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City analysts have provided clarification regarding the delay in Galliford Try Holdings PLC (LSE:GFRD)’s full-year results, which were initially scheduled for release this Thursday. The delay is attributed to external auditing issues rather than any concerns about Galliford Try’s internal trading performance.
According to Peel Hunt, the house broker for Galliford Try, the postponement is directly related to the auditing process and not a reflection of the company’s operational health. BDO, the audit firm responsible for Galliford Try’s accounts, has recently been highlighted by the Financial Reporting Council (FRC) for underperformance compared to other Tier 1 audit firms. The FRC’s report revealed that both BDO and Forvis Mazars have fallen significantly short of expectations. The FRC emphasized the critical role these firms play in the UK audit market and the broader economy, and has committed to closely monitoring their progress to ensure compliance with their improvement plans.
Despite the delay caused by these external auditing challenges, Peel Hunt has reassured that Galliford Try’s full-year outlook remains consistent with the positive trading update issued on 11 July 2024. The broker has maintained its financial forecasts for the company, underscoring confidence in its performance and future prospects. Analysts noted that the shares are trading at 13 times forward earnings per share, suggesting strong value.
The delay in the results release should not be seen as an indication of underlying issues within Galliford Try, but rather as an external complication related to the auditing process. Peel Hunt's ongoing support and positive valuation reflect confidence in the company’s operational stability and its capacity to achieve its financial targets despite the temporary setback.
In summary, the delay in Galliford Try’s results is tied to external factors concerning the auditing firm, rather than any internal performance issues. Analysts continue to view the company’s financial outlook positively, maintaining their forecasts and valuing the shares favorably in light of the company’s consistent trading performance and strategic updates.
