Galliford Try Share Discussion Threads

[dr_smith] 14/2/2018 09:32

C2B.
Yes. For the Principal(Gov) on CRLN projects mid-way, they will be keen to get takeover contracts agreed quick, as delays/mothballs cost money, lose momentum, miss deadlines, so likely will be more reasonable in available profit margin for contractor.
Pre CRLN bust, gov contacts forced J&S liability.
I have seen acknowledgement that this is bad.. but don't know if gov have said this clause can be omitted in future and I don't know what leaway local gov officers have when contracting out, they may have terms in stone set by senior gov officers.
Either way, I pray and hope GFRD will insist on only being responsible for their part of future contracts.

[dr_smith] 14/2/2018 09:23

To distract from the pain.. or see the cause..see photos from webcam of the aberdeen by-pass.

[c2b] 14/2/2018 09:22

With Carillion gone contracting should be less competitive and more realistic. I think they should raise more money and pay off more debt. As regards the fund raising let's hope this is a proper rights issue or open offer available to all shareholders not just chosen institutions. The company should take note of all the small PI purchases that have stopped the share price from completely crashing.

[bookbroker] 14/2/2018 09:16

Eeza - your H&S., you included the forearm on the right side?

[eeza] 14/2/2018 09:13

Sadly, we got Truscott.

[gp1948] 14/2/2018 09:13

careful14 Feb '18 - 08:58 - 4200 of 4200

...... this is a sound business.

The housebuilding arm of GFRD is a sound business, but the construction arm is the bigger part of GFRD and it's not sound business to take on contracts at such disadvantageous terms, where they are responsible for their partners' failures and where the margins are so tight that a 1% profit is the target. It seems more like a recipe for disaster.

What GFRD needs is a fundamental change in its business make-up and approach.

[daneswooddynamo] 14/2/2018 09:05

the old chief exec must be breathing a sigh of relief, played a blinder at gfrd by aggressively buying land and beefing up the housebuilding side over the last five years, retiring when things were going great and then brought out of retirement to turn bovis round after a poor spell

[careful] 14/2/2018 09:05

there must be some scope for cutting costs and meeting deadlines.
that 1% margin could be improved with better working practices.

[careful] 14/2/2018 08:58

typical of todays market.
it is sometimes difficult but we should ignore share prices.
this is a sound business.


Seem to remember it dropped to 800p at the time of the Brexit vote.
How crazy is that?

[essentialinvestor] 14/2/2018 08:54

But it's not just a housebuilder, if it was it would be a great company.

Shareholders paying a savagely high price for the construction side.

[eeza] 14/2/2018 08:53

Almost perfect H & S on the above (lower) chart.

[eeza] 14/2/2018 08:45

BBC news


"08:37
Galliford sinks

Galliford Try's £150m fundraising hasn't gone down too well with investors this morning - shares are down almost 19%...

Analysts at Liberum remain optimistic, however:

We see more upside in Galliford Try than in any other of the housebuilders. The capital raise is unexpected, but should be supported as it will eliminate any perception of financial weakness. The group's balance sheet will be strong after the raise, which although uncertain in timing has been fully underwritten."


And Telegraph

[bookbroker] 14/2/2018 08:42

Let’s hope you were not planning to take your dearly beloved out to a candlelit dinner on St Valentine’s Day on the basis of the performance here, it’ll be a Goodfellas pizza from the freezer!!🧟‍♀️🙀

[bookbroker] 14/2/2018 08:37

An ugly sector to be a shareholder in, anything related to facilities management is an absolute no-no!!💩9326;🤬☠;️

[marksp2011] 14/2/2018 08:31

The bottom line here is that there are £150M of potential write downs that they cannot fund out of the existing business.

The lies in the statement give me a greater cause for concern.

They are cutting the dividend not imposing at 2.0 payout ratio early. The 2.0 ratio was planned for 2020 presumably with the expectation that earning would have grown to make this a "prudent" action rather than it being an early announcement of a dividend cut. Wordsmithing of this order makes me wonder how much of the rest is true when interpreted in plain English

[eeza] 14/2/2018 08:24

But as noted below


speedsgh
12 Feb '18 - 10:38 - 4168 of 4190
0 1 0
Chesil Lodge completion date unclear -

THE completion date of a major Hampshire housing scheme for older people is still unclear following delays due to design problems.


There is never only 1 'roach.

Design problems.

Management's response is to label it all as 'legacy' problems which gives the impression that it is none of the current management's fault, but inherited from someone else.
Desperation to book work at any price is the real problem. And that lands squarely at Truscott's feet.

BBY had the exact same problems 2 years ago when they suddenly realised that all the work they'd won was loss-making.

[bookbroker] 14/2/2018 08:18

Slipped up on a banana skin, but they know there are a whole host of companies, particularly in the constructionn services sector, who are queuing up to raise cash, better to get in on the act early, clearly hidden liabilities that they are uncertain off, even it on this case it is related to the demise of Clln, and the resulting issues on the Aberdeen job!

[shanklin] 14/2/2018 08:16

Is anything that has been reported as exceptional actually exceptional for businesses in this sector. It beggars belief that they willingly exposed themselves to CLLN to such a major extent.

[marksp2011] 14/2/2018 08:16

Careful

They are great results in accounting terms

They still require a cut in the dividend and, another big write down to cover "legacy contracts" that they need to fund with real money rather than accounting conventions and so the rights issue. They are raising capital to pay the dividend and get out of their last contracts that will have reported an embedded "profit" in previous years

There is a big chunk of the business operating on 1 percent (as long as you exclude all the losses taken below the line)

The little room for error from a 1% margin is now costing £150M

[eeza] 14/2/2018 08:09

That's why they've been marked down 15%.

[careful] 14/2/2018 08:03

without the exceptional, these were great results.
EPS 80p for six months.