Construction firm Galliford Try shrugs off Brexit jitters

Clients are delaying or cancelling building work due to Brexit jitters, construction firm Galliford Try said on Wednesday.

Although the firm has already secured the lion’s share of its work for this year, the “macro-uncertainty” is unsettling some customers, the firm’s chief executive Peter Truscott said.

He said: “In the public sector, I can’t help but think that it is just a little bit of distraction in Government, things being put back because people are thinking about other things. In the private sector, if they are going to commit to a £40 million or £50 million project, they want a bit of certainty.”

Galliford is being “picky and choosy” over its work and saw revenues slide 5% to £1.42 billion in the six months to December. But profits were up 4% to £84.2 million, before an increased £26 million bill for completing the delayed Aberdeen Northern Relief Road, a contract which helped send Carillion under last year. Galliford tapped shareholders for cash to cover the outlay.

Galliford also has a £3.2 billion construction order book, while its Linden Homes housebuilding division put in a “strong performance” thanks to cheaper mortgage deals and the Help to Buy subsidy. It reported a “positive start” to the spring selling season.

Galliford predicted full-year results “towards the upper end” of City expectations, pushing shares up 5%.