Contractor Galliford Try has revealed it expects to return to profit this year, despite the economic disruption caused by the Covid-19 pandemic
The contractor has been hit by a pre-exceptional loss of £60m, according to its full-year results to 30 June 2020.
Galliford Try has reported that it has made good progress towards its strategic goals over the past 12 months, despite the Covid-19 pandemic.
The group’s cash performance has been strong, with the business maintaining its balance sheet and debt-free position following the sale of its housebuilding divisions in January.
The company continues to build its order book in targeted sectors, and improved risk management and business processes are beginning to bear fruit.
In its financial statement, the company said its forecast margins would be back in the 1.4%-1.6% range before central costs of £10m.
Revenue is expected to improve to £1.3bn, thanks to a strong order book of £3.2bn with 90% of revenue secured for this year ahead.
Bill Hocking, Galliford’s chief executive, commented: “This year has been a period of significant change for the group. We have successfully transitioned to a well-capitalised UK construction business and I am confident about our future.
“The group responded rapidly and effectively to the challenge of the Covid-19 pandemic and I have been particularly impressed by, and thankful for, the outstanding efforts of our staff throughout this period.
“All of our construction sites are now operational, and productivity is close to normal levels. Working with all stakeholders we will continue to maintain the highest safety, wellbeing and Covid-19 secure practices throughout all aspects of our operations.
“The group is performing well and focusing on its core strengths of building, highways and environment. In recent months we have secured a number of significant project wins and we are well placed to benefit from planned future investment in our areas of operation.
“Our strategy is focused on sustainable growth, careful cash management and margin progression. This strategy is underpinned by our commitment to operating sustainably, balancing financial performance with our obligations to all stakeholders, in order to drive long-term value creation.
“The group is well capitalised with a strong order book. We are well-positioned to make progress on our strategic priorities and margin improvement targets.
“The management team and board look forward to the new financial year with confidence.”