GALLIFORD TRY has posted a huge surge in group profits, having weathered the storm of Carillion’s collapse and its financial impact on the Aberdeen Bypass project.
The construction giant posted profits before tax for the year ended 30 June 2018 of £143.7 million – a 145% increase on the previous year’s figure of £58.7 million. Group revenue was £2,932 million, up from £2,662 million in 2017.
Over-run costs on the Aberdeen Western Peripheral Route (AWPR) contract were compounded by the liquidation of joint-venture partner Carillion, and Galliford Try has lost £123 million to date on the project. Overall, the Construction division has lowered its profit losses from £88.8 million in 2017 to £29.1 million this year.
Peter Truscott, chief executive said the group had delivered a “very strong” underlying performance during the year, driven by “excellent” progress towards its strategic objectives across its three businesses – Linden Homes, Partnership & Regeneration and Construction.
He commented, “The underlying Construction business performed well and continues to see a pipeline of suitable opportunities, with new projects delivering improved margins. We have made good progress towards completion of the AWPR contract, with significant sections of the road open to traffic and the final section expected to be open by late autumn 2018.
“The rights issue in April has strengthened the balance sheet and ensures that the group’s businesses are well positioned, with the appropriate capital, to deliver on their respective growth opportunities in line with our strategy to 2021.”