Galliford Try has announced it has written off exceptional costs of £26m for ongoing delays on the Aberdeen Western Peripheral Route (AWPR) scheme
The contractor reported a strong underlying group performance producing record pre-exceptional profits of £84m. Half year revenue was at £1.41bn, which was down 5% from £1.49bn.
Galliford Try has a current order book of £5.4bn. The firm, which completed 3,069 new Linden Homes, noted that average net debt decreased to £126m, from £203m in the first half of 2018.
However, Galliford Try’s Construction division which accounts for around half the revenues experienced its first-half operating losses widen from £17.8m last time to £19.7m this time.
Work on the £745m Aberdeen Western Peripheral Route project is now complete, but handover is yet to be accepted as Transport Scotland demands assurances about future maintenance.
Peter Truscott, Chief Executive, said: “We were delighted to achieve completion of the AWPR with final handover in progress, successfully delivering a vital and major piece of infrastructure to the local community. We continue constructive dialogue with our client regarding important and recognised claims.
“Linden Homes delivered a strong performance in the first half, despite the continuing political uncertainty and its impact on confidence.
“Partnerships & Regeneration is performing very strongly, both at revenue and margin levels.
“Construction’s performance continues to be encouraging, particularly on newer contracts, reflecting the business’s careful approach to project selection and risk management. We continue to prioritise the quality of each opportunity over volume.”
Truscott added: “The Group enters the second half of the year with a solid foundation, underpinned by a strong balance sheet and our focus on high-quality earnings which will drive further margin improvements over time.
“Our mix of residential development creates a robust proposition in more uncertain markets. We remain cautious of the impact of the current political uncertainty on consumer and business confidence, and the medium-term outlook for the macro economy, but believe our focused strategic objectives, strong order book and disciplined approach will deliver a full year out-turn toward the upper end of the analysts’ current range.”