Galliford Try (GFRD) announced to investors that its Environment business has successfully secured a place on a strategically targeted framework with Scottish Water worth £350m.
Water services company, Scottish Water, which is described as being ‘a key client’, has appointed Galliford Try to lot 2 of its Delivery Vehicle 2 programme, covering planned civil engineering projects including pipelaying, drainage and capital maintenance of its assets.
Galliford said the framework, which is worth up to £350m over six years, with an extension option of up to six years, complements its most recent appointment unveiled in April 2021.
Commenting on the framework win, Bill Hocking, CEO of Galliford Try, said: "This success represents our latest strategic win as we build on our capability of water asset optimisation.
He added, “We look forward to continuing our strong working relationship with Scottish Water to efficiently deliver the facilities deserved by their communities, and further showcasing our position as a leading contractor of sustainable and value-adding solutions to the sector."
In April 2021, the UK-based construction company said its Environment business had been appointed to Scottish Water's new Non-Infrastructure Framework for the SR21-27 investment programme, which is valued at £700 million over a six-year time frame beginning this year.
The JV, known as ESD, supports the capital delivery functions of Scottish Water, providing process design and build solutions for water and wastewater treatment works in Scotland.
The company outlined to investors that its previous ESD joint venture with MWH delivered over 150 projects for Scottish Water during the six-year SR15 investment programme.
At the time, Hocking said, "The water sector remains a key focus for the infrastructure side of our business and I am delighted that we have renewed our position on this framework.”
He said, “We are a long-term partner for Scottish Water and look forward to continuing our excellent relationship, providing high-quality solutions for their investment programme needs."
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Today’s second appointment follows a strong set of first half results to 31 December 2020 and a return of dividend payments under a new and enhanced dividend policy of 1.2p per share.
Galliford delivered several multi-year contracts in 1H21. It says its risk-based approach to new business provides it with significant confidence in market expectations for FY21 and beyond.
Shares in Galliford Try have increased by over 10% since the beginning of January 2021. While the impact of COVID-19 resulted in the business losing around half of its value last year, it has since regained its value and the Company has reported a return to profitability.
Galliford Try is a leading UK construction group listed on the London Stock Exchange.
Operating as Galliford Try and Morrison Construction, the group carries out building and infrastructure projects with clients in the public, private and regulated sectors in the UK.
Strategy for Sustainable and Profitable Growth
The Group is well capitalised with no debt, no pension liability, a portfolio of high-quality PPP assets, a strong order book and is expecting to be profitable this year and reinstating its Dividend at the Half Year stage.
Risk Management at Its Core
Galliford Try is laser focused on robust risk management and concentrating on growth sectors where the Company has a highly differentiated offering with a high value proposition for its clients.
High Visibility on Future Earnings
Galliford Try has signed a number of high-value longstanding contracts with exposure to long-term Government funded Infrastructure projects as part of its economic recovery plan.
The leading UK construction platform, combined with the Company’s strong client relationships, provides the Board with confidence in the future performance of the business.
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