Galliford Try Share Discussion Threads

[speedsgh] 02/11/2017 11:19

I do hope there are no new/further detrriorations on existing legacy contracts lurking in the background that they are going to have to open up about...

[dr_smith] 02/11/2017 10:34

Yep.. topped up pre ex div date in view of great fundamentals, would top up again but already have way way over whats good for spread. I know of no reason for decline..(div accounted for) especially when expecting good increase.

[kevph] 02/11/2017 10:01

Well this is fun. Support at 11.60ish anyone? True contrarian stock now with amazing fundamentals

[gswredland] 30/10/2017 17:07

Thanks speed

[speedsgh] 30/10/2017 15:35

gswredland - Surely the fall in May-July 2017 was largely as a result of the Trading Update which disclosed a material increase in the anticipated liability to conclude some legacy contracts (two major infrastructure joint venture projects) in the Construction division...

Update on Trading and Legacy Contracts -

Review of legacy contracts in Construction
A reappraisal of costs to complete and recoveries from two major infrastructure joint venture projects has substantially increased the anticipated liability to conclude the legacy contracts (contracted in 2014 and earlier) in the Group's Construction business since Galliford Try reported its half year results on 21 February 2017. The Group estimates non-recurring costs of circa £98 million, some 80% of which relates to our share of the two joint venture projects. A thorough review process has been performed to determine the anticipated liability. One of these projects will finish on site in Summer 2017, while the other, which represents the larger proportion of the estimated non-recurring costs, is scheduled to complete in mid-2018.

[superadams] 30/10/2017 14:12

Barclays downgrade housebuilding sector this am. See all the other SPs.

[grahamburn] 30/10/2017 12:47

Although it only went "ex dividend" last Thursday, so can hardly be the cause of the drop in "June/July", nor can events on last Friday.

[gswredland] 30/10/2017 09:17

Thanks careful

[careful] 28/10/2017 10:25

64p, the dividend to come accounted for some of it.
Most house builders dropped on Friday.
House price rises stalled, interest rises on the way?
(just guesses, but still holding here.)

[gswredland] 28/10/2017 10:15

Anyone suggest why the share price dropped in June/ July please?

[bluemango] 26/10/2017 09:31

Yes ex-div today.

[eltox] 25/10/2017 09:19

surprised to see this falling the day before going ex- on a chunky dividend

[fizzypop] 17/10/2017 15:04

Double bottom in - now could be the time to stock up.

[pm032017] 10/10/2017 23:33

64p divi - goes ex divi on 26th Oct. This will easily hit the 1400+ mark before the ex divi date on 26/10. Perfect time to snap this on the cheap currently. This is a Temp dip and share price will bounce over the coming days. In any case I ain't selling till next year, looking forward to the 5% yield :).

[mattcookson] 10/10/2017 10:16

64p divi, GFRD goes ex-divi on 26th Oct, thats an amazing circa 5% yield at the current share price Add the 32p divi from earlier in the year and thats bring the total annual divi yield to 7%, what a bloody bargain :). This is a great buy in my book!! Solid company with great results and divi protected for the coming 2-3 years, whats not to like :)

[kevph] 10/10/2017 09:19

Was wondering the same thing. Seems volatile with a major divi coming up in the next two weeks. Bought on the weakness. Time will tell. GLA

[micos] 09/10/2017 19:05

Any particular reason for today's drop? Seems like a good opportunity to increase my holding with a 7% return.

[speedsgh] 09/10/2017 09:06

Hi CWA. Nice PR for GT and all well & good so long as the contracts won & undertaken turn out to be profitable which appears to have been the achilles heel in the Construction sector in recent years.

Risk is of course spread somewhat with GFRD in that Construction represents just one division alongside Partnerships & Regeneration and Linden Homes (housebuilding).

Actuals for FY2017...

DIVISION -- 2017 REVENUE -- 2017 OPERATING PROFIT MARGIN:
Linden Homes -- £937m -- 18.2%
Partnerships & Regeneration -- £330m -- 4.5%
Construction -- £1.57bn (pre-exceptional) -- 0.0% (pre-exceptional)

Targets for FY2021...

DIVISION -- 2021 REVENUE -- 2021 OPERATING PROFIT MARGIN:
Linden Homes -- £1.25-1.35bn -- 19-20%
Partnerships & Regeneration -- £650m -- 6-7%
Construction -- £1.8bn -- >2%

[cwa1] 09/10/2017 08:22

Thanks for that speeds, nice business from GT.

[speedsgh] 07/10/2017 12:34

Galliford Try takes third league crown in four months -

Galliford Try took first place in the monthly contractor table for September thanks to a swathe of residential deals.

The contractor topped the table with 13 contract wins worth £295.6m combined, according to construction intelligence provider Glenigan – its third league triumph in four months and fourth this year...

[pm032017] 04/10/2017 20:54

64p divi - goes ex divi on 26th Oct.
dividend is progressive too, so next year the yield could equate to ~8% at these prices. Plus guaranteed HTB scheme until 2021 now, I think their growth plan is looking solid. Great share to buy at current prices, will easily smash the 1450-75 mark before the ex divi date.

[mattcookson] 04/10/2017 19:30

Housebuilder and construction company Galliford Try (LSE: GFRD) updated the market this morning with its full-year results.

We’ve endured a stomach-churning ride with the share price over the last couple of years due mainly to the push-pull relationship between the firm’s largest divisions. The housebuilding division, Linden Homes, has been wonderfully profitable, but the firm has found it hard to keep the construction operation in the black and today’s results reflect the internal battle.

One-off charge
Compared to a year ago, revenue is up 9% but earnings declined 55% due to the “profit impact of the one-off charge of £98.3m announced in May.” In other words, Linden Homes made lots of profit but losses in the construction division took half of it away.

However, the directors assure us that forward contracts in the construction division are under control and the firm is treating the hit to profits as an exceptional item. I hope they are right because the company puts a lot of effort into its construction operation, which accounted for around 55% of revenue during the period.

Looking at the figures after ignoring the exceptional charge to profits, underlying earnings per share lifted 10%. The firm also moved from a net debt position of £8.7m to a net cash position of £7.2m. The directors made an implied statement about their confidence in Galliford Try’s forward prospects by pushing up the full-year dividend by 17%.

High dividend
And the dividend looks attractive. At today’s 1,373p share price, the forward yield for the year to June 2018 runs at 7% and City analysts following the firm expect earnings to advance 16% and cover the payout almost 1.8 times.

[jlo10] 04/10/2017 17:34

The £98m non recurring costs on legacy contracts was difficult to like. Hopefully a blip although often when one thing pops up, there is more waiting - but hopefully not with GFRD.

[mattcookson] 04/10/2017 15:47

64p divi, GFRD goes ex-divi on 26th Oct, thats an amazing 4.7% yield at the current share price Add the 32p divi from earlier in the year and thats bring the total annual divi yield to 7%, what a bloody bargain :). This is a great buy in my book!! Solid company with great results and divi protected for the coming 2-3 years, whats not to like :)

[touche] 01/10/2017 18:05

Another 10bn of HTB should see this nicely up over the coming sessions