Galliford Try Company Profile

Background

Galliford Try plc is a leading British construction company headquartered in Uxbridge, England. Established through the merger of Galliford and Try Group in 2000, the company has a rich heritage dating back to 1908. Galliford Try focuses on delivering high-quality buildings and infrastructure projects across the UK, aiming to improve lives through its operations. The company's mission is to be a people-oriented, progressive business driven by its values to deliver lasting change for stakeholders and communities.

Key Strategic Focus

Galliford Try's strategic focus is encapsulated in its Sustainable Growth Strategy, which aligns financial objectives with sustainability aspirations to deliver sustainable profitable growth. The strategy concentrates on three main aspects:

1. Core Markets Expansion: Growing revenue and margins in existing core markets of Building, Infrastructure, and Environment, where there is resilient, long-term demand.

2. Affordable Homes Market: Re-entering the higher-margin Affordable Homes market to meet significant demand, leveraging existing skillsets and experience.

3. Specialist Services Growth: Expanding higher-margin Specialist Services capabilities, including fire protection, digital infrastructure, active security, and Facilities Management.

The company operates through three primary divisions:

Building: Designing, constructing, and refurbishing assets across sectors such as education, health, defence, justice, and commercial.

Infrastructure: Comprising Environment and Highways businesses, delivering civil engineering projects in water, sewage, and road networks.

Specialist Services: Including fire stopping and cladding (Oak Specialist Services), active security (Asset Intelligence), Investments, Facilities Management, and Digital Infrastructure.

Financials and Funding

As of the financial year ending 30 June 2024, Galliford Try reported:

Revenue: £1.8 billion, a 21% increase from the previous year.

Profit Before Tax: £15.6 million, up 33%.

Dividend Per Share: 4.0 pence, a 33% increase.

Average Month-End Cash: £150 million, up 11%.

The company's order book stood at £3.9 billion, reflecting a 6% increase. Galliford Try maintains a strong balance sheet with a well-capitalised and debt-free position, enabling strategic investments and acquisitions to support growth objectives.

Pipeline Development

Galliford Try's robust order book includes significant projects across its divisions:

Building: £2.3 billion, with key sectors including education (£634 million), defence (£437 million), and custodial (£329 million).

Infrastructure: £1.5 billion, comprising highways (£641 million) and environment (£905 million) projects.

The company is strategically positioned on key frameworks, particularly in public and regulated sectors, ensuring a steady pipeline of projects aligned with its expertise and market focus.

Technological Platform and Innovation

Galliford Try invests in digital and technical capabilities to enhance efficiency, reduce carbon footprint, and deliver greater value to clients. The company's commitment to innovation is evident in its adoption of digitalisation and quality-focused methodologies, ensuring the delivery of lower carbon, superior buildings and infrastructure with a better social footprint.

Leadership Team

Galliford Try's leadership team comprises experienced professionals dedicated to driving the company's strategic objectives:

Bill Hocking: Chief Executive Officer.

Peter Ventress: Non-Executive Chairman.

Vikki Skene: Human Resources Director.

The leadership team focuses on fostering a people-oriented, progressive culture, ensuring the company's values of excellence, integrity, passion, and collaboration are embedded across all operations.

Leadership Changes

In 2020, following the sale of its housing divisions, Galliford Try appointed Bill Hocking, formerly head of the construction arm, as Chief Executive Officer. This strategic leadership change marked the company's transition to a standalone construction-focused group.

Competitor Profile

Market Insights and Dynamics

The UK construction industry is characterized by significant players delivering a wide range of building and infrastructure projects. Galliford Try operates in a competitive landscape with several key competitors:

Competitor Analysis

Balfour Beatty: A major international infrastructure group specializing in construction and civil engineering.

Kier Group: A construction, infrastructure services, and property management company.

Costain Group: Provides engineering, construction, and infrastructure solutions.

Willmott Dixon: Offers construction and property services.

These competitors focus on various sectors, including infrastructure, building, and specialist services, similar to Galliford Try's operations.

Strategic Collaborations and Partnerships

Galliford Try has engaged in strategic acquisitions to enhance its capabilities:

2021: Acquired the water business of nmcn, including Lintott.

2022: Acquired MCS Control Systems and Ham Baker Engineering.

2023: Acquired AVRS Systems.

These acquisitions strengthen Galliford Try's position in the water sector and expand its specialist services offerings.

Operational Insights

Galliford Try's disciplined approach to project selection and risk management, combined with strong client and supply chain relationships, positions it as a key player in the UK construction industry. The company's focus on sectors where it has proven strengths, particularly in public and regulated sectors, provides a competitive advantage.

Strategic Opportunities and Future Directions

Galliford Try's Sustainable Growth Strategy to 2030 targets revenue in excess of £2.2 billion and a divisional operating margin of 4.0%. The company's focus on expanding in core markets, re-entering the Affordable Homes market, and growing Specialist Services capabilities positions it to capitalize on long-term demand and deliver sustainable profitable growth.