Galliford Try first half pre-tax profit fell 11% to £56.3m from £63.0 in the prior year period as the company announced plans for a £150m capital raise to ease the £25m hit resulting from the liquidation of Carillion.
Group revenue for the half year to 31 December 2017 was £1,403m (H1 2017: £1,235m). Revenue, including share of joint ventures, was £1,495m (H1 2017: £1,308m).
The company reported net debt of £84.9 million, down £28.9m from the prior year period. Average debt over the period was lower than expected at £203m, with deferred outflows on land acquisitions in Linden Homes and partnerships outweighing some delayed inflows in construction.
The company said its construction business continued to benefit from a strong order book, with an encouraging pipeline of opportunities from the current and planned investment in the nation's infrastructure.
The company declared an interim dividend of 28.0p per share, down 13% from the prior year's 32.0p.
Chief executive Peter Truscott said: 'We have delivered a strong financial and operational performance in the first half, with revenue growth across all three businesses and excellent progress against our 2021 strategy.' 'Linden Homes had a very strong first half, with both volume growth and improving margins. Our strategy of focusing on standardisation is proving to be effective and we continue to benefit from further operating efficiencies.'
'The market continues to be positive, underpinned by good mortgage availability, the Government's ongoing commitment to Help-to-Buy, and the recent stamp duty cut for first-time buyers. Within Partnerships & Regeneration, we have delivered an excellent first half performance and continue to be very encouraged by the opportunities in the market, which give us confidence that this growing business will continue to deliver sustained returns over the strategy period and beyond. Our underlying Construction business is performing well with the margin drag of legacy contracts reducing.'
'We have reviewed the impact on our business from the compulsory liquidation of Carillion, which has resulted in a further reassessment of the likely out-turn from our participation in the Aberdeen Western Peripheral Route (AWPR) joint venture, leading to an exceptional charge of £25m. Reflecting the additional financial obligations arising from this contract, we have today announced our plans for a capital raise of £150m. We have also brought forward our plans to increase dividend cover to 2.0x pre-exceptional earnings, with the result that we are today declaring an interim dividend of 28.0p.'