Galliford Try Half Year results

[daveh]

Can be found here:

www.investegate.co.uk/article.aspx?id=2 ... 3679X&fe=1


The important bit:

INTERIM DIVIDEND

Reflecting the Group's strong performance during the half year to 31 December 2016 the directors have declared an interim dividend of 32.0 pence per share (H1 2016: 26.0 pence) which will be paid on 6 April 2017 to shareholders on the register at close of business on 24 March 2017. The Group retains its target of 1.6 times cover for FY 2017.

[daveh]

Having now read the report in more detail some other interesting comments:

· Strong first half performance with profit before tax up 19% to £63.0 million, EPS up 19% to 61.9p and interim dividend up 23% to 32.0p reflecting confidence in the full year outlook.

· Net debt of £113.8 million (H1 2016: £95.7 million), in line with expectation.


Our targets include 60% growth in profit before tax to FY 2021, a five year CAGR on dividend of at least 5% and a return on net assets in FY 2021 of at least 25%, whilst rebuilding dividend cover to 2.0x.

Sounds good if they can keep increasing the dividend and improve the cover. It will be interesting to see if the final dividend is also increased by the same % as the interim.

[77ss]

Having now read the report in more detail some other interesting comments:

· Strong first half performance with profit before tax up 19% to £63.0 million, EPS up 19% to 61.9p and interim dividend up 23% to 32.0p reflecting confidence in the full year outlook.

· Net debt of £113.8 million (H1 2016: £95.7 million), in line with expectation.


Our targets include 60% growth in profit before tax to FY 2021, a five year CAGR on dividend of at least 5% and a return on net assets in FY 2021 of at least 25%, whilst rebuilding dividend cover to 2.0x.

Sounds good if they can keep increasing the dividend and improve the cover. It will be interesting to see if the final dividend is also increased by the same % as the interim.

A welcome dividend increase. I interpret the aims of rebuilding dividend cover and a 5 year target of 5% CAGR (agreed, they do say 'at least') as pointing to significantly lower increases in future. Not a problem for me - given the reasonably high starting point.

Cloud on the horizon? The wafer thin (and decreasing) margin on their construction business, which accounts for about 55% of revenue. At least they acknowledge the issue.