Galliford Try (GFRD ) said its 50:50 joint venture with MWH Treatment, for the provision of environmental services to the UK water industry, has been awarded a further six year contract under the Scottish Water framework worth £700m..
The UK-based construction company said its Environment business has 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.
CEO, Bill 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."
More positive news for shareholders following 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.
The group delivered several multi-year contracts in 1H21 and noted that 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 15% since the beginning of December 2020. 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.
Reasons to GFRD
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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