Construction FIRM Galliford Try hailed the strength of its performance in Scotland after booking a 17% increase in year-end profits.
The group, whose Scottish subsidiary Morrison is part of the consortium building the new Queensferry Crossing over the Forth, said it had successfully executed on its “disciplined growth strategy” during the 12 months to the end of June.
It improved margins, yielding pre-tax profits of £74.1m despite a 2% slide in group revenue to £1.47 billion, and prompting a 23% increase in final dividends to 37p per share.
The firm, which also works in housebuilding, reserved considerable praise for its PPI investments and infrastructure operations north of the border.
Chief executive Greg Fitzgerald hailed the “excellent” progress and a record pre-tax profit.
“Housebuilding has delivered another very strong year of trading,” he said.
“This has been achieved in a disciplined manner following a doubling in size of the business in the preceding three years. Our deliberate investment in high return land opportunities, particularly in the South and South East, together with a greater focus on margin performance and efficiency gains and an improving market means we are well placed to deliver further good growth.
“Construction has achieved another impressive performance against the background of a market that remains challenging, by focusing on its principles of disciplined contract selection, protecting margin and prioritising cash management.
“There are encouraging signs of an improving market on which we are well positioned to capitalise.”
Galliford said the best markets for its building arm were in Southern England, the Midlands and Scotland, where the group said it benefitted from a “significant” presence and strong track record.
While the depressed public sector market remains difficult, levels of building work in the affordable housing sector are now improving.
Public sector spending “remains stronger” in Scotland, with the company adding that continued Scottish Government investment was generating the opportunities it continues to benefit from.
Alongside joint venture partners Balfour Beatty and Carillion, Galliford has also been named as one of three bidders for the £550 million Aberdeen bypass, or Western Peripheral Route.
“Our four-party consortium constructing the new Forth Replacement Crossing is making good progress, with the bridge pier foundation work and the north and south approaches under way,” it added.
And the group hailed a 49% share in the publicly-funded £300m South East Scotland hub under the Scottish Futures Trust scheme. It has a significant part in the consortium recently selected to carry out works worth a total of £600m in the south west over the course of the next decade.
Overall, Galliford’s order book remains steady at £1.7bn, with an increasing forward pipeline. Some 87% of this year’s revenues are already secured.
Its landbank is at record levels but the firm said debts had reached a “modest” £14.4m from a £22.5m cash position this time last year.