REG - Galliford Try Hldgs - Capital Markets Event

Galliford Try HoldingsAnnouncement

23/05/2024 07:00

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RNS Number : 5400P  Galliford Try Holdings PLC  23 May 2024

 

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/
(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  increasing to 4.0% through a focus on both top and bottom line growth and
                              accelerated growth in our higher-margin adjacent market businesses
 Revenue                      growing to in excess of £2.2bn, maintaining disciplined contract selection

                            and robust risk management in resilient market sectors.

 Cash                         retain a strong balance sheet and operating cash generation
 Dividends                    sustainable dividends with an earnings cover of 1.8x

 

 

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 1(st) 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  Bill Hocking, Chief Executive      01895 855001

                Andrew Duxbury, Finance Director

 Teneo          James Macey White/Victoria Boxall  020 7260 2700

                                  (https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.google.com%2Fsearch%3Fq%3Dteneo%2Bpilgrim%26oq%3Dteneo%2Bpilgrim%26gs_lcrp%3DEgZjaHJvbWUyBggAEEUYOd
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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.

 

 

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