Galliford Try Holdings PLC on Wednesday reported an increase in revenue in its recently ended financial year, however pretax profit fell due to exceptional expenditure.

The Uxbridge, England-based construction company reported a pretax profit before exceptional items of £19.1 million in its final year results, which ended in June.

However, exceptional items - such as the £7.7 million acquisition of nmcn’s water business and the £6 million investment in the implementation of cloud-based IT systems - brought the company’s profit down to £5.4 million, a 53% fall on the £11.4 million recorded last year.

Galliford noted that there were no exceptional items last year. On an adjusted basis, the pretax profit was 68% higher than last year.

Revenue increased by 9.7% to £1.24 billion from £1.13 billion resulting primarily from growth in the company’s infrastructure section. Revenue in the infrastructure section increased thanks to the acquisition of nmcn’s water business and the growing momentum behind the AMP7 programme. AMP7 is the water industry’s asset management plan for the 2020-2025 period, developed by Ofwat in collaboration with water companies.

Galliford is paying a final dividend of 5.8 pence, up 66% from 5.8p last year, resulting in a total dividend of 8.0p, up 70% on last year.

Looking forward, Galliford highlighted its £3.4 billion order book and said 90% of its 2023 revenue was already secured.

The company said it was encouraged by the pipeline of opportunities across its sectors in the public, regulated and private markets. The UK government’s planned investment in economic and social infrastructure should also support growth in Galliford’s core markets.

Chief Executive Bill Hocking said: ‘Our commitment to robust risk management, careful contract selection and operational excellence continues to underpin our performance and prospects. The group is well capitalised and has a strong and selective order book, focused in our chosen and proven sectors. This has enabled us to significantly increase shareholder dividends and capital returns.

‘With strong and disciplined risk management we continue to manage the current market conditions, including the inflationary pressures, and are well-placed for further progress in 2023 financial year.’

Shares in Galliford Try were trading 3.6% higher at 162.60 pence each in London on Wednesday morning.

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