Galliford Try Holdings Plc · LSE:GFRD
Galliford Try — H1 FY2025 Earnings Presentation
36 slides from Galliford Try's earnings presentation, Mar 5, 2025
Slide 1: Sustainable Growth: Half year results to 31 December 2024
Sustainable Growth Half year results to 31 December 2024 5 March 2025
Slide 2: Agenda
Agenda Half year results to 31 December 2024 Bill Hocking Highlights Strategy to 2030 Chief Executive Financial review Sustainable Growth Q&A 2
Slide 3: Continuing strong performance
Continuing strong performance Strong half year; improved FY guidance £176m Revenue up 13% Adjusted PBT1 up 22% Adjusted EPS1 up 11% £1,773m £35.0m 29.6p £1,394m £1,125m £1,237m £20.6m £22.4m 17.1p 18.0p Last 12-month average £8.7m 7.7p month-end cash £20.5m £542m £594m £679m £819m £923m £4.6m £7.8m
Slide 4: Strategy to 2030
Strategy to 2030 Grow revenue Grow our specialist Re-enter the Leverage our Continue to and margin in businesses Affordable geographical and generate growing our three core in higher margin, Homes client footprint shareholder businesses adjacent markets market across the UK returns Revenue £1.1bn £1
Slide 5: Drivers of revenue growth
Drivers of revenue growth Ageing social and Population Climate economic infrastructure growth change Government’s growth agenda aligns to our Ageing and growing population places UK’s net zero targets. chosen sectors; recognising investment in increased demand on the built environment Client
Slide 6: 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 7: Financial review
Financial Kris review Hampson Chief Financial Officer Melton Mowbray Distributor Road 7
Slide 8: Strong performance
Strong performance H1 25 H1 24 Var Revenue (£m) £923m £819m +12.7% Another period of consistent, sequential and profitable growth. Adjusted operating profit (£m) £17.7m £14.1m +25.5% Strong YoY increases in revenue, profit Adjusted profit before tax1 (£m) £20.5m £16.8m +22.0% before tax, and div
Slide 9: Segmental analysis
Segmental analysis H1 25 H1 241 Var Revenue (£m) 923.2 819.1 +12.7% Building 467.3 446.0 +4.8% Infrastructure 451.7 362.0 +24.8% Investments 4.2 11.1 (62.2)% Building – continues to perform well as a major business, complemented by our FM H1 25 H1 241 Var operations. Adjusted operating profit / 17
Slide 10: Increasing adjusted operating profit
Increasing adjusted operating profit Adjusted operating profit bridge 20.0 2.2 17.7 2.7 (1.3) 15.0 14.1 £m 10.0 5.0 0.0 H1 24 Volume Operating margin Central/Investments H1 25 Div adjust 2.5% 2.7% op profit 10
Slide 11: Strong balance sheet
Strong balance sheet 31 Dec 30 June Balance sheet £m 2024 2024 Continuing strong balance sheet with period-end cash of Intangible assets & 97.4 97.9 £210.0m. goodwill PPP & other investments 40.2 41.8 Robust cash position. • Average month-end cash of £176m. Other non-current assets 69.6 71.7 • N
Slide 12: Robust cash performance
Robust cash performance Average month-end cash £176m 19.7 97% 240 227.0 6.6 220 1.8 0.2 210.0 of invoices paid in 60 days, (33.4) 200 (11.9) exceeding Prompt Payment Code requirement of 95% and £m 180 average days to pay is 26. 99% 160 140 Cash conversion from PBT to 120 cash from operating activiti
Slide 13: Capital allocation model
Capital allocation model Investing for growth Returns to shareholders FY21 - H1 25 Ability to invest in technology and training to drive quality and efficiency. Reinvest Accelerates adjacent market opportunities. in the Enables strategic and bolt-on acquisitions to enhance capabilities. busine
Slide 14: Confident outlook
Confident outlook Strong start to Sustainable Growth Strategy to 2030 Revenue up 13% £1,773m Adjusted PBT up 22% Adjusted EPS up 11% TSR 247% £1,394m 1 Jul 2021 to 31 Dec 2024 £1,237m 29.6p £1,125m >£2.2bn £35m 18.0p £20.6m £22.4m 17.1p Further year of £819m £923m £8.7m 7.7p £542m £594m £679m £4.6
Slide 15: Sustainable Growth
Sustainable Bill Growth Hocking Chief Executive Modern Methods of Construction at Guildford Crescent (The Rise), Cardiff 15
Slide 16: Modern Methods of Construction
Modern Methods of Construction 16
Slide 17: Our engine for Sustainable Growth: Focused risk management
Our engine for Focused risk Sustainable Growth management An embedded culture of discipline and risk awareness that Assessing and managing risks and uncertainties is the drives a high-quality order book and selective bidding. central element of our process and business strategy. Board Robust approva
Slide 18: Sustainable Growth to 2030
~ ia Environment & Gallifordiry ) climate change a 2 \ / \ & es \ \ Our people | £222) Sustainable » BS \ XG, | Communities \ b, } \ / — Growthto2030 \ ©3 | * Revenue Ls 5) >£2.2bn y Divisional adjusted / Strong balance / operating margin sheet \ Increasing / rn ~ : shareholder returns \' —_ Growth
Slide 19: Winning work based on quality over cost
Winning work based on quality over cost Order book procurement route Example of scoring criteria 1% 20% Management 20% 38% Project delivery 19% 51% SHEQ 15% 80% Sustainability and carbon 8% 10% Social value 10% Single-stage Two-stage Scoring criteria Negotiated Target/cost plus Non-financial Contrac
Slide 20: High-quality £3.9bn order book
High-quality £3.9bn order book £429m £394m Order book by client type 98% Work secured for £70m £666m £3.9bn £3.7bn £3.8bn £2.3bn £1.6bn FY25 £294m £552m £978m 9% 10% 13% 81% £565m Building Infrastructure Work secured for 91% 90% order book order book 87% FY26 Custodial Environment Defence Highways E
Slide 21: Recent successes
Recent successes Building Infrastructure Specialist Services £63m Single Living Accommodation £89m contract to construct the South Pagabo Small Works Dynamic Purchasing contract for DIO at RAF Digby. Aylesbury Link Road for Buckinghamshire System (DPS) Framework. £44m fire safety improvement Council
Slide 22: Frameworks provide long-term visibility
Frameworks provide long-term visibility 2024 2025 2026 2027 2028 2029 2030 Environment AMP7 AMP8 AMP9 DV2 SR21 ESD SR27 / SR 33 DV4 Environment Agency Asset Operation Maintenance Response Environment Agency MEICA Highways Midlands Highways Alliance + Midlands Highways Alliance + YORcivil 3 YORcivil
Slide 23: Leading provider in water
Leading provider in water 20 55 21 water frameworks 14 Design & Build Capital Maintenance Water Technologies 19 AMP7 and SR21 36 AMP8 and EA frameworks frameworks 17 average number of consecutive years working with each client to date. We are working with all of the UK’s major water and sewerage com
Slide 24: Summary
A compelling Summary investment High-quality business operating in robust markets generating growing returns Excellent start to strategy period underpinned by Robust market Rigorous risk track record of operational delivery, focused risk opportunity management management, committed people and esta
Slide 25: Questions
Questions Bill Hocking Chief Executive Kris Hampson Chief Financial Officer 25
Slide 26: Appendices
Appendices 1. Sustainable Growth Strategy 2. Our sustainability commitments 3. A destination employer 4. Why we target frameworks 5. Forward order book 6. Contract types 7. PPP Investments valuation 8. Our approach to M&A 9. Impact of changes in Adjusted Performance Measures 26
Slide 27: 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 infrastructure Health and safety: Prioritising with a better social footprint for clients health, sa
Slide 28: Our sustainability commitments
Appendices 2. 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 29: A destination employer
Appendices 3. A destination employer (FY24) 4,200 87% 352 Employees in our business Employee advocacy score Promotions No1 11.4% Construction & civil engineering Churn employer for apprentices and No2 for graduates 29
Slide 30: Why we target frameworks
Appendices 4. Why we target frameworks Improved risk and favourable outcomes Improved risk allocation: • Established and well-understood terms and 84% Work in frameworks conditions. (H1 24: 81%). • Long-term client relationships. • Predictable behaviours. • Certainty in tendering and typically red
Slide 31: Forward order book
Appendices 5. Forward order book Forward order book distribution – Building (excluding FM) 60 <£20m average contract 50 Number of contracts size. 40 30 20 10 0 Contract size 31
Slide 32: Contract types
Appendices 6. 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 33: PPP Investments valuation
Appendices 7. PPP Investments PPP Investments valuation valuation 45 £41.7m £40.2m Valuation £m 40 £38.8m 35 7.1% 7.6% 8.1% Discount rate % 33
Slide 34: Our approach to M&A
Appendices Acquisition history 8. Our approach to M&A October Our 2030 strategic targets do not assume any further acquisitions, however our 2021 capital allocation framework allows for investment in M&A given the following criteria are met. Strategic criteria Financial criteria July 2022 Existing o
Slide 35: Impact of changes in Adjusted Performance Measures
Appendices 9. Impact of changes in Adjusted Performance Measures Pre Pre-exceptional PBT up Pre-exceptional EPS up Adjusted profit before tax definition 28% £32.7m 16% 27.9p This measure has been changed to exclude change £23.4m £19.1m 16.0p 18.9p amortisation of acquired intangible assets with £11.
Slide 36: Disclaimer
Disclaimer This document contains statements that are, or may be deemed to be, “forward- forward-looking statements which only speak as of the date of this document. looking statements” which are prospective in nature. These forward-looking Other than in accordance with its legal or regulatory oblig
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