23
MAY 2024
GALLIFORD TRY HOLDINGS PLC
CAPITAL MARKETS EVENT - STRATEGY TO 2030
STRATEGY TO DELIVER CONTINUED PROFITABLE
GROWTH
Galliford Try Holdings plc
("Galliford Try" or "The Group") will be holding a Capital Markets
Event for investors and analysts today in London.
The Capital Markets Event will set
out the Group's growth strategy to 2030 and include presentations
from members of the senior management team on key
sectors.
The presentations and a recording of
the event will be made available on the Group's website on the
afternoon of 24 May 2024: https://www.gallifordtry.co.uk/investors/reports-presentations/
Bill Hocking, Chief
Executive, commented:
"Galliford Try has delivered
controlled growth and good performance since 2021 when we set out
our sustainable growth strategy and financial targets
to 2026.
We have consistently delivered
increased revenue and divisional operating margin and have
progressed towards our original 2026 strategic targets ahead of
plan. The strong momentum in the business and our confidence in the
outlook is a reflection of our disciplined strategy, committed
people and established relationships with our supply chain and
clients.
Our updated strategy to 2030, which
we announce today, reflects our strong performance since 2021 and
is designed to continue our disciplined growth and provide
long-term sustainable value for our stakeholders."
SUSTAINABLE GROWTH STRATEGY TO 2030
The Group's strategic priorities
remain the same and include a progressive culture, socially
responsible delivery, a focus on quality and innovation, risk
management and sustainable financial returns. Our Sustainable
Growth Strategy balances financial targets with wider commitments
and aspirations to create long term value for all our
stakeholders.
Today we publish our strategy with
financial targets to 2030:
Divisional operating
margin
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increasing to 4.0% through a focus on both top and
bottom line growth and accelerated growth in our higher-margin
adjacent market businesses
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Revenue
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growing to in excess of £2.2bn, maintaining disciplined
contract selection and robust risk management in resilient market
sectors.
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Cash
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retain a strong balance sheet and operating cash
generation
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Dividends
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sustainable dividends with an earnings cover of
1.8x
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Our strategy will be delivered
through continued growth in our existing core markets within
Building and Infrastructure (including Highways and Environment) as
well as in higher-margin adjacent markets including the Private
Rented Sector (PRS), Affordable Homes, Capital maintenance and
asset optimisation within water, and Green Retrofit. We will
also continue to grow our higher margin specialist capabilities,
including fire protection, active security and facilities
management.
Today's Capital Markets Event will
set out how the Group will deliver its updated strategy. This
will include presentations from senior management on Affordable
Homes, Environment (including water) and our specialist businesses,
as well as an overview of the market opportunities that will
provide revenue and margin growth in the Group's other key
markets.
The Group's success and future
strategy is founded on commercial discipline and robust risk
management, with the majority of the Group's work delivered through
long-term frameworks built on relationships with clients on
familiar terms, conditions and risk profile. The Group's focus on
ESG will continue to underpin our success, as it helps us to win
work, engages our employees, benefits communities and the
environment, and makes us more efficient. This is why our
sustainability commitments are an integral part of delivering our
growth strategy and fully embedded into our business.
Management
Andrew Duxbury, Group Finance
Director, whose resignation was previously announced, will leave
the Group on 31 May 2024. Bill Hocking, Chief Executive, will
assume interim responsibility for the finance role, supported by
the Divisional Finance Directors, Group Financial Controller, and
Kevin Corbett, General Counsel & Company Secretary. Kris
Hampson, whose appointment was previously announced, will join the
Group as Chief Financial Officer, in September 2024.
In order to reflect the growth of
the Infrastructure business and its increasing role in the future
growth strategy, David Lowery will join the Executive Board on
1st July 2024 as Divisional Managing Director,
Infrastructure. Until that date, responsibility for
Infrastructure will remain with Bill Hocking.
The Group continues to invest
heavily in strengthening its employee value proposition and in its
early careers programmes, helping to ensure that we develop and
retain an excellent team to deliver our strategic
growth.
SUMMARY
The Group has a strong and
consistent track record and a predominant focus on the public and
regulated sectors. The UK's planned, and required, investment
in economic and social infrastructure continues to support growth
in our chosen markets.
Our confidence in the Group's future
outlook is supported by our high-quality order book including
recent framework and project wins, as well as the robust and
resilient pipeline of opportunities we see across our chosen
sectors. We are confident that we will continue to deliver
sustainable, profitable growth to 2030.
The Group's next Trading Update is
scheduled for 11 July 2024.
Enquiries to:
Galliford Try
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Bill Hocking, Chief
Executive
Andrew Duxbury, Finance
Director
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01895 855001
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Teneo
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James Macey White/Victoria
Boxall
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020 7260 2700
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The person responsible for making
this announcement on behalf of Galliford Try is Kevin Corbett,
General Counsel & Company Secretary.
Forward looking statements
This announcement contains
statements about the Group that are or may be forward looking
statements. All statements other than statements of historical
facts included in this announcement may be forward looking
statements. Without limitation, any statements preceded or followed
by or that include the words "targets", "plans", "believes",
"expects", "aims", "intends", "will", "may", "anticipates",
"estimates", "projects" or words or terms of similar substance or
the negative thereof, are forward looking statements. Forward
looking statements include statements relating to the following:
(i) future capital expenditures, expenses, revenues, earnings,
synergies, economic performance, indebtedness, financial condition,
dividend policy, losses and future prospects; (ii) business and
management strategies and the expansion and growth of the Group's
operations; and (iii) the effects of government regulation on the
Group's businesses.
Such forward looking statements
involve risks and uncertainties that could significantly affect
expected results and are based on certain key assumptions. Many
factors could cause actual results to differ materially from those
projected or implied in any forward looking statements. Due to such
uncertainties and risks, readers are cautioned not to place undue
reliance on such forward looking statements, which speak only as of
the date hereof. The Group disclaims any obligation to update any
forward looking or other statements contained herein, except as
required by applicable law. All subsequent oral or written forward
looking statements attributable to the Group or any of its
directors, officers or employees or any persons acting on their
behalf are expressly qualified in their entirety by the cautionary
statement above. Should one or more of these risks or uncertainties
materialise, or should underlying assumptions prove incorrect,
actual results may vary materially from those described in this
announcement.