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(GFRD) Galliford Try Plc share chat

Discussion in 'General Share Chat' started by Steamy, Nov 6, 2015.

  1. Groucho

    Groucho Member

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    28 May 2019


    Galliford Try plc


    Statement regarding media speculation


    The Board of Galliford Try plc ("Galliford Try" or the "Board") notes the recent media speculation and confirms that it received a preliminary proposal from Bovis Homes Group PLC ("Bovis Homes") to acquire Galliford Try's Linden Homes and Partnerships & Regeneration divisions in exchange for new Bovis Homes shares (the "Bovis Homes Proposal").

    The Bovis Homes Proposal envisaged Galliford Try remaining an independent UK-listed group focussed on construction and Galliford Try shareholders receiving new Bovis Homes shares pro rata to their current Galliford Try shareholdings.

    The Galliford Try Board carefully considered the Bovis Homes Proposal together with its financial adviser, Rothschild & Co. The Board rejected the Bovis Homes Proposal as it believes it does not fully value the Linden Homes and Partnerships & Regeneration divisions and is not in the interests of all shareholders.

    As set out in the Trading Update on 21 May 2019, the Galliford Try Board remains confident in the long-term prospects of the group.



    Notes to editors:

    1. Galliford Try plc is a leading UK housebuilding, regeneration and construction group. It is listed on the London Stock Exchange and a member of the FTSE 250. Housebuilding - through our Linden Homes business - develops private and affordable homes in prime locations. Galliford Try Partnerships - our regeneration business - delivers mixed-tenure solutions working with housing association, local authority and private sector partners. Operating as Galliford Try and Morrison Construction, our Construction business carries out building and infrastructure with clients in the public, private and regulated sectors. At the end of the last financial year to 30 June 2018, the Group generated revenue of £3.1bn.

    2. N. M. Rothschild & Sons Limited ("Rothschild & Co"), which is authorised and regulated by the Financial Conduct Authority in the United Kingdom, is acting for Galliford Try and no one else in relation to the matters described in this announcement and will not be responsible to anyone other than Galliford Try for providing the protections afforded to clients of Rothschild & Co nor for providing advice in relation to the matters described in this announcement.
     
  2. Groucho

    Groucho Member

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    GALLIFORD TRY PLC


    TRADING UPDATE

    WEDNESDAY 17 JULY 2019


    Galliford Try plc, the housebuilding, regeneration and construction group, today provides the following update on trading for the year ended 30 June 2019. All data is as at 30 June 2019, unless otherwise stated, and all comparatives relate to the prior year equivalent period. The Group expects to announce its results for the full year on 11 September 2019.


    Group

    · The Group continues to trade well andexpects to report full year profit before tax in line with the current range of analysts' expectations1.

    · Full year result to include£40mof previously reported exceptional items2.

    · Linden Homes has maintained its sales rate and strong margin and continues to improve its customer satisfaction.

    · Partnerships & Regeneration continues to achieve strong growth ahead of targets, increasing both revenues and margins, and successfully completing the acquisition of the Strategic Team Group inYorkshire.

    · The strategic review of Construction is now complete, and underlying operations are performing well.

    · Net debt at 30 June 2019 of£60m(2018: net cash£98m) with average net debt of£187m, in line with previous guidance for the full year.


    Linden Homes

    Linden Homes has maintained its good performance and strong margin and remains a four-star housebuilder.


    The sales rate for the year ended 30 June 2019 was 0.56 per site per weekfrom an average of 80 outlets (2018: 0.59 and 85). Linden Homes delivered 3,229 unit completions, including units in joint ventures (2018: 3,442 units), at an average private selling price of£351,000(2018:£367,000), continuing to reflect our refocus on mid-range family houses in The Linden Collection and reduced exposure in centralLondon. We have a strong carried forward position of 2,564 year end units (2018: 2,326) representing a value of£375m(2018:£366m). Linden Homes' landbank increased to 11,900 plots (2018: 11,400 plots), with all plots secured for the new financial year and 85% of plots secured for FY2021.


    Partnerships & Regeneration

    Partnerships & Regeneration made further excellent progress against its strategy of increasing geographic coverage and growing margins. At 30 June 2019 the business has a£1.0bncontracting order book (2018:£1.2bn) and mixed-tenure sales carried forward of£184m(2018:£160m). The landbank has increased by 61% to 5,300 plots (2018: 3,300 plots).


    On 1 July 2019 we were delighted to complete the acquisition of Strategic Team Group (STG), giving us a mature operating platform inYorkshireand expanding our presence inCheshire. STG is a well-established regional business with 120 employees and a revenue in its last full year of circa£60m.


    Construction

    The restructure of our Construction business is complete, and the business is refocused to deliver an improved future performance.The result for the year includes contract write-downs and restructuring costs previously announced2.


    The Aberdeen Western Peripheral Route is complete and delivering economic benefits to the region and receiving a positive reaction from all stakeholders. The joint venture continues to negotiate on the significant claim with the client, while preparing to pursue this through formal dispute resolution should these talks not reach a satisfactory conclusion.


    The current order book is£2.9bn(2018:£3.3bn) with 88% of revenue for the new financial year secured (2018: 87%).


    Graham Prothero, Chief Executive, commented:

    "The Group has continued to perform well, supported by good housing demand. We expect our full year results and average net debt to be in line with previous guidance.

    We are making strong progress against the operational targets we set out in 2017. We are reviewing our 2021 volume targets to ensure that growth is controlled, and our gearing is managed. Despite the weaker economic outlook, Linden Homes continues to see robust demand, with operating efficiencies driving strong margins and improving customer satisfaction. Partnerships & Regeneration is well on track with its aspirations for exciting growth in both revenue and margins, with some key wins in the period and further good opportunities across the market. We are pleased that the restructure of the Construction business is now complete. The business is now firmly focused on its core strengths of regional building operations, together with profitable operations in highways and water, all of which are now performing effectively. I look forward to the next financial year with the appropriate strategic priorities in place across the Group."


    A conference call for Analysts and Investors will be held at 09:00am today (UKtime).

    UK dial-in: +44 20 3936 2999
    US dial-in: +1 646 664 1960
    Participant PIN: 006063
     
  3. Groucho

    Groucho Member

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    10 September 2019


    For immediate release


    Bovis Homes Group PLC and Galliford Try plc


    Statement regarding a potential combination between Bovis Homes and Galliford Try's Linden Homes and Partnerships & Regeneration divisions


    Galliford Try would be a well-capitalised, standalone construction-focused group


    The Boards of Bovis Homes Group PLC ("Bovis Homes") and Galliford Try plc ("Galliford Try") announce that they have re-engaged in preliminary discussions regarding a potential combination (the "Potential Transaction") of Bovis Homes and Galliford Try's Linden Homes and Partnerships & Regeneration divisions (the "Housing Businesses") and have agreed high-level terms upon which the Potential Transaction would be implemented. There remains significant work to be completed before definitive transaction documentation can be agreed, including agreement of detailed commercial terms, completion of due diligence and arranging transaction funding.


    The Potential Transaction relates solely to a combination of Bovis Homes and Galliford Try's Housing Businesses and does not relate to a merger with Galliford Try. The Potential Transaction envisages Galliford Try remaining a UK-listed construction-focused group owned entirely by Galliford Try shareholders.



    Potential Transaction terms

    If the Potential Transaction proceeds, it is expected to value the Housing Businesses at £1.075 billion comprising:

    - the issue to Galliford Try shareholders of 0.57406 Bovis Homes shares per Galliford Try share, which would equate to 63,739,385 Bovis Homes shares (in aggregate) valued at £675 million based on Bovis Homes' closing share price on 9 September 2019, being the last business day prior to this announcement; plus

    - the payment of £300 million in cash (the "Cash Consideration") to Galliford Try; plus

    - the transfer to Bovis Homes of Galliford Try's 10-year debt private placement of £100 million (the "Debt Private Placement").


    In addition, Galliford Try's pension schemes would be transferred to Bovis Homes at completion of the Potential Transaction on terms acceptable to the Galliford Try pension schemes' trustees and Bovis Homes.


    The Cash Consideration would be subject to customary completion adjustments.



    Strategic rationale


    The Bovis Homes and Galliford Try Boards believe that the Potential Transaction will provide Bovis Homes with an enhanced housebuilding platform to compete more effectively in the UK housebuilding market, accelerate Bovis Homes' move into the higher growth partnerships and regeneration markets and provide Bovis Homes with a complementary geographical footprint and strategic land bank.

    The Bovis Homes and Galliford Try Boards believe that the Potential Transaction will generate significant synergies and create substantial shareholder value. The synergies are expected to originate from both Bovis Homes and Galliford Try and comprise both operational and procurement savings.

    The Galliford Try Board believes that the Potential Transaction will result in Galliford Try becoming a well-capitalised standalone construction-focused group, benefitting from the recent operational restructuring which refocused the business to deliver improved future performance. The division's strengths in UK building and infrastructure, particularly in the highways and water sectors, along with the spread of work for both public and private clients provide a strong foundation for Galliford Try's future as an independent construction group. In addition, the Aberdeen Western Peripheral Route joint venture continues to negotiate on the significant claim with the client and Galliford Try shareholders will continue to benefit from any future resolution of this claim.



    Cash Consideration funding

    If the Potential Transaction proceeds, the Cash Consideration of £300 million would be financed by: (i) an equity placing by Bovis Homes, by way of an accelerated bookbuild, for cash of 9.99% of Bovis Homes' existing share capital (the "Placing"); and (ii) the raising of additional debt by Bovis Homes and utilisation of its existing balance sheet resources. It is the intention of the Bovis Homes Board to retain a strong and robust balance sheet.

    In addition, if the Potential Transaction proceeds, the £60 million of capital return expected to be paid in 2019 would, subject to shareholder approval, be returned by way of a bonus issue (the "Bonus Issue") settled at completion of the Potential Transaction through the issue of fully paid Bovis Homes shares to Bovis Homes shareholders. The Bonus Issue would equate to 5,665,723 shares (in aggregate) valued at £60 million based on a Bovis Homes share price of £10.59, being the closing share price on 9 September 2019.

    In addition, it is anticipated that Bovis Homes' 2019 final dividend will be replaced by a second interim dividend which will be paid in cash to Bovis Homes shareholders only.

    Following completion of the Potential Transaction, and taking into account the issue of new Bovis Homes shares under the Placing and the Bonus Issue, Galliford Try shareholders would own in aggregate approximately 29.3% of the enlarged Bovis Homes entity.

    Given the size of the Potential Transaction, it would be a Class 1 transaction for both Bovis Homes and Galliford Try pursuant to the UKListing Rules and would therefore be subject to a shareholder vote by both sets of shareholders.

    The discussions between Bovis Homes and Galliford Try are at an early stage and a definitive announcement on the Potential Transaction is subject, inter alia, to:

    - the completion of satisfactory due diligence by Bovis Homes;

    - the completion of satisfactory due diligence by Galliford Try;

    - the finalisation of the potential synergies of the Potential Transaction;

    - the agreement of definitive transaction documentation;

    - the approval of the transfer of Galliford Try's Debt Private Placement;

    - the Platini;

    - the raising of additional debt on terms acceptable to Bovis Homes; and

    - the transfer of Galliford Try's pension schemes to Bovis Homes on terms acceptable to the Galliford Try pension schemes' trustees and Bovis Homes.



    Commenting on the Potential Transaction, Greg Fitzgerald, CEO of Bovis Homes said:

    "While discussions are still at early stages, this potential combination represents an exciting and transformational opportunity to create a leading UK housebuilder with enhanced scale, well-positioned to make the most of current opportunities and drive forward on our commitment to delivering high-quality homes and excellent service that our customers and housing partners deserve. We know that we only succeed as a business if we succeed for them.

    Galliford Try's Partnerships business is a fantastic brand, with a very strong position in the UK. Combining it with Bovis Homes' newly launched Partnerships Housing Division would enable us to become the partner of choice for delivering more affordable homes at a time when these are needed the most.

    Based on my familiarity with the businesses and the compelling strategic rationale, I think this is a massive opportunity and as a substantial shareholder of Bovis Homes, my intention is to subscribe to the placing if the transaction proceeds."


    Commenting on the benefits of the Potential Transaction for Galliford Try, Graham Prothero, CEO of Galliford Try said:

    "The transaction is an exciting opportunity to create two strategically focused businesses. The significant cash element within the consideration provides a firm foundation for our newly reorganised Construction business to flourish as an independent company. The strong balance sheet and excellent fit between the combining businesses will be a superb platform for both private housebuilding and partnerships, creating a unique and well-positioned housing provider.

    Much remains to be done before we can present the detailed proposal to our shareholders and wider stakeholders. However, if completed, we are confident this deal will generate significant value for shareholders and a bright future for all three of our businesses."

    Discussions are ongoing and there is no certainty that the Potential Transaction will take place nor of the final detailed terms if it does so. A further announcement will be made when appropriate.

    The person responsible for making this announcement on behalf of Bovis Homes is Earl Sibley, Group Finance Director. The person responsible for making this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel and Company Secretary. This announcement contains inside information for the purposes of article 7 of EU Regulation 596/2014.
     
  4. Groucho

    Groucho Member

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    07:00 AM WEDNESDAY 11 SEPTEMBER 2019


    GALLIFORD TRY PLC

    ANNUAL RESULTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2019


    GROUP PERFORMANCE IN LINE WITH EXPECTATIONS


    66F3F468-2C5B-4BC5-8B9F-2D5B90B8DFB0.jpeg

    Group

    · Strong progress against strategic operational targets in all three businesses

    · Pre-exceptional profit before tax2,3 of £155.5m in line with previous guidance

    · 6,507 total new homes built by Linden Homes and Partnerships & Regeneration (2018: 6,193)

    · Average net debt at £186m (2018: £227m)

    · Strong sales in hand across Linden Homes and Partnerships of £677m (2018: £698m)

    · Full year dividend payment of 58.0p (2018: 77.0p), covered 2.0x by pre-exceptional profits

    · Opportunity to strengthen and advance all three businesses through the potential transaction with Bovis Homes Group PLC


    Linden Homes

    · Maintained strong margin of 19.6% (2018:19.5%) and four-star housebuilder status

    · Continued progress against objectives of standardisation of units and process

    · 3,229 completions6 (2018: 3,442) at a lower average selling price, generating revenue of £820m (2018: £947m) and operating profit of £160.5m (2018: £184.4m)

    · 0.56 sales rate per outlet per week (2018: 0.59) from lower average outlets with sales reserved, contracted or completed of £474m7 (2018: £510m)

    · 12,600 plot landbank7,8 (2018: 11,830), estimated to be around 3.5 years' supply


    Partnerships & Regeneration

    · Excellent progress against strategy of extending geographic coverage and growing margins

    · Strong profitable growth with mixed-tenure revenue up 55% to £192m, from 1,178 completions6 (2018: £124m and 751 completions respectively) and contracting revenue of £431m, up 23% (2018: £351m)

    · 5.6% operating margin (2018: 5.0%), generating a 47% increase in operating profit to £34.8m (2018: £23.6m)

    · £1.0bn7 contracting order book (2018: £1.2bn) and mixed-tenure sales reserved, contracted or completed of £203m7 (2018: £188m)

    · 5,400 plot landbank7(2018: 3,760)


    Construction

    · Restructured and refocused to deliver improved future performance

    · Pre-exceptional revenue of £1,387m as the business focuses on core sectors (2018: £1,687m)

    · Results impacted by contract write-downs and restructuring costs previously announced

    · £2.9bn7 order book (2018: £3.3bn), reflecting improved focus



    Graham Prothero, Chief Executive, commented:

    "The Group has continued to perform well and our talented teams across the businesses have delivered a good performance despite the challenges faced.

    We continue to make great progress in Linden Homes, focusing on the benefits of standardising our range and rationalising process. We are building homes more cost effectively while delivering well-designed, high quality units which meet our customers' needs, as reflected in our improving satisfaction scores. We continue to head towards our target of 80% of completions being Linden Collection.

    Partnerships & Regeneration has continued its excellent performance with both revenue growth and margin expansion, as we increase our delivery of affordable new homes. The acquisition of Strategic Team Group in Yorkshire accelerates our strategy of targeting growth in key regions around the country. We continue to see strong demand across the regions, and we are well placed to respond to this, working alongside Housing Associations, local authorities and other partners.


    Construction's result for the year has been impacted by challenges with both legacy and some current projects and by the restructure, which is now complete. The business continues to see good demand in its Building and Infrastructure divisions and is focusing on disciplined growth across its core sectors of building, water and highways, which we believe will deliver improved margins.

    The potential combination of our Linden Homes and Partnerships businesses with Bovis Homes represents a superb opportunity, enhancing the prospects for all three of our businesses to thrive as strategically focused and well-financed operations with excellent opportunities for growth. The transaction allows Construction to continue trading as a standalone well capitalised business."



    Analyst Presentation

    Galliford Try will hold its results presentation at 09:30 am on Wednesday 11 September 2019 at the London Stock Exchange, 10 Paternoster Square, London EC4M 7LS. A live audio webcast will be available at https://webcast.openbriefing.com/gallifordtry-fyr19/


    CURRENT TRADING AND OUTLOOK

    The Group continues to trade well against the backdrop of continuing political and economic uncertainty. Linden Homes has seen improving demand after the traditional quieter summer weeks, with prices and margins remaining firm. Partnerships & Regeneration is achieving a good rate of unit sales and continues to see strong demand both from our Registered Provider and local authority partners. The restructuring of Construction is proving effective, and the core business is performing well.


    BREXIT

    The Group has continued to review the potential effects on our business of the UK's proposed exit from the European Union, under various scenarios. Depending on the circumstances of the exit, the biggest impact we foresee is the effect on our markets, and on the Linden Homes market in particular, of a potential severe decline in consumer confidence and economic activity in general. Such a decline in consumer confidence and economic activity could coincide with Linden Homes autumn selling season. We believe our business planning is as prepared as possible for this uncertainty. We have also considered the effects on our supply chain, and engaged with our suppliers, across all of our businesses. Where possible we have made specific arrangements where we foresee the potential for disruption to the import of critical materials and products, though noting that it is impractical to try to insulate our business entirely. We are alert to the risk of a further significant decline in the value of Sterling and will continue to use normal hedging arrangements for material purchases of imported products on specific contracts.


    DIVIDEND

    The directors are recommending a final dividend of 35.0 pence per share which, subject to approval at the AGM, will be paid on 4 December 2019 to shareholders on the register at 8 November 2019. This is in line with our policy of paying a dividend which is 2x covered by earnings. Together with the interim dividend of 23.0 pence per share paid in April, this will result in a total dividend for 2019 of 58.0 pence per share.


    STRATEGY

    The Group's three-part strategy comprises:

    (1) Operating efficiencies to increase margins and develop stronger foundations for sustainable growth. We have streamlined operations across the group creating a leaner and more resilient business to support ability to grow.

    (2) Maintain capital discipline. We continue to manage capital prudently and continue to pay dividends while reinvesting appropriately in a growing business.

    (3) Operate sustainably to create longer-term value. We enhance our policies and procedures, embedding them in leadership and culture, implement programmes to improve employee and subcontractor safety behaviours and engage with employees to identify training and development needs.


    The Group intends to publish revised medium term targets in Spring 2020.

    Galliford Try PLC - Final Results https://www.voxmarkets.co.uk/rns/announcement/3ef90a8f-369c-47e5-837c-d3a049820f23
     
  5. Groucho

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    24 September 2019

    GALLIFORD TRY APPOINTED TO HIGHWAYS PROJECTS VALUED AT £461M


    Galliford Try plc, the leading housebuilding, regeneration and construction group, announces its Highways business has been appointed to new projects valued at a total of £461m.


    The largest of the schemes is a series of five projects in the eastern region valued at £300m to upgrade the A47 between Great Yarmouth and Peterborough. Work includes dualling single carriageways, road widening and construction of new junctions, bridges and other structures. Start on site is anticipated to be in 2021/22.


    The other major scheme with an overall value of £135m is located in the south-west region on the A303 between Sparkford and Ilchester in Somerset. Work includes dualling 5.6km of the existing single carriageway, three new junctions, two new structures and significant earthworks. Subject to planning consent, start on site is due next March with the new route open to traffic in 2023.


    Both schemes have been awarded by Highways England under the new Regional Delivery Partnerships Framework. The appointments include an initial design phase before moving on to construction.


    Additionally, Galliford Try has been awarded phase two of Grantham Southern Relief Road by Lincolnshire County Council. The £19mproject will join the B1174 to the A1 via a grade separated junction.


    Finally, Leicestershire County Council has awarded the business the £7m contract to carry out improvements to the A46 and A5630 at Anstey to increase capacity for a new housing and industrial development in the north-west of Leicester.


    Graham Prothero, Chief Executive of Galliford Try plc, commented: "The Highways sector is a key strategic focus for our construction business as set out in our recent results, and we are delighted to have secured this high-quality pipeline of work. We have a strong working relationship with Highways England and the county councils involved and we look forward to delivering these much-needed infrastructure improvements alongside them."
     
  6. Groucho

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    10 October 2019

    GALLIFORD TRY SECURES £340 MILLION WORTH OF WATER FRAMEWORKS


    Galliford Try plc, announces that its Water business has been appointed to AMP7 frameworks worth approximately £340m to the company.


    Galliford Try has been appointed by Southern Water as Delivery Partner for two of its design and build frameworks. Starting in 2020 and running for five years, they have a total value of £425m and Galliford Try's share of the business is anticipated to be worth approximately £240m. The value of the contract is subject to the final determination of Southern Water's business plan from Ofwat.

    The frameworks cover capital investment schemes such as water and wastewater treatment works, upgrades in the western region in joint venture with Black & Veatch, as well as network schemes including pipelines and pumping stations in both the western and eastern regions in joint venture with Morrison Utility Services.

    Galliford Try has also been appointed to Yorkshire Water's AMP7 frameworks. The total value of the frameworks is £1bn and Galliford Try expects to secure about £100m of work over the five-year term. There is scope for a three-year extension. Working with design partner GHD, Galliford Try has been allocated to the 'complex civils' framework covering the design, build and refurbishment of clean and wastewater treatment assets, reservoirs and pumping stations.


    Graham Prothero, Chief Executive of Galliford Try plc, commented: "The Water sector is a key strategic focus for our construction business as set out in our recent results. We are delighted to have been appointed to these frameworks having established an excellent relationship with Southern Water and Yorkshire Water over previous AMPs. We look forward to working with them to improve the service they provide to their customers."
     
  7. Groucho

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    7 November 2019


    For immediate release


    Galliford Try plc

    Combination between Bovis Homes and Galliford Try's Linden Homes and Partnerships & Regeneration divisions

    Transformation of Galliford Try into a well-capitalised, standalone construction-focused group


    Further to the announcement on 10 September 2019, the Board of Galliford Try plc ("Galliford Try") is pleased to announce that it has entered into an agreement with Bovis Homes Group PLC ("Bovis Homes") regarding a combination of Bovis Homes and Galliford Try's Linden Homes and Partnerships & Regeneration divisions (the "Housing Businesses") (the "Transaction"). The Transaction is subject to, inter alia, the approval of Galliford Try and Bovis Homes shareholders.

    Key transaction terms

    On the basis of the Bovis Homes closing share price on 9 September 2019, being the last business day prior to the announcement of high-level terms, the Transaction values the Housing Businesses at £1.075 billion.1 The consideration will be satisfied through:

    i. the issue to Galliford Try shareholders of 63,739,385 new Bovis Homes shares (in aggregate) (the "Consideration Shares"), valued at £675 million on the basis of the closing price of a Bovis Homes share on 9 September 2019 (which would equate to 0.57406 Bovis Homes shares for each Galliford Try share based on 111,032,617 Galliford Try shares in issue as at the date of this announcement);

    ii. the payment of £300 million in cash to Galliford Try (the "Cash Consideration"); and

    iii. the assumption by Bovis Homes of Galliford Try's obligations under its £100 million 10-year debt private placement.

    1 On the basis of the Bovis Homes closing share price on 6 November 2019, being the last business day prior to this announcement, the Transaction values the Consideration Shares at £741 million and the Housing Businesses at £1.141 billion.

    At completion of the Transaction ("Completion"), Bovis Homes will also assume Galliford Try's rights and obligations under two of Galliford Try's pension schemes. The Cash Consideration is subject to customary Completion adjustments.

    Benefits of the Transaction

    The Galliford Try Board believes the proposed Transaction will:

    · allow Galliford Try to realise an appropriate premium for the Housing Businesses;

    · result in Galliford Try shareholders having investments in two focused and well-financed businesses, through their continuing 100% shareholding in Galliford Try, and a 29.3% shareholding in the enlarged Bovis Homes;

    · create, through the enlarged Bovis Homes, one of the UK's leading housebuilding businesses; and

    · transform Galliford Try into a well-capitalised, standalone construction-focused group.

    In addition, the Bovis Homes Board believes the proposed Transaction will achieve estimated recurring run-rate pre-tax cost synergies of at least £35 million per annum by the end of the second full financial year following Completion.

    A circular containing further information on the Transaction, along with notices convening shareholder meetings of Galliford Try, is expected to be sent to Galliford Try shareholders on 8 November 2019.

    For further detail on Bovis Homes and the impact on Bovis Homes of the Transaction, Galliford Try shareholders should refer to the announcement of the Transaction released by Bovis Homes today.

    Peter Ventress, Chairman of Galliford Try plc, commented:

    "This transaction is a positive development which is in the best interests of both our shareholders and wider stakeholder group. For Galliford Try, it establishes a focused and well-capitalised construction business led by a very experienced and dedicated management team. Supported by a robust order book and strong market positions in key sectors, Galliford Try will be well positioned for the future. This transaction also creates one of the UK's leading Housebuilding and Partnerships businesses with great opportunity ahead, from which Galliford Try shareholders will benefit through their continued shareholding."

    The person responsible for making this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel and Company Secretary. This announcement contains inside information for the purposes of article 7 of EU Regulation 596/2014.
     
  8. Groucho

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    2 January 2020

    For immediate release

    Galliford Try plc

    Share Exchange Ratio Announcement

    Final number of New Galliford Try Shares to be admitted and listed


    Following completion of the proposed disposal of the Linden Homes and Partnerships & Regeneration divisions of Galliford Try plc ("Galliford Try") (the "Transaction"), the Board of Galliford Try announces that based on 111,053,489 Galliford Try Shares in issue as at the Scheme Record Time, Galliford Try Shareholders will receive approximately 0.5739521 new Bovis Homes Shares for each Galliford Try Share held at the Scheme Record Time.

    The Board of Galliford Try also announces that further to the application by Galliford Try Holdings plc ("New Galliford Try") to the FCA for the ordinary shares of New Galliford Try (the "New Galliford Try Shares") to be admitted to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange on 3 January 2020, the total issued ordinary share capital of New Galliford Try for which applications have been made is 111,053,489 fully paid ordinary shares with a nominal value of 50 pence each.

    General

    Capitalised terms in this announcement, unless otherwise defined, have the same meanings as set out in the circular published by Galliford Try on 8 November 2019 in relation to the Transaction.

    All references in this announcement to times are to times in London.
     
  9. Groucho

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    3 January 2020

    For immediate release

    Galliford Try Holdings plc

    Completion of Transaction, Admission of New Galliford Try Shares, Admission of Consideration Shares and cancellation of listing and trading of Galliford Try Shares


    The Board of Galliford Try Holdings plc ("New Galliford Try") is pleased to announce the completion of the disposal of the Linden Homes and Partnerships & Regeneration divisions of Galliford Try plc ("Galliford Try") (the "Transaction") following the Group restructuring having been implemented and the scheme of arrangement under Part 26 of the Companies Act 2006 becoming effective yesterday.


    Admission of the New Galliford Try Shares

    With effect from 8:00 a.m. today, 111,053,489 New Galliford Try Shares with a nominal value of 50 pence each, being the entire issued share capital of New Galliford Try, will be admitted to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange.

    The New Galliford Try Shares are registered under ISIN: GB00BKY40Q38. The TIDM for the New Galliford Try Shares is GFRD.

    Galliford Try Shareholders who held their Ordinary Shares in the capital of Galliford Try (the "Galliford Try Shares") in uncertificated form will have their CREST accounts credited with their entitlement to New Galliford Try Shares today. Galliford Try Shareholders who held their Ordinary Shares in certificated form will be sent share certificates in respect of their New Galliford Try Shares no later than 14 days after the Effective Date, being 16 January 2020.


    Admission of Consideration Shares

    With effect from 8:00 a.m. today, 63,739,385 new Bovis Homes Shares will be admitted to the premium listing segment of the Official List of the FCA and to trading on the main market for listed securities of the London Stock Exchange.

    It is expected that CREST accounts of Galliford Try Shareholders who held their Galliford Try Shares in uncertificated form will be credited with Consideration Shares and share certificates for Consideration Shares will be despatched to Galliford Try Shareholders who held their Galliford Try Shares in certificated form, in each case on or soon after 8:00 a.m. on 3 January 2020.


    Cancellation of trading and listing of the Galliford Try Shares

    2 January 2020 was the last day of trading of the Galliford Try Shares which will be delisted from the premium listing segment of the Official List of the FCA with effect from 8:00 a.m. today. Galliford Try Shares held in uncertificated form have been disabled in CREST with effect from the Scheme Record Time.



    Share Exchange Ratio

    Based on 111,053,489 Galliford Try Shares in issue as at the Scheme Record Time, Galliford Try Shareholders will receive approximately 0.5739521 new Bovis Homes Shares for each Galliford Try Share held at the Scheme Record Time.


    Capitalised terms in this announcement, unless otherwise defined, have the same meanings as set out in the circular published by Galliford Try on 8 November 2019 in relation to the Transaction.
     
  10. Groucho

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    Galliford Try Holdings plc

    Post Transaction Completion Trading Update

    9 January 2020


    Galliford Try Holdings plc ("Galliford Try"), the UK construction group, today provides an update on trading for the half year ended 31 December 2019 following the disposal of the Linden Homes and Partnerships & Regeneration divisions of Galliford Try plc on 3 January 2020.


    The Group enters the new year with a high-quality order book of £3.2bn and recent significant contract wins including appointments to the YORCivil four-year major framework for Sheffield Council, AMP7 for Yorkshire Water, AMP7 for Southern Water, the A47 and A303 improvement works for Highways England and, in the private sector, the prestigious Project Nash development in central London for the Portman Estate. The Group is also pleased to acknowledge its re-admittance to the Government's Prompt Payment Code.


    The completed transaction means Galliford Try is a well-capitalised construction business. As at 31 December 2019 the Group's pro forma cash balance was £225m*, with average month end cash balances for the second half of the financial year expected to be in excess of £100m.


    The underlying construction business continues to perform well and in line with management's expectations for the financial year ending 30 June 2020. As previously highlighted, the Group expects performance to be weighted to the second half of the financial year due to both market uncertainty and the settlement of certain claims in the first half of the year.


    The Group expects to announce its results for the half year and a strategy update on 12 March 2020.



    Bill Hocking, Chief Executive, commented:

    "The successful completion of the disposal of the housing and partnerships divisions means Galliford Try is now a well-capitalised and focused UK construction group. Our robust financial position combined with market leading positions in our chosen sectors means that we are strongly positioned for future disciplined growth. I am very excited about the future opportunities for Galliford Try. There is good momentum in the business, reflected by a number of significant wins through the first half of the year and the strength of the high-quality order book."
     
  11. Groucho

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    04 February 2020

    GALLIFORD TRY CONFIRMS APPOINTMENT TO MAJOR NEW PUBLIC SECTOR FRAMEWORK

    Galliford Try, one of the UK's leading construction groups, confirms that it has successfully secured a place on 11 lots for the new Crown Commercial Services (CCS) framework.

    The total value of the lots that the business has been placed in is approximately £20bn. The lots are broken down by geography and value, with Galliford Try having secured places in lots across the UK. The Crown Commercial Service's Construction Works and Associated Services framework is available to all public sector organisations to procure construction services.

    Bill Hocking, Chief Executive of Galliford Try, commented: "We have an excellent track record in delivering award-winning projects through the major public sector frameworks. Our success in securing so many lots for the new framework is testament to our expertise and outstanding people and we thank CCS for their trust in us. We look forward to doing our part to make a success of the new framework and creating further high-quality public buildings around the country."
     
  12. Groucho

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    11 March 2020

    GALLIFORD TRY APPOINTED TO £54M WOMEN'S NATIONAL FACILITY

    Galliford Try, one of the UK's leading construction groups, announces that its Scottish business Morrison Construction has been appointed by the Scottish Prison Service to build a new women's national facility, to replace Scotland's only female prison at Cornton Vale in Stirling.

    The £54 million contract will involve the redevelopment of the existing facility in a phased programme of demolition and new build.

    The first phase will provide two new residential blocks and a separate assessment centre. In addition, a new central hub with vocational and educational facilities, medical centre and laundry will be built along with a family and visitor area and administrative building.

    Phase two will involve the creation of a retreat and multi-faith area and an animal welfare and grounds maintenance building. A new 126 space car park with EV charging points, enhanced hard and soft landscaping within the grounds and security fencing will also be created.

    Bill Hocking, Chief Executive of Galliford Try, commented: "We are delighted to have secured this opportunity in the key custodial sector where we have a growing reputation for building high-quality facilities across the UK. Morrison Construction continues to lead the way as contractor of choice for the public sector in Scotland and remains pivotal to delivering our strategy for the business."
     
  13. Groucho

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    12 MARCH 2020

    GALLIFORD TRY HOLDINGS PLC


    HALF YEAR REPORT FOR THE SIX MONTHS ENDED 31 DECEMBER 20191


    Well-capitalised and strongly positioned for the future

    · Successful strategic disposal of Linden Homes and Partnerships divisions, completed 3 January 2020, with strategy in place to deliver long-term value.

    · Well-capitalised balance sheet, with pro forma net cash2 at 31 December 2019 of £225m and anticipated average month end cash over £100m.

    · Aberdeen Western Peripheral Route (AWPR) final account settled.

    · High quality and focused order book of £3.2bn (H1 2019: £3.2bn).

    · Interim dividend of 1.0p declared.

    B0278B7B-3BCE-43E9-A9B9-D60F2DD5703E.jpeg

    Bill Hocking, Chief Executive, commented:

    "This has been a period of significant change with the successful strategic disposal of the Group's housebuilding divisions transforming Galliford Try into a well-capitalised, UK construction-focused business.

    The restructured Group is performing well with a number of recent significant project wins, and I'm pleased to report the results for the first half of the year.

    Galliford Try has continued to maintain a strong pipeline of work in its chosen sectors, with excellent positions on several key frameworks in the public and regulated sectors. We are encouraged by the demand in our sectors and look to further enhance this position through the continued disciplined approach to project selection and rigorous risk management.

    The Group's focus remains on safe and efficient project delivery and disciplined bottom line growth. We have a strong executive board and management team who are focused on a values-driven, people-orientated, progressive company, working together to deliver for our clients and stakeholders. I am confident that our clear strategy will deliver sustainable results."


    Analyst presentation:

    Galliford Try will hold its half year results presentation at 09:30am on Thursday 12 March at Tulchan Communications Group, 85 Fleet St, London EC4Y 1AE, UK. A live audio webcast will be available at

    https://webcast.openbriefing.com/galliford-hy2020/with a recording available on the website later today.


    Galliford Try's next Trading Update is scheduled for 15 July 2020.


    1. These results are in respect of Galliford Try Limited (formerly Galliford Try plc) for the period ended 31 December 2019.

    2. Pro forma cash balance of £225m is stated after adjusting for the disposal of the housebuilding divisions, Linden Homes and Partnerships & Regeneration, from Galliford Try plc which completed on 3 January 2020; with average month end cash balances for the second half of the financial year expected to be in excess of £100m.

    3. The condensed set of financial statements in this half year report includes the financial performance of the Linden Homes and Partnerships & Regeneration divisions presented as discontinued operations for the six months ended 31 December 2019, prior to their disposal on 3 January 2020. The "continuing basis" shown above excludes these businesses unless stated otherwise.

    4. Loss/profit from operations stated before finance income and costs, amortisation of intangible assets and joint ventures' interest and tax. All future references to loss/profit from operations data or ratios are consistent within this definition.

    5. Net exceptional items in H1 2020 were £22.2m (pre-tax). H1 2019 were £(30.4)m, of which £(26.9)m related to the continuing Group and £(3.5)m to discontinued operations.



    UPDATE ON STRATEGY


    The strategic disposal of the housebuilding divisions, alongside the well-timed operational review of the construction business, completed in early 2019, has transformed Galliford Try into a well-capitalised UK construction-focused company. The strategy we have in place will deliver long-term sustainable value for all of our stakeholders. Our strategy is based on the following objectives:


    1. Retain the existing platform for sustainable growth.

    2. Improve operations to drive margins.

    3. Deliver strong, predictable cash flows and margin improvement.


    The Group operates nationwide, primarily under the Galliford Try and Morrison Construction brands, delivering projects through a network of regionally-focused offices. The Group is organised into three businesses: Building, Infrastructure and PPP Investments and more detail on these businesses can be found later in this statement. Our operations also include facilities management, specialist piling and interior drylining businesses. All of our businesses benefit from developed risk management processes and established client and stakeholder relationships.


    Our 2019 strategic review simplified the business and management structure to enable the Group to focus on sectors with the appropriate profit, cash and growth potential in the Group's core strengths in Building, Infrastructure and Investments. The strategy is aligned to margin improvement rather than top-line growth, with the opportunity to increase our investment and co-development activities in support of the core business. This will enable the Group to deliver disciplined performance in the key areas we have selected, where we have expertise, geographical presence and anticipate ongoing strong demand, while continuing to develop a diverse workforce and further enhance our systems. Operating sustainably and safely is fundamental to the Group's strategy and further details of our commitment are set out below.


    The revenue target of c£1.3bn set out in 2019 remains in place. The business had previously indicated a divisional 2% margin target by 2021. The Group's strategy now targets a minimum divisional 2% margin across Building and Infrastructure by 2022, with the objective of achieving a Group-wide 2% margin, in the medium term, after allowing for PPP and Central Costs.


    The Group has a strong order book and future pipeline and is driven by an experienced management team with a strong strategic plan in place for value creation. The team has a clear path to delivering on its financial targets, which are supported by the improved risk management processes and systems embedded in the business.



    OUTLOOK


    The Group continues to maintain a high-quality order book of £3.2bn (H1 2019: £3.2bn) spread across 12% in the regulated sector, 71% in the public sector and 17% in the private sector. In the current financial year, 96% of projected revenue is secured and 72% secured for the next financial year (H1 2019: 96% and 66% respectively).


    The Group is mindful of the potential risks around COVID-19 and is taking appropriate preparatory steps to mitigate harm and/or disruption.


    The Group is confident that it is in a strong position to capitalise on the current market opportunities and is operating in sectors with a solid pipeline supported by strong demand.



    INTERIM DIVIDEND


    The directors have reviewed the Group's results and outlook for the current financial year and have declared an interim dividend of 1.0p per share which will be paid on 17 April 2020 to shareholders on the register at close of business on 20 March 2020.



    RISKS


    Following the disposal of the housebuilding divisions, the Group has reconsidered its principal risks and uncertainties. The principal risks and uncertainties which may have a material impact on the Group's performance in the second half of the financial year remain primarily the same as those outlined on pages 28 to 31 of the Group's annual report and financial statements for the year ended 30 June 2019, other than risks related to growth in the Partnerships & Regeneration business and exposure to the residential housing market are no longer relevant.



    FINANCIAL REVIEW - CONTINUING GROUP


    The continuing Group is well-capitalised to support its future plans, and benefits from a significant cash balance on both an average and period end basis.


    The Group's pre-exceptional revenue for the half year to 31 December 2019 was £636.2m (H1 2019: £728.0), reduced in line with expectations set during the 2019 strategic review.


    The Group's loss from operations (stated before exceptional items, finance costs, amortisation, tax and share of joint ventures' interest and tax), was £6.7m (H1 2019: £2.9m profit). This includes a £1.0m profit from Building and Infrastructure, which were adversely impacted by some project delays, contract settlements and legal costs. There was a £7.7m net loss in Central Costs and PPP Investments.


    Net interest income of £2.1m was greater than the comparable income of £0.5m due to greater interest receivable from joint ventures and PPP sub-debt.


    Pre-exceptional loss before tax was £5.6m (H1 2019: £2.2m profit), with pre-exceptional loss per share for the period of 4.1p (H1 2019: earnings per share 1.7p).


    Following the successful settlement of the AWPR final account, as previously announced, the Group has received a cash payment of £32m in 2020. The settlement brings to a conclusion a complex and challenging project and avoids a lengthy, distracting, uncertain and expensive litigation process.


    The Group previously announced a total £61m write-down on the settlement of AWPR, together with an adverse adjudication award of £9m on an unrelated historical project. After discussion with the Corporate Reporting Review Team (CRRT) of the Financial Reporting Council, the Group has treated the write-down of the previously recorded AWPR recoverable asset as an opening balance sheet adjustment at 30 June 2018 on the basis that the value to be recovered could not previously be measured reliably and therefore the asset should not have been recognised; this results in the settlement payment being recognised as exceptional income in the period to 31 December 2019. The other adverse adjudication award of £9m has also been treated as an opening balance sheet adjustment at 30 June 2018 as the Group considers that the loss should have been previously accrued under IAS 11. As well as the AWPR settlement, net of final costs, exceptional items also include transaction costs on the demerger incurred prior to 31 December 2019 of £5.8m. Further details are set out in notes 2 and 5 to the financial information.


    The pre-exceptional taxation credit of £1.0m reflects an estimated effective tax rate of 19.1% (H1 2019: 17.9%) for the period. We anticipate a similar effective tax rate for the foreseeable future.


    Adjusting for the receipt of consideration on the disposal of the Linden Homes and Partnerships & Regeneration divisions the Group's pro forma cash balance was £225m at 31 December 2019. Since 3 January 2020 the Group has been operating with daily net cash, no debt facilities and no defined benefit pension liabilities with average month end cash balances for the second half of the financial year expected to be in excess of £100m.


    The Group's bank facilities of £450m were repaid and cancelled on 3 January 2020 following the completion of the disposal of the Group's housebuilding divisions and the Group's £100m private placement debt was transferred to Vistry Group plc on 3 January 2020. The Group's defined benefit pension obligations were transferred to Vistry Group plc on 3 January 2020.


    The adoption of IFRS16 'Leases' has reduced retained earnings by £1.0m at 1 July 2019. In line with the requirements of the standard with regards to the transition option adopted, the Group has not restated its comparative information. Further details are set out in notes 2 and 25 to the financial information.


    The Group is well capitalised to support its future plans, and benefits from a net cash profile with no balance sheet debt.


    Galliford Try Hldgs - Half-year Report https://www.voxmarkets.co.uk/rns/announcement/f93b6781-4137-4373-aaa4-e6912a932d08
     
  14. Groucho

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    17 June 2020

    GALLIFORD TRY SECURES £85M OF DEVELOPMENT WORKS AT TOTTENHAM HALE

    Galliford Try, one of the UK's leading construction groups, announces that it has been named contractor on two mixed-use residential buildings at Tottenham Hale worth £85m for the premier global development company, Argent Related.

    The two residential buildings 1 Ashley Road and 2 Ashley Road, in Tottenham Hale, north London will deliver a total of 281 homes. The contracts mark the start of work on site at Argent Related's Tottenham Hale site, a seven-building regeneration scheme that will create 1,030 new homes, as well as retail and mixed-use space.

    1 Ashley Road, launched last year as Argent Related's first phase of the development, will provide 183 private sale apartments across two adjoining buildings of 12 and 18 storeys. The development will also include retail units, commercial offices and associated landscaping and infrastructure. 2 Ashley Road will include 98 residential properties, as well as retail units, across two adjoining buildings of 14 and five storeys.

    The buildings are expected to achieve a BREEAM rating of "Very Good".

    Bill Hocking, Chief Executive of Galliford Try, commented: "We are delighted to have been selected by Argent Related, working together to safely deliver much-needed new homes and commercial developments to stimulate and support the economy during these challenging times."
     
  15. Groucho

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    11 August 2020

    GALLIFORD TRY AWARDED £105M RESIDENTIAL CONTRACT

    Galliford Try, the leading UK construction group, announces that its Building business has signed a £105m contract to build a major new build-to-rent residential scheme in Leeds.


    The 665-home development is being constructed on behalf of Highline Investments at the Monk Bridge site to the south west of Leeds city centre, accessed from Whitehall Road.


    There will be a mix of one, two and three-bedroom apartments across five different blocks, which will vary from 12 to 22 storeys in height. In addition, the adjacent railway arches will be refurbished to accommodate retail and hospitality units.


    Bill Hocking, Chief Executive of Galliford Try, commented: "We are delighted to be able to start work on such a prestigious development in the heart of Leeds. This scheme is a significant investment in the current economic environment and our excellent track record in the private rental sector has led Highline to place their trust in Galliford Try to deliver for their customers."
     
  16. Groucho

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  17. Groucho

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    14 October 2020

    GALLIFORD TRY APPOINTED TO THAMES WATER LONDON REGION AMP7 FRAMEWORK

    Galliford Try, the leading UK construction group, announces that its Environment business has been appointed to two new lots for the Thames Water AMP7 framework.


    The lots, numbered 3 and 6, relate to Thames Water's work in the London region, and represent a total pipeline value of £590m over a four-year period. Of that total, Galliford Try anticipates its place on the lots to be jointly worth up to £60m per annum to the business.


    In Lot 3, Galliford Try will be undertaking works throughout London to Thames Water's above ground facilities, including clean and wastewater treatment works, pumping stations and reservoirs, while Lot 6 includes below ground infrastructure including the clean water and sewerage networks across the South London region. The appointment follows Galliford Try's recent success on Thames Water's AMP7 Capital Programme Geographic Frameworks, Lots 1 & 2 earlier this year.


    Bill Hocking, Chief Executive of Galliford Try, commented: "We are delighted to be further cementing our relationship with Thames Water following the previous announcement in May. These appointments are fundamental to the Group's strategy of focusing on long term frameworks and high-quality client relationships, with water one of identified key sectors. We look forward to deepening our collaboration with Thames as we deliver for their customers over the coming years."
     

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