Galliford Try Holdings Plc · LSE:GFRD
Galliford Try — FY2021 Earnings Presentation
34 slides from Galliford Try's earnings presentation, Sep 16, 2021
Slide 1: Sustainable Growth
Sustainable Growth Full year results to 30 June 2021 16 September 2021
Slide 2: Agenda
Agenda Bill Full year results to 30 June 2021 Hocking Chief Executive Highlights Financial review Strategy update: Sustainable Growth Q&A A52 improvements, Derby 2
Slide 3: Highlights
Highlights £11.4m Profit before tax (FY20: pre-exceptional loss £59.7m) 2.0% Established our platform for growth. ▪ Excellent culture; aligned teams. ▪ Strong foundations of risk management and contract discipline. Divisional operating margin (FY20: pre-exceptional loss 5.0%) Performance ahead of ta
Slide 4: Financial review
Financial Andrew review Duxbury Finance Director Barony Campus, Cumnock 4
Slide 5: FY21 ahead of expectations
FY21 ahead of £1,125m Revenue 2.0% Divisional operating margin expectations (FY20: pre-exceptional £1,090m) (FY20: pre-exceptional loss 5.0%) ▪ Strong performance. £11.4m Profit before tax 9.5p Earnings per share ▪ Improved profitability; ahead of (FY20: pre-exceptional loss (FY20: pre-exceptional l
Slide 6: Segmental analysis
Segmental analysis Revenue (£m) FY21 1,124.8 FY201 1,089.6 Var +3% Improved profit performance Building 789.2 719.9 +10% Infrastructure 329.2 357.1 (8)% PPP Investments 6.4 8.2 n/a ▪ Revenue largely unaffected by Covid-19. FY21 FY201 Var Operating profit /(loss) 2(£m) 10.1 (62.2) +72.3 ▪ Some delay
Slide 7: Strong balance sheet
Strong balance 30 June 30 June Balance sheet £m 2021 2020 sheet Intangible assets & goodwill PPP & other investments 82.9 49.1 85.0 40.7 Other non-current assets 38.4 32.1 Working capital ▪ Well-capitalised, with continued balance Working capital (242.1) (211.3) sheet strength driven by growth in ne
Slide 8: Cash generative
Cash generative Average month-end cash £164m; operating cash inflow £48m 275 £7m 250 £26m 225 £22m (£9m) £216m £164m Average cash (£27m) £197m £m 200 175 Operating cash inflow in the period £48m c£100m Minimum daily cash 150 125 Opening net Cash from Working capital Interest Other Discontinued Closi
Slide 9: Prioritising supply chain relationships
Invoices Prioritising Average Invoices paid days not paid within supply chain 6 months to 30 June 2021 to pay to terms 60 days Galliford Try1 36 11% 95% relationships Compared to 30 June 2020 39 17% 89% 1 Legal entities required to report :Galliford Try Construction Ltd, Galliford Try Infrastructure
Slide 10: Sustainable dividends
Sustainable dividends 4.7p Dividend per share (FY20: nil) 2.0x ▪ Capital allocation. • Support sustainable growth and strategic opportunities. 1 • Maintain strong balance sheet. • Pay sustainable dividends. Dividend cover (FY20: n/a) ▪ Final dividend declared. • Excellent financial performance. 2.0
Slide 11: Strategy update: Sustainable Growth
Strategy update: Bill Sustainable Hocking Growth Chief Executive A5630 Anstey Road 11
Slide 12: Sustainable Growth
Sustainable Growth 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 responsible wa
Slide 13: Drivers of market growth
Drivers of market growth Market drivers How our alignment positions us to benefit Investment in the UK’s social Key contractor for public and regulated sectors. and economic infrastructure National coverage with local relationships and supply chain. Levelling up agenda Committed to creating greater
Slide 14: 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 15: Delivering Sustainable Growth
Delivering Sustainable Growth Sustainable Growth ▪ Disciplined growth in existing markets. ▪ Develop complementary adjacent market opportunities. Adjacent markets ▪ Maintain focus on risk management and commercial discipline. Existing markets FY21 2026 ▪ Continue to invest in our capabilities £1.1bn
Slide 16: Resulting in sustainable financial performance
Resulting in sustainable financial performance Objective 2026 target Focus on bottom line margin growth. Divisional operating margin growth to 3.0%. Disciplined contract selection and sustainable revenue growth. Revenue growth towards £1.6bn. Maintain strong balance sheet. Operating cash generation.
Slide 17: Sustainable Growth
Traditional build Sustainable Growth Innovation & socially responsible delivery Net zero carbon Balancing client ambition and commercial objectives 17
Slide 18: Sustainable Growth: ElectroRoads
Sustainable Growth ElectroRoads - at the cutting-edge of the UK’s transport decarbonisation plan ▪ Study on behalf of Department of Transport into innovative dynamic charging system. ▪ Considers how best to deploy Honda’s side conductive power technology in the UK, allowing vehicles to charge on the
Slide 19: Our sustainability commitments
Our sustainability commitments Strategic Sustainability priorities pillars Ambition FY21 Health and Accident Frequency Rate No harm 0.08 safety Lost Time Incident Rate No harm 0.26 Progressive Early careers as a % of total employees YoY increase 7.2% culture Our people Women as a % of total employee
Slide 20: Our chosen markets
Our chosen Public sector strategic programme spend markets Education Highways £4.8bn £28.8bn ▪ Government spending plans mobilised. Defence and custodial Environment ▪ Excellent position across our 52 national and regional £12.1bn £15.0bn frameworks. ▪ Sectors closely aligned to market drivers. Heal
Slide 21: Case study: Benefits of working in frameworks
Case study Benefits of working in frameworks ▪ Offer repeat business with clients who we know and on established and well-understood terms and conditions – a mutual benefit. ▪ Greater certainty in tendering and typically reduced cost of tenders. ▪ Improved risk allocation. ▪ Improved ability to plan
Slide 22: Robust order book
Robust £298m order book £530m £512m £300m £1.92bn £1.35bn By sector £836m £389m £403m ▪ £3.3bn order book, with increase in Infrastructure Building order book £m Infrastructure order book £m driven by AMP7 success. Education 530 Defence and custodial 389 Highways 512 FM 403 Health 300 Environment 83
Slide 23: Robust order book
Order book by client type Robust 3.5 3.0 £2.9bn £3.2bn 19% £3.3bn 9% order book 2.5 2.0 17% £bn 1.5 91% By client type 1.0 83% 81% 0.5 0.0 FY19 FY20 FY21 ▪ Predominantly public and Public and regulated Private regulated sector work providing stability and maturity of procurement. 90% 87% <£20m ▪ Key
Slide 24: Summary
Summary Confident in our Sustainable Growth strategy ▪ Excellent financial position. ▪ High quality order book. ▪ Great pipeline of opportunities. ▪ Embedded risk management culture. ▪ Well positioned to address target growth markets. ▪ Confident of achieving 2026 targets. 24
Slide 25: Questions & answers
Questions & answers Carronflats Sewer Scheme, Grangemouth 25
Slide 26: Appendices
Appendices 1. Our business 1.1 Sustainable Growth strategy 1.2 Management team 1.3 Geography 2. Financial analysis 2.1 PPP Investments valuation 3. Order book 3.1 Forward order book 3.2 Contract types 3.3 Key framework positions 26
Slide 27: Sustainable Growth strategy
Appendices 1.1 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 an
Slide 28: Management team
Appendices 1.2 Management team A highly-experienced Executive Board ▪ More than 150 years’ construction sector experience. ▪ Supported by a strong plc Board. 28
Slide 29: Geography
Appendices 1.3 Geography National strength, Key local delivery Morrison Construction Highland 1 Morrison Construction North East 2 Building Morrison Construction Central 3 ▪ National coverage through Building North East & Yorkshire 4 nine regions. Building North West 5 ▪ Sector-specific support. Bui
Slide 30: PPP Investments valuation
Appendices PPP Investments valuation 2.1 PPP Investments 55 £53m valuation 50 £49m £45m Valuation £m 45 40 35 30 6% 7% 8% Discount rate % 30
Slide 31: Forward order book distribution – Building
Appendices Forward order book distribution – Building (excluding FM) 3.1 Forward order 90 book 80 70 60 Number of contracts ▪ <£20m average contract 50 size. 40 30 20 10 0 Contract size FY21 FY20 31
Slide 32: Contract types
Appendices Where an overall target contract value is agreed with the client, 3.2 Contract types including margin, risk and inflation contingencies, and the actual cost Cost reimbursable of the work plus agreed fee is paid by the client. Any cost savings or overspends against the target are shared be
Slide 33: Key framework positions
Appendices ▪ Department for Education’s Construction Framework. ▪ Manchester City Council Highways and Infrastructure Generate ▪ LHC Schools and Community Framework. 3.3 Key framework Buildings Framework. ▪ NEUPC Universities Framework. repeat clients ▪ Crown Commercial Service ▪ Scottish Procuremen
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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