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Fri February 26 2021

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Galliford Try doubles its workload with Miller Construction acquisition

10 Jul 14 Galliford Try has bought Miller Group’s construction business for £16.57m.

Miller Construction's order book of £1.4bn doubles Galliford Try’s order book at a stroke to £2.8bn.

Galliford Try said “the tactical acquisition of Miller Construction is consistent with Galliford Try's stated strategy of disciplined and selective growth in its construction business, with a particular focus on developing our positions on regional and national frameworks”.

Galliford Try is now targeting 2018 construction turnover of £1.5bn instead of its previous target of £1.25bn. Its directors said they had got a bargain.

Miller Construction reported 2013 revenues of £409m and a loss before interest and tax of £4m. In the past year Miller Construction has restructured or exited a number of mainly loss-making contracts and is expected to return to profitability in the current year.

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Miller Construction had gross assets of £232m at 31 December 2013. Under the terms of the deal, Miller Group has agreed to transfer Miller Construction with a nil net assets balance, including a cash balance of £23m. In addition, Miller Construction has a PPP portfolio with an invested value of approximately £14m.

Galliford Try has identified a total of £7m a year of cost synergies, the majority of which it would expect to realise during the financial year ending 30 June 2015.  Restructuring is expected to cost £4m but despite this the Galliford Try board expect the acquisition to be earnings enhancing in the year ending 30 June 2015.

Galliford Try chief executive Greg Fitzgerald said: "We are delighted to announce the acquisition of Miller Construction, achieved at a very good price and with no net cash consideration. The acquisition brings together two construction businesses with a strong strategic fit and accelerates our strategy of growth into an improving marketplace."

The news comes just a day after Galliford Try revealed that it had already just completed its best financial year ever.

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