Galliford Try Holdings Plc · LSE:GFRD
Galliford Try — FY2022 Earnings Presentation
35 slides from Galliford Try's earnings presentation, Sep 21, 2022
Slide 1: Sustainable Growth
Sustainable Growth Full year results to 30 June 2022 21 September 2022
Slide 2: Agenda
Agenda Bill Full year results to 30 June 2022 Hocking Chief Executive Highlights Financial review Sustainable Growth Q&A Keadby Pumping Station, North Lincolnshire 2
Slide 3: Highlights
Highlights £19.1m 1 UP 68% Profit before tax (FY21: £11.4m2) Strong progress on Sustainable Growth Strategy Excellent operational performance. Collaborative client and supply chain relationships. Strategic acquisitions broaden our capabilities. 2.4% UP 0.4 ppt Divisional operating margin (FY21
Slide 4: Financial review
Financial Andrew review Duxbury Group Finance Director ECOXLi low carbon welfare units 4
Slide 5: Strong operational performance
FY221 FY212 Var Strong Revenue (£m) 1,237.2 1,124.8 +10.0% Operating profit before operational 18.5 10.1 +83.2% amortisation (£m) Profit before tax (£m) 19.1 11.4 +67.5% performance Earnings per share (p) 16.0 9.5 +68.4% 1 Pre-exceptional items. Exceptional costs of £13.7m related to nmcn acquisitio
Slide 6: Segmental analysis
Segmental analysis Revenue (£m) FY22 1,237.2 FY21 1,124.8 Var +10.0% Divisional margin improvement Building 789.1 789.2 nil Infrastructure 441.9 329.2 +34.2% PPP Investments 6.2 6.4 (3.1)% Building revenue reflects some contract FY22 FY21 Var starts moving into FY23, as expected. Operating profit
Slide 7: Operating margin driving improved profitability
Operating margin driving improved profitability Reflection of quality in order book. Focus on efficient contract 18.5 delivery including: • Investment in our teams. • Digital investment and modern methods of construction. • Engagement with clients and supply chain. FY21 Volume Margin Margin Cent
Slide 8: Managing inflation
Managing inflation Mitigating 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 lead times. on risk management. We
Slide 9: Supply chain alignment
Average days to pay Supply chain 50 45 49 alignment 40 38 38 37 36 35 30 26 25 25 20 15 Proactive engagement with supply June 19 Dec 19 June 20 Dec 20 June 21 Dec 21 June 22 chain mitigates against materials inflation and labour/materials shortages. Invoices paid within 60 days 98% 98% Advantage
Slide 10: Strong balance sheet
30 June 30 June Strong Balance sheet £m 2022 2021 balance sheet Intangible assets & goodwill PPP & other investments 97.0 47.5 82.9 49.1 Other non-current assets 45.9 38.4 Working capital Well-capitalised. Working capital (255.5) (237.6) Continued balance sheet strength driven by net IFRS 16 (24
Slide 11: Cash generative
Cash generative Average month-end cash £174m; operating cash inflow £18m 275 £33m 250 £7m 225 £216m (£15m) (£6m) (£2m) (£14m) £219m £174m Average month-end cash £m 200 Operating cash inflow >£100m in the period £18m 175 150 Minimum daily cash 125 Opening net Cash from Working Interest Dividends Othe
Slide 12: Resilient daily cash performance
Resilient daily cash performance Daily cash chart FY21 average month-end cash FY22 average month-end cash £164m £174m FY20 average month-end cash £141m 12
Slide 13: 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 14: Increasing dividends
Increasing dividends 8.0p UP 70% Dividend per share (FY21: 4.7p) Excellent financial performance. Strong balance sheet, supported by cash and PPP assets. No pension liability to fund. High-quality order book. 2.0x 1 Dividend cover (FY21: 2.0x1) Encouraging outlook. Dividend declared in l
Slide 15: Additional capital returns
Additional capital returns £15m Share buyback initiated Resilient balance sheet demonstrated since 2020 demerger. Aggregate cash and PPP assets of £221m towards upper end of requirements of £175m-£250m. Allows investment in strategic growth. Inaugural additional capital returns programme. 15
Slide 16: Sustainable Growth
Sustainable Bill Growth Hocking Chief Executive Queen Elizabeth High School, Hexham 16
Slide 17: Engine for Sustainable Growth
Engine for Sustainable High-quality Growth order book Strong culture of Good discipline and risk People visibility of pipeline awareness Strong balance sheet 17
Slide 18: Why we target frameworks
Why we target frameworks Improved risk and favourable outcomes Improved risk allocation: Established and well-understood terms and conditions. 90% Work in frameworks (FY21: 87%). Long-term client relationships. Predictable behaviours. Certainty in tendering and typically reduced cost of tend
Slide 19: Focused risk management
Focused risk management Assessing and managing risks and uncertainties is the central element of our process and business strategy Board approval required for Robust review and approval all bids with specific risk Technical, commercial and Contract selection pre-contract factors or with a value of o
Slide 20: 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 21: Delivering Sustainable Growth
Delivering Sustainable Growth FY21 FY22 2026 £1.1bn £1.2bn £1.6bn 2.0% 2.4% 3.0% 21
Slide 22: Resilient market outlook
Resilient market outlook Investment in the UK’s social and economic Levelling up agenda Urgency of climate crisis Inflation, labour and infrastructure National footprint and Three-pronged approach: materials Key contractor for public and regulated local relationships Supporting clients Contr
Slide 23: nmcn acquisition
Our Environment business nmcn acquisition Demonstrated our agility to move quickly. Increased geographic and client coverage. Opened up new markets in asset maintenance and asset security. Successfully integrated the business at pace. Complemented by acquisition of MCS Control Systems in J
Slide 24: Client demand for low carbon
Client demand for low carbon Supporting clients Supporting supply chain Galliford Try journey to net zero Clients’ carbon strategies are a Net Zero Partners Net zero targets to 2030 and 2045 set, revenue driver. launched. supported by interim Science Based Targets. Growing capability via Car
Slide 25: Quality-based work-winning
Quality-based work-winning Indicative scoring criteria Management 24% People-orientated, 20% Project delivery 20% progressive culture Health, Safety and Environment 6% Quality Quality 6% and innovation 80% Sustainability and carbon 6% Socially responsible delivery Social value 8% Scoring criteria Su
Slide 26: Robust £3.4bn order book
Robust £3.4bn order book £341m Order book by client type 94% £640m Repeat clients for FY22 £228m £1.4bn £622m £3.4bn (FY21: 92%). £2.0bn £744m 3.5 £3.2bn £3.3bn 9% 9% 3.0 19% 90% £362m £476m 2.5 2.0 £bn Work secured for FY23 1.5 91% 91% (For FY22: 90%). Building Infrastructure 81% 1.0 order book ord
Slide 27: Our sustainability commitments
Our sustainability commitments Strategic Sustainability FY21 FY22 Ambition priorities pillars Health and Accident Frequency Rate 0.08 0.06 No harm safety Lost Time Incident Rate 0.26 0.26 No harm Progressive Early careers as a % of total employees 7.2% 6.1% >8% culture Our people Women as a % of tot
Slide 28: Summary
Summary Progressive Quality and culture Strategy innovation Sustainable Growth Strategy Deliver high-quality progressing well buildings and infrastructure in a socially responsible way and provide a sustainable return for our Strong foundations to deliver profitable growth. shareholders Favourab
Slide 29: Questions & answers
Questions & answers Marjorie McClure School, Chislehurst 29
Slide 30: Appendices
Appendices 1. Sustainable Growth Strategy 2. PPP Investments valuation 3. Forward order book 4. Contract types 30
Slide 31: 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 32: PPP Investments valuation
Appendices PPP Investments valuation 2. PPP Investments 55 valuation £51.5m 50 £47.5m £43.5m Valuation £m 45 40 35 30 6% 7% 8% Discount rate % 32
Slide 33: Forward order book distribution – Building
Appendices Forward order book distribution – Building (excluding FM) 3. Forward order 50 45 book 40 Number of contracts 35 30 <£20m average contract 25 size. 20 15 10 5 0 Contract size 33
Slide 34: Contract types
Appendices Where an overall target contract value is agreed with the client, 4. 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 35: 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
Galliford Try Holdings — FY2022 Earnings Presentation on 6ix