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Infra downturn dents Galliford
18 September 2012
Galliford Try has almost doubled its annual profits despite the downturn in the UK infrastructure market.
The construction firm was boosted by a strong performance in its housebuilding division, plus a 40% increase in completions during the 12 months to 30 June 2012.Group pre-tax profit reached £63.1m, up from £35.1m last year, on revenue of £1.5bn compared to £1.3bn in 2011.
However, the firm’s infrastructure and PPP divisions did not fare so well, with profit from operations reaching £8.8m in 2012, down by £1.1m on the previous year.
Meanwhile, Galliford’s PPP Investments arm reported a loss from operations of £1.1m, up from £1m last year. The directors’ valuation of the firm’s PPP portfolio fell from £4.4m in 2011 to £1.3m this year, due in part to the sale of its remaining equity interest in the St Andrews Community Hospital project.
Nonetheless, the firm pointed to a strong outlook for its PPP arm, which is shortlisted on a number of projects including Scotland’s £415m triple road non-profit distributing scheme. It is also preferred bidder as part of the consortium bidding for the £500m South West Hub project in Scotland.
