Final Results
Summary by AI BETAClose X
7:00AM THURSDAY 17 SEPTEMBER 2026
GALLIFORD TRY HOLDINGS PLC
ANNUAL RESULTS STATEMENT FOR THE YEAR ENDED 30 JUNE 2026
STRONG FULL YEAR PERFORMANCE WITH PROFIT ABOVE MARKET EXPECTATIONS AND CONTINUED CONFIDENT OUTLOOK
Financial and Operational Highlights
|
· 3.0% increase in revenue to £1,931.1m (2025: £1,875.2m), driven by strong performance in Highways and a successful transition to AMP8 in Environment. · 24.2% increase in adjusted profit before tax to £55.9m (2025: £45.0m), driven by increased volumes, quality delivery and continued disciplined commercial and operational management. No exceptional items in the period. · 3.5% divisional adjusted operating margin up 53bps (2025: 3.0%), continued strong margin progress across divisions. · Resilient debt-free balance sheet, strong cash conversion with average month end cash for the year up 21.0% at £216.2m (2025: £178.7m), £259.0m year-end cash, up 9.0% (2025: £237.6m), PPP asset portfolio of £37.2m (2025: £38.6m) and no pension liabilities. The Group's revolving credit facility remains undrawn since placement. · Capital allocation in line with our priorities: £39.5m of organically generated capital deployed through M&A and organic investments and shareholder returns in the period. · 25.9% increase in final dividend payment of 17.0p (2025: 13.5p), together with an interim dividend of 6.5p equals a total dividend for the financial year of 23.5p, up 23.7%. Announcement of new £15m share buyback programme.
|
Strategy and Outlook
|
· The Group operates in diversified, growing sectors and we are well placed to benefit from the significant, required investment in planned Government and regulated spend in the UK's critical social and economic infrastructure. · Confident outlook for further progress in FY2027 underpinned by a high quality £4.3bn order book (2025: £4.1bn) across our chosen growth sectors in water and wastewater, highways, education, defence, custodial, facilities management and health, and growing presence in affordable homes and energy. Good visibility of future revenue with 90% and 62% of the current financial year and FY28 projected revenue secured. · Confidence in delivering 2030 sustainable growth targets generating significant cashflows to support further post-dividend capital allocation optionality.
|
|
Financial Results1 |
2026 |
2025 |
Change |
|
Revenue |
£1,931.1m |
£1,875.2m |
+3.0% |
|
Adjusted operating profit |
£49.5m |
£40.6m |
+21.9% |
|
Divisional adjusted operating margin2 |
3.5% |
3.0% |
+53bps |
|
Adjusted profit before tax |
£55.9m |
£45.0m |
+24.2% |
|
Adjusted basic earnings per share |
42.4p |
34.4p |
+23.1% |
|
Average month end cash |
£216.2m |
£178.7m |
+21.0% |
|
Order book |
£4.3bn |
£4.1bn |
+5.0% |
|
Statutory results
|
|
|
|
|
Revenue |
£1,931.1m |
£1,875.2m |
+3.0% |
|
Statutory profit before tax |
£55.0m |
£44.1m |
+24.7% |
|
Statutory earnings per share |
41.7p |
33.7p |
+23.6% |
|
Full year dividend per share |
23.5p |
19.0p |
+23.7% |
|
Net cash |
£259.0m |
£237.6m |
+9.0% |
1 For the reconciliation of these adjusted measures to their nearest statutory measures, refer to note 18.
2 Divisional adjusted operating margin is defined as adjusted operating profit as a percentage of adjusted revenue. It is stated for the combined Building and Infrastructure divisions.
Bill Hocking, Chief Executive, commented:
"Galliford Try has achieved a sixth consecutive year of growth, with a 3% increase in revenue and more than 20% growth in adjusted profit and earnings per share. Strong cash generation has enabled us to continue investing in the business, to return capital to shareholders and to strengthen our position for future value creation. We are making good progress towards our Sustainable Growth targets for 2030 underpinned by disciplined capital allocation and a clear focus on earnings-accretive growth.
Our reputation for disciplined risk management, careful project selection and quality delivery continues to underpin our success. Investment in the UK's critical social and economic infrastructure remains significant. Water, transport, affordable housing, custodial infrastructure and defence are all major national priorities, and as a UK-focused contractor with strong positions across these markets, Galliford Try is well placed to support that investment and help address some of the country's most pressing infrastructure needs.
As we look forward, the strength of our markets, our resilient balance sheet, and our disciplined business model give us confidence in the outlook for the Group.
My sincere thanks to all our people and supply chain for another excellent performance for the Group in the year."
Enquiries to:
|
Galliford Try |
Bill Hocking, Chief Executive Kris Hampson, Chief Financial Officer Kevin Corbett, General Counsel & Company Secretary
|
01895 855001 |
|
Teneo |
James Macey White/Ffion Dash |
020 7260 2700
|
This announcement contains inside information. The person responsible for making this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel & Company Secretary.
Presentations
A presentation for analysts will be held at 09:30am BST today, Thursday 17 September 2026 at Peel Hunt's offices, by invitation. A live webcast of the event is available at 09:30am, please register on this link: GFRD FY26 Results - webcast registration. Webcast participants may submit their questions via the webcast platform
An open presentation and Q&A session for retail investors will be held on Friday 25 September 2026 at 11:00am BST via the Investor Meet Company platform. The presentation is open to all existing and potential shareholders. Questions can be submitted pre-event via your Investor Meet Company dashboard up until 25 September 2026, 09:00 BST, or at any time during the live presentation. Investors can register for the event via this link: Investor Meet Company - Galliford Try
FINANCIAL REVIEW
The Group delivered another year of strong growth, resulting in significantly improved profitability, margin, cash and dividends, together with incremental capital returns over the 12-month period.
Revenue
Revenue for the year was up 3.0% to £1,931.1m (2025: £1,875.2m). Revenue progress was focused across our Infrastructure business (comprising Highways and Environment) and specialist businesses with Infrastructure increasing its revenue by 7.7% to £971.6m (2025: £902.5m). Building recorded revenue of £951.0m (2025: £964.7m), flattened by delays resulting from political uncertainty in the second half of the year. PPP Investments' revenue of £8.5m was up 6.3% on the previous year (2025: £8.0m).
Profit
The Group's adjusted operating profit was up 21.9% to £49.5m (2025: £40.6m) reflecting the Group's focus on commercial contract selection and operational delivery. The combined divisional adjusted operating margin improved by 53bps to 3.5% (2025: 3.0%). The Group generated net interest of £6.4m (2025: £4.4m) reflecting active management of higher cash balances. The Group's adjusted profit before tax for the year was £55.9m (2025: £45.0m), up 24.2%, with no exceptional items reported in FY26 (2025: nil).
The table below reconciles profit before tax to our alternative performance measure of adjusted profit before tax, which is a key metric for monitoring performance of the business.
|
|
2026 |
2025 |
|
Profit before tax (£m) |
55.0 |
44.1 |
|
Exceptional items (£m) |
- |
- |
|
Amortisation of Acquired Intangibles (£m) |
0.9 |
0.9 |
|
Adjusted profit before tax |
55.9 |
45.0 |
The taxation charge of £13.8m (2025: £10.5m) reflects an effective tax rate (ETR) of 25.1% for the year to 30 June 2026 in line with guidance, which compares to the standard effective tax rate of 25.0%. During 2026, utilisation of historical deferred tax trading losses fully offset expected net corporation tax cash payments resulting in no cash tax being paid; in 2027 cash tax payments are expected to be in line with the income statement tax charge.
We recorded adjusted basic earnings per share (EPS) for the year of 42.4p (2025: 34.4p), an increase of 23.1%. The statutory EPS in 2026 was 41.7p (2025: 33.7p), up 23.6%.
Balance Sheet and Cash
The Group continues to have no drawn bank debt or defined benefit pension obligations and at 30 June 2026 had a net cash balance of £259.0m (2025: £237.6m). The Group operates with daily net cash and the average month-end cash balance in the year was up 21.0% to £216.2m (2025: £178.7m) demonstrating the Group's continuing robust cash performance, including tight control of working capital balances. The Group's revolving credit facility remains undrawn since placement.
We acknowledge the support of our suppliers, and we are committed to the Fair Payment Code paying 97% of invoices within 60 days (2025: 97%), with the average payment being made in 27 days (2025: 26 days).
At 30 June 2026, we had a PPP portfolio of £37.2m (2025: £38.6m), reflecting a blended 8.1% discount rate (2025: 7.9%). This portfolio contributes to our balance sheet strength and during the year generated interest income of £3.7m (2025: £3.6m).
Capital Allocation in the Year
During the year we continued to deploy organically generated capital accretively in line with our capital allocation policy.
In February 2026, we completed the £8.1m acquisition of Nene Valley Fire and Acoustic Limited, extending our capabilities in the attractive passive fire prevention sector. The integration of this higher-margin bolt-on business is progressing well, enhancing our existing passive and active specialist fire brand, Asset Intelligence, with trading ahead of our pre-acquisition investment case. The cash-funded deal has been margin accretive from completion.
Further, we opened our third fabrication facility for our Galliford Try Fabrications business in Keighley. This facility adds further specialist pipe manufacturing capabilities expanding our specialist high-margin fabrication facilities. These facilities support our other infrastructure operations by manufacturing access metal work structures and specialist pipes; including to the Southampton Link Main project, visited as part of our Investor site visit day in May 2026. We have also invested in upgrading our commercial reporting systems during the year and the total cost of these organic investments was £1.1m in the period.
Having reviewed the Group's results and the outlook, the Directors are recommending a final dividend of 17.0 pence per share which, subject to approval will be paid on 4 December 2026 to shareholders on the register at 6 November 2026. Together with the interim dividend of 6.5 pence per share paid in April 2026, this will result in a total full year dividend for 2026 of 23.5 pence per share. Dividend per share of 23.5p is based on the adjusted EPS of 42.4p and 1.8x cover.
During the second half of the year, the Group completed its third share buyback programme, announced on 22 April 2026, purchasing and cancelling 1,957,703 ordinary shares at an average price of approximately £5.11 per share, at a total cost of £10m. In addition to the completion of our third share buyback, we are announcing a further share buyback today totalling £15m over the balance of the current financial year. The buyback will be funded out of operational cash generation reflecting our strong cash performance in 2026, our order book and our confidence in the future cash generation of the business.
Operating profit cash conversion during the year funded £39.5m of capital allocations including the £9.2m of investments above, the £10m completed share buyback and the c£20.3m of cash dividends distributed in line with our sector-leading 1.8x cover sustainable dividend policy.
CURRENT TRADING AND OUTLOOK
The Group has performed in line with expectations since the period end and we are confident in delivering similar revenue growth, and further profitability and margin expansion in the current year as we continue with progress towards our 2030 Sustainable Growth targets.
OPERATIONAL REVIEW
BUILDING
Building operates through regional businesses, serving a range of public and private sector clients across the UK, with a focus on the education, defence, custodial and health sectors, and the growing affordable homes sector where we have core and proven strengths. Our Facilities Management (FM) business continues to complement our operations by providing high-quality building maintenance services. Building includes a substantial presence in Scotland, operating as Morrison Construction.
|
|
2026 |
2025 |
Change |
|
Revenue (£m) |
951.0 |
964.7 |
(1.4)% |
|
Adjusted operating profit (£m) |
33.1 |
28.1 |
+17.8% |
|
Adjusted operating margin (%) |
3.5 |
2.9 |
+57bps |
|
Order book (£m) |
2,658 |
2,454 |
+8.3% |
Building revenue declined marginally to £951.0m (2025: £964.7m) due to some delayed public sector preferred bidder conversion, which moved some revenue into FY2027. Notably, we delivered adjusted operating profit of £33.1m (2025: £28.1m), with margins up 57bps to 3.5%, reflecting improved bidding margins, and higher quality project delivery. We also continue to expand the capabilities of our FM operations, providing high-quality building maintenance services as well as focusing on decarbonising existing buildings through retrofit and other measures.
Building won contracts and positions on frameworks worth over £1,155m, (2025: £1,125m). Significant appointments and wins include:
- the new £9.5bn Crescent Purchasing Consortium (CPC) Construction and Capital Works framework.
- a £3.0bn affordable homes framework by major Registered Provider (RP), The Hyde Group.
- our first affordable homes scheme (£28m) for Clarion Housing in Chester.
- the £15.4bn Department for Education (DfE) Construction Framework 25 (CF25).
- the £1.5bn YORbuild Major Works 2 Framework procured by Leeds City Council.
- a major £750m affordable homes framework by Sovereign Network Group.
Building's order book stands at £2,658m up 8.3% versus the prior year (2025: £2,454m) with 93% of 2027 and 60% of 2028 revenues secured. The order book is diversified across our chosen sectors including 22.8% in education, 24.6% in defence, 26.8% in custodial, 12.5% in FM and 7.5% in commercial.
INFRASTRUCTURE
Infrastructure carries out projects across the UK, focused on Highways and Environment (incorporating our activities in water and wastewater). This business has established long term relationships with customers where we have a strong track record on capital delivery and a growing capability in capital maintenance and asset optimisation.
|
|
2026 |
2025 |
Change |
|
Revenue (£m) |
971.6 |
902.5 |
+7.7% |
|
Adjusted operating profit (£m) |
34.3 |
27.4 |
+25.2% |
|
Adjusted operating margin (%) |
3.5 |
3.0 |
+49bps |
|
Order book (£m) |
1,690 |
1,688 |
+0.1% |
Infrastructure's revenue was up by 7.7% to £971.6m (2025: £902.5m) driven by a very strong year in our Highways division which delivered three major projects open for traffic including the £198.0m Carlisle Southern Link Road, the £91.4m A47 Blofield Scheme and the £104.7m Melton Mowbray Distributor Road. The performance of Highways more than offset the flattening impact of the Environment division transitioning from AMP7 to AMP8. Successful close out of the three highways projects and early AMP8 design fees helped drive divisional adjusted operating margins up 49bps to 3.5% and delivered adjusted operating profit of £34.3m, up 25.2% (2025: £27.4m). While divisional revenues are expected to moderate in FY27 following completion of major highways projects, improved terms in AMP8 frameworks and growth in higher value activities are expected to support further margin progression.
Infrastructure won positions on frameworks and contracts worth £973m (2025: £1,045m). These include:
- the £1.0bn YORcivil Major Works 2 Framework.
- the £110m contract to deliver the River Mease Improvement project on behalf of Severn Trent Water.
- two lots on the new Wessex Water Design & Build Contractors (Minor Works) Framework.
- phase 1 of South West Water's (SWW) Continuous Water Quality Monitoring (CWQM) Programme.
Infrastructure's current order book is £1,690m, up 0.1% (2025: £1,688m) including £519m in Infrastructure (Highways) and £1,171m in Environment.
INVESTMENTS
Investments deliver major developments through public-private partnerships and co-development opportunities in the Private Rented Sector (PRS) and affordable homes, generating work for the wider Group in the process.
|
|
2026 |
2025 |
Change |
|
Revenue (£m) |
8.5 |
8.0 |
+6.3% |
|
Adjusted operating loss (£m) |
(2.2) |
(0.4) |
(1.8)m |
|
Net interest income (£m) |
3.7 |
3.5 |
+5.7% |
|
Asset valuation (£m) |
37.2 |
38.6 |
(3.6)% |
Revenue was £8.5m (2025: £8.0m) up 6.3% with a small adjusted operating loss of £2.2m (2025: loss of £0.4m) more than offset by the PPP interest received. At the year-end the business was preferred bidder on five PRS schemes with a gross development value of c£467m and potential further opportunities in the pipeline.
At the year end, the directors' valuation of our Public, Private Partnerships (PPP) portfolio was £37.2m (2025: £38.6m), which is the fair value included in the balance sheet reflecting loan repayments and a blended discount rate of 8.1% (2025: 7.9%) with discount rates being driven higher in line with governmental long term bond rates. The valuation compared with a value invested of £31.6m (2025: £32.6m). The portfolio generated an annuity interest income of £3.7m (2025: £3.6m).
SUSTAINABLE GROWTH STRATEGY TO 2030
In May 2024, due to the Group's strong performance during the prior strategy period, the Group updated its sustainable financial growth targets through to 2030, which include:
|
Revenue
|
growing to in excess of £2.2bn, maintaining disciplined contract selection and robust risk management in resilient market sectors. |
|
Divisional adjusted operating margin |
increasing to 4.0% through growth and operational leverage, a more supportive contracting environment, continued operational improvements (quality, efficiency, digital and technology) and accelerated growth in our higher-margin adjacent specialist services and investment businesses. |
|
Cash |
retain a strong balance sheet and operating cash generation |
|
Dividends |
sustainable dividends with adjusted earnings cover of 1.8x |
Our strategy is based on our ability to deliver high-quality buildings and infrastructure in a socially responsible way, while providing a sustainable financial return for our shareholders and delivering on our aspirations to create long term value for all our stakeholders. The Group's strategic enablers are a progressive culture, socially responsible delivery, focus on quality and innovation, and disciplined risk management to give sustainable financial returns.
RISK MANAGEMENT AND ORDER BOOK
The Group's commercial strategy is founded on discipline and robust risk management. Our confidence in the Group's future performance is based on our high-quality order book, primarily in recently won long term secure frameworks and a robust long-term pipeline of opportunities.
We are well positioned to benefit from the Government's planned investment in the UK's social, economic and national infrastructure. Our sector focus in critical areas such as water, defence, education and custodial means c90% of contracts are delivered through frameworks providing a reliable stream of future work built on relationships with clients on known and established terms and conditions and well-understood risk profiles.
At 30 June 2026 the Group's diversified order book was £4.3bn (2025: £4.1bn) of which 95% is in the public and regulated sectors and 5% is in the private sector. The Group started the new year with 90% of planned revenue secured for FY27 (2025: 92%), and looking further out, we have already secured 62% of our targets for FY28.
CAPITAL ALLOCATION AND SHAREHOLDER RETURNS
The Group's capital allocation priorities are unchanged. Successful delivery of our targets over the period to 2030 will generate cash to support our capital allocation opportunities. In line with our policy, we intend to maintain our sustainable dividend policy cover at 1.8x adjusted EPS and to deploy the remaining capital through disciplined re-investment or share buybacks or special dividends. Our capital allocation policy is as follows:
· Invest in the business (organic and acquisitive)
Our strong cash balances and experience mean we can allocate capital to assist the development of our adjacent markets, as demonstrated by our acquisitions and our new fabrication facilities.
The Group's approach to M&A is based on the following precepts:
· We learn from previous processes and integrations to maximise the success of every transaction.
· We manage an active pipeline of targets within our chosen higher margin adjacent target sectors of:
o Environment - water product and maintenance specialists.
o Building - passive and active fire services, facilities management and asset security.
· All deals will meet clear strategic and financial hurdles. Discipline in deal selection will be as rigorous as for operational contract selection.
· Paying sustainable dividends to shareholders
The Group has a dividend policy of adjusted earnings per share covering the dividend by 1.8 times. In addition to dividend growth resulting from our operational performance, this policy also reflects the low-risk nature of the PPP asset portfolio and its annuity interest income and provides a sustainable increase in dividend to shareholders while retaining capital to invest in growing the business.
· Returning excess cash
We continue to assess the strategic cash requirements of the business and where average month-end cash and PPP assets increase above the level required, the Board will consider making additional returns to shareholders where this represents the best return for shareholders. Capital returns over the last six years, including today's announced proposed dividend and share buyback, total £146.3m including dividends of £83.8m, Special Dividends of £12.5m and share buybacks of £50.0m. These returns represented c28% of the Group's market capitalisation at year end on 30 June 2026.
ENVIRONMENT, SOCIAL and GOVERNANCE (ESG)
Sustainability underpins our long-term success as it helps us to win work, engages our people, benefits communities and the environment, and makes us more efficient. Our ESG Committee, chaired by the Chief Financial Officer, monitors progress against the six pillars, which are mapped to the UN Sustainable Development Goals.
Health and Safety
The health, safety and wellbeing of our people, subcontractors, suppliers, clients and the public remains our top priority, and this was reaffirmed in our recent Employee Survey results, where 94% of respondents agreed we give health and safety a high priority.
We continue to focus on our pursuit of 'no harm' through our behavioural safety programme, Challenging Beliefs, Affecting Behaviour (CBAB) through awareness, training, coaching and visible leadership of factors influencing safety.
While our performance remains strong and again there were no fatalities in the year (2025: nil) our Accident Frequency Rate and Lost Time Frequency Rate increased from historic low levels achieved in previous years. Given the low baseline, a relatively small number of incidents meant we recorded an AFR of 0.06 (2025: 0.03) and LTFR of 0.17 (2025: 0.09). Analysis of the data behind these incidents does not identify any clear underlying trends. We nevertheless remain committed to reinforcing our systems and processes and capturing learning in our renewal of our behavioural safety programme. Across our business units, 12 out of 21 recorded an AFR of zero (2025: 13 out of 21).
People
Retaining, developing and gaining talent continues to be the focus of our people strategy, driven by our Employee Value Proposition (EVP) 'Grow Together', which delivers on our promise to be a people-orientated, progressive employer driven by our values.
Employee advocacy is a powerful indicator of the effectiveness of our people strategy, measuring how likely our people are to recommend our business as a great place to work. This year, we maintained a high employee advocacy score of 85%, compared to a UK average of 72%.
Doing the Right Thing is central to creating an inclusive culture where everyone is safe, respected and valued. In line with this, we have held Active Bystander workshops for all of our people, to help recognise and challenge inappropriate behaviour. In recognition of demonstrating our strategic commitment to EDI procedures, and active engagement of leadership in the promotion of EDI, we were awarded Silver accreditation by Clear Assured, the EDI platform.
Early careers roles (apprentices, trainees, graduates and sponsored students) help us to grow our own talent, shape our leaders and influence the skill sets and composition of our future workforce, including diversity. For the third time, we received a Platinum Award through The 5% Club's Employer Audit Scheme, which recognises the UK's best employers of apprentices, graduates and degree placement students. The award reflects our approach to inclusion and social mobility, the quality of training and development, and future growth of 'earn as you learn' opportunities. In addition, we have retained our position as one of the UK's best employers for Early Careers, achieving the number one spot for both apprentices and graduates in the Construction and Civil Engineering sectors in this year's JobCrowd rankings.
Our Ex-Military programme has received the Gold Award in the Defence Employer Recognition Scheme for actively championing defence people initiatives, and we have maintained our position as one of the Top 50 employers for people leaving the Armed Forces by the GREAT British Employers of Veterans programme.
Environment and Climate Change
We have pledged to achieve net zero carbon across our own operations by 2030 and all activities by 2045, and have set near-term emissions reduction targets which have been validated by the Science Based Targets initiative (SBTi).
In support of this ambition, we have developed our net zero route map which identifies 16 activities where action is required if we are to achieve our emission reduction targets. These include the use of diesel, company vehicles, site compounds, permanent offices, business travel, design, construction materials, emissions measurement, internal carbon charging and offsetting.
The use of diesel to generate off-grid electricity and to power mobile plant and equipment is the largest source of carbon emissions within our own operations and therefore continues to be a key area of focus. During the year, we have taken further steps to reduce diesel consumption, including mandating that all diesel generators over a certain size must be part of a hybrid system, incorporating battery storage. We also successfully deployed hydrogen-powered generators on our sites for the first time.
In June 2026, we were again awarded the Green Economy Mark by the London Stock Exchange, an award that recognises companies that derive at least 50% of their revenue from green products and services. We are one of just 95 companies across all sectors that have achieved this mark, and only 60 on the main market.
We continue to participate in the CDP, a global disclosure system for organisations to manage their environmental impacts. In December 2025, we maintained our score of B 'Management level', recognising the progress we are making in embedding climate action into our governance, strategy and operations. We also achieved an MSCI AAA rating for the fifth year running.
Communities
Delivering a legacy of positive social value outcomes is increasingly important for our clients and employees. Since 2022, we have delivered over £2.6bn in social and local economic value by providing employment, work for the local supply chain, and opportunities for training and apprenticeships.
We continue to deliver our Mentoring the Next Generation scheme aimed at encouraging the next generation of women into construction by pairing mentors from our business with students over a three-year programme designed to provide exposure to careers in construction, career match to their interests, upskill communication skills for the workplace, provide CV writing and interviewing guidance. Following the success of the first two years, we have expanded the programme further and now have a total of 18 partner schools and more than 400 students participating in the programme.
We participated in Build UK's Open Doors initiative again this year, with 411 students visiting 14 of our sites and offices around the country. The initiative provides an opportunity for students to gain insight into how we operate our sites and what a career in construction can offer.
We continue to take part in the Considerate Constructors Scheme (CCS), which assesses sites on their approach to communities, the environment and workforce. We maintained our high average score of 44.5 (2025: 43.9) out of 50, which remains above the industry average of 41.2.
Clients
Delivering excellence for our clients is key to the long-term sustainability of our business. Our approach is reflected by the fact that 92% of our order book is repeat business (2025: 93%) and we have already secured 90% of our order book for FY27 (2026: 92%).
Our focus on delivering quality outcomes and building trusted relationships with our clients is reflected by the fact that c90% of our order book is in frameworks. Frameworks are a vehicle for the public and regulated sectors to procure projects in a collaborative manner, forming long-term relationships, improving quality and creating efficiencies. Securing positions on frameworks is our preferred route to market as it provides us with greater certainty and the ability to act more strategically.
Collaboration is a key part of our business model. We are accredited to ISO 44001 Collaborative Business Relationship Management, recognising the role it plays in enabling effective long-term relationships and delivering sustainable value across complex programmes. During the year, we joined the Executive Network of the Institute for Collaborative Working (ICW). This reinforces our long-standing commitment to structured collaboration and collaborative best practice across our projects.
Quality is a key priority for the construction industry; our approach is to embed quality into our designs and to follow through into project delivery and handover. This is supported by Modern Methods of Construction, and our Business Management System (BMS), which contains the processes and templates required to provide quality assurance at every step of a project's journey.
The digital tools we are deploying are driving margin growth by creating a more efficient approach to project delivery. They also drive better outcomes for our clients by improving safety, enhancing quality, enabling collaboration, improving visualisation, lowering carbon, and driving down costs.
Supply Chain
We are committed to paying 95% of supply chain invoices within 60 days, in line with our Bronze Award status under the Fair Payment Code. We continue to outperform this target, with 97% of invoices paid within the year to 30 June 2026 (2025: 97%) and our average days to pay is 27 days (2025: 26 days).
We continue to minimise the risk of modern slavery within our operations and supply chain and use the UK Government Modern Slavery Assessment tool to assess our performance and identify opportunities for improvement. As part of this ongoing improvement, we have developed a programme of audits of our preferred supplier labour agencies to assess their compliance, financial stability, and ethical practices.
The majority of our work is delivered in partnership with our supply chain, so we align key supply chain members with our culture and develop collaborative relationships that improve social, environmental and economic outcomes. This is led through our Advantage through Alignment (AtA) programme and 56% of our core aligned trades spend is with aligned subcontractors. Training and education remain a key theme beyond AtA, and we continue to offer our behavioural safety and net zero programmes to key supply chain members.
Consolidated income statement
for the year ended 30 June 2026
|
|
Notes |
2026 |
2025 |
|
Revenue |
3 |
1,931.1 |
1,875.2 |
|
|
|
|
|
|
Cost of sales |
|
(1,756.9) |
(1,723.7) |
|
Gross profit |
|
174.2 |
151.5 |
|
|
|
|
|
|
Administrative expenses |
|
(125.6) |
(111.8) |
|
|
|
|
|
|
Operating profit |
|
48.6 |
39.7 |
|
|
|
|
|
|
Finance income |
4 |
9.9 |
8.9 |
|
Finance costs |
4 |
(3.5) |
(4.5) |
|
|
|
|
|
|
Profit before income tax |
|
55.0 |
44.1 |
|
Income tax expense |
5 |
(13.8) |
(10.5) |
|
Profit for the year |
|
41.2 |
33.6 |
|
|
|
|
|
|
Earnings per share |
|
|
|
|
Basic |
|
|
|
|
Profit attributable to ordinary shareholders |
7 |
41.7p |
33.7p |
|
Diluted |
|
|
|
|
Profit attributable to ordinary shareholders |
7 |
39.9p |
32.2p |
Consolidated statement of comprehensive income
for the year ended 30 June 2026
|
|
Notes |
2026 |
2025 |
|
Profit for the year |
|
41.2 |
33.6 |
|
|
|
|
|
|
Other comprehensive expense: |
|
|
|
|
Items that may be reclassified subsequently to profit or loss |
|
- |
- |
|
Movement in fair value of PPP and other investments |
10 |
(0.4) |
(1.9) |
|
Total items that may be reclassified subsequently to profit or loss |
|
(0.4) |
(1.9) |
|
|
|
|
|
|
Other comprehensive expense for the year net of tax |
|
(0.4) |
(1.9) |
|
|
|
|
|
|
Total comprehensive income for the year |
|
40.8 |
31.7 |
The notes are an integral part of the consolidated financial statements.
Consolidated Balance sheet
|
|
Notes |
|
||
|
30 June 2026 £m |
30 June 2025 £m |
|||
|
Assets |
|
|
|
|
|
Non-current assets |
|
|
|
|
|
Intangible assets |
|
3.5 |
3.4 |
|
|
Goodwill |
8 |
101.7 |
93.6 |
|
|
Property, plant and equipment |
|
6.4 |
6.0 |
|
|
Right-of-use assets |
9 |
45.3 |
51.1 |
|
|
PPP and other investments |
10 |
37.2 |
38.6 |
|
|
Deferred income tax assets |
|
4.8 |
11.0 |
|
|
Total non-current assets |
|
198.9 |
203.7 |
|
|
Current assets |
|
|
|
|
|
Trade and other receivables |
11 |
398.7 |
388.6 |
|
|
Current income tax assets |
|
- |
3.7 |
|
|
Cash and cash equivalents |
12 |
259.0 |
237.6 |
|
|
Total current assets |
|
657.7 |
629.9 |
|
|
Total assets |
|
856.6 |
833.6 |
|
|
Liabilities |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Trade and other payables |
13 |
(609.6) |
(609.1) |
|
|
Lease liabilities |
9 |
(22.5) |
(22.7) |
|
|
Current income tax liabilities |
|
(0.1) |
- |
|
|
Provisions for other liabilities and charges |
14 |
(63.9) |
(48.6) |
|
|
Total current liabilities |
|
(696.1) |
(680.4) |
|
|
Non-current liabilities |
|
|
|
|
|
Lease liabilities |
9 |
(25.3) |
(31.1) |
|
|
Total non-current liabilities |
|
(25.3) |
(31.1) |
|
|
Total liabilities |
|
(721.4) |
(711.5) |
|
|
Net assets |
|
135.2 |
122.1 |
|
|
Equity |
|
|
|
|
|
Share capital |
|
50.4 |
51.1 |
|
|
Share premium |
|
2.2 |
1.6 |
|
|
Other reserves |
|
138.7 |
137.7 |
|
|
Retained earnings |
|
(56.1) |
(68.3) |
|
|
Total equity attributable to owners of the Company |
|
135.2 |
122.1 |
|
Consolidated statement of changes in equity
for the year ended 30 June 2026
|
|
Notes |
Ordinary shares |
Share premium |
Other reserves |
Retained earnings |
Total shareholders' equity |
|
Consolidated statement |
|
|
|
|
|
|
|
At 1 July 2024 |
|
52.0 |
0.8 |
136.4 |
(75.6) |
113.6 |
|
Profit for the year |
|
- |
- |
- |
33.6 |
33.6 |
|
Other comprehensive expense |
|
- |
- |
- |
(1.9) |
(1.9) |
|
Total comprehensive income for the year |
|
- |
- |
- |
31.7 |
31.7 |
|
Transactions with owners: |
|
|
|
|
|
|
|
Dividends |
6 |
- |
- |
- |
(17.5) |
(17.5) |
|
Purchase of own shares |
|
- |
- |
- |
(12.3) |
(12.3) |
|
Share-based payments |
15 |
- |
- |
- |
3.4 |
3.4 |
|
Tax relating to share-based payments |
|
- |
- |
- |
2.0 |
2.0 |
|
Issue of shares |
|
0.4 |
0.8 |
- |
- |
1.2 |
|
Cancellation of shares |
|
(1.3) |
- |
1.3 |
- |
- |
|
At 30 June 2025 |
|
51.1 |
1.6 |
137.7 |
(68.3) |
122.1 |
|
Profit for the year |
|
- |
- |
- |
41.2 |
41.2 |
|
Other comprehensive expense |
|
- |
- |
- |
(0.4) |
(0.4) |
|
Total comprehensive income for the year |
|
- |
- |
- |
40.8 |
40.8 |
|
Transactions with owners: |
|
|
|
|
|
|
|
Dividends |
6 |
- |
- |
- |
(20.3) |
(20.3) |
|
Purchase of own shares |
|
- |
- |
- |
(14.3) |
(14.3) |
|
Share-based payments |
15 |
- |
- |
- |
4.2 |
4.2 |
|
Tax relating to share-based payments |
|
- |
- |
- |
1.8 |
1.8 |
|
Issue of shares |
|
0.3 |
0.6 |
- |
- |
0.9 |
|
Cancellation of shares |
|
(1.0) |
- |
1.0 |
- |
- |
|
At 30 June 2026 |
|
50.4 |
2.2 |
138.7 |
(56.1) |
135.2 |
Consolidated statement of cash flows
for the year ended 30 June 2026
|
|
Notes |
2026 £m |
2025 £m |
|
Cash flows from operating activities |
|
|
|
|
Profit for the year |
|
41.2 |
33.6 |
|
Adjustments for: |
|
|
|
|
Income tax expense |
5 |
13.8 |
10.5 |
|
Net finance income |
4 |
(6.4) |
(4.4) |
|
Profit before finance costs and taxation |
|
48.6 |
39.7 |
|
Depreciation, amortisation and impairment of non-current assets |
|
25.5 |
24.4 |
|
Share-based payments |
15 |
4.2 |
3.4 |
|
Net cash generated from operations before changes in working capital |
|
78.3 |
67.5 |
|
Increase in trade and other receivables |
11 |
(17.1) |
(14.3) |
|
Decrease in trade and other payables |
13 |
(2.0) |
(12.2) |
|
Increase in provisions |
14 |
15.3 |
12.4 |
|
Net cash generated from operations |
|
74.5 |
53.4 |
|
Interest received |
|
9.9 |
8.9 |
|
Interest paid |
|
(3.5) |
(4.5) |
|
Income tax received |
|
1.1 |
7.9 |
|
Net cash generated from operating activities |
|
82.0 |
65.7 |
|
Cash flows from investing activities |
|
|
|
|
Decrease/(increase) in amounts due from joint ventures |
|
4.7 |
(6.1) |
|
PPP loan repayments |
10 |
1.0 |
1.3 |
|
Acquisition of business combinations, net of cash acquired |
17 |
(8.1) |
- |
|
Proceeds from disposal of subsidiary undertakings |
|
- |
1.9 |
|
Acquisition of property, plant and equipment |
|
(1.2) |
(2.4) |
|
Net cash used in investing activities |
|
(3.6) |
(5.3) |
|
Cash flows from financing activities |
|
|
|
|
Repayment of lease liabilities |
|
(23.3) |
(21.2) |
|
Purchase of own shares |
|
(14.3) |
(12.3) |
|
Dividends paid to Company shareholders |
6 |
(20.3) |
(17.5) |
|
Net proceeds from issue of ordinary share capital |
|
0.9 |
1.2 |
|
Net cash used in financing activities |
|
(57.0) |
(49.8) |
|
Net increase in cash and cash equivalents |
|
21.4 |
10.6 |
|
Cash and cash equivalents at 1 July |
12 |
237.6 |
227.0 |
|
Cash and cash equivalents at 30 June |
12 |
259.0 |
237.6 |
Notes to the financial statements
1 Basis of preparation
The financial information set out in this preliminary announcement does not constitute Galliford Try Holdings plc's statutory accounts for the years ended 30 June 2026 and 30 June 2025. Statutory accounts for the year ended 30 June 2026 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The Auditor has reported on those accounts; their report was unqualified, did not draw attention by way of emphasis, and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006. The Board approved the Statutory accounts for the year ended 30 June 2026 on 17 September 2026.
Statutory accounts for the year ended 30 June 2025 have been delivered to the Registrar of Companies. The Auditor has reported on those accounts; their report was unqualified, did not draw attention by way of emphasis, and did not contain a statement under Section 498 (2) or (3) of the Companies Act 2006.
In preparing the consolidated financial statements the directors have considered the risks and potential impact of climate change to the Group. It is unlikely that these risks will have a material financial impact in the short and medium term, particularly given the nature of the contractual arrangements in place, however the directors continue to monitor this, particularly regarding any judgements on construction contracts, impairment reviews and going concern.
Galliford Try Holdings plc (the Company) is a public limited company incorporated, listed and domiciled in the UK, and registered under the laws of England and Wales. The address of the registered office is 3 Frayswater Place, Cowley, Uxbridge, UB8 2AD. The Company has its listing on the London Stock Exchange.
The financial information contained in this results announcement has been prepared on the basis of the accounting policies set out in the statutory statements for the year ended 30 June 2025 and 2026. Whilst the financial information included in this announcement has been prepared in accordance with UK-adopted International Accounting Standards and with the requirements of the Companies Act 2006, this announcement does not itself contain sufficient disclosures to comply with IFRS.
Going concern
The consolidated and Company financial statements have been prepared on a going concern basis.
As at 30 June 2026, the Group had substantial cash balances, no drawn loan facilities, no defined benefit pension liabilities and a strong forward secured order book. The directors regularly review the working capital requirements of the Group while considering downside sensitivities.
The Group's forecasts have been prepared in the context of the current economic conditions and additionally, the directors have considered a range of downside sensitivities. Even in the severe but plausible downside scenario, the Group is forecast to continue to meet its obligations and remain cash positive for a period of at least 12 months from the date the financial statements are authorised for issue.
After making enquiries and considering the factors and sensitivities outlined above for a range of scenarios, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future being a period of at least 12 months from the date the financial statements are authorised for issue. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.
Accounting policies
The accounting policies applied are consistent with those of the annual financial statements for the year ended 30 June 2025 unless otherwise stated.
2 Segmental reporting
Segmental reporting is presented in the consolidated financial statements in respect of the Group's business segments, which are the primary basis of segmental reporting. The business segmental reporting reflects the Group's management and internal reporting structure. Segmental results include items directly attributable to the segment, as well as those that can be allocated on a reasonable basis. As the Group has no activities outside the UK, segment reporting is not required by geographical region.
The Chief Operating Decision-Makers (CODM) have been identified as the Group's Chief Executive and Chief Financial Officer. The CODM review the Group's internal reporting in order to assess performance and allocate resources. Management has determined the operating segments of the Group to be Building, Infrastructure, Investments and Central (primarily representing central overheads).
The CODM assess the performance of the operating segments based on a measure of adjusted earnings before finance income and costs, amortisation, exceptional items and taxation. This measurement basis excludes the effects of non-recurring expenditure from the operating segments, such as restructuring costs and impairments when the impairment is the result of an isolated, non-recurring event. Interest income and expenditure are included in the result for each operating segment that is reviewed by the CODM. Other information provided to them is measured in a manner consistent with that in the financial statements.
Income statement
|
Year-ended 30 June 2026 |
Building |
Infrastructure £m |
Investments £m |
Central |
Total |
|
Revenue |
951.0 |
971.6 |
8.5 |
- |
1,931.1 |
|
|
|
|
|
|
|
|
Adjusted operating profit/(loss) (note 18) |
33.1 |
34.3 |
(2.2) |
(15.7) |
49.5 |
|
Finance income |
- |
0.2 |
3.7 |
6.0 |
9.9 |
|
Finance costs |
(1.2) |
(1.9) |
- |
(0.4) |
(3.5) |
|
Adjusted profit/(loss) before taxation (note 18) |
31.9 |
32.6 |
1.5 |
(10.1) |
55.9 |
|
Amortisation of intangible assets |
- |
(0.9) |
- |
- |
(0.9) |
|
Profit before tax |
31.9 |
31.7 |
1.5 |
(10.1) |
55.0 |
|
Income tax charge |
|
|
|
|
(13.8) |
|
Profit for the year |
|
|
|
|
41.2 |
|
Year ended 30 June 2025 |
Building |
Infrastructure |
Investments £m |
Central |
Total |
|
Revenue |
964.7 |
902.5 |
8.0 |
- |
1,875.2 |
|
|
|
|
|
|
|
|
Adjusted operating profit/(loss) (note 18) |
28.1 |
27.4 |
(0.4) |
(14.5) |
40.6 |
|
Finance income |
- |
0.2 |
3.6 |
5.1 |
8.9 |
|
Finance costs |
(1.4) |
(2.0) |
(0.1) |
(1.0) |
(4.5) |
|
Adjusted profit/(loss) before taxation (note 18) |
26.7 |
25.6 |
3.1 |
(10.4) |
45.0 |
|
Amortisation of intangible assets |
- |
(0.9) |
- |
- |
(0.9) |
|
Profit before tax |
26.7 |
24.7 |
3.1 |
(10.4) |
44.1 |
|
Income tax charge |
|
|
|
|
(10.5) |
|
Profit for the year |
|
|
|
|
33.6 |
Balance sheet
|
30 June 2026 |
Notes |
Building |
Infrastructure £m |
Investments £m |
Central |
Total |
|
Goodwill and intangible assets |
|
40.0 |
65.2 |
- |
- |
105.2 |
|
Net cash |
12 |
106.4 |
104.6 |
(6.9) |
54.9 |
259.0 |
|
Non reported segmental net liabilities |
|
|
|
|
|
(229.0) |
|
Net assets |
|
|
|
|
|
135.2 |
|
Total Group liabilities |
|
|
|
|
|
(721.4) |
|
Total Group assets |
|
|
|
|
|
856.6 |
|
30 June 2025 |
Notes |
Building |
Infrastructure £m |
Investments £m |
Central |
Total |
|
Goodwill and intangible assets |
|
40.0 |
57.0 |
- |
- |
97.0 |
|
Net cash |
12 |
143.1 |
115.0 |
(7.0) |
(13.5) |
237.6 |
|
Non reported segmental net liabilities |
|
|
|
|
|
(212.5) |
|
Net assets |
|
|
|
|
|
122.1 |
|
Total Group liabilities |
|
|
|
|
|
(711.5) |
|
Total Group assets |
|
|
|
|
|
833.6 |
3 Revenue
Nature of revenue streams
(i) Building and Infrastructure segments
Our Construction business operates nationwide, working with clients predominantly in the public and regulated sectors. Projects include the construction of assets (with services including design and build, construction only and refurbishment) in addition to the maintenance, renewal, upgrading and managing of services across utility and infrastructure assets.
|
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
|
Fixed price |
A number of projects within these segments are undertaken using fixed-price contracts. Contracts are typically accounted for as a single performance obligation; even when a contract (or multiple combined contracts) includes both design and build elements, they are considered to form a single performance obligation as the two elements are not distinct in the context of the contract given that each is highly interdependent on the other. The Group typically receives payments from the customer based on a contractual schedule of value that reflects the timing and performance of service delivery. Revenue is recognised over time (the period of construction) based on an input model (reference to costs incurred to date). The Group also recognises revenue over time on the output method based on payments from customers on a contractual schedule of value that reflects the timing and performance of service delivery (reference to milestone reached, units delivered or work certified). Uncertified amounts are presented as contract assets. No significant financing component typically exists in these contracts.
|
|
Cost-reimbursable |
A number of projects within these segments are undertaken using cost-reimbursable/target-price (possibly with a pain/gain share mechanism) contracts. These projects are often delivered under frameworks. Individual performance obligations under the framework are normally determined at a project level, however, projects are combined where appropriate. Where projects are combined, the Group constrains revenue and calculates any pain/gain mechanism at the combined level. The Group typically receives payments from the customer based on actual costs incurred. Revenue is therefore recognised over time (the period of construction) based on an input model (reference to costs incurred to date). Uncertified amounts are presented as contract assets. No significant financing component typically exists in these contracts.
|
|
Facilities management* |
Contracts undertaken within the Building segment that provide full life-cycle solutions to clients, are accounted for as a single performance obligation, with revenue recognised over time and typically on a straight-line basis.
|
* Facilities management represents around 5% of the total Building segment turnover.
(ii) Investments segment
Our Investments business specialises in managing construction through to operations for major building projects through public private partnerships and co-development opportunities. The business leads bid consortia and arranges finance, as well as making debt and equity investments (which are recycled).
|
Revenue stream |
Nature, timing of satisfaction of performance obligations and significant payment terms |
|
Investments |
The Group has investments in a number of Public-Private Partnerships (PPP) Special Purpose Vehicles (SPVs), delivering major building and infrastructure projects. Development fees and land sales on co-development private rental schemes represent a performance obligation that is recognised at a point in time when control is deemed to pass to the customer (on financial close). The business additionally provides management services and project manages developments under Management Service Agreements (MSA) or separate development arrangements. Revenue for these services is typically recognised over time as and when the service is delivered to the customer.
|
Disaggregation of revenue
The Group considers the split of revenue by operating segment to be the most appropriate disaggregation. All revenue in the year has been derived from performance obligations settled over time (2025: all revenue over time).
Revenue on existing contracts, where performance obligations are unsatisfied or partially unsatisfied at the balance sheet date, is expected to be recognised as follows:
|
Revenue - year ended 30 June 2026 |
2027 |
2028 |
2029 onwards £m |
Total |
|
Building |
723.3 |
218.4 |
57.6 |
999.3 |
|
Infrastructure |
629.1 |
237.3 |
34.5 |
900.9 |
|
Total Construction |
1,352.4 |
455.7 |
92.1 |
1,900.2 |
|
|
|
|
|
|
|
Investments |
2.7 |
2.3 |
23.6 |
28.6 |
|
Total transaction price allocated to performance obligations yet to be satisfied |
1,355.1 |
458.0 |
115.7 |
1,928.8 |
|
Revenue - year ended 30 June 2025 |
2026 |
2027 |
2028 onwards £m |
Total |
|
Building |
736.6 |
180.1 |
56.4 |
973.1 |
|
Infrastructure |
500.3 |
176.3 |
52.4 |
729.0 |
|
Total Construction |
1,236.9 |
356.4 |
108.8 |
1,702.1 |
|
|
|
|
|
|
|
Investments |
3.1 |
2.7 |
24.4 |
30.2 |
|
Total transaction price allocated to performance obligations yet to be satisfied |
1,240.0 |
359.1 |
133.2 |
1,732.3 |
Any element of variable consideration is estimated at a value that is highly probable not to result in a significant reversal in the cumulative revenue recognised.
4 Net finance income
|
|
2026 |
2025 |
|
Finance income on bank deposits |
6.1 |
5.2 |
|
Finance income from PPP Investments and joint ventures |
3.8 |
3.7 |
|
Finance income |
9.9 |
8.9 |
|
|
|
|
|
Finance costs on lease liabilities |
(3.3) |
(3.5) |
|
Other finance costs |
(0.2) |
(1.0) |
|
Finance costs |
(3.5) |
(4.5) |
|
|
|
|
|
Net finance income |
6.4 |
4.4 |
5 Income tax charge
|
|
2026 |
2025 |
|
Analysis of expense in year |
|
|
|
Current year's income tax |
|
|
|
Current tax |
7.3 |
4.6 |
|
Deferred tax |
6.4 |
6.2 |
|
Adjustments in respect of prior years |
|
|
|
Current tax |
0.5 |
- |
|
Deferred tax |
(0.4) |
(0.3) |
|
Income tax expense |
13.8 |
10.5 |
6 Dividends
|
|
2026 |
2025 |
||
|
£m |
pence per share |
£m |
pence per share |
|
|
Previous year final |
13.8 |
13.5 |
11.9 |
11.5 |
|
Current year interim |
6.5 |
6.5 |
5.6 |
5.5 |
|
Dividend recognised in the year |
20.3 |
20.0 |
17.5 |
17.0 |
The following dividends were declared by the Company in respect of each accounting period presented:
|
|
2026 |
2025 |
||
|
£m |
pence per share |
£m |
pence per share |
|
|
Interim |
6.5 |
6.5 |
5.6 |
5.5 |
|
Final |
17.1 |
17.0 |
13.8 |
13.5 |
|
Dividend relating to the year |
23.6 |
23.5 |
19.4 |
19.0 |
The directors are proposing a final dividend in respect of the financial year ended 30 June 2026 of 17.0 pence per share (2025: 13.5 pence per share), bringing the total dividend in respect of 2026 to 23.5 pence per share (2025: 19.0 pence per share). The final dividend will absorb approximately £17.1m (2025: £13.8m) of equity. Subject to shareholders' approval at the AGM to be held on 12 November 2026, the dividend will be paid on 4 December 2026 to shareholders who are on the register of members at the close of business on 6 November 2026.
7 Earnings per share
Basic and diluted earnings per share (EPS)
Basic EPS is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year, excluding those held by the Galliford Try Employee Share Trust, which are treated as cancelled.
Under normal circumstances, the average number of shares is diluted by reference to the average number of potential ordinary shares held under option in the year. The dilutive effect amounts to the number of ordinary shares which would be purchased using the aggregate difference in value between the market value of shares and the share option price. Only shares that have met their cumulative performance criteria are included in the dilution calculation. The Group has two classes of potentially dilutive ordinary shares: those share options granted to employees where the exercise price is less than the average market price of the Company's ordinary shares during the year and the contingently issuable shares under the Group's long-term incentive plans. A loss per share cannot be reduced through dilution, hence this dilution is only applied where the Group has reported a profit.
The earnings and weighted average number of shares used in the calculations are set out below.
|
|
2026 |
2025 |
||||
|
Earnings |
Weighted average number of shares |
Per share amount pence |
Earnings |
Weighted average number of shares |
Per share amount pence |
|
|
Basic EPS |
|
|
|
|
|
|
|
Earnings attributable to ordinary shareholders |
41.2 |
98,876,195 |
41.7 |
33.6 |
99,627,362 |
33.7 |
|
Basic EPS - Adjusted (note 18)1 |
|
|
|
|
|
|
|
Adjusted earnings attributable to ordinary shareholders |
41.9 |
98,876,195 |
42.4 |
34.3 |
99,627,362 |
34.4 |
|
Effect of dilutive securities: |
|
|
|
|
|
|
|
Options |
n/a |
4,392,345 |
n/a |
n/a |
4,668,120 |
n/a |
|
Diluted EPS |
41.2 |
103,268,540 |
39.9 |
33.6 |
104,295,482 |
32.2 |
|
Diluted EPS - Adjusted (note 18)1 |
41.9 |
103,268,540 |
40.6 |
34.3 |
104,295,482 |
32.9 |
1 Adjusted EPS -The adjusted measure excludes the amortisation of acquired intangible assets. Refer to note 18 for further details.
8 Goodwill
|
|
Notes |
£m |
|
Cost |
|
|
|
At 1 July 2024 and 30 June 2025 |
|
93.6 |
|
Additions |
17 |
8.1 |
|
At 30 June 2026 |
|
101.7 |
|
|
|
|
|
Accumulated impairment loss |
|
|
|
At 1 July 2024, 30 June 2025 and 30 June 2026 |
|
- |
|
|
|
|
|
Net book amount |
|
|
|
At 30 June 2026 |
|
101.7 |
|
At 30 June 2025 |
|
93.6 |
|
At 30 June 2024 |
|
93.6 |
Goodwill is allocated to the Group's CGUs identified according to business segment. The goodwill is attributable to the following business segments:
|
|
2026 |
2025 |
|
Building |
40.0 |
40.0 |
|
Infrastructure |
61.7 |
53.6 |
|
|
101.7 |
93.6 |
Impairment review of goodwill and key assumptions
Goodwill is tested for impairment at least annually. The recoverable amount of a CGU is determined based on value in use calculations. These calculations use pre-tax cash flow projections based on future financial budgets approved by the Board, based on past performance and its expectation of market developments. The key assumptions within these budgets relate to revenue and the future profit margin achievable, in line with our strategy and targets as set out in the Strategic report. Future budgeted revenue is based on management's knowledge of actual results from prior years and latest forecasts for the current year, along with the existing secured works and management's expectation of the future level of work available within the market sector. In establishing future profit margins, the margins currently being achieved are considered in conjunction with expected inflation rates in each revenue and cost category.
The Building and Infrastructure CGUs are not sensitive to changes in key assumptions and management does not consider that any reasonable possible change in any single assumption or combination of reasonable possible changes in assumptions would give rise to an impairment of the carrying value of goodwill and intangibles.
9 Leases
This note provides information for leases where the Group is a lessee.
Right-of-use assets
|
Cost |
Land and buildings |
Plant and machinery £m |
Motor vehicles |
Total |
|
At 30 June 2025 |
19.1 |
16.0 |
56.6 |
91.7 |
|
At 30 June 2026 |
18.4 |
13.1 |
61.9 |
93.4 |
|
|
|
|
|
|
|
Accumulated depreciation |
|
|
|
|
|
At 30 June 2025 |
(6.7) |
(8.4) |
(25.5) |
(40.6) |
|
At 30 June 2026 |
(8.5) |
(6.1) |
(33.5) |
(48.1) |
|
|
|
|
|
|
|
Net book amount |
|
|
|
|
|
At 30 June 2026 |
9.9 |
7.0 |
28.4 |
45.3 |
|
At 30 June 2025 |
12.4 |
7.6 |
31.1 |
51.1 |
Additions to the right-of-use assets during the 2026 financial year were £17.3m (2025: £23.9m).
Lease liabilities
|
|
2026 |
2025 |
|
Current |
22.5 |
22.7 |
|
Non-current |
25.3 |
31.1 |
|
Total lease liabilities |
47.8 |
53.8 |
10 PPP and other investments
|
|
2026 |
2025 |
|
At 1 July |
38.6 |
41.8 |
|
Disposals and subordinated loan repayments |
(1.0) |
(1.3) |
|
Movement in fair value |
(0.4) |
(1.9) |
|
At 30 June |
37.2 |
38.6 |
These comprise debt and equity investments in PPP/PFI investments (joint ventures and associates) over which the Group has significant influence.
The debt element of the investments represents over 99% of the total portfolio balance and is held at fair value. The fair value reflects a blended discount rate of 8.1% (2025: 7.9%). A 0.5% increase/reduction in the discount rate would result in a corresponding decrease/increase in the value of the investments recorded in the balance sheet of approximately £1.3m (2025: £1.3m).
During the year, there were no additions (2025: £nil) to the Group's PPP/PFI investments and subordinated loans of £1.0m (2025: £1.3m) were repaid. Of the total fair value movement in the year of £0.4m (2025: £1.9m), all of it relates to the movement in the fair value of the PPP/PFI investments (2025: £1.9m) and has been recorded through other comprehensive income.
11 Trade and other receivables
|
|
|
|
|
2026 |
2025 |
|
|
Current assets: |
|
|
|
Trade receivables |
72.0 |
47.2 |
|
Less: provision for impairment of receivables |
(0.4) |
(0.4) |
|
Trade receivables - net |
71.6 |
46.8 |
|
Contract assets |
283.6 |
295.9 |
|
Amounts due from joint ventures and associates |
1.8 |
6.9 |
|
Research and development expenditure credits |
5.3 |
5.1 |
|
Other receivables |
14.5 |
9.9 |
|
Prepayments |
21.9 |
24.0 |
|
|
398.7 |
388.6 |
12 Cash and cash equivalents
|
|
|
|
|
2026 |
2025 |
|
|
Cash at bank and in hand and per the statement of cash flows |
259.0 |
237.6 |
Cash at bank above includes £27.8m (2025: £23.0m), being the Group's share of cash held by jointly controlled operations. The Group has no bank borrowings or loans.
13 Trade and other payables
|
|
|
|
|
2026 |
2025 |
|
|
Trade payables |
77.3 |
124.9 |
|
Contract liabilities |
140.7 |
124.7 |
|
Other taxation and social security payable |
50.0 |
48.1 |
|
Other payables |
3.5 |
2.8 |
|
Accruals |
338.1 |
308.6 |
|
|
609.6 |
609.1 |
All payables are unsecured. Retentions will be paid in the normal operating cycle of the Group and are therefore shown as a current liability.
The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.
14 Provisions for other liabilities and charges
|
|
Onerous contracts £m |
Rectification £m |
Total |
|
At 1 July 2024 |
(1.5) |
(34.7) |
(36.2) |
|
Utilised |
0.5 |
11.4 |
11.9 |
|
Released |
- |
1.3 |
1.3 |
|
Additions |
- |
(25.6) |
(25.6) |
|
At 30 June 2025 |
(1.0) |
(47.6) |
(48.6) |
|
Utilised |
0.6 |
2.5 |
3.1 |
|
Released |
0.2 |
12.0 |
12.2 |
|
Additions |
(2.7) |
(27.9) |
(30.6) |
|
At 30 June 2026 |
(2.9) |
(61.0) |
(63.9) |
Onerous contract provisions are made on loss-making contracts the Group is obliged to complete.
Rectification provisions are made for potential claims and defects for remedial works against work completed by the Group, and include provisions for dilapidations on premises the Group occupies.
As at 30 June 2026 £13.1m (2025: £13.1m) of provision related to one contract. The remaining balance of the provision relates to a number of immaterial balances. Due to the level of uncertainty, combination of cost and income variables and timing across the remaining portfolio of contracts, it is impracticable to provide a quantitative analysis of the aggregated judgements that are applied at a portfolio level and therefore management has not given a range of expected outcomes.
Due to the nature of the provisions, the timing of any potential future outflows is uncertain, however they are expected to be utilised within the Group's normal operating cycle, and accordingly are classified as current liabilities. Of the total provisions, £51.9m (2025: £36.0m) is likely to be utilised within 12 months, with the remainder utilised in more than 12 months. The impact of discounting is not material.
The Group regularly engages in contracts with general or defect warranty rectification requirements, typically less than three years. Within the pool of open warranty period contracts, the Group built, as part of a joint operation with two other partners, a single infrastructure scheme under a contract that included various defect warranty obligations, with the longest obligation lasting up to 12 years.
At 30 June 2026, there remained five years (2025: six years) of the longest warranty liability period remaining. This is the only contract the Group has that has a general defect warranty period of this length. The contractual nature of the defect warranty liability and the completion of the scheme are the obligating events and the Group, as part of the joint operation, has remediated items since completion and has other known issues ongoing that will likely result in future cash outflows, though the timing and quantum remain uncertain.
The Group also believes that there will be further unknown but probable cash outflows relating to as yet unknown items as scheduled inspections of various structural elements of the scheme are completed that have a potentially material range of outcomes. The Group has provided £13.1m (2025: £13.1m) against future defect costs and this represents management's best estimate of potential future payments associated with the warranty rectification responsibilities. The provision requires a limited number of significant estimates and assumptions by management, with a significant level of estimation risk as a result arising from the level of defects and associated cost that may arise.
Management estimates the reasonable range of estimates to be between £7.6m and £19.1m at 30 June 2026 (2025: between £7.3m and £19.2m). During the year £0.1m and £nil (2025: £0.1m and £1.3m) of the opening provision of £13.1m (2025: £14.6m) was utilised and released respectively, with additions of £0.1m (2025: £nil) made in the year. Management has sought input from external experienced industry figures and industry bodies to support the provision it has made.
15 Share-based payments
The Group operates performance-related share incentive plans for Executives as well as long term bonus plans for certain employees and a Group wide sharesave schemes. The total charge for the year before tax relating to employee share-based payment plans was £4.2m (2025: £3.4m), all of which related to equity-settled share-based payment transactions.
16 Guarantees and contingent liabilities
The Group has surety bonding facilities and bank guarantees. These are supported by counter indemnities given by the Company and certain subsidiaries in the Group in the normal course of business. Utilisation of the bonding and guarantee facilities totalled £144.1m at 30 June 2026 (2025: £154.9m). It is not expected that any material liabilities will arise.
Disputes arise in the normal course of business, some of which lead to litigation or arbitration procedures. While the outcome of disputes and arbitration is never certain, the directors believe that the resolution of all existing actions will not have a material adverse effect on the Group's financial position.
Where the Group has received such claims, the directors have made provision in the financial statements when they believe it is probable a liability exists and it can be reliably estimated, but no provision has been made where the Group's liability is considered only possible or remote. This is based on the best estimates of future costs to be incurred after assessing all relevant information and taking legal advice where appropriate.
The Group has currently assessed a pool of non-fire safety-related claims that meet the contingent liability threshold for disclosure. These claims are of a similar nature with a collective range of between £nil and £2.2m (2025: £nil and £12.0m). The Group's assessment of liability and estimates of future costs could change in the future. Although the Group has appropriate insurance arrangements in place that should mitigate any significant exposure, the recognition thresholds under IAS 37 would mean a liability could be recognised before a corresponding asset.
The continuing evolution of Government legislation and guidance, such as the Building Safety Act and its implications for cladding solutions used on historical contracts, also creates ongoing uncertainty that the Group manages.
The Group is tracking a pool of three fire safety claims which meet the definition of contingent liabilities under IAS 37. Management do not consider it is practicable to value the pool because of the lack of supporting evidence from the claimants and the length of time it takes for these cases to evolve and for any reliable quantum, if any, to be established. Factors include the complexity of the building projects in question, the many suppliers involved in the supply chain and the potential for reimbursement from subcontractors. The Group believes it has strong legal positions with contractual support on all the cases, however, at this time, it cannot fully rule out that material settlements may result. Should this be the case, management expects there will be recovery from the supply chain, designers or insurers that can be full or partial.
As Government legislation and guidance changes in the future, the Group will reassess the estimates made accordingly.
17 Business combinations
On the 27 February 2026, the Group acquired 100% of the share capital of Nene Valley Fire and Acoustic Limited ("Nene Valley"), an experienced provider in the passive fire protection sector. The addition of Nene Valley will complement the Group's existing active fire protection operations, enabling the enlarged business to offer complete fire safety solutions in-house and access wider market opportunities.
Consideration for the acquisition of Nene Valley was £9.4m, comprising £8.8m settled in cash and an estimated £0.6m payable one year after the completion date, subject to the finalisation of certain procedures in accordance with the conditions of sale. The goodwill of £8.1m arising from the acquisition is primarily attributable to the technical proficiency of the acquired workforce and the strategic opportunities from supplementing this acquired skill base with the Group's existing expertise.
The following table summarises the provisional consideration and fair value of the assets acquired and liabilities assumed.
|
|
£m |
|
Recognised amounts of identifiable assets acquired and liabilities assumed |
|
|
Property plant and equipment (including right-of-use assets) |
0.7 |
|
Intangible assets |
1.0 |
|
Trade and other receivables |
1.7 |
|
Cash and cash equivalents |
0.7 |
|
Trade and other payables |
(1.6) |
|
Corporation tax liability |
(0.3) |
|
Lease liabilities |
(0.6) |
|
Deferred tax liability |
(0.3) |
|
Total identifiable net assets |
1.3 |
|
Goodwill |
8.1 |
|
Total |
9.4 |
|
|
|
|
Consideration |
|
|
Cash paid and deferred |
9.4 |
|
Total |
9.4 |
The acquisition contributed £2.9m of revenue and a profit before tax of £0.4m in the period to 30 June 2026. If the acquisition had taken place at 1 July 2025, it would have contributed an estimated £9.9m of revenue and a profit before tax of £1.4m.
18 Adjusted performance measures
The Group has presented financial performance measures which are used to manage the Group's performance. These financial performance measures are chosen to provide a balanced view of the Group's operations and are considered useful to investors as they provide relevant information on the Group's performance. They are also aligned to measures used internally to assess business performance in the Group's budgeting process and when determining compensation. An explanation of the Group's financial performance measures and appropriate reconciliations to its statutory measures are provided below.
Providing clarity on the Group's adjusted performance measures
The Group has included this note and the enclosed explanations and reconciliations with the aim of providing transparency and clarity on the measures adopted internally to assess performance. The APMs adopted by the Group are also commonly used in the sectors it operates in. This additional information is not defined under international accounting standards and may therefore not be comparable with similarly titled profit measures reported by other companies. It is not intended to be a substitute for, or superior to, international accounting standards measures of profit.
The Board believes that disclosing these performance measures enhances investors' ability to evaluate and assess the underlying financial performance of the Group's operations and the related key business drivers.
Measuring the Group's performance
The following measures are referred to in this announcement:
Statutory measures
Statutory measures are derived from the Group's reported financial statements, which are prepared in accordance with UK adopted International Accounting Standards and in line with the Group's accounting policies.
The Group's statutory measures take into account all of the factors, including exceptional items which are not considered to reflect the ongoing underlying performance of the Group.
Adjusted performance measures
In assessing its performance, the Group has adopted certain non-statutory measures that reflect the underlying performance of the Group. These typically cannot be directly extracted from its financial statements but are reconciled to statutory measures below:
a) Adjusted performance
The Group adjusts for certain significant irregular (exceptional) items which the Board believes assist in understanding the performance achieved by the Group as this reflects the underlying and ongoing performance of the business. A reconciliation of the statutory measure to the adjusted measure is provided in the following tables. The exclusion of exceptional items as well as the amortisation of acquired intangibles seeks to reflect the underlying and ongoing performance of the business with a consistent methodology across all the adjusted performance measures. The adjusting items and associated tax impacts that the Group has recognised are shown below.
|
|
2026 |
2025 |
|
Amortisation of acquired intangible assets |
(0.9) |
(0.9) |
|
Loss before tax |
(0.9) |
(0.9) |
|
|
|
|
|
Associated tax credit on items above |
0.2 |
0.2 |
|
Total |
(0.7) |
(0.7) |
A reconciliation of the statutory measure to the adjusted measure is provided in the following tables.
b) Adjusted operating profit/(loss) and operating margin
The Group presents operating profit excluding exceptional items and the amortisation of acquired intangible assets as this reflects the ongoing performance of the business, which is referred to as adjusted operating profit/(loss). Operating margin reflects the ratio of adjusted operating profit/(loss) and revenue. This differs from the statutory measure of operating profit which includes exceptional items and the amortisation of acquired intangible assets. Divisional adjusted operating margin is the combined adjusted operating margin of the Building and Infrastructure segments.
A reconciliation of the statutory measure to the Group's performance measure is shown below, based on continuing operations:
|
|
Building |
Infrastructure £m |
Investments £m |
Central |
Total |
|
Year ended 30 June 2026 |
|
|
|
|
|
|
Statutory operating profit/(loss) |
33.1 |
33.4 |
(2.2) |
(15.7) |
48.6 |
|
exclude: amortisation of acquired intangible assets |
- |
0.9 |
- |
- |
0.9 |
|
Adjusted operating profit/(loss) |
33.1 |
34.3 |
(2.2) |
(15.7) |
49.5 |
|
|
|
|
|
|
|
|
Revenue |
951.0 |
971.6 |
8.5 |
- |
1,931.1 |
|
|
|
|
|
|
|
|
Adjusted operating margin |
3.5% |
3.5% |
n/a |
n/a |
2.6% |
|
|
|
|
|
|
|
|
Year ended 30 June 2025 |
|
|
|
|
|
|
Statutory operating profit/(loss) |
28.1 |
26.5 |
(0.4) |
(14.5) |
39.7 |
|
exclude: amortisation of acquired intangible assets |
- |
0.9 |
- |
- |
0.9 |
|
Adjusted operating profit/(loss) |
28.1 |
27.4 |
(0.4) |
(14.5) |
40.6 |
|
|
|
|
|
|
|
|
Revenue |
964.7 |
902.5 |
8.0 |
- |
1,875.2 |
|
|
|
|
|
|
|
|
Adjusted operating margin |
2.9% |
3.0% |
n/a |
n/a |
2.2% |
c) Adjusted profit before tax
The Group uses a profit before tax measure which excludes exceptional items and amortisation of acquired intangible assets as noted above, whereas the statutory measure includes both.
A reconciliation of the statutory measure to the Group's performance measure is shown below, based on continuing operations:
|
|
2026 |
2025 £m |
|
Statutory profit before tax |
55.0 |
44.1 |
|
exclude: amortisation of acquired intangible assets |
0.9 |
0.9 |
|
Adjusted profit before tax |
55.9 |
45.0 |
d) Adjusted earnings per share
In line with the Group's measurement of adjusted performance, the Group also presents its earnings per share on the same adjusted basis as adjusted profit before tax. This differs from the statutory measure of earnings per share which includes both exceptional items and amortisation of acquired intangible assets.
A reconciliation of the statutory measure to the Group's performance measure (post-tax) is shown below, based on continuing operations:
|
|
2026 |
2025 |
||||
|
Earnings |
Weighted average number of shares |
EPS |
Earnings |
Weighted average number of shares |
EPS |
|
|
Statutory results |
41.2 |
98,876,195 |
41.7 |
33.6 |
99,627,362 |
33.7 |
|
exclude: amortisation of acquired intangible assets |
0.7 |
n/a |
n/a |
0.7 |
n/a |
n/a |
|
Adjusted earnings per share |
41.9 |
98,876,195 |
42.4 |
34.3 |
99,627,362 |
34.4 |
Adjusted diluted earnings per share is calculated as adjusted earnings per share diluted for dilutive securities of 4,392,345 (2025: 4,668,120) options.
19 Events after the reporting date
On 17 September 2026, the Group announced a further share buyback programme of up to a maximum of £15m, details can be found in the announcement on the Group's investor website.
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