You are viewing 1 of your 1 free articles
Galliford Try issues £40m profit warning
Galliford Try has launched a review of its construction business after taking a £40m hit due to losses on a number of it’s projects and costs associated with a restructure.
The firm’s partnerships arm signed a partnership agreement with Homes England to build 850 homes across England earlier this month on sites in Redcar, Cheshire, Staffordshire and Dorset.
The strategic review has been launched ahead of Galliford Try’s trading update, which is due on 21 May.
It is expected that the review will reduce the size of the construction business and see Galliford Try focus on its key strengths in markets and sectors “with sustainable prospects for profitability and growth”.
READ MORE
In a statement Galliford Try said: “The board expects that the outcome of this assessment will reduce the group’s full year post-exceptional profit before tax by £30m-£40m below the current consensus analysts’ forecast.
“The majority of our construction businesses continue to perform well, and these adjustments are not expected to have a significant impact on the group’s previous guidance on average net debt for the year.”
The house builder’s latest annual figures showed that it built 6,193 homes in the year ended June 2018, helping it to generate £143.7m in pre-tax profit on a revenue of £2.93bn.
