Record half-year earnings for Galliford Try

Building group Galliford Try has hailed a record half-year profit for the six months to end-2015, and said it is 'encouraged' by the start to the second half.

Ken Gillespie is to retire from Galliford Try next year. Picture: Ian Rutherford

Pre-tax profit grew by 24 per cent from the prior period to £52.9 million, while revenue jumped by 12 per cent to £1.26 billion.

Chief operating officer Ken Gillespie told The Scotsman that the results are “very much in line with” its 2018 strategy of disciplined growth and dividend progression. The firm plans to pay out an interim dividend of 26p, up by 18 per cent on a year earlier.

Gillespie also noted that revenue from its construction business grew 22 per cent in the half-year period, to £738.6m, and he said that level of increase is “pretty much replicated in Scotland”.

He added that north of the Border, and on an annualised basis, the business is likely to “be doing over £400m per annum”.

He said that “in the context that a couple of years ago we were doing £250m” this shows the progress of its Scottish building contractor business in Morrison Construction.

Galliford Try, which owns Linden Homes, acquired Miller Construction in July 2014, leading to the group further growing its market share north of the Border.

Gillespie reiterated the company’s position that while its 2018 strategy “is for organic, disciplined growth… if the right opportunity came along, we’d look at it.”

He also highlighted his plans to retire from the group in February 2017, with Bill Hocking to become chief executive of construction and investments from August this year.

“I expect the business to continue to go from strength to strength under Bill,” Gillespie said.