Galliford Try lifts full-year profit expectations

Construction group Galliford Try lifted its full-year profit expectations on Wednesday as it posted a rise in first-half profits and revenue, and hiked its dividend.

In the six months to the end of December 2022, pre-tax profit pushed up 65% to £11.7m, with revenues 14% higher at £679m.

Galliford said the divisional operating margin increased to 2.3% from 2.2% in the same period a year earlier, as it lifted its interim dividend by 36% to 3p a share.

The group said full-year pre-tax profit was set to be at the upper end of current analyst estimates of £20.3m to £23.3m.

Chief executive Bill Hocking said: "Our strong financial position and disciplined focus on risk management enabled us to successfully manage, without any significant overall impact on trading, the challenges around inflation and materials shortages, which are now beginning to ease.

"During 2022 the length of time taken to enter new contracts increased, initially in response to rising inflation and later due to delays in public sector decision making. We are also beginning to see these factors normalise, which provides further encouragement for the group's future outlook."