Galliford Try Share Buyback
Galliford Try launches a £15 million share buyback following consecutive years of growth.
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Key Points
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Galliford Try’s operating margin improved to 3.5%, while net cash reached £259 million, highlighting the strength of its debt-free balance sheet.
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The group deployed £39.5 million of organically generated capital on acquisitions, organic investment and shareholder returns, including the acquisition of Nene Valley Fire and Acoustic to expand its passive fire-prevention capabilities.
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The new buyback is Galliford Try’s fourth in recent years; the three previous programmes returned a combined £35 million to shareholders, with repurchased shares canceled rather than held in treasury.
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Galliford Try reported statutory profit for the year of £41.2 million, or 39.9 pence per share, compared with £33.6 million, or 32.2 pence per share, a year earlier; adjusted earnings per share rose 23.1% to 42.4 pence.
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The proposed 17-pence final dividend is scheduled to be paid on December 4 to shareholders on the register as of November 6.
UK construction group Galliford Try posted its sixth straight year of growth, with fiscal 2026 revenue climbing 3% to £1.93 billion and adjusted pretax profit jumping 24.2% to £55.9 million. The strong performance prompted the board to launch a £15 million share buyback for fiscal 2027 and recommend a 17-pence final dividend asktraders.
Highways and environmental services drove results, while building revenue dipped due to project delays linked to political uncertainty. A £259 million net cash position and 90% of next year's revenue already secured gave management confidence to return capital to shareholders constructionwave.
Profit Growth Beats Expectations and Lifts Share Price
Galliford Try's adjusted earnings per share rose 23.1% to 42.4 pence, outpacing market forecasts and pushing shares up nearly 7% asktraders. Statutory profit reached £41.2 million, up from £33.6 million a year earlier. Operating margin improved to 3.5%, reflecting tighter cost control and better project execution across the group constructionwave.
Order Book Covers Most of Next Two Years
The group's £4.3 billion order book now covers 90% of fiscal 2027 revenue and 62% of fiscal 2028 revenue, giving Galliford Try visibility well into 2028. This forward booking rate reflects strong demand in highways, environmental services, and infrastructure work. The secure pipeline underpins management's bullish outlook despite near-term building sector headwinds constructionwave.
Capital Deployment Spans Acquisitions and Shareholder Returns
Galliford Try deployed £39.5 million of organic cash on acquisitions, investment, and shareholder returns. The group bought Nene Valley Fire and Acoustic to bolster passive fire-prevention capabilities. The £15 million buyback marks the fourth such programme in recent years; three previous initiatives returned £35 million to shareholders constructionwave.
Buyback Execution Faces Limited Liquidity Constraints
The £15 million buyback will be split across two tranches via brokers Peel Hunt and Panmure Liberum. Galliford Try warned that the repurchase may represent a significant portion of daily trading volume due to thin share liquidity. All shares bought back will be canceled, not held in treasury asktraders. The 17-pence final dividend is due December 4 to shareholders registered by November 6.
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