2025.
Further north, Morrison is working on projects at RAF Lossiemouth, and the Dalmore (in Alness) and Aultmore (Keith) whisky distilleries.
Mr Hocking said: “The Morrison side of the business contributes a lot to overall revenue – about 25-30% of our building business – and things are going well in Scotland. It’s all in good shape.”
Galliford’s markets are “pretty stable” despite inflationary pressures, the firm’s CEO said, adding: “Morrison has a healthy pipeline of maintenance framework porojects”
There was good news for shareholders, with Middlesex-headquartered Galliford Try announcing a final dividend payment of 7.5p per share, up 29% year-on-year. This boosts the total dividend for the 2022-23 financial year to 10.5p, up 31%. Investors are also cashing in on a special dividend payment of 12p per share, to be paid next month.
A share buyback returned a further £10.6m to shareholders during the 2022-23 trading year and is now more than 90% complete.
We are encouraged that the momentum in the business has carried into the first quarter of the new financial year and our expectations for the full year to June 2024 have now increased.”
Galliford Try said it had a well-capitalised, debt-free balance sheet and “high quality” £3.7bn order book, with 92% of 2023-24 revenue already secured.
Mr Hocking added: “Galliford Try continues to perform strongly and we are making good progress on our sustainable growth strategy of risk managed, controlled growth – supporting our financial and non-financial targets to 2026.
“We are doing what we said we would do, consistently delivering increased revenue and profit, supported by our great people, a strong balance sheet, excellent order book, and good supply chain and client relationships.
“We are encouraged that the momentum in the business has carried into the first quarter of the new financial year and our expectations for the full year to June 2024 have now increased.”
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