Galliford Try Share Discussion Threads

[spoole5] 05/5/2017 11:37

There are always concerns after something like this and a period of sideways to downward movement is to be expected until final results. They'll save about 20m in tax after the provision though, if divi is maintained net debt will probably only rise to around 170m which is only one year's profits. Don't expect much divi rise for a few years but with a 6.5% yield not that bothered.

[mayers] 05/5/2017 01:17

What I find a bit worrying is that at the time this information was about to be formally released GFRD was making a bid for Bovis! I will wait and see.

[spoole5] 04/5/2017 20:35

I think i'm going to hold onto mine, going to give them the benefit of the doubt that this is a one off and these types of contracts are history. Impossible to prevent market sensitive news getting out these days. The people in charge at the time the contracts were signed are gone, at least they haven't got a leasehold problem to sort at linden. If they can prove this is a one off these will be back at 15 quid by the end of the year. The regeneration part of the business has massive potential.

[mayers] 04/5/2017 19:57

Well done Spoole, not certain what happened to my comment which I edited but you have taken up my points. Should have realised the situation but that does not justify the lack of transparency. It makes nonsense of shares as investment. Will look for the most appropriate time to drop this larger holding. Many thanks.

[spoole5] 04/5/2017 16:23

Yes some people have know about this since the end of march and sold into the strength, has been the poorest performer of all the housebuilders since then, now we know why. The price action tells the story. Shouldn't happen but we all know it does.

[bigbertie] 03/5/2017 21:14

I see there were press reports of the latest delay in completion on the Forth Road Crossing on 29th March, but I didn't notice them at the time. Windspeeds over 25mph prevented the dismantling of the tower cranes. I believe the contract allowed delay of completion for weather reasons up to some limit, but there have already been delays. [This is just from memory - DYOR]

[lord gnome] 03/5/2017 20:06

Carillon also suffering today. One of the JV partners fingered by today's RNS.

[spoole5] 03/5/2017 19:53

Yes peel hunt already said that those are almost certainly the projects concerned in their updated recommendation today.

[bigbertie] 03/5/2017 19:39

What a disaster! They are very coy about the identity of the two projects, but this may be because they are joint ventures and identifying them might force the hands of partners who have not yet completed reviews of their liability. So do we know any big JV projects due to complete this summer? Forth Road Crossing???
Just complete speculation on my part....make your own guesses.

[spoole5] 03/5/2017 17:04

https://www.sharesmagazine.co.uk/news/shares/galliford-try-warns-and-takes-98m-write-off-hit

[speedsgh] 03/5/2017 14:56

I note that the legacy contracts were contracted in 2014 or earlier whilst former CEO, Greg Fitzgerald, was at the helm. BVS holders take note.

[spudders] 03/5/2017 14:21

Last 7 years have been good. I've no intention of offloading for some time. It'll bounce back.

[puffintickler] 03/5/2017 14:04

Ouch.

Sold half my holding at 1525 (Price frothy, Brexit impact fears and needed to top slice anyway as by far my biggest holding). Shame I kept the other half.

Not sure where the price goes from here. Probably a fair price, but not sure if i would top up though.

[rhomboid] 03/5/2017 12:15

My issue is the FD on the last analyst call flat out denied there were any nasty surprises within the legacy contracts iirc so either he lied or controls are inadequate, neither encourages me to buy even at today's prices

[biggcl] 03/5/2017 12:10

... and your point is?

[shanklin] 03/5/2017 11:41

If GFRD are going to issue an RNS containing bad news, why not kitchen sink the situation. I would understand if they expect to have no dividend in 2017/18 but why leave the situation hanging around like a bad smell when they could get all the bad news out in one go?

[carcosa] 03/5/2017 09:25

That's a five year target.

Dividend pay-out ratio is too high to sustain dividend in 2017 and continue to grow the business without yet more debt (subject to distributable reserves). More likely next year will see a dividend cut/hiatus to be followed with re-instatement in 2018 and subsequent growth to reach their declared target.

I was expecting a harsher fall in the share price of around 18%. Perhaps long term that will come to pass. What is of concern however is how on earth this news has only just been released. Makes you question what other skeletons there may be in the closet and who is responsible for the mess.

[bluemango] 03/5/2017 09:11

I think you'll find they do, if you read on further.

"The Group maintains its target to deliver a five-year compound annual growth rate in the dividend of at least 5%, whilst rebuilding dividend cover to 2.0x"

Market reaction seems a bit overdone IMO. Maintaining my hold for solid and growing long term income stream.

[shanklin] 03/5/2017 09:00

Shame they are only re-assuring about this year's dividend and not those in future years.

[fizzypop] 03/5/2017 08:33

Trading update RNS

[chigz1] 03/5/2017 08:28

What has happened this morning? This is a share I follow but cant seem to find any news?

[kevph] 03/5/2017 08:22

I only like surprises at Xmas and my birthday. Price will be rightly punished in the short term. Despite fantastic fundamentals, I'm out until the dust settles. Still a great company, but they must have known this was in the offing, and that lack of transparency worries me more.

[spoole5] 03/5/2017 08:16

Fantastic buying opportunity if this is a one off.