Housebuilding and other gains more than offset any Aberdeen city bypass woes in annual results posted by construction group Galliford Try yesterday.
The company – parent to Scottish firm Morrison Construction – logged a further £20 million hit from the Aberdeen Western Peripheral Route (AWPR), due to weather delays earlier this year.
It took the total sum set aside for AWPR-linked losses during the 12 months to June 30 to £45m, following a £25m charge to the group’s first half accounts.
Galliford Try, which was left to complete the AWPR alongside Balfour Beatty after the collapse of original consortium partner Carillion, has shouldered a total of £123m in extra costs from the project.
AWPR’s official price tag comes in at £745m, which includes a contract worth about £530m to development consortium Aberdeen Roads.
Taxpayers will not shell out a penny more but the main contractors have suffered hefty losses, causing the true cost of the project to swell beyond £1 billion.
Middlesex-based Galliford Try has ruled out bidding for any more large infrastructure jobs on fixed-price contracts, which Bill Hocking, chief executive of construction and investments for the group, said yesterday was a relief after the AWPR experience.
“My hair is grey enough already,” he said, adding it was good to see the long-awaited project nearing completion at last.
Mr Hocking, speaking after Galliford Try revealed pre-tax profits surged by 145% to £143.7m thanks to strong performances at its Linden Homes Housebuilding and Partnerships & Regeneration divisions.
He also revealed that Morrison Construction had a busy pipeline of projects ahead.
He added: “The order book looks healthy, with schools, a couple of healthcare schemes and a fishery all part of a broad portfolio. Scotland is a very important market for us.”
Morrison Construction generates about 30% of Galliford Try’s total construction revenue.
Group revenue, including from Galliford Try’s share in joint ventures, for 2017-18 was up by 11% at £3.1bn.
Chief executive Peter Truscott said: “We have made good progress towards completion of the AWPR contract, with significant sections of the road open to traffic and the final section expected to be open by late autumn 2018.”