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- Galliford Try swings to a full-year pre-tax loss of £59.7 million.
- The construction firm reports a 22% annualised decline in revenue.
- Galliford forecasts £1.1 billion to £1.3 billion of revenue in fiscal 2021.
Galliford Try Holdings plc (LON: GFRD) said on Wednesday that it concluded fiscal 2020 in loss. The company, however, expressed confidence that it will jump back into profitability this year. Site activity and productivity, as per Galliford, has recovered almost entirely after months of disruptions due to the Coronavirus pandemic.
Shares of the company jumped about 7% in premarket trading on Wednesday. The stock gained another 10% on market open. Galliford Try Holdings plc is now trading at 93 pence per share versus a sharply higher 886 pence per share at the start of 2020. Its per-share price is currently close to a year to date late. Learn more about why prices rise and fall in the stock market.
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Galliford’s guidance for revenue in fiscal 2021
Fiscal 2020 marked the second year in a row for Galliford to have reported an annual loss. In fiscal 2021, the construction company added, it will reinstate dividend payments on the back of a strong order book that secured 90% of the revenue that it planned for 2021. In August, Galliford secured a £10 million contract for Salford care unit.
CEO Bill Hocking of Galliford commented on the financial update on Wednesday and remarked:
“We have successfully transitioned to a well-capitalised UK construction business, and I am confident about our future. The Group is performing well and focusing on its core strengths of building, highways and environment.”
For fiscal 2021, the Cowley-based company now forecasts £1.1 billion to £1.3 billion of revenue. The COVID-19 crisis resulted in a significant hit to Galliford’s operating margins in fiscal 2020. Consequently, the company has been focusing on smaller contracts in recent months to avoid surprise costs.
Galliford Try reports a 22% annualised decline in revenue
Adjusted for non-recurring items, Galliford said on Wednesday that its pre-tax loss in the financial year that concluded on 30th June came in at £59.7 million as compared to a much lower £17.2 million of loss in the previous year. In terms of revenue, the British firm saw a 22% annualised decline in fiscal 2020 to £1.09 billion.
In related news from the UK, housebuilder Redrow plc also reported a 37% year over year decline in its annual revenue on costs related to scaling back its London business.
At the time of writing, Galliford Try is valued at £103 million and has a price to earnings ratio of 1.19.