Galliford Try Share Discussion Threads

[susiebe] 14/10/2020 08:01

Loss??I wi be contacting the co today to ask them about this,margins etc

[ammu12] 14/10/2020 07:39

Another loss making contract

[our haven] 14/10/2020 07:07

Good news for the pipeline of the award of the two contracts for Thames Water. Let's hope that it is also good news for the margin!

[ammu12] 13/10/2020 15:53

This business model would never make money and it's only there for directors to draw salaries and bonuses.No value here for shareholders!!

[mark1000] 08/10/2020 13:25

If only Galliford would say they are reviewing their target margin of 1.5% before Central costs I might take the BOD more seriously. They appear to continue to be wed to same old same old it has proved to be utterly incappable of producing serious profits in the past and I see no reason why it should in the future.

[careful] 06/10/2020 17:56

If Boris was to be taken seriously his talk today of infrastructure and construction should be good for GFRD.

I am beginning to wonder if Johnson is capable of moving markets anymore because we cannot take him seriously.
He is all bluster, the UK version of Donald Trump.

[mark1000] 24/9/2020 10:00

I suspect that it is not an annual award but one set up through to 2023. There will be other annual bonus payments presumably paid through the payroll for these proven failures suspect these have not been great based on profitable performance or should I say lack of. The big shareholders need to show balls and get the Chairman to talk to the best run construction companies about a merger or sale before this lot give themselves a bonus for keeping their tables tidy or not crashing their Company cars etc.

[imastu pidgitaswell] 24/9/2020 09:00

Yes, you're quite right. I should have read it more carefully - but as I say I am not holding; I do hold plenty of COST, one of their competitors.

So on closer reading - it's an outrage, a disgrace, they should be shot, etc etc.

Have you tried going back to the most recent full (not half year) 'glossy' published financial statements from their website - they are required to disclose a lot about the directors' remuneration, including conditions of long term incentives etc?



Page 65 onwards - I haven't read it.

It really is a gravy train - for the directors.

[farrugia] 24/9/2020 08:48

are you sure imastu? it doesn't say options - it says shares...

'On 23 September 2020, the following conditional awards over ordinary shares of 50 pence each in the Company were granted under the Plan to the following PDMRs, totalling 3,247,874 shares:'

[cc2014] 24/9/2020 08:47

I believe from the RNS they look like NIL cost options to me. i.e. they don't pay anything for them as long as the meet the performance targets (which aren't published in the RNS like they never are as presumably remuneration committees consider this information sensitive!)

[imastu pidgitaswell] 24/9/2020 08:40

I'm not a holder - but options are just that - options.

They have the option to buy at one price, presumably the current price or at a discount, so say 80p, and sell at the market price in 3 years' time. Hence they're only worth anything if the share price goes up. They're not getting £3m of shares for nothing.

Designed to incentivise them to get the share price up.

What isn't clear - and I'll admit I haven't looked as not invested - is what the exercise (buy) price is. Or even if they have revealed that.

[farrugia] 24/9/2020 08:33

If they get the options year on year it is truly scandalous! The only good thing about this is they are encouraged to keep the company afloat and work harder to increase the stock price.

[cc2014] 24/9/2020 08:27

That's 3.25m options at today's price of 80p = they are worth £2.6m

for a company with a market cap of £86m

= 3.25% of market cap or 3.25% of the shares in issue I guess

And I suppose next year they will get another 3.25m options.

Meaning in 3 years they will collect 10% of the company if the share price doesn't rise.


it's outrageous and this sort of thing should be stopped but strangely large institutions keep voting for this sort of thing. And even when they vote against we are told it's only advisory!


My apologies for the rant and also if my numbers are wrong or a bit of an over-simplification. Only I think this relfects one of the largest problems with the stock market.

[farrugia] 24/9/2020 08:06

targets? easy here:

PDMR No. of shares under Vesting date
the Award
B Hocking 843,750 23 September 2023
-------------------- ------------------
A Duxbury 685,593 23 September 2023
-------------------- ------------------
K Corbett 481,031 23 September 2023
-------------------- ------------------
I Jubb 525,000 23 September 2023
-------------------- ------------------
M Baxter 375,000 23 September 2023
-------------------- ------------------
V Skene 337,500 23 September 2023
-------------------- ------------------

Instead of buying shares they get a boatful of them for FREE with ZERO RISK. How's that for shareholders? At least they are exercisable in 2023 so they do have some incentive to keep the boat afloat until then?

[jacksonyoung] 22/9/2020 15:37

would be interesting to see how the short position will be closed here whilst the 250k share plan by the employee trust sucking out the volume over the next 6 month

something got to give...

[mark1000] 21/9/2020 10:53

Ammu I actually believe with the current leadership team a price under 50p is possible because they are unproven and from what we have seen so far well behind the curve.In fact if you look at the divisions results pre VISTRY they have been very poor with only the house building division keeping the ship above water. MY opinion is that they stop worrying about cash balances which at least at the moment is their only strong point (thats not to say cash balances are not important) and start a focused look at costs so that they can target a sensible profit of at least 20M a year.This in my humble opinion is what they should be doing contracts at least in the private sector will be much reduced business tends to cut CAPEX first when their profits fall and to win these fewer contracts they will need to be lean and mean only the fit will survive.

[ammu12] 20/9/2020 17:55

I see this in the 70's or maybe lower

[mark1000] 18/9/2020 01:11

A construction article put out by Mace yesterday says its consultants expect tender prices to fall by 2.5% in 2021 ( as a result of a reduction in new construction contracts ) well with GFRD ambitions being a 1.5% margin that leaves us screwed. The outcome being either no bid or win the bid and loose 1% go figure it. Kier came out with a huge loss yesterday but at least they are targeting cost reductions of a 100M a year. Cost cutting appears not to be so important to GFRD who are very happy sitting on their shareholders mountain of cash safe in the knowledge that their wages will be paid at least for three more years. The current Directors are out of their depth and a merger with someone like MGNS with a proven senior Management team makes sense before all that cash dissapears and no one will want anything to do with GFRD.

[careful] 17/9/2020 15:47

We fear cash burn, do the management preserve the cash or dissipate it.

Out and about today, everywhere seems to be dug up for major construction projects.
Useful important projects that will no doubt be completed.

But I see a group of 4 hard hatted construction workers standing around chatting.
Another manning the traffic flow with a hand held sign, on a road dug up.
There are traffic cones on the road shutting down one lane yet nothing going on.

I wonder if the culture of this industry is suited to private investment.
They all seem to go bust, always years late, delays on the slightest excuse.

[ammu12] 17/9/2020 13:12

Cooperjam, Just cause they have money doesn't mean it should be valued higher.The business currently does not make money and is a loss making outfit.With margin target of 1.5% I doubt they'll ever make any money as the business model is wrong

[careful] 17/9/2020 12:51

A girl close the the financial director.
bought 20,000 shares.

a good sign.