North-east rain and Firth of Forth winds helped erode profits at housebuilder and construction group Galliford Try by 57%, the company has said.
Figures released yesterday showed the firm, which owns Aberdeen city bypass and Queensferry Crossing consortia partner Morrison Construction, was hit by one-off charges of £98.3million, including £87.9million on the two major fixed-price projects.
The Middlesex-based group’s pre-tax profits for the year to the end of June slumped to £58.7million from £135million in 2016. Its revenue increased by 6% from £2.67billion to £2.82bilion in the same period.
Galliford Try, with partners Balfour Beatty and Carillion, was contracted to construct the £550million Aberdeen Western Periperhal Route (AWPR) in 2014. In a £790million contract awarded in 2011, it joined a consortium including ACS (Hotchief, Dragados) and American Bridge to build the new road bridge over the River Forth, which was officially opened by the Queen last week. Yesterday Bill Hocking, chief executive of construction and investments at Galliford Try, said the weather, including “a few inundations of rain”, had been among factors that had hampered work on the AWPR.
He added: “Our guys are working hard and it’s starting to look like a road, with long stretches finished.”
Mr Hocking also said the company had significantly underestimated the impact of the wind on construction operations at heights of up to 147 feet on the Queensferry Crossing, but was “immensely proud” of the work it had done there.
He confirmed it would not bid for future large infrastructure jobs on fixed-price contracts.
Galliford Try said profits were knocked by £19million for the cost of sales in construction and £1million in professional fees for its unsuccessful £1.2billion bid for rival Bovis Homes. But its housebuilding division put in a strong performance, with Linden Homes recording an operating profit of £170million, compared to £147million in 2016, and revenue up 11% from £840million to £937million.