Galliford Try Holdings PLC (LSE:GFRD) said it was performing well, with trading in line with expectations and its sustainable growth strategy.
Financially, the construction group is on solid foundations as it generated average month-end cash over the six months to December 31 of £180mln, up from £164mln. It exited the period with £210mln in cash.
The order book, meanwhile, stands at £3.5bn, up from the £3.3bn reported in the final results statement in September.
Recent project wins include Galliford’s share of the £7bn Department for Education 2021 Construction Framework and the £55mln Galashiels Community Campus for the Scottish Borders Council.
Finally, the group said it was making ‘excellent progress’ with the integration of the nmcn water businesses acquired in October.
Galliford chief executive Bill Hocking said he was pleased with the company’s first-half performance.
“We have made strong progress on our strategic objectives. Our recent acquisition of nmcn's water business, fully aligned to our strategy, offers a significant opportunity to the group and our water sector and related clients.
“With our excellent people, strong balance sheet, market-leading sector positions, and high-quality order book we are well placed to deliver strong future performance and long-term sustainable value for all stakeholders."
House broker Peel Hunt said it was confident about retaining estimates, "but note the upside risk to the outer years given management’s financial targets".
Based on a balance sheet strength with average net cash of 145p per share and an investments portfolio worth 43p per share, the broker said the "profitable trading performance across structurally attractive markets leave the shares materially undervalued in our view".
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