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Galliford Try Holdings PLC (LSE:GFRD) is a prominent UK contractor dedicated to delivering high-quality buildings and infrastructure for communities across the nation. With a robust portfolio that spans private and public clients, the company specializes in sectors such as Building, Highways, and Environment, leveraging its extensive expertise to provide comprehensive solutions.
New Contracts with Wessex Water
Galliford Try has been appointed as a contractor for two lots within the Wessex Water Capital Delivery Framework, part of the AMP8 delivery period. This framework, valued at £3.7 billion in total, is expected to yield more than £400 million for Galliford Try over its initial six-year term.
- Lot 1 focuses on the design and construction of mechanical, electrical, instrumentation, controls, and automation (MEICA) projects, along with civil engineering work.
- Lot 3 involves providing mechanical and electrical services as a contractor for capital maintenance projects.
This latest contract award follows Galliford Try's recent appointment to Southern Water’s capital programme framework, a significant contract valued at approximately £500 million.
Expansion in NHS Frameworks
In addition to its work with Wessex Water, Galliford Try has secured places on the £835 million NHS North of England Commercial Procurement Collaborative (NOE CPC) Specialist Estates Engineering & Maintenance Services (Hard FM) Framework. This engagement involves the company’s Asset Intelligence, Facilities Management, and Oak Specialist Services divisions, further diversifying its project portfolio.
Strong Financial Performance
Galliford Try's shares experienced a notable increase of 7% following a positive post-close trading statement, which indicated that revenue and pretax profit exceeded consensus expectations. This strong performance is attributed to more normalized trading conditions and the peak in AMP7 water sector work.
In light of these results, broker Panmure Liberum has revised its estimates upward, increasing projections by 3% and 2% for 2024 and 2025, respectively.
Galliford Try Holdings PLC continues to strengthen its position as a key player in the UK construction sector. With significant contract wins and a strong financial outlook, the company is well-equipped to contribute to vital infrastructure development across England and Scotland.
