This time last year, Galliford Try reported an interim loss before tax due in part to costs associated with its autumn 2021 acquisition of failed contractor NMCN’s water business.
Today, with the benefits of that acquisition having filtered through, it has posted strong profits, with an operating margin of 2.3% across its construction activities.
For the six months ended 31st December 2022, Galliford Try grew revenue by 14% to £679m. Profit before tax was £7.2m, compared to a £2.6m loss last time. Excluding exceptional items, pre-tax profit was up 65% to £11.7m (2022 H1: £7.1m)
The Building division generated a profit of £9.3m (H1 2021: £8.4m) on revenue of £399.7m (2022 H1: £386.2m), representing an operating margin of 2.3% (H1 2022: 2.2%).
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The Infrastructure division generated a profit of £6.5m (H1 2022: £4.3m) on revenue of £276.6m (2022 H1: £204.4m), representing an operating margin of 2.3% (H1 2022: 2.1%).
The 35% increase in infrastructure revenue included the benefit of the NMCN water business acquired in autumn 2021.
Chief executive Bill Hocking said: "I am pleased with the group's performance in the first half of the financial year, seeing increasing revenue and divisional operating margin, as we continue to make good progress against our strategic objectives. Our strong performance is a reflection of our excellent people and well established relationships with our supply chain and clients.
“Our strong and high quality order book, in our chosen sectors, provides visibility and security of future workloads. Together with our excellent people and our strong balance sheet, this gives confidence in our ability to deliver our sustainable growth strategy and continue to provide long-term sustainable value for our stakeholders."
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