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UK construction group, Galliford Try, has today announced plans to raise £150m from investors in the coming weeks and cut its dividend to support its balance sheet in the wake of Carillion’s collapse.
Meanwhile, the housebuilder’s results in the half-year results to 31 December 2017 showed “strong financial and operational performance”. The group’s overall revenue was up year-on-year to £1.5bn.
Galliford ran a number of legacy contracts with Carillion and its collapse had increased its cash commitments on an Aberdeen joint venture by more than £150m.
Apart from the capital raise, Galliford would reportedly bring forward previously-announced plans to increase its dividend cover to 2x “pre-exceptional” earnings. That meant a cut in its interim dividend from 32p to 28p per share, according to Financial Times.
Peter Truscott, chief executive, added: “We continue to maintain strict control over net debt, which is consequently better than our guided level.
“We enter the second half of the year with a solid foundation to build on and strong fundamentals for the housing market.
While we remain cautious of the impact of the current political uncertainty and the medium-term outlook for the macro economy, we believe our focused strategy, strong order book and disciplined approach will deliver further growth and shareholder value.”