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Strong Scottish performance helps deliver record profits for Galliford Try

The new Oban High School
The new Oban High School

Scottish builder Morrison Construction is suffering no ill-effects from economic downturn in the north-east due to its focus on public and regulated sector projects, the firm’s boss said yesterday.

Morrison, which is part of the Galliford Try group, is involved in the two biggest construction projects north of the border just now – the Aberdeen city bypass road, worth £745million, and the £1.3billion-plus Queensferry Crossing over the Firth of Forth.

Ken Gillespie, Galliford Try’s chief operating officer and the man who has effectively led Morrison since Middlesex-based Galliford Try acquired the business in 2006, said Morrison made a key contribution to record first half results for the group.

He added: “We haven’t seen any impact from the oil and gas downturn. Our business in Scotland is 90% focused on public and regulated sector work, and not so much on the private sector.”

Mr Gillespie said Morrison did 20% more work and employed 15% more people, compared with a year earlier, during the six months to December 31.

Galliford Try’s Scottish construction arm was busy in education and healthcare, boosted by the award of the £55million Anderson High School project in Shetland and the £72million East Lothian Community Hospital.

Morrison is one of the partners involved in the Connect Roads consortium building the 28-mile Aberdeen Western Peripheral Route, alongside Balfour Beatty and Carillion.

Other current work includes the £48.5million contract for Hub North Scotland at Wick Campus, which is due to be completed this year and will replace the existing Wick High School, Newton Park Primary School, South Primary School and Pulteneytown Academy Primary School.

Morrison is also the main contractor behind plans for a new Oban High School, for which designs won planning approval last September.

The new Anderson High School and halls of residence Lerwick, currently under constuction, is the biggest capital project ever undertaken by Shetland Islands Council.

Mr Gillespie said Morrison’s continued growth north of the border, with a 22% year-on-year increase in revenue, what was happening with Galliford Try elsewhere in the UK.

Reporting record half-year pre-tax profits of £52.9million, a 24% increase on the £45.9million notched up a year earlier. Group revenue was up by 9% at £1.18billion.

Galliford Try chief executive Peter Truscott said an 18% increase in the interim dividend reflected the group’s “continuing confidence in the delivery of our disciplined growth strategy”.