Galliford Try Holdings PLC · LSE:GFRD
Galliford Try — H1 2022 Earnings Presentation
34 slides from Galliford Try's earnings presentation, Mar 3, 2022
Slide 1: Delivering Sustainable Growth
Delivering Sustainable Growth Half year results to 31 December 2021 3 March 2022
Slide 2: Agenda
Agenda Bill Half year results to 31 December 2021 Hocking Highlights Chief Executive Financial review Strategic progress Q&A 2 Lincoln Eastern Bypass
Slide 3: Highlights
Highlights £7.1m Profit before tax1 up 73.2% (HY21: £4.1m) Sustainable Growth Strategy progressing well 2.2% Controlled growth in revenue and profit. Successful integration of nmcn water. Continued momentum across ESG. Divisional operating margin up 0.6 ppt Strong balance sheet and consisten
Slide 4: Financial review
Financial Andrew review Duxbury Finance Director 4 Invercannie Water Treatment Works, Aberdeenshire
Slide 5: Delivering against financial targets
Delivering against £594m Revenue up 9.6% 2.2% Divisional operating margin up 0.6 ppt financial targets (HY21: £542m) (HY21: 1.6%) Strong performance across the Group. £7.1m Profit before tax1 up 73.2% 5.9p Earnings per share1 up 73.5% Improving profitability. (HY21: £4.1m) (HY21: 3.4p) Good pr
Slide 6: Strong operational performance
Continuing operations HY221 HY21 Var Strong Revenue £594m £542m +9.6% Operating profit1 before operational £6.9m £3.9m +76.9% amortisation Profit before tax1 £7.1m £4.1m +73.2% performance Earnings per share1 5.9p 3.4p +73.5% 1 Pre-exceptional items. Exceptional costs of £9.7m related to nmcn acquis
Slide 7: Strong balance sheet
31 Dec 30 June Strong balance Balance sheet £m 2021 2021 sheet Intangible assets & goodwill PPP & other investments 94.0 48.3 82.9 49.1 Other non-current assets 39.8 38.4 Well-capitalised, with balance sheet strength Working capital (252.1) (242.1) driven by consistent net cash assets. IFRS 16 lea
Slide 8: Cash generative
Cash generative Average month-end cash £180m 250 225 £216m £14m £(5)m £3m >£100m Minimum daily cash £(7)m £211m £(10)m 98% 200 £m 175 of invoices paid in 60 days, Operating cash exceeding PPC requirement inflow in the of 95% 150 period £9m 125 Opening net cash Cash from operating Working capital mov
Slide 9: Capital allocation
Capital allocation Prioritising a strong balance sheet Supporting operational Mitigating market Regular and Ongoing review requirement risks sustainable returns of requirements Competitive advantage in Maintain cash reserves to Dividends will grow with Additional shareholder chosen markets,
Slide 10: Improved dividend policy
Improved dividend policy Paying sustainable shareholder returns 2.2p Interim dividend up 83.3% (HY21: 1.2p) Dividend policy driven by strong balance sheet, financial performance and outlook. Improved dividend cover policy to annual dividend covered 2.0x by earnings. Interim dividend declared 2
Slide 11: Strategic progress
Strategic Bill progress Hocking Chief Executive 11 Durham University
Slide 12: Sustainable Growth Strategy
Sustainable Growth Strategy A people-orientated, progressive Deliver excellence for our clients. culture driven by our values. . Clients Health and safety Progressive Quality and culture Strategy innovation Supply chain Our people Deliver high-quality buildings and infrastructure in a socially respo
Slide 13: Delivering Sustainable Growth
Delivering Sustainable Growth Sustainable revenue and margin growth Adjacent markets Disciplined growth in existing markets. Existing markets 2026 Develop Revenue Revenue complementary adjacent market £1.1bn £1.6bn Margin Margin opportunities. 2.0% 3.0% Maintain focus on risk management and co
Slide 14: nmcn acquisition – October 1
Delivering Sustainable Growth nmcn acquisition – October 2021 Acquisition rationale Integration process Growth opportunities Socially responsible Complementary Balance sheet strength Contribute to revenue Continuity of vital geographic fit within enabled quick action. growth and enhancing in
Slide 15: Drivers of market growth
Drivers of market growth Investment in the UK’s social Levelling up agenda Urgency of climate crisis Innovation and productivity and economic infrastructure Examples of funding streams Department for New Hospitals Road Investment Transforming Cities Learning Estate Education Rebuilding Programme Str
Slide 16: Robust £3.4bn order book
Robust £3.4bn order book Order book by client type £364m £692m £510m £3.4bn 95% £247m £2.0bn £1.4bn 3.5 £3.2bn £3.3bn Work secured for FY22 £860m 9% 10% (HY21: 96%). 3.0 19% 87% £381m £359m 2.5 2.0 £bn 1.5 91% 90% Work in frameworks Building Infrastructure 81% 1.0 (HY21: 87%). order book order book
Slide 17: Focused risk management
Focused risk management Assessing and managing risks and uncertainties is the central element of our process and business strategy Robust review and approval Board approval required for Technical, commercial and Contract selection pre-contract all bids over £25m or other financial parameters applied
Slide 18: Focused risk management
Focused risk management Effectively managing inflation; no overall impact on trading or targets Strong financial Bidding processes Project management Disciplined culture position Appropriate risk Matrices of key Strong culture focused Strong cash position. allowances in all tenders. material
Slide 19: Sustainable Growth Strategy
Sustainable Growth Strategy Accident Frequency Rate Repeat business 0.07 93% Early careers as % of all staff Construction News Award Progressive Quality and Strategy for 6.2% culture innovation Best Use of Tech Deliver high-quality buildings and infrastructure in a socially responsible way and provi
Slide 20: People-orientated, progressive culture
205 trainees, apprentices and 3,300 talented Focus on graduates and passionate inclusion -10.7% gender pay gap in employees People-orientated, early careers GT Academy Six nominees for Ex-Forces Awards Investment in progressive culture L&D Strategy in action Planned succession Gold Award through Ext
Slide 21: Socially responsible delivery
Socially responsible delivery Strategy in action Developed carbon e-learning for all staff. Carbon reduction on site Adopted automated carbon calculator Converted piling rigs to use HVO across the full project life cycle. (Hydrotreated Vegetable Oil). Appointed Low Carbon Manager. • Anticipate sav
Slide 22: Quality & Innovation
Quality & Innovation Strategy in action We are using technology across the whole life cycle of our projects. Dalux BIM Viewer is enhancing site collaboration and efficiency bringing 3D models to the core of our construction activities. Field View ensures our teams are more productive by spending mor
Slide 23: Resulting in sustainable financial performance
Resulting in sustainable financial performance Objective 2026 target Progress Divisional operating margin growth Focus on bottom line margin growth. Margin increased to 2.2%. to 3.0%. Disciplined contract selection and Revenue growth towards £1.6bn. HY22 revenue up 10%. sustainable revenue growth. M
Slide 24: Summary
Summary Confident in our Sustainable Growth Strategy Strong foundations; resilient operations. Momentum with Sustainable Growth Strategy. Strong balance sheet and consistently robust cash position. Well positioned in chosen markets; continued pipeline and strong order book. Improving profi
Slide 25: Questions & answers
Questions & answers Carronflats Sewer Scheme, Grangemouth 25
Slide 26: Appendices
Appendices 1. Sustainable Growth Strategy 2. Sustainability commitments 3. Segmental analysis 4. PPP Investments valuation 5. Supply chain payment 6. Forward order book 7. Contract types 26
Slide 27: Appendices: Sustainable Growth Strategy
Appendices 1. Sustainable Growth Strategy A people-orientated, progressive Deliver excellence for our clients. culture driven by our values. . Clients: Delivering lower carbon, superior buildings and Health and safety: Prioritising infrastructure with a better social health, safety and wellbeing and
Slide 28: Appendices: Sustainability commitments
Appendices 2. Sustainability commitments Strategic priorities Sustainability pillars 2026 ambition Accident Frequency Rate No harm Health and safety Lost Time Incident Rate No harm Progressive culture Early careers as a % of total employees YoY increase Our people Women as a % of total employees YoY
Slide 29: Appendices: Segmental analysis
£m HY22 HY21 Var Revenue 594.0 541.7 +9.7% Appendices Building Infrastructure 386.2 204.4 374.5 164.1 +3.1% +24.6% 3. Segmental analysis PPP Investments 3.4 3.1 +9.7% HY22 HY21 Var Operating profit1 (£m) 6.9 3.9 + 3.0m Building 8.4 6.0 + 2.4m Infrastructure 4.3 2.4 + 1.9m PPP Investments (0.5) (0.7)
Slide 30: PPP Investments valuation
Appendices PPP Investments valuation 4. PPP Investments 55 valuation £52m 50 £48m £44m Valuation £m 45 40 35 30 6% 7% 8% Discount rate % 30
Slide 31: Appendices: Supply chain payment
Appendices Average days Invoices paid Invoices paid in 5. Supply chain 6 months to 31 Dec 21 to pay to terms 60 days payment Galliford Try Construction Ltd 28 92% 98% Compared to 31 Dec 2020 (13) +5% +6% Galliford Try Infrastructure Ltd 21 94% 98% Compared to 31 Dec 2020 (14) +5% +6% 31
Slide 32: Forward order book distribution – Building
Appendices Forward order book distribution – Building (excluding FM) 6. Forward order 60 book 50 40 Number of contracts <£20m average contract 30 size. 20 10 0 Contract size 32
Slide 33: Appendices: Contract types
Appendices Where an overall target contract value is agreed with the client, 7. Contract types Target cost/cost including margin, risk and inflation contingencies, and the actual cost of the work plus agreed fee is paid by the client. Any cost savings or reimbursable overspends against the target ar
Slide 34: Disclaimer
Disclaimer This document contains statements that are, or may be deemed to be, implied in any forward-looking statements in this document will actually “forward-looking statements” which are prospective in nature. These occur. You are cautioned not to place undue reliance on these forward- forward-l
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