Galliford Try plc has announced record profits with the publication this morning of its annual results for the year ended 30 June 2013.

Despite a small 2% fall in revenues – down from £1,504m compared with £1,467min 2012 – the group has posted record profits before tax of £74.1m – a rise of 17% compared with £63.1m last year. A company statement said a 23% increase in full year dividend payment reflects the firm’s strong financial position and the board's confidence in the future.

In its construction division, Galliford Try has maintained its order book at £1.7 billion (2012: £1.65 billion) with its pipeline of forward opportunities increasing. The company said that in continuing challenging market conditions, a robust construction margin of 1.7% was in line with expectations (2012: 2.0%). The firm has ended the year with a construction cash balance of £145 million (2012: £146 million) and 87% of the current year's planned revenue already secured (2012: 86%).

Greg Fitzgerald, Chief Executive, commented:

"We have made excellent progress as a group in the financial year and delivered a record profit before tax. We have also significantly increased the full year dividend reflecting the board's confidence in the future.

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."

Overall, 2013 represents the first year of implementation of the board's growth strategy following what is described as "the very significant and successful expansion" achieved in the three years to June 2012. The construction business is actively protecting its margin, order book, risk profile and cash balances with the intention of resuming growth when conditions improve. Galliford Try said there are encouraging signs in both the construction and housebuilding markets that give the board greater confidence for the forthcoming financial year and beyond.

In construction, the group’s focus has been on protecting margins and positioning the business to benefit from improved markets, although as expected, market conditions have continued to be challenging. as we expected. Galliford Try said its strategy continued to be based on winning work in markets where there were barriers to entry and it was able to add value for clients, thus earning an appropriate margin.

The firm said construction performed well, focusing on careful management of margins and cash balances, with the order book largely unchanged at £1.7 billion. with revenue was down marginally by 1.3% to £912.7 million, in line with expectations. Galliford Try has now won a number of important and prestigious contracts – the group is beginning to secure repeat work under the AMP6 framework awards for its water clients, maintaining its position as a key infrastructure supplier to the UK utility sectors.

The statement said the regulated market remained active as a result of the utility companies' five-year expenditure plans, with work continuing to come through as expected and Galliford Try has a strong position. The group was re-appointed by Yorkshire Water as a contractor for its AMP6 framework in July.

Galliford Try said the business is well positioned to benefit from improvements in construction markets and to grow when markets allow, although margins are expected to reduce.

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