UK construction group Galliford Try (GFRD) jumped 20.5% to 99p as it reiterated an expected return to the black and flagged the restoration of its dividend ahead of today’s AGM.
Lockdown 2.0 is very different for the construction sector from what happened in the spring when sites had to be closed down.
CLOSE TO BUSY AS USUAL
The company said it expected to return to profit and resume its dividend in the first half of its fiscal year as productivity remains at near-normal levels during the second national lockdown.
‘Our strategy and sector focus mean that the group is positioned to emerge strongly from the pandemic, supporting the Government's planned investment in infrastructure and economic recovery,' the company said.
The group was performing well, in line with the board's expectations, with a first half year average month end cash position toward the upper end of previous guidance of £125m-to-£145m, it added.
Galliford is a more streamlined operation following the sale of its housebuilding and regeneration businesses to Vistry (VTY) - a deal which completed in early 2020.
Previewing todays update Peel Hunt had commented: ‘The shares are materially undervalued given the balance sheet cash, investments portfolio and profit/cash opportunity from the well-bid order book.’
