Although Galliford Try only paid 拢1m to the administrators of NMCN for the failed contractor鈥檚 water business, it spent an additional 拢5.3m on integration and restructuring costs, as well as legal and professional fees.
The company has also had to spend 拢3.4m on a cloud-based enterprise resource planning (ERP) system, as required by accounting guidance.
Galliford Try鈥檚 revenue for the half year to 31st December 2021 increased 10% to 拢594.0m (H1 2021:聽 拢541.7m).聽
Pre-exceptional operating profit before amortisation increased to 拢6.9m (2021 H1: 拢3.9m). Building generated profit of 拢8.4m (2021 H1: 拢6.0m), representing an operating margin of 2.2% (H1 2021: 1.6%), and Infrastructure generated profit of 拢4.3m (2021 H1: 拢2.4m), representing an operating margin of 2.1% (2021 H1: 1.5%). The combined divisional operating margin was 2.2% (2021 H1: 1.6%)
With total exceptional items of 拢9.7m incurred in the period, the bottom line was a loss before tax of 拢2.6m for the first half.
Chief executive Bill Hocking said: "The group has continued to perform well in the first half of the financial year, successfully managing industry-wide material shortages and inflation. I am pleased to report that we are making good progress against our sustainable growth strategy, and our target of 3% divisional operating margin across Building and Infrastructure.
鈥淭he acquisition of NMCN鈥檚 water businesses is fully aligned with our strategy and offers significant opportunity for our growing Environment business 鈥� enhancing our water, engineering, off-site build and asset optimisation capabilities.鈥�
He added: 鈥淚 am excited about the future given our excellent people, strong balance sheet, market leading sector positions, investment in supplier relationships and high-quality order book.聽 The group continues to trade well and is well placed to continue to deliver strong performance and long-term sustainable value for all our stakeholders."
In October last year Galliford Try paid 拢1m to the administrator of NMCN for the water business of NMCN, including Nomenca and Lintott. As part of the deal Galliford Try took on approximately 900 NMCN employees. [See our report here.]In its last audited accounts, for the year to December 2019, the NMCN Water segment generated operating profit of 拢7.6m on turnover of 拢282.6m. Its gross assets were valued at 拢70.0m.
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