Galliford Try has posted record results with the publication this morning of its annual results for the year ended 30 June 2014. The Group has also announced at the same time that CEO Greg Fitzgerald will retire by the end of 2015.
During the year Group revenues leapt up 21% to £1,768m compared to £1,467m for the same period in 2013, while profit before tax rose 28% to £95.2m up from £74.1m. The firm also saw record earnings per share, increasing by 32% to 94.6 pence.
However, the Group’s infrastructure business, which delivers work for regulated businesses and has a number of major UK projects in progress, saw revenues fall from £416.3m in 2013 to £374.6m, while operating profit margin fell to 1.3% from 1.5% and profit from operations dropped from £6.4m to £5.0m. In contrast, the order book has risen from £579m in 2013 to £920m in 2014.
Contract wins included the appointment by Yorkshire Water of Galliford Try’s joint venture with AECOM Design Build to continue as a contractor for its AMP6 framework. The framework will run from 2015 to 2020 and is expected to be worth at least £110 million to Galliford Try over this period. The framework is similar in value and scope to the current AMP5 contract.
In its construction division, Galliford Try described its 1% construction operating margin as robust as it delivered work won in more difficult market conditions (2013: 1.6%). The Group said construction had continued to perform well, maintaining a profitable result and starting to deliver new work secured on more robust terms in improving conditions. The acquisition during the year of Miller Construction, a UK only contractor which delivers building and infrastructure projects to both the public and private sectors, has more than doubled the size of Galliford Try’s construction order book.
Galliford Try also announced that after 33 years with the company and acquired businesses, Greg Fitzgerald had indicated to the Board his wish to retire as Chief Executive no later than the end of 2015. The Board has begun the process to appoint his successor.
Ian Coull, Chairman, said:
"On behalf of the Board I would like to thank Greg for his excellent leadership and vision over the last nine years in his role as Chief Executive. The company has a clear disciplined growth strategy against which we are making strong progress. We have begun the search for Greg's successor; Greg is committed to ensuring a smooth transition and will leave the business in a strong position for his successor."
Greg Fitzgerald, Chief Executive, said:
"After 33 very enjoyable years at Galliford Try I have decided to retire no later than the end of 2015. My decision is a personal one and I am fully committed to delivering the Company's growth strategy. As our full year results announced today demonstrate, the Group is in great shape, with a strong management team, and very well equipped for the future."