Galliford Try is raising profit expectation for 2024 on the back on strong results for this year and strong orders ahead.

Bill Hocking, Chief Executive, said the firm had secured 75% of next year’s revenue and expected an improved performance across both building and infrastructure divisions.

“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.”

Much of the improved performance will come following the firm’s recent shift to a new cloud-based computing system, which saw costs of £10.5m last year and £6m in the prior year.

In the year to 30 June, Galliford Try saw pre-tax profit nearly double to £10.1m from £5.4m previously generated from revenue up 13% to £1.4bn.

Operating margin remained stable at 2.4% although there was some pressure in the building division.

Galliford Try divisional trading

Op profit 23/22

Revenue 23/22

Margin

Infrastructure

£14.5m

£10.8m

£591m

£442m

2.5%

Building

£18.5m

£18.9m

£797m

£789m

2.3%

Investments

£1.4m

-£0.9m

£5.8m

£6.2m

Hocking said: “Galliford Try continues to perform strongly and we are making good progress on our Sustainable Growth Strategy, of risk managed controlled growth.

“Our commitment to robust risk management, careful contract selection and operational excellence continues to underpin our performance and prospects.  

“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. 

“Our high quality order book provides visibility and security of future workloads. Our business is not exposed to the short term economic cycle as our sectors are critical to the UK’s future growth.

Average month-end cash dropped 22% to £135m.