Yahoo Finance

• Revenue: GBP1.8 billion, up 27% or GBP379 million.

• Divisional Operating Margin: 2.5%, up from 2.4%.

• Profit Before Tax (PBT): GBP32.7 million, up 40%.

• Earnings Per Share (EPS): 27.9p, up 48%.

• Final Dividend: 11.5p, total dividend for the year 15.5p, up 48%.

• Average Month-End Cash: GBP155 million, up 15%.

• Order Book: GBP3.8 billion, with 92% high-quality work secured for the year.

• Building Revenue Growth: 17.7%.

• Infrastructure Revenue Growth: 38.8%.

• Investments Growth: More than 150% to circa GBP15 million.

• Year-End Cash: GBP227 million, up 3.1%.

• Share Buyback: Announced GBP10 million share buyback.

• Warning! GuruFocus has detected 7 Warning Sign with FRA:3WC.

Release Date: October 03, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Galliford Try Holdings PLC (FRA:3WC) reported a strong revenue increase of 27% to GBP1.8 billion, demonstrating significant growth across all divisions.

• The company achieved a 40% increase in profit before tax, reaching GBP32.7 million, indicating strong financial performance.

• A final dividend of 11.5p was announced, bringing the total dividend for the year to 15.5p, up 48% from the previous year, benefiting shareholders.

• The order book stands robust at GBP3.8 billion, with 92% of high-quality work secured for the current year, providing strong future revenue visibility.

• Galliford Try Holdings PLC (FRA:3WC) maintains a strong balance sheet with no bank debts or pension liabilities, enhancing financial stability and flexibility.

Negative Points

• The company faced exceptional costs of GBP2.6 million related to digital systems implementation, impacting overall expenses.

• There was a temporary revenue hiatus due to disciplined risk management and contract selection, affecting short-term revenue flow.

• The effective tax rate benefited from one-time deferred tax asset increases, which may not be sustainable in future years.

• PPP portfolio valuations have reduced due to capital redemptions and higher interest rates, impacting asset valuations.

• The infrastructure margin was held at 2.5%, partly due to delays in project mobilization, affecting potential margin improvements.

Q & A Highlights

Q: Are you seeing any hiatus in government-related activity due to the changing government, and what is the status of the water sector pipeline following the Southern and Wessex wins? A: The transition to the new government has been smooth with no hiatus in public sector contract awards. In the water sector, we've had a strong run in AMP8 with Southern and Wessex wins. We have one significant outstanding bid and a few smaller ones, but we've established a solid foundation for the next decade in water. Infrastructure margins were affected by delays in mobilization, but these issues are resolving.