Galliford Try Holdings Plc · LSE:GFRD
Galliford Try — FY2024 Earnings Presentation
37 slides from Galliford Try's earnings presentation, Oct 3, 2024
Slide 1: Sustainable Growth
Sustainable Growth Full year results to 30 June 2024 3 October 2024
Slide 2: Agenda
Agenda Bill Hocking Full year results to 30 June 2024 Highlights Chief Executive Financial review Sustainable Growth Q&A 2
Slide 3: Strong start to 2030 strategy
Strong start to 2030 strategy £1.8bn 2.5% £32.7m Revenue UP 27% Divisional operating UP 13 BPS Profit before tax1 UP 40% (FY23: £1.4bn) margin1 (FY23: 2.4%) (FY23: £23.4m) Increased revenue, margin and PBT 27.9p UP 48% 15.5p UP 48% £155m UP 15% £10m £3.8bn UP 3% EPS1 Dividend Average Share buyback O
Slide 4: Financial review
Financial Kris review Hampson Chief Financial Officer Wallyford Learning Campus, East Lothian 4
Slide 5: Strong performance
Strong performance FY24 FY23 Var Revenue (£m) 1,772.8 1,393.7 +27.2% ▪ Strong revenue growth in all businesses. Operating profit before 29.6 21.9 +35.2% amortisation1 (£m) ▪ High-quality order book/contract portfolio driving improved operating Profit before tax1 (£m) 32.7 23.4 +39.7% margins and str
Slide 6: Segmental analysis
Segmental analysis FY24 FY23 Var Revenue (£m) 1,772.8 1,393.7 +27.2% Building 938.3 797.1 +17.7% Infrastructure 819.8 590.8 +38.8% Investments 14.7 5.8 +153.4% ▪ Strong revenue growth across all business segments. FY241 FY23 Var • Building – strong, consistent demand. Operating profit /(loss)1 (£m)
Slide 7: Increasing operating profit
Increasing operating profit Operating profit bridge 2.2 0.4 29.6 30.0 8.7 25.0 21.9 20.0 18.3 (3.6) 15.0 10.0 5.0 0.0 FY23 JV disposal FY23 excluding Volume Operating AVRS acquisition FY24 JV disposal margin Stated before exceptional items of £2.6m (FY23: £10.5m) related to digital investment. FY23
Slide 8: Strong balance sheet
Strong balance sheet Balance sheet £m 30 June 2024 30 June 2023 Intangible assets & goodwill 97.9 98.3 PPP & other investments 41.8 44.6 ▪ Growing net asset base. Other non-current assets 71.7 61.3 ▪ Continued balance sheet strength driven by Working capital (274.6) (268.5) net cash (up 3.1%) and PP
Slide 9: Robust cash performance
Robust cash performance Average month-end cash £155m 280 260 240 33 7 3 (3) 96% of invoices paid in 60 days, 2 227 220 (29) (2) exceeding PPC requirement 220 (4) of 95% £m 200 180 160 26 average days to pay 140 120 Opening net Cash from Working Interest Exceptional Dividend & Other share Acquisition
Slide 10: How we allocate capital
How we allocate capital Prioritising a strong balance sheet Strong balance sheet to support operations ▪ Competitive advantage. ▪ Supports disciplined approach to project selection. ▪ Gives confidence to clients and supply chain. ▪ Mitigates against any adverse market conditions. Average month-end c
Slide 11: Consistent delivery TSR 144%
Consistent delivery TSR 144% Fourth year of sequential growth From 1 July 2020 to 30 June 2024 ▪ Excellent start to new strategy period, Positive earnings momentum building on the robust foundations of the Consistent and profitable growth since 2020 demerger business. ▪ Dividend growing in line with
Slide 12: Sustainable Growth
Sustainable Bill Growth Hocking Chief Executive Modern Methods of Construction at Brent Cross Town Regeneration 12
Slide 13: Our engine for Sustainable Growth
Our engine for Focused risk Sustainable Growth management An embedded culture of discipline and risk awareness Assessing and managing risks and uncertainties is the that drives a high-quality order book and selective central element of our process and business strategy bidding Board approval Robust
Slide 14: Strategy to 2030
Strategy to 2030 Grow our Grow revenue and Leverage our Continue to specialist Re-enter the margin in our geographical and generate growing businesses Affordable three core client footprint shareholder in higher margin, Homes market businesses across the UK returns adjacent markets 14
Slide 15: Sustainable Growth to 2030
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Slide 16: Drivers of revenue growth
Drivers of revenue growth Ageing social Growing Climate and economic population change infrastructure Leading position Expansion into in frameworks adjacent markets and sectors 16
Slide 17: Drivers of margin growth
Drivers of margin growth Digital tools and Increasing Maturing client Quality right first- processes to drive capabilities in procurement and time; reducing time quality, efficiency higher-margin sector attitudes and cost of rework and carbon savings adjacent markets Robust risk management; Modern M
Slide 18: Winning work based on quality over cost
Winning work based on quality over cost Order book procurement route Example of scoring criteria Management 20% 1% 20% Project delivery 19% 48% 43% Health, Safety and Environment 6% Quality 9% 80% 8% Sustainability and carbon 8% Social value 8% Single-stage Two-stage Scoring criteria Negotiated Targ
Slide 19: High-quality £3.8bn order book
High-quality £3.8bn order book £483m £329m Order book by client type 93% Repeat clients for £641m £3.7bn £3.8bn £87m £2.3bn £437m £1.5bn FY24 £905m £3.4bn 9% £324m 13% 9% 92% £634m Building Infrastructure Work secured for 91% order book order book 91% 87% FY25 Custodial Environment Defence Highways
Slide 20: Frameworks provide long-term visibility
Frameworks provide long-term visibility 2024 2025 2026 2027 2028 2029 2030 Highways Midlands Highways Alliance + Midlands Highways Alliance + YORcivil 3 National Highways RDP National Highways IDF National Highways Pavement Delivery Framework National Highways Scheme Delivery Framework Environment A
Slide 21: Frameworks provide long-term visibility
Frameworks provide long-term visibility 20 54 21 water frameworks 13 Design & Build Capital Maintenance Water Technologies 13/13 We are working with all 13 of the UK’s major water and sewerage companies 21
Slide 22: Contract wins
Contract wins Building Infrastructure Specialist Services £72m remodelling/refurbishment United Utilities Security Enhancement of Adelaide House in London. £88m contract to complete the Framework. £87m build to rent development at South East Aylesbury Link Road. NHS SBS Security Services. Brent Cros
Slide 23: Strategy to 2030 progress
Strategy to 2030 Excellent progress at strategy start period Grow revenue Grow our Re-enter Leverage our Continue to and margin specialist the geographical generate in our businesses Affordable and client growing three core in higher margin, Homes footprint across shareholder businesses adjacent mar
Slide 24: ESG
ESG Supporting our growth strategy Environment: carbon | biodiversity | resources reduction in Scope 1 and Net zero by 2030 within 71% 2 carbon emissions since 2012* 93% of our company car fleet is electric/plug-in hybrid 17.7 tonnes of waste per £100,000 of revenue 2030 our operations and by 2045 a
Slide 25: Summary
A compelling Summary investment High-quality business operating in robust markets generating growing returns ▪ Excellent start to new strategy period and strong Robust market Rigorous risk trading in new financial year. opportunity management ▪ Confident outlook, supported by high-quality order Exce
Slide 26: Questions
Questions Bill Hocking Chief Executive Kris Hampson Chief Financial Officer 26
Slide 27: Appendices
Appendices 1. A platform for sustainable growth 2. Sustainable Growth Strategy 3. Sustainable Growth Strategy targets 4. Our sustainability commitments 5. A destination employer 6. Why we target frameworks 7. Forward order book 8. Contract types 9. PPP Investments valuation 27
Slide 28: A platform for sustainable growth
Appendices 1. A platform for sustainable growth 2024-2030 2016-2020 2020-2021 2021-2026 STRATEGY TO RETAIN, TRANSITIONAL SUSTAINABLE 2030 IMPROVE, YEAR GROWTH DELIVER STRATEGY Revenue: >£2.2bn Focus on culture and Establishing GT as a Controlled margin embedding best leading standalone and revenue D
Slide 29: Sustainable Growth Strategy
Appendices 2. Sustainable Growth Strategy A people-orientated, progressive Deliver excellence for our clients. culture driven by our values. . Clients: Delivering lower carbon, superior buildings and infrastructure Health and safety: Prioritising with a better social footprint for clients health, sa
Slide 30: Sustainable Growth Strategy targets
Appendices 3. Sustainable Growth Strategy targets 2030 target Revenue >£2.2bn Divisional operating margin1 4.0% Cash Operating cash generation Dividend 1.8x covered by earnings 30
Slide 31: Our sustainability commitments
Appendices 4. Our sustainability commitments Strategic Sustainability FY23 FY24 Ambition priorities pillars Health and Lost Time Frequency Rate 0.20 0.14 No harm safety Accident Frequency Rate 0.09 0.04 No harm Progressive culture Early careers1 as a % of total employees 10.0% 10.2% >9.0% Our people
Slide 32: A destination employer
Appendices 5. A destination employer 4,200 87% Employees in our business Employee advocacy score No1 11.4% Construction & civil engineering employer Churn for apprentices and No2 for graduates 32
Slide 33: Why we target frameworks
Appendices 6. Why we target frameworks Improved risk and favourable outcomes ▪ Improved risk allocation: • Established and well-understood terms and 86% Work in frameworks conditions. (FY23: 82%). • Long-term client relationships. • Predictable behaviours. • Certainty in tendering and typically redu
Slide 34: Forward order book
Appendices 7. Forward order book Forward order book distribution – Building (excluding FM) 50 45 40 ▪ <£20m average contract 35 size. Number of contracts 30 25 20 15 10 5 0 Contract size 34
Slide 35: Contract types
Appendices 8. Contract types Target cost/cost Where an overall target contract value is agreed with the client, reimbursable 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 overspends against the target ar
Slide 36: PPP Investments valuation
Appendices 9. PPP Investments PPP Investments valuation valuation 45 £43.3m £41.8m £40.3m Valuation £m 40 35 7.1% 7.6% 8.1% Discount rate % 36
Slide 37: Disclaimer
Disclaimer This document contains statements that are, or may be deemed to be, statements in this document will actually occur. You are cautioned not to place “forward-looking statements” which are prospective in nature. These forward- undue reliance on these forward-looking statements which only sp
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