Settlement of AWPR

RNS Number : 8332X

Galliford Try PLC

23 December 2019

 

Galliford Try plc

Settlement agreed on Aberdeen Western Peripheral Route

Galliford Try plc ("Galliford Try"), the housebuilding, regeneration and construction group announces that, following a lengthy period of negotiation, the Aberdeen Western Peripheral Route ("AWPR") joint venture has substantially agreed settlement terms with the client in respect of the final account of this major infrastructure project.  As a result of the settlement Galliford Try expects to receive a cash payment of around £32m and incur a write-off of £52m.

The settlement brings to a conclusion a complex and challenging project, averting a lengthy and costly litigation process.  The settlement also removes a significant distraction and uncertainty, allowing the Construction business to focus on its core business, current and new projects which are expected to deliver improving margins, operating on multiple secured frameworks and in our chosen sectors. 

Taken together with an adverse adjudication award on an unrelated historical contract in the period, the Group will report an exceptional write-off of circa £61m at 31 December 2019.

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

For further enquiries please contact:

Galliford Try

Graham Prothero, Chief Executive                                                  01895 855001

Andrew Duxbury, Finance Director

Tulchan Communications

James Macey White                                                                           020 7353 4200

Martin Pengelley

Elizabeth Snow

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 2019, the Group generated revenue of £2.8bn.  On 7 November 2019 the Group announced it had entered into an agreement with Bovis Homes Group PLC regarding a combination of Bovis Homes and the Group's housebuilding businesses, Linden Homes and Partnerships & Regeneration.  The transaction is expected to complete on 3 January 2020.

 

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