Galliford Try Share Discussion Threads

[gabsterx] 16/4/2019 15:50

GFRD construction margins per year:

2013: 1.6%
2014: 1.0%
2015: 1.2%
2016: 1.1%
2017: 0.0%
2018: 0.9%

I can go back further but why bother.. The management is obviously clueless and I have only myself to blame for not doing proper DD before buying this poorly managed dog of a company. Good thing it's only 3% of my portfolio, short term pain but will serve as a valuable lesson for the future.

[garycook] 16/4/2019 15:04

Bushman,Minister,s Sign off !!! Please explain ?

[bushman1] 16/4/2019 14:37

According to Agadem on other bb appears we are waiting now purely for the Minister's sign off.

[careful] 16/4/2019 14:00

Don't understand why they do not tell it as it is.
'Those who practice to deceive.'
Last update looked promising after some setbacks.

[fenners66] 16/4/2019 13:41

Makes you feel for anyone buying at the top after that Feb update.

I have not paid as much attention here as I had at CLLN and IRV - but the statements all contain similar themes of stuff being better than the reality.

It really does stink and makes you wonder if all the directors went to the same "school".

As for the next profit warning - I gave some views previously on the psychology of why profit warnings come in 3's for groups.

Those on the ground don't want to admit how bad things are so they flag issues.
Group FC's have targets to meet so they see if they can rearrange other numbers to cover some holes.
Eventually Board get involved and then they don't want to admit they didn't have a clue what was going on and hope for a surprise upside, or to hold on to their job long enough for the next bonus, share option or pay rise.

So nothing comes out straight away especially if its really bad.

[andyj] 16/4/2019 13:24

Seems like mean reversion to me. Average share price for the past 29 years has been 4.50. Indeed until 2011 it was around 2.00 but then shot up seven fold. That was always likely to be retraced and so it is. I will not be buying for a while yet.

[escapetohome] 16/4/2019 12:33

Mouchel, interserve, carillion , bilby, the names are endless.

When will ‘investorsR17; learn to steer very well clear , i mean give a very very wide birth to the CON struction industry.

God luck with your ‘investment217;.

[careful] 16/4/2019 12:04

When there is a change in rolls at the top, or new outsiders bought in, these strategic reviews and weak updates are expected.
'time to come clean', they say knowing it was not of their making.
They start with a clean sheet, a fresh start from a low base.

This has happened at WPP, after Sorrell, SAGA, RMG and GFRD.

What are the auditors doing?
They are supposed to be professionals who sign off a 'true and fair record', with basic principles of conservatism and prudence guiding their profession.

What a bunch of phonies they are.
We cannot trust the reports anymore, and directors are never held to account.

[demoan] 16/4/2019 11:55

This is part of the half year statement issued by the board on the 13/2/2019. Yes that's right FEB 2019.

Construction's performance continues to be encouraging, particularly on newer contracts, reflecting the business's careful approach to project selection and risk management. We continue to prioritise the quality of each opportunity over volume. We are seeing projects deferred as a result of macro uncertainty, but with 96% of revenue secured for the current financial year and 66% secured for the following year the business has confidence in its prospects.



The Group enters the second half of the year with a solid foundation, underpinned by a strong balance sheet and our focus on high-quality earnings which will drive further margin improvements over time. Our mix of residential development creates a robust proposition in more uncertain markets. We remain cautious of the impact of the current political uncertainty on consumer and business confidence, and the medium-term outlook for the macro economy, but believe our focused strategic objectives, strong order book and disciplined approach will deliver a full year out-turn toward the upper end of the analysts' current range8."



This announcement contains inside information for the purposes of article 7 of EU Regulation 596/2014. The person responsible for making this announcement on behalf of Galliford Try is Kevin Corbett, General Counsel and Company Secretary.



For further enquiries:



Galliford Try


Peter Truscott, Chief Executive

Graham Prothero, Finance Director


Ok Truscott has gone, but how can company boards get away with such misleading statements. Last year I approached the FCA (the financial conduct authority) about precisely the same problem with GFRD and was told me it was up to the shareholders.

I know I am not alone in challenging the board but where are the big guns?

A construction company on 'a solid foundation' more like feet of clay!













Tulchan C

[dr_smith] 16/4/2019 11:54

Mark. Yes, saw that, it just gives me a hollow feeling, so didn't delve further into question of why the non-SGC bidders seemingly were either to quantify or accept the risk.

[eeza] 16/4/2019 11:44

What else would you expect from the worst politicians (collectively) in the history of GB.

[chopp1] 16/4/2019 11:42

This is outrageous from galliford. Just two months ago the interim results said nothing about needing further provisions for legacy contracts and conversely said that the performance in construction was encouraging with “a high quality order book”. They also said that they would deliver a “full year outturn toward the upper end of the analysts current range”. Now just a few short weeks later we are being told that they are reassessing their” positions in legacy and some current contracts” of which Queensferry is one and that profit will now be £30 to 40m light! I don’t believe that all this wasn’t known at the time of the interims especially as the new chief exec who has initiated this review was the cfo. The regulator really needs to start getting tough on companies that blatantly mislead shareholders and are selective about the bad news they impart. The auditors want shooting too! This sort of thing has happened far too regularly in the recent past and has got to stop. Investors can’t believe a word the directors say.

[marksp2011] 16/4/2019 11:35

DR

What Govt says and what it is doing are two different things

If you look at the recent East Midlands rail debacle. I was involved in one of those consortia. Govt expected the bidders to take on pension liabilities for Civil Servants with a known black hole of somewhere between 6-8 BN yes BN pounds and buy new rolling stock. Not a deal at all merely a suicide mission.

[bookbroker] 16/4/2019 11:04

Once they complete these infrastructure projects they should focus purely on housebuilding, they do at least have the benefit of Linden to provide a great business with a good future, but it is being let down by these blind contracts. Seems crazy any company would enter that market without taking provisions prior to tendering, complex projects involving roads and bridges are a dead end, and the margins are so thin that risks abound from the outset.

[cc2014] 16/4/2019 10:29

When you put it like that Fenners what a mess. Still, how did they get through IFRS 15 at audit if settlements have been poor since?

Anyways, the question is, is there more bad news to come or is this a buying opportunity. My gut says more bad news to come but I have no evidence for my statement. Lots of less risky stuff going up right now so I think I'll pass.

[demoan] 16/4/2019 10:21

Another profit warning, another disappointment, I share others disillusion. I have also lost count of all the profit warnings since the 'one off' cost of the Queensferry crossing announced by Truscott and Prothero months ago.
As the board in the shape of Truscott at the last AGM, were unable to establish liabilities the future looks very unclear. Will the forthcoming review help?
Recent share transactions seem to tell a story. Truscott, prior to leaving, was a seller, Blackrock are loaning shares for shorting and the board aren't buying.
Yet Sarah Harding, an associate of Kevin Corbett the company secretary, bought over 8,000 shares last December, admittedly under £6 per share. Was this confidence or signs of a rudderless board. Perhaps rather than wait for their annual 'freebies' they could dig into their own pockets now.
Some support would be welcome!

[fenners66] 16/4/2019 10:10

CC2014

The RNS does not mention IFRS 15 - that should already have been dealt with.

"Board anticipates that this review will result in reduced profitability in the current year reflecting a reassessment of positions in legacy and some current contracts and the effect of some recent adverse settlements, as well as the costs of the restructure. The single largest element relates to the Queensferry Crossing joint venture, which has recently increased its estimated final costs on the project."

Recent adverse settlements - ie we did not provide enough or have trashed some more projects.
Cost of restructure - we have to set aside more funds
increased final costs - just more cost we did not anticipate.

No I reckon its just BS spin.

[cc2014] 16/4/2019 09:56

I suspect the cash position isn't changing Fenners as the update probably has more to do with IFRS 15 than anything else. Galliford knew they weren't going to get the cash anytime soon but now the auditors aren't allowing them to count variations as income unless they are reasonably certain and evidenced as such.

Possibly a buying opportunity only I've got enough construction stocks already.

[priteshpatel9] 16/4/2019 09:37

I remember looking GFRD couple of years ago and noticed 0% margins on construction projects. 0%! Laughable.

[careful] 16/4/2019 09:28

The restructure seems the right thing to do.
Housbuilding and regeneration are the political buzzwords post Brexit.

Could be an opportunity, but we are all nervous about this sector.
But one day, things will turn around.

[1nf3rn0] 16/4/2019 09:04

£40m hit to profits and £155m wiped off the market cap. Could be a good opportunity... unless there more bad news to be flushed out. And what will the profit impact be on next year? In the medium/long term this restructuring is clearly intended to improve profitability. So higher short term risks the price for potentially better long term prospects?