Galliford Try Share Discussion Threads

[our haven] 08/3/2023 08:06

I would say a little more than solid, as we are at the upper end of expectations.Got to be happy this morning.

[ddubzy] 08/3/2023 07:17

Solid update, increase in profits, revenue & divi with full year Profit expected to be at the upper end of analyst estimates.3p (36pc increase) ex-divi date next week.

[ddubzy] 06/3/2023 09:13

Nice RNS pre half year results on Wednesday and ex divi date next week.

[our haven] 06/3/2023 08:20

Good news on their reappointment on to the framework of Southern Water

[sharesoc] 24/2/2023 22:03

ShareSoc is hosting a webinar with Galliford Try (GFRD) on 22 March 2023, which may be of interest to current shareholders or potential investors. Andrew Duxbury – Finance Director will be presenting. You can register here:

[catabrit] 23/2/2023 16:14

Just sharing what I shared on the Costain thread re today’s announcement from the government about its commitment to speeding up the process for the delivery of core infrastructure projects. We all have our favourites but I think this bodes well for the entire sector.

[catabrit] 23/1/2023 14:04

Have been buying this recently. I suspect it’s got a ceiling in the share price until the contract issues are resolved but I feel pretty well protected down here. Market is assuming a nasty payout considering the negative EV. Think Costain is a better bet from a r/r perspective as it has dealt with its legacy issues but hard to ignore the value on offer here so I’ve started buying. Let’s see what happens.

[our haven] 05/1/2023 08:07

Nice contract win to build a new facility at Rye Hill for £95m. Keeps the pipeline healthy.

[sphere25] 29/11/2022 14:30

Had a little go for a bounce.

Been watching and waiting to see if the sellers are done here.

As per RNS this week, two funds mopping up, as well as the company share buyback. Surely that is enough to hold at least this level. If it was just a case of sellers looking for liquidity, it could bounce back as per CNIC.

Interestingly no significant blocks now being lobbed into the market, the book is building on the bid (5k@ 150p, 10k@ 151.2p, 10k @152.2p) and the price is trying to edge higher - currently at 153p.

Unless there is a late plonker seller to still come in, sellers might be done here. They have had a little while now to sell but haven't appeared. The other thing is the share buyback isn't active in buying in size either so maybe another sign sellers could be done. That buyback was picking up sizable blocks of 100k and a 250k too.

Lumpy, gappy and illiquid so stick a visual stop at under 149p in case a late plonker seller comes in.

All imo
DYOR

[sphere25] 24/11/2022 11:45

Interesting activity here with a 2.685m block mopped up at 150.5p. That is rare for GFRD. Someone has picked up 2.5% of the company in one go. There is also a 150k and a 350k block. Unsure if the former might be part of the buyback, some decent blocks being picked up of late through that.

This is a trading share. If these sellers (who have caused this move down from near 170p) are cleared, the price could ping back up there.

No movement yet with the price flat, but a break of 152p is surely what the market is watching out for.

All imo
DYOR

16:22 UPDATE:

152p hasn't looked under threat. The sellers keep coming and have filled the offer with sell orders at 151p, 151.2p and 151.6p to cut off any bullish move for now. It looks like more needs to be sold. GFRD have been performing well so it doesn't look like this is any reflection on the company. Maybe someone selling to find liquidity as per the recent move in CNIC. Keeping a watch but it is very illiquid, have to move very carefully.

[our haven] 26/10/2022 07:55

Solid contract win this morning good to see. It builds nicely their presence in this growth industry.

[melloteam] 20/10/2022 11:11

Just to let shareholders and prospective investors know that Galliford Try, Warpaint, Delta Application Services and Quixant will be presenting on the MelloMonday webinar at 5pm on Monday 24th October 2022.

The programme for the evening is as follows:

5.00 pm Welcome and Mello Bliss update from David Stredder
5.10 pm Company presentation by Galliford Try
5.50 pm Alan Charlton & David Stredder discuss ‘Irrational Markets Create Bargains!’
6.10 pm Company presentation by Warpaint
6.50 pm Company presentation by Delta Application Services
7.05 pm Company presentation by Quixant
7.45 pm Karin Schulte presents Investor updates
8.00 pm Mello BASH

There will be over 500 investors attending and these are very popular shows with company presentations, fund manager and investor interviews, and panel sessions.

Tickets are still available and if you would like one at half price then enter the code MMTADVFN50.

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[bisiboy] 01/10/2022 20:05

the interest on the cash balance will go a long way towards funding the buybacks

[imastu pidgitaswell] 30/9/2022 12:31

No, you're not missing anything. Broadly 10% of market cap, and 10% again if they renew next year. And then another 10%...

Similar anomalies elsewhere - cash mountains on balance sheets that can be used to reduce share numbers, increasing value per share.

The issue is whether there is a risk to the net cash generation - if so, then the buybacks might stop. If not, and cash generation continues then the buybacks continue then the share price will inevitably rise - there is nowhere else it can go.

Previous comments on the contract uncertainties still apply - which as it weighs on the shares and keeps the price low, for now, may result in benefit over the medium to long term from buying back the shares at low prices - if they do indeed turn out to be low.

Patience required, along with an eye on potential negative developments. And honestly, that's it.

[1dasty] 30/9/2022 12:22

If my maths are correct, this £15m buyback will buy 10% of all shares. And is just a tiny drop of cash on gfrd account. If they use all their cash, there would be just a few dozen shares left all owned by me! I might own the entire gfrd business soon! Am I missing something so obvious why this share price is where it is?

[bisiboy] 26/9/2022 22:52

Hope we have good treasury management as we should now be making circa 5m per annum from our cash balances

[imastu pidgitaswell] 22/9/2022 16:01

It may not need it - but all the more reason why it should benefit shareholders significantly.

[riley109] 22/9/2022 10:00

With only 111m shares in issue does this really need a share buy back?.

[sphere25] 21/9/2022 08:52

Just taken a few.

Abit slow at the off, should have had them at 160p. Interested to see if the market will bid this up to at least 170p on those numbers. Not asking for alot but that probably is asking for alot right now.

The iceberg that got cleared at 160p is now sat at 162p. I'd exit under 158p keeping a close eye on it as this is a right lumpy illiquid one - gaps alot. The book looks reasonably well bid from 158p but clearly has to clear that iceberg seller.

Normally I'd say there is enough in that report to be bullish enough to look for at least a 5-10% pop higher but this market just doesn't like to give much away. The macro clearly trumps all and we have to manoeuvre alot quicker.

All imo
DYOR

[imastu pidgitaswell] 21/9/2022 08:50

They're fine - good balance sheet. But:


..................................................2022........2021
..................................................GBPm........GBPm

Profit before income tax...........................5.4........11.4
Exceptional items............................... (13.7)....... -
Pre-exceptional profit before income tax .........19.1........11.4

I think they're being a little naughty describing their ERP implementation as exceptional. It is a bit of a grey area - there is a reason they are not allowed to capitalise such costs... I would also (speaking from experience) caution that implementation of ERP systems can get very messy and very expensive compared with original plans.

The acquisition exceptional is OK.

There is also this:

"As previously disclosed, the Group provided services in respect of three contracts with entities owned by a major infrastructure fund of a blue-chip listed company. Our work on these contracts formally ceased on their termination in August 2018. Costs were significantly impacted by client-driven scope changes and the Group has submitted claims and variations to the value of circa GBP95m in respect of these costs (2021: GBP95m). The Group has taken extensive legal advice on our entitlement, and we have been successful in two adjudications supporting the validity of the Group's position. The claim is progressing in line with the original expected timetable. Taking into account the requirements of IFRS 15, the Group had constrained the revenue recognised in prior periods to the extent that it was highly probable not to result in a significant reversal in the future. At 30 June 2022, the Group has updated its assessed recoverability in accordance with IFRS 15. Given the progress, in line with expectations during the year, this is unchanged."

Now I only mention this as Costain, a business I follow had something similar running for a few years in respect of 2 contracts. Both were flagged with similar wording - legal advice, initial adjudication favourable, robust defence of our position, potential upside etc etc. When the final adjudication came, it resulted on both occasions in massively unfavourable outcomes - over £100m extra all told, despite no initial provisions being taken - wiping out the proceeds of a rights issue in 2020. That is all done now, but it still happened despite new management which was (sort of...) not involved in the original contract work.

I would imagine it will weigh on the shares until resolved.

[our haven] 21/9/2022 08:05

Great final results. Dividend up, buy back announced, all a result of their great all round numbers.Very happy days. :-)

[masurenguy] 15/9/2022 09:23

Gervaise Williams, Diverse Income Trust on GFRD. "Very strong balance sheet in fact cash balances on the company balance sheet exceed it's market cap which is about £175m....with around a 4% yield."

[govner] 08/8/2022 20:04

That makes sense, Thanks

[our haven] 08/8/2022 18:55

I think that you are looking at the interim dividend paid and not adding the final dividend.