Galliford Try Share Discussion Threads

[dr_smith] 01/5/2019 09:42

Well..
I was surprised when they anounced review plans they hadn't already done that 6 months ago.
When they recently anounced the review - after already anouncing the new quality contracts criteria rule, I expected 1-3 months before anouncement, so to have action last night was another surprise - though it could so far to relate to natural conclusion following end of contracts - though usually, as one door closes another opens.
I wasn't surprised they tell employees first, that's right, but surprised no rns this morning and share price is flat.
It mentions "with potentially some job losses involved. ", so sounds like older work-force with retirement options - or re-locate down south.
Maybe it's just Scotland they have nailed down - with their 2 troublesome contracts and remainder will still take weeks/months to comment on new plans.
Dave

[garycook] 01/5/2019 08:27

01 May Galliford Try PLC Liberum Capital Buy 543.25 865.00 - Reiterates

[careful] 30/4/2019 20:50

Good to see they are starting to make the tough decisions.

[eeza] 30/4/2019 20:46

Well, to quote Mandy Rice-Davies

"They would say that, wouldn't they?"

[dr_smith] 30/4/2019 18:46

Thank-you Willie.
Link/extracts:


"Today we have announced to our employees the proposals emanating from that review which will involve the proposed closure of parts of the division, with potentially some job losses involved.
....

"We remain fully committed to our existing profitable building operations for Morrison Construction in Scotland, delivering much-needed public facilities together with our partners in the hub vehicles.

"As a business we are confident that the proposed structure we are looking to put in place will provide us with robust foundations and leave us better suited to face the key markets where our future success lies."

[willie99] 30/4/2019 18:22

Gfrd making 350 redundant in restructuring of Scottish division. See bbc website. Expect RNS in the morning

[mark1000] 29/4/2019 14:33

Suspect Prothero has kitchen sinked so he can take the aclaim through a long term share price improvement scheme and next year may look to split construction and housebuilding surely he will realise it has to be done as its holding back Linden.

[anthonyspencer1] 29/4/2019 13:58

Good day today.

[dr_smith] 27/4/2019 16:17

BB. You do not own this thread, filter me if you don't like me airing my views.

I am LTH taking real world not rosy view, taking pros and cons.
As an atheist your "God help us" post 5187 is of no comfort and appears to be venting angst you accuse me of, though I (and the gov) share the dis-trust you mention of accountants/auditors.

I do tend to face problems head on, in ain't nice talking about the negatives, but by recognition, hopefully a good plan for recovery can be indentified.

In my post 5190 I strove for a positive direction.

On "Way too much negativity here currently", post you own thoughts on what different direction may be taken and how that cam be implemented.

Dave

[bookbroker] 27/4/2019 15:15

Well Dr., maybe then this company is off no interest to you, you made ur point so vent ur angst elsewhere, we are all on watch!

[lonrho] 27/4/2019 13:30

Peel Hunt places a value of 7 pounds on the company after deducting 120 million or one pound ten p for the construction business.

[dr_smith] 27/4/2019 10:11

Bookbroker:
" analysts are of the view that the business is placing no value on the construction side against the Linden Homes!"

It isn't a view but a statement of fact.
It is in black and white.. correction.. red and grey, on page 11 of HY results:

hxxps://www.gallifordtry.co.uk/~/media/Files/G/GallifordTry/presentation/2019/half-year-results-2019-presentation.pdf

[gabsterx] 26/4/2019 20:03

"without any more skeletons in the cupboard a bounce may soon be in order"

Specially skeletons named Truscott

[bookbroker] 26/4/2019 18:55

Way too much negativity here currently, the company has spoken, the market has spoken, and the posters have spoken. They have already stated the costs of some of the contracts that are completed, and placed a positive spin on others that are ongoing. So we will have to see what news emerges in the coming weeks, but analysts are of the view that the business is placing no value on the construction side against the Linden Homes! That is likely priced in to a large extent, without any more skeletons in the cupboard a bounce may soon be in order!

[eeza] 26/4/2019 15:52

Truscott wasn't in charge of operations.

[careful] 26/4/2019 15:16

Maybe the contracts are not that tight.
Margins may be satisfactory.

But they must be managed dynamically and come in on time ahead of budget.
Every excuse such as weather and technical difficulties.
HS2 will be a nightmare, because the contractors will show no urgency, they have no incentive to do so.

In WW2 they managed to build a bridge over the Rhine in a few days and get an Army across it whilst under fire.

What we need is dynamic management and a dynamic work force motivated by the right incentives. Bad weather bonuses, early completion bonuses. Use imagination, money to be made on fixed price contracts.

I remember that film 'cool hand Luke', those convicts re surfaced that road in half of the allotted time just for fun.

I get tired of this 'wafer thin margins' argument. Margins are not 1%, they are probably 5%+ if the beastly Mike Ashley was in charge.

We need an Aldi or Lidl of construction to shake up this industry, there is money to be made.
The bridge over the River Kwai was built on time.

[lonrho] 26/4/2019 15:09

Well this is valued at below 80% of forecast net tangible assets, so in theory there is room for another 100 million or so of write downs.Guess this latest weakness may relate to the house building side after Taylor Wimpey saying cost inflation had risen to 5%.

[woodhawk] 26/4/2019 14:10

I'm in a tad north of you, Fizzy. Made good money in GFRD before and luckily not holding at the recent fall.

[fizzypop] 26/4/2019 13:13

In with both feet at 510p

[dr_smith] 26/4/2019 12:24

Fenners66:
Re-reading Sleepy post, yes I see "cash outflow" can be taken 2 ways and it likely is as you say. It is a figure that needs quantifying though re inclusions and assumptions. Is there a link to the article showing basis of calculation?
HY figures had £718m for t/o for construction side (non Linden), say £120m pm.
Any change in direction won't be sudden, as current legally binding contracts will need to be completed, so a thumb in the air, say 2 years, that would dictate a phased transition.

On order book:
"Strategic progress continues, with a strong forward order book. •96%1of revenue secured for FY19 and 66%1secured for FY20 (HY18: 99% and 61% respectively)"

..so when it says "secured" I am inclined to assume that is a 2 way commitment.

Actually...depending upon timing of the referenced "secured" order book, I wonder if this under the new criteria for sensible risk/margins - they haven't said, then there is question, if found wanting under this new review, is it too late to vary.

IMO :-)
Dave

[careful] 26/4/2019 12:13

Just a couple of weeks ago we were expecting £180m after CLLN problems sorted.
A diversified company going well, recovering from a set back.
Shareprice reached almost £11, but then the shock.
What a share price collapse.

Are things that bad.
What will this strategic review bring.
Do investors fear another CLLN?

The information we do have does not justify this share price collapse.
All trust is lost.

[essentialinvestor] 26/4/2019 11:21

I worked for a construction company a long time ago now, Higgs and Hill.
They had a small HB side. Thin margins way back then, and not much has
changed, wafer thin now.