Galliford Try hailed its “timely” swoop for Scottish construction firm Miller yesterday as it revealed a 20% spike in full year pre-tax profits.
The firm, whose Morrison Construction division is playing a key role in the flagship build of the Queensferry Crossing over the Forth, said its acquisition of Edinburgh-based Miller Construction for £17 million last summer had proved opportune as it had helped the group to accelerate its growth in an improving marketplace.
Overall, the group delivered a 33% increase in revenues to £2.34 billion in the year to June 30, excepting joint venture income.
Total pre-tax profits in the period increased from £95.2m last year to £114m.
The figure includes exceptional costs of £3.7m related to Miller Construction’s integration into the group and redundancy and restructuring charges accrued in that move.
Galliford Try said it expected to make £8m of annualised cost savings as a result.
Executive chairman Greg Fitzgerald said he was delighted to be reporting record profits.
He said the housebuilding division had implemented some operational restructuring and had made welcome progress on margins.
He added that the acquisition of Yorkshire-based Shepherd Homes had accelerated its growth in the north.
Mr Fitzgerald said the firm’s construction arm had made strong progress, winning “significant new work in an improving market, assisted by the timely acquisition and swift integration of Miller Construction”.
Mr Fitzgerald, who will become non-executive chairman of the business in January after a three-month handover period with new incoming chief executive Peter Truscott, said the firm had seen high levels of build cost inflation during the year but said there were early signs the situation was moderating.
He added: “Reflecting the delivery of record results and our continued confidence in the business, we have increased our full year dividend by 28%.
Shares in Galliford Try moved lower in trading on Wednesday, eventually closing down 28p at 1773p following the full day’s trading.