# Galliford Try plc  undertaking a strategic review of its Construction business

- Link: https://www.directorstalkinterviews.com/galliford-try-plc-undertaking-a-strategic-review-of-its-construction-business/412772189
- Published: 2019-04-16T07:46:17+01:00
- Author: Charlotte Edwards

**Galliford Try plc** (LON:GFRD), the housebuilding, regeneration and construction
group, announced that it is undertaking a strategic review of its Construction business.

The review will reduce the size of the Construction business, focusing on its key
strengths in markets and sectors with sustainable prospects for profitability and
growth, where we have a track record of success.

The review includes an assessment of operational progress and contract positions
throughout the Construction business. The Board anticipates that this review will
result in reduced profitability in the current year reflecting a reassessment of
positions in legacy and some current contracts and the effect of some recent adverse
settlements, as well as the costs of the restructure. The single largest element
relates to the Queensferry Crossing joint venture, which has recently increased 
its estimated final costs on the project. With regard to the claim in respect of
the completed Aberdeen Western Peripheral Route, and the previously disclosed £38m
work in progress balance in respect of three contracts for a single client, our 
position is unchanged.

The Board expects that the outcome of this assessment will reduce the Group’s full
year post-exceptional profit before tax by £30m-£40m below the current consensus
analysts’ forecast1. The majority of our construction businesses continue to perform
well, and these adjustments are not expected to have a significant impact on the
Group’s previous guidance on average net debt for the year.

The Board anticipates finalising its conclusions in the next few weeks and will 
share the detail of the review of the Construction business along with a further
update on Group trading in its scheduled statement on 21 May 2019.

Share on: